Accelerated Sales, Preparing for Future Growth

Accelerated Sales, Preparing for Future Growth 
ZURICH, SWITZERLAND -- (Marketwire) -- 11/07/12 --  Barry Callebaut
AG / Accelerated sales, preparing for future growth. 
Processed and transmitted by Thomson Reuters ONE. 
The issuer is solely responsible for the content of this
announcement. 
Barry Callebaut - Full-year results, fiscal year 2011/12 


 
 -- Strong volume growth across all Regions: +8.7%, significantly
    outperforming the market
 -- Substantial investments affecting bottom-line result: EBIT +1.0%, net
    profit -5.2% (in local currencies)
 -- Top-line growth driven by Food Manufacturers Products business,
    emerging markets and strategic partnerships
 -- Renewed mid-term guidance[1]: 6-8% volume and EBIT growth until 2014/15
 -- Proposed payout to shareholders of CHF 15.50 per share, payout ratio of
    33%
 -- Nicolas Jacobs proposed for election as Board member; Stefan Pfander
    stepping down

 
Juergen Steinemann, CEO of Barry Callebaut, said: "Barry Callebaut
achieved a
strong volume growth in the past fiscal year, significantly
beating the market.
Thanks to an especially vibrant fourth quarter,
we were even able to accelerate
our pace. Overall business activity
remained solid both in developed and emerging markets. We invested
significantly in structures, factories, our Gourmet business and
"Sustainable Cocoa". These deliberate investments, together
with the
ramp-up costs associated with various partnership agreements,
affected
our bottom-line results." 
Group key figures for fiscal year 2011/12 - from continuing
operations 


 
-----------------------------------------------------------------
---------
                         Change in %
 
                        in local  in reporting  12 months up   12 months up
                      currencies      currency        to Aug         to Aug
                                                    31, 2012    31, 2011[2]
---------------------------------------------------------------------------
 Sales volume  Tonnes                      8.7     1,378,856      1,268,925
---------------------------------------------------------------------------
 Sales revenue  CHF m       11.5           8.3       4,829.5        4,459.9
------------------------------------------------------------------
---------
 Operating
 profit (EBIT)  CHF m        1.0         (2.5)         353.2          362.3
---------------------------------------------------------------------------
 EBIT per
 tonne            CHF      (7.0)        (10.3)         256.2          285.5
---------------------------------------------------------------------------
 Net profit     CHF m      (5.2)         (8.5)         241.1          263.6
---------------------------------------------------------------------------

