Barry Callebaut Ltd

BCLM

Equity

ISIN US0687881088 / Valor 36832137

Deutsche Boerse AG (2024-11-22)

EUR 14.30+1.42%

Barry Callebaut Ltd
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About company

Barry Callebaut Ltd, headquartered in Zurich, Switzerland, is a global leader in the manufacture of high-quality chocolate and cocoa products. The company operates on a business-to-business model, serving a wide range of customers in the food industry, including global and local food manufacturers, as well as artisanal and professional users like chocolatiers, pastry chefs, and caterers. With a history spanning over 175 years, Barry Callebaut has established a significant presence in the chocolate and cocoa market, operating 66 production facilities and 26 CHOCOLATE ACADEMY™ centers worldwide. The company is fully vertically integrated, managing every step of the value chain from sourcing raw materials to producing a diverse portfolio of chocolate and cocoa products. In the fiscal year 2022/23, Barry Callebaut reported annual sales of approximately CHF 8.5 billion, underscoring its pivotal role in the global chocolate and cocoa industry.

Summarized from source with an LLMView SourceSector: Consumer Non-Cyclicals

Volume Growth

In the first half of fiscal year 2023/24, Barry Callebaut Ltd reported a modest volume growth of +0.7%, reaching 1.1 million tonnes. This growth persisted into the second quarter with a +1.0% increase despite a challenging market environment. The resilience in volume growth is attributed to the company's diversified business model, which allowed it to capture shifts towards Private Label chocolate offerings and maintain strong demand in the Gourmet & Specialties segment.

Revenue Increase

Barry Callebaut Ltd experienced a significant increase in sales revenue, which grew by +19.6% in local currencies (+11.1% in CHF) to CHF 4.6 billion in the first half of fiscal year 2023/24. This increase was primarily driven by a substantial rise in cocoa prices and the broader inflationary environment, which the company effectively managed through its cost-plus pricing model.

Profitability and EBIT

Despite the challenging economic conditions, Barry Callebaut Ltd maintained solid profitability. The recurring operating profit (EBIT) for the period increased by +7.9% in local currencies (-2.6% in CHF), amounting to CHF 339.4 million. This improvement in EBIT reflects the company's ability to pass through higher financing costs and benefit from a favorable product mix.

Net Profit and Cash Flow

Barry Callebaut Ltd's net profit on a recurring basis saw a slight increase of +0.8% in local currencies, although it decreased by -7.9% in CHF. The reported net profit included one-off BC Next Level operating expenses, resulting in a net profit of CHF 76.8 million. The company also faced a significant decrease in free cash flow, which amounted to CHF -1,116.3 million, largely due to the impact of higher bean prices on working capital.

Strategic Initiatives and Outlook

Barry Callebaut Ltd is actively implementing its BC Next Level strategic investment program, aimed at enhancing operational efficiency and customer proximity. The company reaffirmed its full-year guidance for fiscal year 2023/24, expecting flat volume and EBIT on a recurring basis in constant currency. This outlook is cautious, considering the volatile market conditions and ongoing strategic investments.

Summarized from source with an LLMView Source

Key figures

-1.38%1Y

%3Y

%5Y

Performance

63.3%1Y

60.5%3Y

60.5%5Y

Volatility