Barry Callebaut reports 11.3% decline in H1 net earnings

Swiss chocolate products manufacturer Barry Callebaut has reported a decline in net profit of 11.3% in local currencies to CHF121.8m ($134.91m) in the first half of fiscal year 2011/2012, compared to CHF148.6m ($164.59m) in the same period last year.

Net earnings declined due to higher operating expenses and financing costs related to the bond placement in summer 2011 as well as a less favourable tax mix.

First-half sales revenue grew 10.4% to CHF2.48bn ($2.74bn) in the 6 months ended 29 February 2012, compared to CHF2.40bn ($2.65bn) last year, while sales volume increased 6.7% to 699,058t, outperforming the global chocolate market.

Barry Callebaut CEO Juergen Steinemann said that after an anticipated slow start in Q1, the company regained momentum in Q2, in all regions and across all product groups.

"In the last six months, we initiated selective investments in our future growth. This temporarily affected our bottom-line results," Steinemann added.

In Europe, Barry Callebaut saw sales volume increase 3% to 361,987t due to strong performance of the company’s Gourmet & Specialties Products business.

Sales revenue increased 4.7% to CHF1.17bn ($1.29bn), while operating profit (EBIT) declined 12.2% to CHF114.5m ($126.82m) in the region.

In the Americas region, sales volume increased 8.6% to 176,898t, driven by the company’s Gourmet business. Sales revenue increased 18% to CHF548.4m ($607.43m), while operating profit increased 19.9% to CHF44.3m ($49.06m).

In the Asia Pacific region, sales volume grew 7.9% to 28,514t, due to its Gourmet & Specialties Products business, which saw double-digit growth rates, led by its global brands Callebaut and Cacao Barry.

Sales revenue increased 4.7% to CHF1.17bn ($1.29bn), while operating profit (EBIT) declined 12.2% to CHF114.5m ($126.82m).

The company expects its mid-term volumes to grow between 6% and 8% on an average through 2012/2013, despite fragile economic environment in Western Europe and North America.

Image: Barry Callebaut’s net earnings declined due to higher operating expenses and financing costs related to the bond placementin summer 2011 as well as a less favourable tax mix. Photo: Barry Callebaut