11 January 2006 -
-Sales volumes up 2.0% to 299,417 tonnes
-Sales revenue up 3.8% to CHF 1,198.5 million
-Continued strong growth in Food Manufacturers and Gourmet & Specialties
-Operating profit (EBIT) increased strongly by 14.7% to CHF 100.1 million
-Net profit (PAT) up 15.8% to CHF 63.9 million
-Three-year financial targets confirmed
Zurich/Switzerland, January 11, 2006 - Barry Callebaut AG, the world's leading manufacturer of high-quality cocoa and chocolate products, announced today its results for the first quarter of fiscal year 2005/06 ended November 30, 2005.
Sales volumes went up organically by 2% to nearly 300,000 tonnes. As a result of higher sales volumes, slightly higher underlying cocoa bean prices, a better product mix in Consumer Products and positive currency effects, sales revenue grew faster than sales volumes, namely by 3.8% to CHF 1.2 billion. Sales revenue in the Cocoa business unit was affected by the substantially lower powder ratios as expected. In Consumer Products Europe unprofitable volumes were deliberately discontinued in the course of 2005, and this had an effect on the first quarter of the current fiscal year. Operating profit (EBIT), which serves as key indicator for operational performance as of the current fiscal year, rose 14.7% and, at CHF 100.1 million, crossed the CHF 100 million threshold, up from CHF 87.3 million. EBIT per tonne was CHF 334.3, up 12.4% compared to the same prior-year period. As a result of the refinancing transaction of August 2005, financial cost was reduced by 2.4%. Net profit (PAT) went up by 15.8% to CHF 63.9 million (prior-year period: CHF 55.2 million).
Patrick De Maeseneire, CEO of Barry Callebaut, said: "In our seasonally influenced business, the first quarter leading up to Christmas is usually the strongest for us. This year we had a particularly good start into the new fiscal year thanks to the solid growth in our businesses with industrial and artisanal customers and a positive contribution to the Operating profit (EBIT) from our European consumer business. This confirms the upward trend in our Consumer Products Europe business unit. Reasons for this recovery are a better product mix and better sales prices, despite the deliberate reduction in volumes last year and the effect of the historically high hazelnut prices, which will both still have an effect on second-quarter results."
Overview of business performance in the first three months of fiscal year 2005/06
Sales volumes grew 2.0% to 299,417 tonnes, up from 293,620 tonnes. The entire increase is based on organic growth.
Sales revenue increased by 3.8% to CHF 1,198.5 million, up from CHF 1,154.8 million in the same prior-year period. This increase was the result of higher sales volumes as well as positive currency effects and slightly higher underlying cocoa bean prices.
Operating profit (EBIT) was CHF 100.1 million or 14.7% above the CHF 87.3 million from the same prior-year period. All business units contributed to this strong increase in operating profit. However, in absolute terms, the most significant increase was achieved in the Gourmet & Specialities and Food Manufacturers business units.
Financial cost, net decreased by 2.4% to CHF 20.2 million compared to CHF 20.7 million in the previous year. This decrease was attributable to reduced average interest rates compared to the equivalent prior-year period.
Taxes increased to CHF 15.9 million from CHF 11.5 million, mainly due to the higher pre-tax profit. The average group tax rate increased from 17.3% to 19.9% compared to the same prior-year period.
Net profit (PAT) for the period under review increased by 15.8% to CHF 63.9 million, up from CHF 55.2 million in the previous year.
Shareholders' equity increased by 11% to CHF 929.3 million as of November 30, 2005, compared to CHF 836.7 million at the end of the previous fiscal year on August 31, 2005. This significant increase was the result of a strong net profit for the period, positive currency translation adjustments as well as positive fair value adjustments on financial instruments designated as cash flow hedges.