Barry Callebaut reports 2.7% rise in H1 profit

Switzerland-based cocoa and chocolate products manufacturer Barry Callebaut has reported a 2.7% rise in net profit to CHF119.6m for the first six months of fiscal 2013-2014, compared with CHF116.5m a year ago.

The net earnings were impacted by higher financing costs associated with acquisition and a less favourable tax mix.

For the period ended 28 February 2014, revenues increased 21.5% to CHF2.9bn from CHF2.39bn in the last year.

Sales volume increased 17.6% to 876,297t from 745,256t last year.

Barry Callebaut CEO Juergen Steinemann said the company continues to focus on profitable growth based upon its four pillar strategy.

He added, "Furthermore, we proceed to work towards the full integration of the acquired cocoa business.

"Achieving all identified synergies will remain our top priority. We confirm our mid-term targets as well as the expected EBIT contribution of about CHF30m from the acquired cocoa business for this fiscal year."

In Europe, the company’s revenues increased 10.2% to CHF1.3bn with operating profit (EBIT) of CHF135.7m.

In Americas, revenues were up 7.3% to CHF608.8m with EBIT of CHF59.9m, while the Asia-Pacific region reported a 11.2% rise in revenues to CHF131.3m with EBIT of CHF15.1m.

The integration of Petra Foods’ cocoa business, which Barry Callebaut acquired a year ago, is underway as planned, and will contribute around CHF30m to the group’s EBIT in the first year of full consolidation.

The Global Cocoa unit has significantly benefited from the acquisition of Petra Foods’ cocoa business, Barry Callebaut noted.

The division reported a 72.2% increase in EBIT to CHF34.1m; the acquired cocoa business generated CHF12.9m in operating profits.

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Image: Barry Callebaut’s sales volume increased 17.6% to 876,297t during the six-month period. Photo courtesy of Barry Callebaut AG.