Barry Callebaut - Full-year results, fiscal year 2012/13


ZURICH, Switzerland, Nov. 7, 2013 (GLOBE NEWSWIRE) --

Significant top-line growth, profitability gained momentum

  * Accelerated, strong volume growth in a challenging market environment:
    +8.7% stand-alone[1] (+11.4% incl. the recently acquired cocoa business)
  * Operating profit (EBIT) gaining momentum(1): +4.4% stand-alone thanks to
    improved margins, partly offset by combined cocoa ratio impact (total EBIT:-
    3.9%[2])
  * Integration of the acquired cocoa business in progress; synergy potential
    confirmed
  * Mid-term financial targets confirmed[3]
  * Proposed payout to shareholders of CHF 14.50 per share, payout ratio of 35%

Juergen Steinemann, CEO of Barry Callebaut, said: "I am proud of the excellent
volume growth we have achieved, notably with strategic partnership agreements,
in emerging markets and in our Gourmet business. This growth is even more
remarkable against the background of a challenging market environment in some
regions. Equally, I am pleased that our product margins further improved and
profitability gained momentum in a period when we significantly invested in
structures and processes. The integration of our newly acquired cocoa business
is progressing well and I am happy to confirm the synergy potential announced
earlier."

Group key figures for fiscal year 2012/13 - for the total business
-------------------------------------------------------------------------------


                                 Change in %

                                in local in CHF 12 months up to 12 months up to
                              currencies           Aug 31, 2013    Aug 31, 2012
-------------------------------------------------------------------------------
 Sales volume          Tonnes              11.4       1,535,662       1,378,856
-------------------------------------------------------------------------------
 Sales revenue          CHF m        0.6    1.1         4,884.1         4,829.5
-------------------------------------------------------------------------------
 Gross profit           CHF m        8.1    8.3           728.5           672.6
-------------------------------------------------------------------------------
 Operating profit
 (EBIT)                 CHF m      (4.0)  (3.9)           339.6           353.2
-------------------------------------------------------------------------------
 Net profit             CHF m      (5.4)  (4.9)           229.3           241.1
-------------------------------------------------------------------------------
 Stand-alone - excluding the acquisition of the cocoa business from Petra
 Foods(1)
-------------------------------------------------------------------------------
 Sales volume          Tonnes               8.7       1,498,632       1,378,856
-------------------------------------------------------------------------------
 Operating profit
 (EBIT)                 CHF m        4.2    4.4           368.8           353.2
-------------------------------------------------------------------------------
 EBIT per tonne           CHF      (4.1)  (3.9)           246.1           256.2
-------------------------------------------------------------------------------

In the past fiscal year 2012/13 (ended
August 31, 2013), Barry Callebaut - the world's leading manufacturer of high-
quality chocolate and cocoa products - strongly increased its sales volume by
11.4% to 1,535,662 tonnes. Excluding the recently acquired cocoa business, the
Group accelerated the pace of its volume growth in the second half to +8.7% for
the full year. This growth, which was considerably above the global market[4],
was achieved in a partly challenging economic environment. All Regions and
Product Groups contributed to this exceptional growth.
Sales revenue was +0.6% in local currencies (+1.1% in CHF) and came in at CHF
4,884.1 million. On a stand-alone basis, sales revenue decreased by 1.9% in
local currencies (-1.5% in CHF) to CHF 4,756.4 million. This reflects the lower
average raw material prices compared to the prior year.[5]
Gross profit: Product margins further improved across all Regions and Product
Groups in the second half of the fiscal year. The negative impact from the
combined cocoa ratio slowed in the second half, but was still apparent. Capacity
constraints due to the strong volume growth led to additional factory and supply
chain costs. Gross profit increased by 8.1% in local currencies (+8.3% in CHF)
to CHF 728.5 million. Stand-alone gross profit was +9.3% in local currencies
(+9.6% in CHF) at CHF 737.0 million.
On a stand-alone basis, operating profit (EBIT) gained momentum with a solid
increase of 4.2% in local currencies (+4.4% in CHF) to CHF 368.8 million,
supported by the good performance of Gourmet, partly offset by some (one-off)
costs and selective investments in structures and processes. Total EBIT declined
by 4.0% in local currencies (-3.9% in CHF) to CHF 339.6 million, impacted by
one-off costs related to the acquisition of the cocoa business from Petra Foods
and the expected operational loss of this business.
Total net profit for the year from continuing operations was 5.4% lower in local
currencies (-4.9% in CHF) at CHF 229.3 million, resulting from the lower total
EBIT.

