Nine-month results 2015/16

Barry Callebaut sales up despite ‘sluggish’ chocolate market

By Oliver Nieburg contact

- Last updated on GMT

World chocolate market volumes decline 2%, but Barry Callebaut grows 4.2%. Photo: iStock/Harvepino
World chocolate market volumes decline 2%, but Barry Callebaut grows 4.2%. Photo: iStock/Harvepino

Related tags: Chocolate

Barry Callebaut has grown revenues and sales volumes despite declines in the overall global chocolate confectionery market.

In the first nine months of fiscal year 2015/16 (ended May 31, 2016), the group grew its sales volumes by 4.2% to 1,376,650 metric tons, while its revenues were up 11.4% in local currencies to CHF 5bn ($5.1bn)

This came as the global chocolate confectionery market declined 2% over the same period, according to Nielsen data.

Weak chocolate market

“Our chocolate business performed particularly well, despite still sluggish demand for chocolate confectionery,”​ said Antoine de Saint-Affrique, CEO of the Barry Callebaut.

Chocolate confectionery volumes in the overall market declined 1.2% in Europe, 3.3% in the Americas and 2.1% in Asia-Pacific over the nine month period, Nielsen data shows.

But Barry Callebaut bucked the trend with 7.7% volume growth in Region EMEA (Europe, Middle East, Africa), 9.9% growth in the Americas and 13% growth in Asia-Pacific.

Barry Callebaut presentation
Source: Barry Callebaut presentation

Phasing out less profitable contracts

De Saint-Affrique said his company was continuing to phase out less profitable contracts in its cocoa business.

This led to a 7.8% sales decline in the firm’s Global Cocoa business – which supplies cocoa ingredients such as butter and powder.

However, all other segments grew. The firm’s largest division 'Food Manufacturers' – which supplies chocolate to firms such as Hershey and Mondelēz - was up 8.3% in volume during the period.

Barry Callebaut’s Gourmet & Specialties businesses, which sells decorations and value-added ingredients mainly to chefs and food service outlets, grew volumes 11.4%.

Cocoa costs and outlook

callebaut presentation
Barry Callebaut is the world's largest commercial cocoa grinder and the top supplier of industrial chocolate. Source: Barry Callebaut presentation.

The company said its positive results were partly due to higher ingredients costs, which it primarily passes on to customers.

Cocoa bean prices were up around 5% during the nine-month period, while world sugar prices were also up, said Barry Callebaut.

De Saint-Affrique added that market conditions “remain challenging in the short-term”.

“In that context, we will continue to reduce sales of cocoa products to third parties by phasing out less profitable cocoa agreements, which is impacting short-term growth,”​ he said.

The company confirmed its mid-term guidance to have average volume growth of 4.6% over the three-year period 2015/16 to 2017/18 and EBIT above volume growth in local currencies, barring major unforeseen events.

Related topics: Ingredients, Chocolate, Cocoa & Sugar

Related news

Show more

Related products

Create sugar-less chocolate with Isomalt

Create sugar-less chocolate with Isomalt

BENEO | 10-May-2022 | Technical / White Paper

Almost 1 in 4 consumers in the US say the best way to control sugar intake is eating less sugar-full candy. But nobody likes to give up on a good tasting...

Sugar-Free Doesn’t Have to Be Boring

Sugar-Free Doesn’t Have to Be Boring

Glanbia Nutritionals | 15-Mar-2022 | Product Brochure

The use of bright or unexpected colors to attract consumer’s attention online has created a market for colorful food and drinks that can “go viral”. EdiSparklz...



Global Food Properties | 03-Jan-2022 | Product Brochure

Located in Western Colorado, this 278,400 square foot chocolate confectionary plant features high-volume production infrastructure including purpose-built...

Related suppliers