 
In its past fiscal year 2011/12 ended August 31, 2012, Barry Callebaut
AG, the world's leading manufacturer of high-quality cocoa and
chocolate products, accelerated its growth pace and achieved
strong
volume growth in all Regions. Sales volume grew by 8.7% to 1,378,856
tonnes. All Product Groups contributed to this growth. Barry
Callebaut's growth
was significantly higher than the global chocolate
market growth[3]. It was driven by the company's core business, the
Food Manufacturers Products business,
including long-term partnership
agreements. Specialties products and emerging
markets also supported
growth. Barry Callebaut's Gourmet business considerably
outpaced the
respective local market growth. 
Sales revenue increased 11.5% in local currencies (+8.3% in CHF) to
CHF 4,829.5
million. In order to support current and future growth,
Barry Callebaut invested
significantly in structures, factory
expansions, the Gourmet business, ramp-ups
related to strategic
partnership agreements, and "Sustainable Cocoa". An accelerated
demand as well as capacity constraints in some areas resulted
in
higher operating and supply chain costs. All these factors
affected the company's operating profit (EBIT): EBIT increased 1.0%
in local currencies (-2.5% in CHF) to CHF 353.2 million. A lower EBIT
(in CHF), higher financing costs as well as a less favorable tax mix
led to a decrease in net profit from continuing operations (-5.2% in
local currencies, -8.5% in CHF) to CHF 241.1
million. Net profit for
the year including discontinued operations amounted to
CHF 142.6
million, compared to CHF 176.8 million in prior year. 
Outlook - Positive on company's performance despite challenging
environment 
"Despite the current, rather difficult economic environment,
especially in Western Europe, we remain positive on delivering on our
strategy and reaching
our targets. Therefore, we have renewed our
mid-term guidance of on average 6-8% growth in volume and EBIT until
2014/15[4]," said Juergen Steinemann on the outlook. "Our main
priority for the next fiscal year is to finalize the
various
investments in capacities and structures. This will create a
sound basis for
profitable growth. Other priorities are managing our
continued growth through
long-term partnerships, Gourmet and emerging
markets as well as further increasing our operational efficiency with
project "Spring" in Western Europe.
We also aim to bring additional
innovations to the market and further invest in our sustainability
initiative "Cocoa Horizons." 
Strategic developments / Highlights along the four strategic pillars
Expansion 
Barry Callebaut recently signed long-term agreements with Unilever,
Grupo Bimbo
(Mexico), Morinaga (Japan) and Arcor (Chile). The company
entered into a joint
venture with P.T. Comextra to build a new cocoa
processing plant in Indonesia.
Through capacity expansions at
existing factories and the addition of new factories, Barry Callebaut
significantly expanded its manufacturing footprint.
To further
develop its geographic presence in emerging markets, Barry
Callebaut
announced the construction of a new factory in Turkey last
month. Supporting the acceleration of its Gourmet business, the
company also acquired Spanish la Morella nuts and the American
decorations company Mona Lisa Food Products, Inc.
Focusing on
business-to-business activities, Barry Callebaut announced its
intention to sell its last remaining consumer chocolate factory in
Dijon (France) to Chocolaterie de Bourgogne. 
Innovation 
Barry Callebaut was the first company to receive a positive
Scientific Opinion
from the European Food Safety Authority (EFSA) on a
health claim on cocoa flavanols in July. The company was able to
provide evidence that the intake of a defined amount of cocoa
flavanols positively influences blood circulation in the human body.
In addition, Barry Callebaut also received awards for two of
its
recent innovations, the Terra Cacao((TM)) chocolate based on the
company's patented Controlled Fermentation method, as well as for a
special chocolate for
a new Magnum(R) ice cream. 
Cost Leadership 
Overall manufacturing costs per tonne of activity decreased on a
like-for-like basis by 3% (target: -2%). Strong volume growth
supported by technology and process improvements increased both
capacity utilization for liquid chocolate
and the cocoa processing
capacity utilization rate. 
After the sale of the Consumer Products business, Barry Callebaut
started a comprehensive reengineering project called "Spring", mainly
focused on Western
Europe. The company aims to improve customer
service, boost speed-to-market, reduce internal complexities, as well
as increase overall efficiency and services to the other Regions. 
Sustainable Cocoa 
With "Cocoa Horizons", Barry Callebaut started the most comprehensive
sustainability program in its history, based on its long-time
commitment in this
area. The focus is on direct and effective
investments in the early stages of
the cocoa supply chain. Over the
next 10 years, Barry Callebaut will invest CHF
40 million in the most
important origin countries. Last year, the company mainly
funded
training of cocoa farmers in Good Agricultural Practices (GAP), as
well
as in preparing them for certification. In addition, Barry
Callebaut started to build a Center of Cocoa Excellence in Cote
d'Ivoire and conducted more than 500 Farmer Field Schools during the
past fiscal year. 
Regional / Segment performance 
Region Europe - Strong growth in partly difficult markets The
European chocolate confectionery markets grew by 1.4%. Western Europe
slightly decreased (-0.6%) while Eastern Europe recorded attractive,
above-average growth at 5.2%, driven by Russia, Turkey and Poland.[5]
Region Europe achieved strong volume growth given the challenging
market conditions, especially in Southern Europe: sales volume
increased by 6.9% to
688,203 tonnes. After a slow start, the Food
Manufacturers Products business in Western Europe
gradually increased
sales volume growth with an exceptionally strong fourth quarter.
Growth was driven by outsourcing agreements and specialty products,
as well as overall market share gains. The Gourmet business showed a
good performance in the light of difficult markets in some of the key
countries, including Southern Europe. Sales volume at the Beverages
division declined slightly due to weather conditions and customer
destocking. In Eastern Europe, both Food Manufacturers Products and
the Gourmet & Specialties Products businesses continued to grow at
double-digit rates, to which Russia and Poland delivered the biggest
contributions. Overall sales revenue grew by 5.1% in local currencies
