Accelerated Sales, Preparing for Future Growth

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ZURICH, SWITZERLAND--(Marketwire - Nov 7, 2012) - Barry Callebaut AG / Accelerated sales,preparing for future growth.

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Barry Callebaut - Full-year results, fiscal year 2011/12


-- Strong volume growth across all Regions: +8.7%, significantly
outperforming the market
-- Substantial investments affecting bottom-line result: EBIT +1.0%, net
profit -5.2% (in local currencies)
-- Top-line growth driven by Food Manufacturers Products business,
emerging markets and strategic partnerships
-- Renewed mid-term guidance[1]: 6-8% volume and EBIT growth until 2014/15
-- Proposed payout to shareholders of CHF 15.50 per share, payout ratio of
33%
-- Nicolas Jacobs proposed for election as Board member; Stefan Pfander
stepping down

Juergen Steinemann, CEO of Barry Callebaut, said: "Barry Callebaut achievedastrong volume growth in the past fiscal year, significantly beating themarket.Thanks to an especially vibrant fourth quarter, we were even able toaccelerateour pace. Overall business activity remained solid both in developed andemerging markets. We invested significantly in structures, factories, ourGourmet business and "Sustainable Cocoa". These deliberate investments,togetherwith the ramp-up costs associated with various partnership agreements,affectedour bottom-line results."

Group key figures for fiscal year 2011/12 - from continuing operations


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Change in %

in local in reporting 12 months up 12 months up
currencies currency to Aug to Aug
31, 2012 31, 2011[2]
---------------------------------------------------------------------------
Sales volume Tonnes 8.7 1,378,856 1,268,925
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Sales revenue CHF m 11.5 8.3 4,829.5 4,459.9
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Operating
profit (EBIT) CHF m 1.0 (2.5) 353.2 362.3
---------------------------------------------------------------------------
EBIT per
tonne CHF (7.0) (10.3) 256.2 285.5
---------------------------------------------------------------------------
Net profit CHF m (5.2) (8.5) 241.1 263.6
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In its past fiscal year 2011/12 endedAugust 31, 2012, Barry Callebaut AG, the world's leading manufacturer ofhigh-quality cocoa and chocolate products, accelerated its growth pace andachievedstrong volume growth in all Regions. Sales volume grew by 8.7% to 1,378,856tonnes. All Product Groups contributed to this growth. Barry Callebaut'sgrowthwas significantly higher than the global chocolate market growth[3]. It wasdriven by the company's core business, the Food Manufacturers Productsbusiness,including long-term partnership agreements. Specialties products andemergingmarkets also supported growth. Barry Callebaut's Gourmet businessconsiderablyoutpaced the respective local market growth.

Sales revenue increased 11.5% in local currencies (+8.3% in CHF) to CHF4,829.5million. In order to support current and future growth, Barry Callebautinvestedsignificantly in structures, factory expansions, the Gourmet business,ramp-upsrelated to strategic partnership agreements, and "Sustainable Cocoa". Anaccelerated demand as well as capacity constraints in some areas resultedinhigher operating and supply chain costs. All these factors affected thecompany's operating profit (EBIT): EBIT increased 1.0% in local currencies(-2.5% in CHF) to CHF 353.2 million. A lower EBIT (in CHF), higherfinancing costsas well as a less favorable tax mix led to a decrease in net profit fromcontinuing operations (-5.2% in local currencies, -8.5% in CHF) to CHF241.1million. Net profit for the year including discontinued operations amountedtoCHF 142.6 million, compared to CHF 176.8 million in prior year.

Outlook - Positive on company's performance despite challenging environment

"Despite the current, rather difficult economic environment, especially inWestern Europe, we remain positive on delivering on our strategy andreachingour targets. Therefore, we have renewed our mid-term guidance of on average6-8% growth in volume and EBIT until 2014/15[4]," said Juergen Steinemannon theoutlook. "Our main priority for the next fiscal year is to finalize thevariousinvestments in capacities and structures. This will create a sound basisforprofitable growth. Other priorities are managing our continued growththroughlong-term partnerships, Gourmet and emerging markets as well as furtherincreasing our operational efficiency with project "Spring" in WesternEurope.We also aim to bring additional innovations to the market and furtherinvest inour sustainability initiative "Cocoa Horizons."