Outlook - Maintaining growth pace and further improving profitability
CEO Juergen Steinemann on the outlook: "Based on the visibility on our business,
I am confident that we will be able to maintain our fast growth pace. We will
continue to focus on further improving our margins and profitability. The
integration of the newly acquired cocoa business, together with the realization
of the identified synergies, will be given top priority. We confirm our
guidance[6]."

Strategic milestones in fiscal year 2012/13
  * Barry Callebaut closed the acquisition of the cocoa business from Singapore-
    based Petra Foods on June 30, 2013. The new business has been integrated
    into Barry Callebaut's segment 'Global Sourcing & Cocoa'.
  * In early 2013, Barry Callebaut strengthened its presence in Scandinavia by
    acquiring Swedish ASM Foods AB. Part of this acquisition was a factory in
    Mjölby producing specialty compound chocolate, fillings and inclusions.
  * The completion of the sale of the Dijon factory in November 2012 marked the
    final step in the disposal of all consumer activities.
  * Barry Callebaut signed its first long-term outsourcing agreement in South
    America with Arcor-Dos en Uno of Chile as well as the first agreement in
    Scandinavia with Danish Carletti A/S.
  * As well as opening the significantly extended factory in Toluca (Mexico),
    Barry Callebaut continued its expansion into other fast-growing emerging
    markets: To meet growing cocoa demand in Asia, a new cocoa factory in
    Makassar (Indonesia) has been opened together with joint venture partner
    P.T. Comextra Majora; Barry Callebaut established a local chocolate
    production site in Eskisehir (Turkey) to further tap into this fast-growing
    chocolate market; in Japan Barry Callebaut has relocated its operations into
    a bigger factory close to Tokyo; to gain a foothold in the Andean Region, a
    new chocolate factory is under construction in Santiago de Chile (Chile)
    opening in 2014.
  * Barry Callebaut received the approval of the EU Commission for its health
    claim on cocoa flavanols - the first in the cocoa and chocolate industry -
    opening up new market potential for the company's ACTICOA(®) products.
  * As a part of its sustainable cocoa initiative "Cocoa Horizons", Barry
    Callebaut opened its first Cocoa Center of Excellence in Côte d'Ivoire,
    where the company will train 300 trainers in the coming 12 months. The
    company has more than 50 staff on the ground who work with cocoa farmers and
    who ensured the training of 40,000 cocoa farmers in 575 farmer field schools
    last year. Overall, customer demand for sustainable cocoa and chocolate
    products increased by 56% in fiscal year 2012/13.

Regional / Segment performance

Region Europe[7] - Substantial volume growth translates into strong EBIT
performance
The European chocolate confectionery market rose 2.1%. In Western Europe growth
was 1.7%, while markets in Eastern Europe increased by 2.8%.[8]
In Region Europe, Barry Callebaut stepped up its growth pace in the last months
of the fiscal year despite a challenging market environment. Overall, sales
volume increased significantly by 8.1% to 744,078 tonnes.
Region Western Europe achieved a record year. The strong growth in relatively
mature markets was driven by strategic partnerships, specialty products as well
as the newly acquired businesses la Morella nuts and ASM Foods. The two global
Gourmet brands Callebaut(®) and Cacao Barry(®) gained market share in almost all
markets, even in Southern Europe. The Beverages division rebounded.
The still young Region EEMEA has established itself with new headquarters and a
soon-to-be-opened Chocolate Academy(TM) center in Istanbul, as well as the
recently inaugurated chocolate factory in Eskisehir, also in Turkey. The region
continued its double-digit growth and achieved strong results both in the Food
Manufacturers and in the Gourmet business. Particularly strong markets were
Russia, the Middle East and Turkey.
Overall sales revenue in Region Europe grew by 9.4% to CHF 2,352.5 million.
Operating profit (EBIT) increased by 9.0% to CHF 253.2 million as a result of
good volume growth and margin improvements, partly offset by extraordinary
supply chain costs due to capacity constraints.