(+0.2% in CHF) to CHF
2,150.6 million. Ramp-up costs related to
outsourcing agreements, higher factory
and supply chain costs, and
investments in adapting structures as well as Gourmet impacted
operating profit (EBIT). It decreased by 1.7% in local currencies
(-5.1% in CHF) to CHF 232.2 million. 
Region Americas - Continued double-digit growth - top and bottom-line 
The U.S. chocolate market decreased by 2.0%, whereas the market in
Brazil slowed
down its growth pace to +4.7%.(5) Barry Callebaut grew
significantly faster than
the local chocolate markets. Overall sales
volume increased strongly by 15.3% to 361,819 tonnes in
Region
Americas. Both the Food Manufacturers and Gourmet &
Specialties Products businesses continued to grow by double-digits.
In North America, Corporate as
well as National Accounts showed
double-digit growth rates driven by new volumes
from outsourcing
agreements and market share gains. Barry Callebaut was able to more
than double its local volumes with industrial customers in Brazil;
the business in Mexico also reported a strong performance, increasing
its business
volumes double-digit. Our leading imported brands,
Callebaut(R) and Cacao
Barry(R), contributed significantly to the
strong Gourmet growth. Sales revenue increased by 13.1% in local
currencies (+13.5% in CHF) to CHF 1,111.8 million. Operating result
outpaced the strong volume and revenue development to a large extent
thanks to positive mix effects - particularly supported by the strong
performance of the Gourmet business - as well as an overall positive
margin development and improved capacity utilization:
Operating
profit (EBIT) rose by 25.4% in local currencies (+25.6% in
CHF) to CHF 90.2 million. 
Region Asia-Pacific - High, profitable growth 
Chocolate markets in Asia continued their solid growth pace at
+5.5%.[6] In Region Asia-Pacific, Barry Callebaut sustained its
double-digit volume growth
trajectory of recent years despite some
capacity constraints that limited growth
opportunities early in the
year. Sales volume rose by 10.3% to 57,815 tonnes.
The Food
Manufacturers Products business increased its sales volume
double-digit, particularly driven by strategic partnerships. In the
Gourmet business,
the company further strengthened its leadership with
the global Gourmet brands
Callebaut(R) and Cacao Barry(R). On the
basis of lower average raw material prices compared to last year,
sales
revenue rose by 4.1% in local currencies (+4.7% in CHF) to CHF
232.4 million.
Operating profit (EBIT) outpaced volume growth with a
strong growth of 20.9% in local currencies (+19.3% in CHF) to CHF
29.7 million, partly as a result of increased capacity utilization
and partly from positive margin developments. 
Global Sourcing & Cocoa[7] - Investments in future growth 
After continuously moving downward until the end of 2011, cocoa
prices were range-bound between GBP 1,400 and 1,600 per tonne. Dry
weather in Africa and
uncertainties about the next main crop as well
as the cocoa reform in Cote
d'Ivoire put some slight upside pressure
on prices end of July. Prices on the world sugar market corrected
significantly downwards whereas EU
sugar prices stayed at
historically high levels. Milk powder prices initially
declined,
followed by a strong surge due to the drought in the U.S. Milk
powder
prices closed at the rather high previous year's level. 
Capacity expansions at existing factories and higher internal cocoa
powder demand impacted Global Sourcing & Cocoa's growth in the first
half. Early 2012,
external demand started to pick up, driven by Barry
Callebaut's strategic partners. Overall sales volume rose by 4.7% to
271,019 tonnes. The segment reported continued strong revenue growth:
Sales revenue increased by 23.8% in
local currencies (+20.1% in CHF)
to CHF 1,334.7 million due to high cocoa powder
prices at the time
the business was contracted. After an initial downward correction,
the combined cocoa ratio increased later
in the year; overall, it had
a neutral effect on Barry Callebaut's profitability. In addition, the
positive volume growth was unable to fully offset increased costs
from the ramp-up of strategic partnership agreements including
related supply chain and logistic costs as well as from investments
in sustainability. Consequently, operating profit (EBIT) declined by
8.9% in local
currencies
(-15.7% in CHF) to CHF 65.2 million. 
Proposals to the Annual General Meeting 
Payout to shareholders 
The Board of Directors will propose a payout to shareholders of CHF
15.50 per
share (same as 2011), representing a payout ratio of 33%
(versus net profit from
continuing operations), at the Annual General
Meeting of Shareholders on December 5, 2012. The payout will partly
consist of a dividend payment from reserves from capital
contributions and partly of a capital reduction through
par value
repayment. The redistribution of these funds to shareholders will
not
be subject to withholding tax and - for individuals residing in
Switzerland and
holding the shares as private property - income tax.
The payout to shareholders
will be executed as of March 4, 2013,
subject to approval by the Annual General
Meeting of Shareholders and
the necessary statutory actions. 
Board of Directors 
All current members of the Board of Directors will stand for
re-election for
another term of office of one year except for Stefan
Pfander. He will step down
from the Board at 
the Annual General
Meeting 2012 after serving for seven years.
The Board of Directors
chaired by Andreas Jacobs expresses its gratitude to Mr.
Pfander
(1943) for his valuable contributions to the company's development.
The Board of Directors will propose at the Annual General Meeting
that Nicolas
Jacobs (1982) be elected as a new member of the Board of
Directors. This also
reflects the commitment of the majority
shareholder, the Jacobs family, to support Barry Callebaut in its
further growth. Mr. Jacobs currently holds the
position of Senior
Director for Global M&A and Development at Burger King Corporation.
He has also been a Board Member of Jacobs AG since 2008.
Nicolas
Jacobs is a significant shareholder of Barry Callebaut AG.
(see separate CV) 
*** 
For more detailed financial information see Barry Callebaut's "Annual
Report
2011/12" (only available in English on November 7, 2012; a
German version (only
PDF) to be available as of November 19, 2012),
as well as the company's "Letter
to Investors 2011/12": Both
documents are posted on Barry Callebaut's
website
(http://www.barry-callebaut.com/documentation); printed
versions of the "Annual
Report 2011/12" and "Letter to Investors
2011/12" will be available as of November 26, 2012 (only in English). 
*** 