Strategic developments / Highlights along the four strategic pillarsExpansion

Barry Callebaut recently signed long-term agreements with Unilever, GrupoBimbo(Mexico), Morinaga (Japan) and Arcor (Chile). The company entered into ajointventure with P.T. Comextra to build a new cocoa processing plant inIndonesia.Through capacity expansions at existing factories and the addition of newfactories, Barry Callebaut significantly expanded its manufacturingfootprint.To further develop its geographic presence in emerging markets, BarryCallebautannounced the construction of a new factory in Turkey last month.Supporting theacceleration of its Gourmet business, the company also acquired Spanish laMorella nuts and the American decorations company Mona Lisa Food Products,Inc.Focusing on business-to-business activities, Barry Callebaut announced itsintention to sell its last remaining consumer chocolate factory in Dijon(France) to Chocolaterie de Bourgogne.

Innovation

Barry Callebaut was the first company to receive a positive ScientificOpinionfrom the European Food Safety Authority (EFSA) on a health claim on cocoaflavanols in July. The company was able to provide evidence that the intakeof adefined amount of cocoa flavanols positively influences blood circulationin thehuman body. In addition, Barry Callebaut also received awards for two ofitsrecent innovations, the Terra Cacao(™) chocolate based on the company'spatented Controlled Fermentation method, as well as for a special chocolatefora new Magnum® ice cream.

Cost Leadership

Overall manufacturing costs per tonne of activity decreased on alike-for-like basis by 3% (target: -2%). Strong volume growth supported bytechnology andprocess improvements increased both capacity utilization for liquidchocolateand the cocoa processing capacity utilization rate.

After the sale of the Consumer Products business, Barry Callebaut started acomprehensive reengineering project called "Spring", mainly focused onWesternEurope. The company aims to improve customer service, boostspeed-to-market, reduce internal complexities, as well as increase overallefficiency andservices to the other Regions.

Sustainable Cocoa

With "Cocoa Horizons", Barry Callebaut started the most comprehensivesustainability program in its history, based on its long-time commitment inthisarea. The focus is on direct and effective investments in the early stagesofthe cocoa supply chain. Over the next 10 years, Barry Callebaut will investCHF40 million in the most important origin countries. Last year, the companymainlyfunded training of cocoa farmers in Good Agricultural Practices (GAP), aswellas in preparing them for certification. In addition, Barry Callebautstarted tobuild a Center of Cocoa Excellence in Côte d'Ivoire and conducted morethan 500Farmer Field Schools during the past fiscal year.

Regional / Segment performance

Region Europe - Strong growth in partly difficult marketsThe European chocolate confectionery markets grew by 1.4%. Western Europeslightly decreased (-0.6%) while Eastern Europe recorded attractive,above-average growth at 5.2%, driven by Russia, Turkey and Poland.[5]Region Europe achieved strong volume growth given the challenging marketconditions, especially in Southern Europe: sales volume increased by 6.9%to688,203 tonnes.After a slow start, the Food Manufacturers Products business in WesternEuropegradually increased sales volume growth with an exceptionally strong fourthquarter. Growth was driven by outsourcing agreements and specialtyproducts, aswell as overall market share gains. The Gourmet business showed a goodperformance in the light of difficult markets in some of the key countries,including Southern Europe. Sales volume at the Beverages division declinedslightly due to weather conditions and customer destocking.In Eastern Europe, both Food Manufacturers Products and the Gourmet &Specialties Products businesses continued to grow at double-digit rates, towhich Russia and Poland delivered the biggest contributions.Overall sales revenue grew by 5.1% in local currencies (+0.2% in CHF) toCHF2,150.6 million. Ramp-up costs related to outsourcing agreements, higherfactoryand supply chain costs, and investments in adapting structures as well asGourmet impacted operating profit (EBIT). It decreased by 1.7% in localcurrencies (-5.1% in CHF) to CHF 232.2 million.