Region Americas - Remarkable performance continues
The US chocolate confectionery market decreased by 0.9%, Brazil went up 1.2%(8).
In this overall flat-volume market environment, Region Americas once more
achieved excellent volume growth of 16.7%. All markets and Product Groups
contributed to this positive development. Volume increases in North America and
Mexico were fueled by strategic partnership agreements and the Gourmet business,
and also benefited from the successful integration of the Mona Lisa decorations
business. Brazil achieved double-digit top-line growth, particularly in the
Gourmet & Specialties Products business.
Sales revenue in the Region increased by 6.4% to CHF 1,182.7 million reflecting
lower average raw material prices for the major part of the year.
The positive volume development and margin increases across all businesses
resulted in a significant EBIT increase of 19.3% to CHF 107.6 million.

Region Asia-Pacific - Investment in future growth
Chocolate markets in the Region remained resilient in the face of an economic
slowdown and accelerated their growth pace to 12.9%[9].
Barry Callebaut grew its sales volume in Asia-Pacific by 1.8% to 58,832 tonnes.
In the second half of the year, the relocation of the Japan factory, together
with fully utilized capacities at other sites, did not allow Barry Callebaut to
exploit the growth potential of the market. Gourmet continued to perform well.
Barry Callebaut further strengthened its leadership in imported chocolate from
Europe, driven by the Callebaut(®) brand, and accelerated marketing and
distribution efforts, particularly in China and India.
Sales revenue in the Region decreased by 4.5% to CHF 222.0 million as a result
of lower average raw material prices compared to prior year. Operating profit
(EBIT) was negatively impacted by a higher cost base as a result of ongoing
expansion; EBIT decreased by 9.4% to CHF 26.9 million.

Global Sourcing & Cocoa[10] - Significant expansion, assuming leadership
Global Sourcing & Cocoa significantly expanded its sales volume by 14.5% to
310,372 tonnes, mostly driven by the recent acquisition of the cocoa business
from Petra Foods. Stand-alone sales volume went up by only 0.9% to 273,342
tonnes as a result of higher internal demand and selective sales to third-party
customers due to low market prices.
Market prices for cocoa powder were significantly lower compared to last year.
This is reflected in the sales revenue, which declined by 15.6% to CHF 1,126.9
million.
Operating profit (EBIT) decreased by 36.0% to CHF 41.7 million, partly due to
the expected operational loss of the recently acquired cocoa business. Stand-
alone EBIT decreased by 17.6% to CHF 53.7 million as a result of the expected
negative effect of the combined cocoa ratio.

Raw material price developments
Cocoa prices moved downwards continuously until March 2013 as a result of a good
main crop in West Africa and funds liquidating their long positions. Thereafter,
driven by fears of a cocoa supply deficit for the 2013/14 season, prices rose
again to close at GBP 1,634 per tonne on  August 31, 2013.
The world sugar crop 2012/13 was very good with a surplus for the 3rd year in a
row, driving prices down to the lowest level since 2010. In Europe, special
measures were taken (import quotas and reclassification) increasing availability
and thus stabilizing prices, but at still rather high levels.
Prices for milk powder rose sharply as of March 2013 due to a drought in New
Zealand, the world's leading dairy supplier, causing a record deficit in the
market. In Europe, after stabilizing at an already high level in the first half
of the fiscal year, prices followed the world market trend and significantly
increased again.

