Barry Callebaut posts sweet sales
following company restructuring, profits were showing improvement,
despite the cocoa market's recent instability.
Net profit for the company increased 17.4 per cent to CHF183m (€115m) while sales growth was up 4.9 per cent to CHF4.3bn (€2.7bn) according to the confectioner's yearly results.
The cocoa industry has been dogged by supply chain fears recently following unrest in the Cote D'Ivoire region which accounts for around 1.3m tonnes of the bean annually.
But, thanks to existing stockpiled supplies, cocoa processing giant Barry Callebaut was able to ride out short-term instability and continue processing operations as normal
Restructuring at the company was completed by September this year and involved a shift in organisation in order to focus more clearly on regional business.
Barry Callebaut CEO Patrick De Maeseneire said: "In Europe, we are continuously investing in our factory network in order to respond to growing customer demand, maintain cost leadership and anticipate new consumer trends."
Sales in Europe have boosted company results after a slight slump last year and the unseasonably warm weather, which hit many confectioners hard, failed to make a dent on profits.
De Maeseneire said: "We are pleased that we have again achieved very good results in fiscal year 2005/06, although we had a challenging fourth quarter due to a very hot summer in Europe, which impacted our volume growth.
"Most importantly, Consumer Products Europe has achieved a positive result; margins were improved and costs reduced. The business is now operating on a solid foundation."