Barry Callebaut optimistic after positive Q3 results
The firm said it was benefiting from its strong performance in emerging markets, with the Asia-Pacific region reporting double digit growth in all categories, led by India and China.
The company also attributed the growth to its long-term outsourcing agreements.
Overall, sales revenue was up by 12.5 per cent in local currencies (1.6 per cent in Swiss francs) until the end of May, driven by higher raw material prices, said the firm.
Barry Callebaut also highlighted two recent outsourcing agreements as positive developments for the firm.
This week, the company concluded a long-term outsourcing agreement with Chocolates Turin, which it said would strengthen its presence in Mexico’s industrial and gourmet market.
Earlier this month, Barry Callebaut also expanded the supply and innovation agreement it signed with Hershey in 2007.
Challenging market
The firm said it had attained positive results despite the “challenging” market, with the political conflict in Ivory Coast earlier this year contributing to rocketing cocoa prices.
Barry Callebaut kept its positive outlook, saying it expected the global chocolate market to grow by a further two per cent, despite current uncertainties in the world economy, such as rising inflation in emerging markets and the debt crisis in Europe.
The firm said raw material prices – especially cocoa, sugar and milk powder – were likely to remain volatile and at high levels.
Barry Callebaut said its cost-plus model allows it to pass on raw material price changes to its customers.
The cost-plus method calculates the cost of the product, then includes an additional amount to represent profit. Allowing companies to work out how much profit they will make.