Region Americas - Continued double-digit growth - top and bottom-line

The U.S. chocolate market decreased by 2.0%, whereas the market in Brazilsloweddown its growth pace to +4.7%.(5) Barry Callebaut grew significantly fasterthanthe local chocolate markets.Overall sales volume increased strongly by 15.3% to 361,819 tonnes inRegionAmericas. Both the Food Manufacturers and Gourmet & Specialties Productsbusinesses continued to grow by double-digits. In North America, Corporateaswell as National Accounts showed double-digit growth rates driven by newvolumesfrom outsourcing agreements and market share gains. Barry Callebaut wasable tomore than double its local volumes with industrial customers in Brazil; thebusiness in Mexico also reported a strong performance, increasing itsbusinessvolumes double-digit. Our leading imported brands, Callebaut® andCacaoBarry®, contributed significantly to the strong Gourmet growth.Sales revenue increased by 13.1% in local currencies (+13.5% in CHF) to CHF1,111.8 million. Operating result outpaced the strong volume and revenuedevelopment to a large extent thanks to positive mix effects - particularlysupported by the strong performance of the Gourmet business - as well as anoverall positive margin development and improved capacity utilization:Operatingprofit (EBIT) rose by 25.4% in local currencies (+25.6% in CHF) to CHF 90.2million.

Region Asia-Pacific - High, profitable growth

Chocolate markets in Asia continued their solid growth pace at +5.5%.[6]In Region Asia-Pacific, Barry Callebaut sustained its double-digit volumegrowthtrajectory of recent years despite some capacity constraints that limitedgrowthopportunities early in the year. Sales volume rose by 10.3% to 57,815tonnes.The Food Manufacturers Products business increased its sales volumedouble-digit, particularly driven by strategic partnerships. In the Gourmetbusiness,the company further strengthened its leadership with the global GourmetbrandsCallebaut® and Cacao Barry®.On the basis of lower average raw material prices compared to last year,salesrevenue rose by 4.1% in local currencies (+4.7% in CHF) to CHF 232.4million.Operating profit (EBIT) outpaced volume growth with a strong growth of20.9% inlocal currencies (+19.3% in CHF) to CHF 29.7 million, partly as a result ofincreased capacity utilization and partly from positive margindevelopments.

Global Sourcing & Cocoa[7] - Investments in future growth

After continuously moving downward until the end of 2011, cocoa prices wererange-bound between GBP 1,400 and 1,600 per tonne. Dry weather in Africaanduncertainties about the next main crop as well as the cocoa reform inCôted'Ivoire put some slight upside pressure on prices end of July.Prices on the world sugar market corrected significantly downwards whereasEUsugar prices stayed at historically high levels. Milk powder pricesinitiallydeclined, followed by a strong surge due to the drought in the U.S. Milkpowderprices closed at the rather high previous year's level.

Capacity expansions at existing factories and higher internal cocoa powderdemand impacted Global Sourcing & Cocoa's growth in the first half. Early2012,external demand started to pick up, driven by Barry Callebaut's strategicpartners. Overall sales volume rose by 4.7% to 271,019 tonnes. The segmentreported continued strong revenue growth: Sales revenue increased by 23.8%inlocal currencies (+20.1% in CHF) to CHF 1,334.7 million due to high cocoapowderprices at the time the business was contracted.After an initial downward correction, the combined cocoa ratio increasedlaterin the year; overall, it had a neutral effect on Barry Callebaut'sprofitability. In addition, the positive volume growth was unable to fullyoffset increased costs from the ramp-up of strategic partnership agreementsincluding related supply chain and logistic costs as well as frominvestments insustainability. Consequently, operating profit (EBIT) declined by 8.9% inlocalcurrencies(-15.7% in CHF) to CHF 65.2 million.

Proposals to the Annual General Meeting

Payout to shareholders

The Board of Directors will propose a payout to shareholders of CHF 15.50pershare (same as 2011), representing a payout ratio of 33% (versus net profitfromcontinuing operations), at the Annual General Meeting of Shareholders onDecember 5, 2012. The payout will partly consist of a dividend payment fromreserves from capital contributions and partly of a capital reductionthroughpar value repayment. The redistribution of these funds to shareholders willnotbe subject to withholding tax and - for individuals residing in Switzerlandandholding the shares as private property - income tax. The payout toshareholderswill be executed as of March 4, 2013, subject to approval by the AnnualGeneralMeeting of Shareholders and the necessary statutory actions.