 
-----------------------------------------------------------------
----------
 Financial calendar for fiscal year 2012/13 (September 1, 2012 to August
 31, 2013):
---------------------------------------------------------------------------
 Annual General Meeting 2011/12                    December 5, 2012, Zurich
---------------------------------------------------------------------------
 3-month key sales figures 2012/13 (news release)          January 16, 2013
---------------------------------------------------------------------------
 Half-year results 2012/13 (news release &            April 8, 2013, Zurich
 conference)
---------------------------------------------------------------------------
 9-month key sales figures 2012/13 (news release)              July 4, 2013
---------------------------------------------------------------------------
 Full-year results 2012/13 (news release &         November 7, 2013, Zurich
 conference)
---------------------------------------------------------------------------
 Annual General Meeting 2012/13                   December 11, 2013, Zurich
---------------------------------------------------------------------------

                                     *** 
Barry Callebaut (www.barry-callebaut.com): 
With annual sales of about CHF 4.8 billion (EUR 4.0 billion / USD 5.2
billion)
for fiscal year 2011/12, Zurich-based Barry Callebaut is the
world's leading
manufacturer of high-quality cocoa and chocolate -
from the cocoa bean to the
finest chocolate product. Barry Callebaut
is present in 30 countries, operates
around 45 production facilities
and employs a diverse and dedicated workforce of about 6,000 people.
Barry Callebaut serves the entire food industry focusing on
industrial food manufacturers, artisans and professional users of
chocolate (such as chocolatiers, pastry chefs or bakers), the latter
with its two global
brands Callebaut(R) and Cacao Barry(R). Barry
Callebaut is the global leader in cocoa and chocolate innovations and
provides a comprehensive range of services
in the fields of product
development, processing, training and marketing. Cost
leadership is
another important reason why global as well as local food
manufacturers work together with Barry Callebaut. Through its broad
range of
sustainability initiatives and research activities, the
company works with farmers, farmer organizations and other partners
to help ensure future supplies
of cocoa and improve farmer
livelihoods. 
*** 