Proposals to the Annual General Meeting (AGM)

Payout to shareholders
The Board of Directors will propose a payout to shareholders of CHF 14.50 per
share at the Annual General Meeting of Shareholders on December 11, 2013. This
represents an increased payout ratio of 35% of the net profit from continuing
operations. The payout will be effected through a dividend payment from reserves
from capital contributions. The distribution of these funds to shareholders will
not be subject to withholding tax and - for individuals who are taxed in
Switzerland and hold the shares privately - income tax. The dividend payment to
shareholders will be effected on March 3, 2014, subject to approval by the
Annual General Meeting of Shareholders.

Board of Directors
After electing two new members to the Board of Directors at the company's
Extraordinary Shareholders Meeting of April 22, 2013, all current members of the
Board of Directors will stand for re-election for another term of office of one
year except Markus Fiechter. As announced in April 2013, he will step down from
the Board at the ordinary Annual General Meeting of Shareholders in December
2013 after having served since 2004. The Board of Directors, as well as the
Executive Committee and all Barry Callebaut employees, express their sincere
gratitude to Markus Fiechter for his many years of service and his most valuable
contribution to the successful development of the company.
***

Online Annual Report / Sustainability Report 2012/13
More detailed financial information on Barry Callebaut's fiscal year 2012/13 can
be found on the dedicated Annual Report website: www.barry-callebaut.com/annual-
report.

PDF versions of the "Annual Report 2012/13" (available in English only on
November 7, 2013; a German version will be available as of November 18, 2013),
as well as of the company's "Letter to Investors 2012/13" are posted on Barry
Callebaut's website under www.barry-callebaut.com/documentation; printed
versions of the "Annual Report 2012/13" (English only) and "Letter to Investors
2012/13" (English and German) will be available as of November 22, 2013.

Barry Callebaut also issued a comprehensive Sustainability Report 2012/13 (GRI
checked). The report can be downloaded under www.barry-
callebaut.com/documentation (available in English only on November 7, 2013; a
German version will be available as of November 18, 2013); a printed version
will be available as of November 22, 2013 (English only).
In addition, a GRI Report is available online under www.barry-
callebaut.com/documentation.
***
-------------------------------------------------------------------------------
 Financial calendar for fiscal year 2013/14 (September 1, 2013 to August
 31, 2014):
-------------------------------------------------------------------------------
 Annual General Meeting 2012/13                       December 11, 2013, Zurich
-------------------------------------------------------------------------------
 3-month key sales figures 2013/14 (news release)              January 15, 2014
-------------------------------------------------------------------------------
 Half-year results 2013/14 (news release &
 conference)                                              April 3, 2014, Zurich
-------------------------------------------------------------------------------
 9-month key sales figures 2013/14 (news release)                  July 3, 2014
-------------------------------------------------------------------------------
 Full-year results 2013/14 (news release &
 conference)                                           November 6, 2014, Zurich
-------------------------------------------------------------------------------
 Annual General Meeting 2013/14                       December 10, 2014, Zurich
-------------------------------------------------------------------------------
                                      ***
                   Barry Callebaut (www.barry-callebaut.com):
 With annual sales of about CHF 4.9 billion (EUR 4.0 billion / USD 5.2 billion)
  in fiscal year 2012/13, Zurich-based Barry Callebaut is the world's leading
 manufacturer of high-quality chocolate and cocoa products - from sourcing and
 processing cocoa beans to producing the finest chocolates, including chocolate
 fillings, decorations and compounds. The company runs more than 50 production
  facilities worldwide and employs a diverse and dedicated global workforce of
                               over 8,500 people.
     Barry Callebaut serves the entire food industry, from industrial food
    manufacturers to artisanal and professional users of chocolate, such as
  chocolatiers, pastry chefs, bakers, hotels, restaurants or caterers. The two
  global brands catering to the specific needs of these Gourmet customers are
                        Callebaut(®) and Cacao Barry(®).
   Barry Callebaut is committed to a sustainable cocoa production through its
"Cocoa Horizons" initiative, and to help ensure future supplies of cocoa as well
                         as improve farmer livelihoods.
                                      ***
-------------------------------------------------------------------------------
 Media and Analysts'/Institutional Investors' conferences of Barry Callebaut AG
-------------------------------------------------------------------------------
 Date:     Thursday, November 7, 2013
-------------------------------------------------------------------------------
 Location: Barry Callebaut Head Office, Chocolate Academy(TM) center, Ground
           floor,
           Pfingstweidstrasse 60, Westpark, 8005 Zurich/Switzerland
-------------------------------------------------------------------------------
 Time:     Media: 09.30 am to 10.30 am CET
           Analysts/Institutional Investors: 11.30 to approx. 1 pm CET
-------------------------------------------------------------------------------