Board of Directors

All current members of the Board of Directors will stand for re-electionforanother term of office of one year except for Stefan Pfander. He will stepdownfrom the Board at the Annual General Meeting 2012 after serving for sevenyears.The Board of Directors chaired by Andreas Jacobs expresses its gratitude toMr.Pfander (1943) for his valuable contributions to the company's development.The Board of Directors will propose at the Annual General Meeting thatNicolasJacobs (1982) be elected as a new member of the Board of Directors. Thisalsoreflects the commitment of the majority shareholder, the Jacobs family, tosupport Barry Callebaut in its further growth. Mr. Jacobs currently holdstheposition of Senior Director for Global M&A and Development at Burger KingCorporation. He has also been a Board Member of Jacobs AG since 2008.NicolasJacobs is a significant shareholder of Barry Callebaut AG. (see separateCV)

***

For more detailed financial information see Barry Callebaut's "AnnualReport2011/12" (only available in English on November 7, 2012; a German version(onlyPDF) to be available as of November 19, 2012), as well as the company's"Letterto Investors 2011/12": Both documents are posted on Barry Callebaut'swebsite(http://www.barry-callebaut.com/documentation); printed versions of the"AnnualReport 2011/12" and "Letter to Investors 2011/12" will be available as ofNovember 26, 2012 (only in English).

***


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Financial calendar for fiscal year 2012/13 (September 1, 2012 to August
31, 2013):
---------------------------------------------------------------------------
Annual General Meeting 2011/12 December 5, 2012, Zurich
---------------------------------------------------------------------------
3-month key sales figures 2012/13 (news release) January 16, 2013
---------------------------------------------------------------------------
Half-year results 2012/13 (news release & April 8, 2013, Zurich
conference)
---------------------------------------------------------------------------
9-month key sales figures 2012/13 (news release) July 4, 2013
---------------------------------------------------------------------------
Full-year results 2012/13 (news release & November 7, 2013, Zurich
conference)
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Annual General Meeting 2012/13 December 11, 2013, Zurich
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***

Barry Callebaut (www.barry-callebaut.com):

With annual sales of about CHF 4.8 billion (EUR 4.0 billion / USD 5.2billion)for fiscal year 2011/12, Zurich-based Barry Callebaut is the world'sleadingmanufacturer of high-quality cocoa and chocolate - from the cocoa bean tothefinest chocolate product. Barry Callebaut is present in 30 countries,operatesaround 45 production facilities and employs a diverse and dedicatedworkforce ofabout 6,000 people. Barry Callebaut serves the entire food industryfocusing onindustrial food manufacturers, artisans and professional users of chocolate(such as chocolatiers, pastry chefs or bakers), the latter with its twoglobalbrands Callebaut® and Cacao Barry®. Barry Callebaut is the globalleader incocoa and chocolate innovations and provides a comprehensive range ofservicesin the fields of product development, processing, training and marketing.Costleadership is another important reason why global as well as local foodmanufacturers work together with Barry Callebaut. Through its broad rangeofsustainability initiatives and research activities, the company works withfarmers, farmer organizations and other partners to help ensure futuresuppliesof cocoa and improve farmer livelihoods.

***


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Media and Analysts'/Institutional Investors'
conferences of Barry Callebaut AG
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Date: Wednesday, November 7, 2012
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Location: Barry Callebaut Head Office, Chocolate Academy, Groundfloor,
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Pfingstweidstrasse 60, Westpark, 8005 Zurich/Switzerland
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Media: 09:30 am to 10:30 am CET
Time: Analyst/Institutional Investors:
11:30 am to approx. 01:00 pm CET
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The conferences can be followed by telephone or audio webcast.
All dial-in and access details can be found on the Barry Callebaut
website:
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Media
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Analysts
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***

Group key figures for fiscal year 2011/12 - from continuing operations


---------------------------------------------------------------------------
Change in %

in local in reporting 12 months up 12 months up
currencies currency to to Aug
Aug 31, 2012 31, 2011[8]
---------------------------------------------------------------------------
Group
---------------------------------------------------------------------------
Sales volume Tonnes 8.7 1,378,856 1,268,925
---------------------------------------------------------------------------
Sales revenue CHF m 11.5 8.3 4,829.5 4,459.9
---------------------------------------------------------------------------
EBITDA CHF m 4.4 0.9 434.3 430.3
---------------------------------------------------------------------------
Operating profit
(EBIT) CHF m 1.0 (2.5) 353.2 362.3
---------------------------------------------------------------------------
Net profit CHF m (5.2) (8.5) 241.1 263.6
---------------------------------------------------------------------------
Net profit
(incl.
discontinued
operations) CHF m (15.8) (19.3) 142.6 176.8
---------------------------------------------------------------------------