 
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 Media and Analysts'/Institutional Investors'
 conferences of Barry Callebaut AG
---------------------------------------------------------------------------
 Date:     Wednesday, November 7, 2012
---------------------------------------------------------------------------
 Location: Barry Callebaut Head Office, Chocolate Academy, Groundfloor,
---------------------------------------------------------------------------
           Pfingstweidstrasse 60, Westpark, 8005 Zurich/Switzerland
---------------------------------------------------------------------------
           Media: 09:30 am to 10:30 am CET
 Time:     Analyst/Institutional Investors:
           11:30 am to approx. 01:00 pm CET
---------------------------------------------------------------------------
 
---------------------------------------------------------------------------
 The conferences can be followed by telephone or audio webcast.
 All dial-in and access details can be found on the Barry Callebaut
 website:
---------------------------------------------------------------------------
 
---------------------------------------------------------------------------
 Media
---------------------------------------------------------------------------
 Analysts
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*** 
Group key figures for fiscal year 2011/12 - from continuing
operations 


 
-----------------------------------------------------------------
----------
                                Change in %
 
                          in local in reporting 12 months up   12 months up
                        currencies     currency           to         to Aug
                                                Aug 31, 2012    31, 2011[8]
---------------------------------------------------------------------------
 Group
---------------------------------------------------------------------------
 Sales volume    Tonnes                     8.7    1,378,856      1,268,925
---------------------------------------------------------------------------
 Sales revenue    CHF m       11.5          8.3      4,829.5        4,459.9
---------------------------------------------------------------------------
 EBITDA           CHF m        4.4          0.9        434.3          430.3
---------------------------------------------------------------------------
 Operating profit
 (EBIT)           CHF m        1.0        (2.5)        353.2          362.3
---------------------------------------------------------------------------
 Net profit       CHF m      (5.2)        (8.5)        241.1          263.6
---------------------------------------------------------------------------
 Net profit
 (incl.
 discontinued
 operations)      CHF m     (15.8)       (19.3)        142.6          176.8
---------------------------------------------------------------------------
 
---------------------------------------------------------------------------
 By Region
---------------------------------------------------------------------------
 Europe
---------------------------------------------------------------------------
 Sales volume    Tonnes                     6.9      688,203        643,943
---------------------------------------------------------------------------
 Sales revenue    CHF m        5.1          0.2      2,150.6        2,147.1
---------------------------------------------------------------------------
 EBITDA           CHF m        0.1        (3.4)        261.3          270.6
---------------------------------------------------------------------------
 Operating Profit
 (EBIT)           CHF m      (1.7)        (5.1)        232.2          244.7
---------------------------------------------------------------------------
 
---------------------------------------------------------------------------
 Americas
---------------------------------------------------------------------------
 Sales volume    Tonnes                    15.3      361,819        313,715
-----------------------------------
----------------------------------------
 Sales revenue    CHF m       13.1         13.5      1,111.8          979.2
---------------------------------------------------------------------------
 EBITDA           CHF m       25.7         25.8        107.3           85.3
---------------------------------------------------------------------------
 Operating Profit
 (EBIT)           CHF m       25.4         25.6         90.2           71.8
---------------------------------------------------------------------------
 
