SWITZERLAND – Barry Callebaut’s revenue in the first quarter increased by 3.7% to US$1.91 billion driven by accelerated sales volume which rose 1.7% compared to the previous fiscal.
According to the company statement, the business performed as expected in terms of revenue while sales volume was slightly below.
The Swiss-chocolate maker said it expects accelerated sales momentum for the rest of the period to boost yearly results.
Barry Callebaut recently entered a long-term supply agreement with Burton’s Biscuit Company and the company said this would help sales volumes rise later in the year.
This would help keep on track to meet its mid-term guidance for 4 to 6% volume growth over the period 2015/16 to 2018/19.
It completed the acquisition of the chocolate manufacturing assets of Burton’s, UK’s second biggest biscuit manufacturer.
“We expect sales momentum to pick up in the back half of the fiscal year as additional volumes come on stream from new outsourcing contracts across all regions, as well as from recently launched innovations,” said Antoine de Saint-Affrique, CEO of Barry Callebaut.
“As anticipated in November, we had a steady start to the new fiscal year on top of a solid prior-year base.
Our good product mix and strong portfolio give us confidence that we are on track to deliver on our current mid-term guidance for the period ending with fiscal year 2018/19.”
The quarter’s performance was supported by Regions Americas which grew 8% by volume, Asia Pacific- 3.8% while EMEA posted stable volumes (dropped slightly by 0.1%), following a double-digit volume growth of 10.3% in the same prior year quarter.
Barry Callebaut said it now targets 4-6% increase in sales volume and higher increase in earnings for the three-year period to 2021/2022.
“Our results in the past three years have confirmed the strength of our ‘smart growth’ strategy.
Going forward, we remain committed to achieving consistent, above-market volume growth and enhanced profitability.
A continuing outsourcing trend, as evidenced by recently signed agreements, the dynamic growth in emerging markets, our attractive Gourmet business as well as our innovation power provide plenty of levers for further growth,” said Antoine de Saint-Affrique.
In November 2018, Barry Callebaut and Garudafood extended their existing supply partnership in Indonesia.
The company also in October, signed an agreement to acquire Inforum, a leading Russian B2B producer of chocolate, coatings and fillings.