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By Region
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Europe
---------------------------------------------------------------------------
Sales volume Tonnes 6.9 688,203 643,943
---------------------------------------------------------------------------
Sales revenue CHF m 5.1 0.2 2,150.6 2,147.1
---------------------------------------------------------------------------
EBITDA CHF m 0.1 (3.4) 261.3 270.6
---------------------------------------------------------------------------
Operating Profit
(EBIT) CHF m (1.7) (5.1) 232.2 244.7
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Americas
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Sales volume Tonnes 15.3 361,819 313,715
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Sales revenue CHF m 13.1 13.5 1,111.8 979.2
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EBITDA CHF m 25.7 25.8 107.3 85.3
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Operating Profit
(EBIT) CHF m 25.4 25.6 90.2 71.8
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Asia-Pacific
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Sales volume Tonnes 10.3 57,815 52,397
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Sales revenue CHF m 4.1 4.7 232.4 221.9
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EBITDA CHF m 20.6 19.8 35.7 29.8
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Operating Profit
(EBIT) CHF m 20.9 19.3 29.7 24.9
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Global Sourcing
& Cocoa
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Sales volume Tonnes 4.7 271,019 258,870
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Sales revenue CHF m 23.8 20.1 1,334.7 1,111.7
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EBITDA CHF m (1.2) (7.4) 91.4 98.7
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Operating Profit
(EBIT) CHF m (8.9) (15.7) 65.2 77.3
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By Product Group
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Sales volume Tonnes 8.7 1,378,856 1,268,925
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Cocoa Products Tonnes 4.7 271,019 258,870
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Food
Manufacturers
Products Tonnes 10.8 962,058 868,590
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Gourmet &
Specialties
Products Tonnes 3.0 145,779 141,465
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Sales revenue CHF m 11.5 8.3 4,829.5 4,459.9
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Cocoa Products CHF m 23.8 20.1 1,334.7 1,111.7
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Food
Manufacturers
Products CHF m 8.3 5.2 2,774.0 2,635.7
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Gourmet &
Specialties
Products CHF m 4.2 1.2 720.8 712.5
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[1] Four-year growth targets for 2011/12-2014/15: On average 6-8% volumegrowthand average EBIT growth in local currencies at least in line with volumegrowth - barring any unforeseen events.

[2] Restated by the effect of the discontinued business.

[3] The global chocolate confectionery market grew by 1.0% per annum involume.Source: Nielsen, September 2011 - August 2012.

[4] Four-year growth targets for 2011/12-2014/15: On average 6-8% volumegrowthand average EBIT growth in local currencies at least in line with volumegrowth - barring any unforeseen events.

[5] Source: Nielsen, September 2011 - August 2012.

[6] Source: Euromonitor International.

[7] The figures reported under "Global Sourcing & Cocoa" include all salesofcocoa products to third-party customers in all Regions while the figuresshownunder the respective Region show all chocolate sales.

[8] Restated by the effect of the discontinued business.

The news release can be downloaded from the following link:

Nicolas Jacobs:

http://hugin.info/100441/R/1655616/535057.pdf

Press Release :

http://hugin.info/100441/R/1655616/535038.pdf

This announcement is distributed by Thomson Reuters on behalf ofThomson Reuters clients. The owner of this announcement warrants that:

(i) the releases contained herein are protected by copyright and other applicable laws; and

(ii) they are solely responsible for the content, accuracy and originality of the information contained therein.

Source: Barry Callebaut AG via Thomson Reuters ONE

[HUG#1655616]

Contact:


for investors and financial analysts:
Evelyn Nassar
Head of Investor Relations
Barry Callebaut AG
Phone: +41 43 204 04 23
Email Contact

for the media:
Raphael Wermuth
External Communications Manager
Barry Callebaut AG
Phone: +41 43 204 04 58
Email Contact

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