Butterfinger maker Nestlé refuses to speculate if it will offload its challenged US confectionery business, but says it is “no stranger” to portfolio trimming.
Giving cocoa farming cooperatives shares in chocolate firms would improve livelihoods and encourage them to boost yields and quality, while giving chocolate manufacturers greater control of their supply chain, says Divine Chocolate.
Nestlé’s confectionery profit margin nosedive in 2013 was a consequence of higher cocoa prices and increased marketing spend that reflect faith in the category, according to the firm’s CEO.
Nestlé has recorded a drop in operating profit for its confectionery segment in the first half (H1) of 2013 mainly due to marketing spend around soccer events and intense competition.
Barry Callebaut has reported a slight dip in half-year profits as lower cocoa prices meant customers were paying less for the company’s range of cocoa ingredients compared to last year.
Lindt & Sprüngli’s operating profit rose 10.3% in 2012 and the company has declared itself “partially unaffected” by the continuing economic downturn as consumers still seek quality chocolate in tough times.
Sweden-based vegetable fats firm Aarhuskarlshamn AB (AAK) has reported increased operating profit for the fourth quarter, although volumes were hit by hurricane Sandy in the fourth quarter.
Operating profits dropped in two of the Real Good Food Company’s (RGFC) bakery businesses – Haydens and R&W Scott – but analysts say the group is on track entering the critical Christmas period.
Singapore-based Petra Foods has posted sales and profit declines in the third quarter (Q3) as it complained of weak global demand for chocolate that halved profits in its cocoa ingredients division.
A bumper performance in the sugar market has helped Associated British Foods balance sharply declining profits in its ingredients and grocery businesses.
Despite volatile cocoa prices, fragile consumer confidence and retail price pressure, positive first-half results posted by Swiss chocolate maker Lindt & Sprüngli point to a high level of resilience at the premium end of the confectionery category.
Strong performance in the Americas, particularly for bakery ingredients, has seen Associated British Foods (ABF) post an operating profit up 25 per cent.
Food and beverage ingredient demand has been ‘stable’ in Tate & Lyle’s Q1, says the company in its interim statement, and the year so far has exceeded expectations.
DSM is introducing stringent cost-saving measures to withstand the economic slump despite a good performance from nutrition, including slashing 1000 jobs from across its businesses.
The sale of Tate & Lyle’s international sugar trading business to US oilseed firm Bunge is now unconditional, removing the UK sweetener group from the volatile sugar market.
The global commodity market continues to worry confectionery and
sugar firms, as AB Foods profit is dented by sugar reforms, Nestle
combats costs with price hikes, and Cadbury may be ripe for
takeover.
Barry Callebaut today said profits for the first half of the
year remained stable as high input and expansion costs
offset overall sales volume increases for the Switzerland-based
firm.
Danisco is reorganising its ingredients business in a bid to target
market trends like health and wellness more closely, and deal with
issues that have been affecting parts of its portfolio.
US-based chewing gum firm Wrigley today posted full
year growth in both operating profit and margins, thanks to
international and developing market sales.
Confectionery firm Hershey today announced an average wholesale
price increase of three per cent across the US, as the company
moves to improve on the disastrous profit loss posted last week for
the fourth quarter.
US-based Hershey yesterday posted a Q4 operating profit drop of 65
per cent, as high commodity costs, restructuring charges and
competitive US market conditions continue to dog the confectionery
giant.
The Sudzucker group has reported a 18.3 per cent increase in sales
for the first nine months of its year thanks to special products
and fruit preparations, while sugar was responsible for a big drop
in operating profit.
Tate & Lyle has completed its sale of its Mexican sugar
business, removing itself from volatile commodity markets and
allowing it to refocus on value-added ingredients.
Hershey said yesterday that third quarter margins fell a massive 13
percentage points from the same period in 2006, as a result of
tough competition in the premium chocolate market and rising milk
costs.
Tate & Lyle has taken new measures to remove itself from
volatile commodity markets and refocus on value-added ingredients,
with a plan to sell its Mexican sugar business, Grupo Industrial
Azucarero de Occidente.
Controlling costs with an iron hand and upping sales prices has
helped Danisco's ingredients division towards Q1 growth, against an
overall profit dip as a result of ongoing sugar reform.
Chr Hansen has announced plans to divest its coatings and
excipients business in order to focus on core activities in
cultures, enzymes, natural colours and flavours.
The world's largest producer of ginger for confectionery, Buderim
Ginger, said on Friday that it expects to see higher profits this
year, thanks to the long-term improvements made through its
restructuring programme.
Sales at Archer Daniels Midland (ADM) increased during the
company's financial second quarter signaling a recovery from the
effects of the US hurricanes last year.
Barry Callebaut, the world's top supplier of industrial chocolate
to the confectionery industry, has delivered strong profit for the
year, boosted by the integration of recently acquired US
confectionery firm Brach's and...
The cost of restructuring its business has forced Cadbury Schweppes
to introduce a major cost cutting programme which should see the
loss of around 5,500 jobs.
Dutch life science company DSM today posted a net profit of €959
million. Although DSM Fine Chemicals posted slightly lower sales
and a lower operating profit, attributable to the pharma products
and aspartame businesses, DSM Food...
British sugar and sweeteners group Tate & Lyle on Thursday
reported a jump in half-year profits with underlying pre-tax profit
for the six months to 30 September rising to £126 million (€195.5
million) from €99.9m million last...
