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BARRY CALLEBAUT – Cocoa acquisition drives strong volume expansion

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ZURICH, Switzerland – Total sales volume of Barry Callebaut, the world’s leading manufacturer of high quality chocolate and cocoa products, increased by 15.8% to 1,288,365 tonnes at the close of the first 9 months of fiscal year 2013/14 (up to  May 31, 2014).

On a stand-alone basis, excluding the effect of the acquired cocoa business, the Group’s sales volume grew by 2.4% to 1,138,736 tonnes. Volume growth was driven by emerging markets (+63.0% total; +18.2% stand-alone) and the Gourmet & Specialty Products business (+6.9%).

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In its industrial business, Barry Callebaut continued to focus on increasing product margins and being more selective in sales: Overall volume growth was +1.8%. The Gourmet business outperformed the markets in most countries (+6.9%), supported by a double-digit growth of the company’s global brands Callebaut and Cacao Barry.

Sales revenue was up 22.0% to CHF 4,318.7 million for the total business. Compared to the prior year, higher average raw material costs pushed up sale prices: On a stand-alone basis, sales revenue rose 6.8% to CHF 3,782.7 million.

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Outlook – Completion of integration and continued focus on growth strategy

CEO Juergen Steinemann said, looking ahead: “Our priorities remain to complete the integration of the acquired cocoa business and to strengthen our product margins.

At the same time, in alignment with our growth strategy, we are preparing the Group for the next growth phase by expanding existing factories and further investing in our overall organization. We are on track to reach our mid-term targets.”

Strategic developments in the first 9 months of fiscal year 2013/14

  • The new chocolate factory in Santiago de Chile emphasizes Barry Callebaut’s strong commitment to “Expansion.” The factory, which goes on stream in July 2014, has a manufacturing capacity in excess of 20,000 tonnes. The investment amounts to CHF 26.5 million (EUR 21.8 million / USD 30.3 million). This expansion enables Barry Callebaut to further tap into the attractive South American market.
  • As a leader in “Innovation,” Barry Callebaut received a positive Scientific Opinion from the European Food Safety Authority (EFSA) to extend its existing health claim for cocoa extract products, which have a higher concentration of health-enhancing flavanols. The company is now awaiting the approval of the EU Commission. If granted, Barry Callebaut’s health claim could be applied to new products in the pharmaceutical, nutraceutical, medical nutrition and health-supplement industry sectors.
  • With a strong focus on “Sustainable Cocoa,” Barry Callebaut is a leading force in the industry. The company helped to form the “CocoaAction” strategy of the World Cocoa Foundation (WCF) – considered one of the most significant initiatives in sustainable cocoa farming. In May 2014, Barry Callebaut was amongst the 12 initiating signatories of “CocoaAction.” In June, the company organized the 2nd international stakeholder conference CHOCOVISION. Both initiatives foster collaboration in the global cocoa and chocolate industry and aim to accelerate the sustainability of the cocoa sector.
  • As per June 17, 2014, the Group extended their EUR 600 million Syndicated Revolving Credit Facility by 3 years (from June 2016 to June 2019). This further strengthens Barry Callebaut’s liquidity and duration profile while slightly reducing the applicable credit spreads.

Source: press release

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