(AOF) – Belgian-Swiss chocolate manufacturer, BarryCallebaut gained 7.64% to 1,324 Swiss francs, despite mixed results published this morning for the first half of 2023/2024, ending on February 29. “In a very disrupted environment, we remain cautious given the extraordinary surge in cocoa prices over the past six months and the potential implications for our customers and supply partners,” explains Peter Feld, managing director of the business. Over this first half, its net profit fell by 67.2% to 76.8 million Swiss francs.
Over this period, operating profit fell by 48.9% to 178.1 million Swiss francs. It was penalized by exceptional operational expenses linked to BC Next Level, a plan intended in particular to reduce its costs.
On an adjusted basis, operating profit amounted to 339.4 million Swiss francs while the market expected 307 million Swiss francs.
On the other hand, its turnover increased by 11.1% to reach 4.64 billion Swiss francs. “This growth is due to the significant increase in cocoa prices as well as a broader inflationary environment, which we have managed through our cost-plus pricing model for the majority of our activities,” highlights the company.
The gross margin amounted to 663.1 million Swiss francs, a decline of 0.2% but an increase of 8.6% in local currencies, “supported by the mix and the inflationary environment well managed by the company’s cost-plus pricing model.
In addition, free cash flow was still negative over the half at 1.116 billion Swiss francs compared to -188.2 million Swiss francs a year earlier, due to rising cocoa costs.
The chocolatier recorded growth in sales volume of 0.7% to 1.1 million tonnes, during the first six months of the 2023/2024 financial year.
On the outlook side, Barry Callebaut reiterates its forecasts for the entire 2023/2024 financial year, namely stable volume and EBIT on a recurring basis at constant exchange rate, in the face of a very volatile environment.
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