---------------------------------------------------------------------------
 Asia-Pacific
---------------------------------------------------------------------------
 Sales volume    Tonnes                    10.3       57,815         52,397
---------------------------------------------------------------------------
 Sales revenue    CHF m        4.1          4.7        232.4          221.9
---------------------------------------------------------------------------
 EBITDA           CHF m       20.6         19.8         35.7           29.8
---------------------------------------------------------------------------
 Operating Profit
 (EBIT)           CHF m       20.9         19.3         29.7           24.9
---------------------------------------------------------------------------
 
---------------------------------------------------------------------------
 Global Sourcing
 & Cocoa
---------------------------------------------------------------------------
 Sales volume    Tonnes                     4.7      271,019        258,870
---------------------------------------------------------------------------
 Sales revenue    CHF m       23.8         20.1      1,334.7        1,111.7
---------------------------------------------------------------------------
 EBITDA           CHF m      (1.2)        (7.4)         91.4           98.7
---------------------------------------------------------------------------
 Operating Profit
 (EBIT)           CHF m      (8.9)       (15.7)         65.2           77.3
---------------------------------------------------------------------------
 
---------------------------------------------------------------------------
 By Product Group
---------------------------------------------------------------------------
 Sales volume    Tonnes                     8.7    1,378,856      1,268,925
---------------------------------------------------------------------------
 Cocoa Products  Tonnes                     4.7      271,019        258,870
---------------------------------------------------------------------------
 Food
 Manufacturers
 Products        Tonnes                    10.8      962,058        868,590
---------------------------------------------------------------------------
 Gourmet &
 Specialties
 Products        Tonnes                     3.0      145,779        141,465
---------------------------------------------------------------------------
 
---------------------------------------------------------------------------
 Sales revenue    CHF m       11.5          8.3      4,829.5        4,459.9
---------------------------------------------------------------------------
 Cocoa Products   CHF m       23.8         20.1      1,334.7        1,111.7
---------------------------------------------------------------------------
 Food
 Manufacturers
 Products         CHF m        8.3          5.2      2,774.0        2,635.7
---------------------------------------------------------------------------
 Gourmet &
 Specialties
 Products         CHF m        4.2          1.2        720.8          712.5
---------------------------------------------------------------------------
 
---------------------------------------------------------------------------

 
[1] Four-year growth targets for 2011/12-2014/15: On average 6-8%
volume growth
and average EBIT growth in local currencies at least in
line with volume growth - barring any unforeseen events. 
[2] Restated by the effect of the discontinued business. 
[3] The global chocolate confectionery market grew by 1.0% per annum
in volume.
Source: Nielsen, September 2011 - August 2012. 
[4] Four-year growth targets for 2011/12-2014/15: On average 6-8%
volume growth
and average EBIT growth in local currencies at least in
line with volume growth - barring any unforeseen events. 
[5] Source: Nielsen, September 2011 - August 2012. 
[6] Source: Euromonitor International. 
[7] The figures reported under "Global Sourcing & Cocoa" include all
sales of
cocoa products to third-party customers in all Regions while
the figures shown
under the respective Region show all chocolate
sales. 
[8] Restated by the effect of the discontinued business. 
The news release can be downloaded from the following link: 
Nicolas Jacobs: 
http://hugin.info/100441/R/1655616/535057.pdf 
Press Release : 
http://hugin.info/100441/R/1655616/535038.pdf 
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants
that: 
(i) the releases contained herein are protected by copyright and    
other applicable laws; and 
(ii) they are solely responsible for the content, accuracy and     
originality of the information contained therein. 
Source: Barry Callebaut AG via Thomson Reuters ONE 
[HUG#1655616] 
Contacts: 
for investors and financial analysts:
Evelyn Nassar
Head of Investor Relations
Barry Callebaut AG
Phone: +41 43 204 04 23
evelyn_nassar@barry-callebaut.com 
for the media:
Raphael Wermuth
External Communications Manager
Barry Callebaut AG
Phone: +41 43 204 04 58
raphael_wermuth@barry-callebaut.com
 
 
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