Barry Callebaut Group, manufacturer of chocolate and cocoa products, has announced its full year results for the fiscal year 2018/19, showing sales volume to have increased by 5.1%, which is “well above market growth,” the company stated.
Sales volume in the chocolate business grew by 5.9%, a figure well above the growth rate if the global chocolate confectionery market, currently at 1.8% according to Nielsen.
All Regions and key growth drivers came from outsourcing, which contributed a 5.2% growth, emerging markets which saw an increase of 9.7% and gourmet and specialties (excluding beverage) at 6.1%. Global cocoa volumes increased 2.4%.
Sales revenue increased by 7.8% in local currencies. The Group said the increase in sales revenues was supported by the first-time adoption of IFRS 15 and higher raw material prices, which the Group passes on to its customers for a large part of its business, based on its ‘cost-plus’ model.
Gross profit developed in line with the growth in sales volume and amounted to CHF 1,188,.4 million, up to 5.1% in local currencies. The positive effect from volume growth and product mix was offset by costs for structural improvements of operations, said the Group. Net profit for the year, excluding the one-off effect for the early bond repayment – grew by 14.2% in local currencies.
Antoine de Saint-Affrique, CEO of the Barry Callebaut Group, said: “I am delighted to announce another set of strong results, with profitable growth and good cash generation. We are also proud to have successfully delivered on our mid-term guidance, which was on average 4-6% volume growth and EBIT above volume growth in local currencies for the 4-year period 2015/16 to 2018/19. On average, we have achieved above-market volume growth of +4.5% and EBIT growth in local currencies of +13.9% per year. These achievements confirm the strength of our long-term ‘smart growth’ strategy.”