-------------------------------------------------------------------------------
 The conferences can be followed by telephone or audio webcast. All dial-in and
 access details can be found on the Barry Callebaut website:
-------------------------------------------------------------------------------
 Media
-------------------------------------------------------------------------------
 Analysts/Institutional Investors
-------------------------------------------------------------------------------
                                      ***
  Contact

  for investors and financial analysts:   for the media:

  Evelyn Nassar                           Raphael Wermuth

  Head of Investor Relations              Head of Media Relations

  Barry Callebaut AG                      Barry Callebaut AG

  Phone: +41 43 204 04 23                 Phone: +41 43 204 04 58

  evelyn_nassar@barry-callebaut.com       raphael_wermuth@barry-callebaut.com


Group key figures for fiscal year 2012/13 - from continuing operations
-------------------------------------------------------------------------------


                                Change in %

                                  in local          12 months up   12 months up
                                currencies in CHF         to Aug         to Aug
                                                        31, 2013       31, 2012
-------------------------------------------------------------------------------
 Key figures for the total business
-------------------------------------------------------------------------------
 Sales volume       Tonnes                   11.4      1,535,662      1,378,856
-------------------------------------------------------------------------------
 Sales revenue       CHF m             0.6    1.1        4,884.1        4,829.5
-------------------------------------------------------------------------------
 EBITDA              CHF m           (0.1)    0.2          435.1          434.3
-------------------------------------------------------------------------------
 Operating profit                    (4.0)  (3.9)          339.6          353.2
 (EBIT)              CHF m
-------------------------------------------------------------------------------
 Net profit          CHF m           (5.4)  (4.9)          229.3          241.1
-------------------------------------------------------------------------------
 Net profit (incl.
 discontinued
 operations)         CHF m            55.3   56.1          222.6          142.6
-------------------------------------------------------------------------------

-------------------------------------------------------------------------------
 Key figures - on stand-
 alone basis
-------------------------------------------------------------------------------
 Sales volume       Tonnes                    8.7      1,498,632      1,378,856
-------------------------------------------------------------------------------
 Sales revenue       CHF m           (1.9)  (1.5)        4,756.4        4,829.5
-------------------------------------------------------------------------------
 Gross profit        CHF m             9.3    9.6          737.0          672.6
-------------------------------------------------------------------------------
 Operating profit                      4.2    4.4          368.8          353.2
 (EBIT)              CHF m
-------------------------------------------------------------------------------
 EBIT per tonne        CHF           (4.1)  (3.9)          246.1          256.2
-------------------------------------------------------------------------------


-------------------------------------------------------------------------------
 By Region - for the total business
-------------------------------------------------------------------------------
 Europe
-------------------------------------------------------------------------------
 Sales volume       Tonnes                    8.1        744,078        688,203
-------------------------------------------------------------------------------
 Sales revenue       CHF m             8.3    9.4        2,352.5        2,150.6
-------------------------------------------------------------------------------
 EBITDA              CHF m             8.1    9.0          284.8          261.3
-------------------------------------------------------------------------------
 Operating profit                      8.2    9.0          253.2          232.2
 (EBIT)              CHF m
-------------------------------------------------------------------------------

-------------------------------------------------------------------------------
 Americas
-------------------------------------------------------------------------------
 Sales volume       Tonnes                   16.7        422,380        361,819
-------------------------------------------------------------------------------
 Sales revenue       CHF m             5.4    6.4        1,182.7        1,111.8
-------------------------------------------------------------------------------
 EBITDA              CHF m            19.7   20.4          129.2          107.3
-------------------------------------------------------------------------------
 Operating profit                     18.5   19.3          107.6           90.2
 (EBIT)              CHF m
-------------------------------------------------------------------------------

-------------------------------------------------------------------------------
 Asia-Pacific
-------------------------------------------------------------------------------
 Sales volume       Tonnes                    1.8         58,832         57,815
-------------------------------------------------------------------------------
 Sales revenue       CHF m           (3.5)  (4.5)          222.0          232.4
-------------------------------------------------------------------------------
 EBITDA              CHF m          (10.3)  (8.8)           32.5           35.7
-------------------------------------------------------------------------------
 Operating profit                   (11.2)  (9.4)           26.9           29.7
 (EBIT)              CHF m
-------------------------------------------------------------------------------

-------------------------------------------------------------------------------
 Global Sourcing &
 Cocoa
-------------------------------------------------------------------------------
 Sales volume       Tonnes                   14.5        310,372        271,019
-------------------------------------------------------------------------------
 Sales revenue       CHF m          (15.2) (15.6)        1,126.9        1,334.7
-------------------------------------------------------------------------------
 EBITDA              CHF m          (14.9) (17.4)           75.5           91.4
-------------------------------------------------------------------------------
 Operating profit                   (32.2) (36.0)           41.7           65.2
 (EBIT)              CHF m
-------------------------------------------------------------------------------

-------------------------------------------------------------------------------
 By Product Group - for the total business
-------------------------------------------------------------------------------
 Sales Volume       Tonnes                   11.4      1,535,662      1,378,856
-------------------------------------------------------------------------------
 Cocoa Products     Tonnes                   14.5        310,372        271,019
-------------------------------------------------------------------------------
 Food Manufacturers                          10.7      1,065,028        962,058
 Products           Tonnes
-------------------------------------------------------------------------------
 Gourmet &                                    9.9        160,262        145,779
 Specialties
 Products           Tonnes
-------------------------------------------------------------------------------

-------------------------------------------------------------------------------
 Sales Revenue       CHF m             0.6    1.1        4,884.1        4,829.5
-------------------------------------------------------------------------------
 Cocoa Products      CHF m          (15.2) (15.6)        1,126.9        1,334.7
-------------------------------------------------------------------------------
 Food Manufacturers  CHF m             6.1    7.1        2,971.7        2,774.0
 Products
-------------------------------------------------------------------------------
 Gourmet &           CHF m             8.4    9.0          785.5          720.8
 Specialties
 Products
-------------------------------------------------------------------------------

[1] Stand-alone numbers exclude the recently acquired cocoa business from
Singapore-based Petra Foods. On June 30, 2013, Barry Callebaut closed the
transaction it had announced on December 12, 2012. The business has been
consolidated for the months of July and August in the full-year results of the
Group.
[2] Including the recently acquired cocoa business.
[3] As of consolidation of the recently acquired cocoa business: 6-8% average
volume growth per year, and EBIT per tonne restored to pre-acquisition level by
2015/16 (CHF 256 per tonne) - barring any major unforeseen events.
[4] The global chocolate confectionery market grew by 1.6% in volume. Source:
Nielsen, September 2012 - August 2013.
[5] Barry Callebaut passes on raw material prices to customers for the majority
of its business.
[6] As of consolidation of the recently acquired cocoa business: 6-8% average
volume growth per year, and EBIT per tonne restored to pre-acquisition level by
2015/16 (CHF 256 per tonne) - barring any major unforeseen events.
[7] Consisting of Western Europe and EEMEA (Eastern Europe, Middle East and
Africa).
[8] Source: Nielsen, September 2012 - August 2013 (Volume growth; chocolate
confectionery market).
[9] Source: Nielsen, September 2012 - August 2013. Total for China (+13.2%) and
India (+12.7%). (Volume growth; chocolate confectionery market)
[10] The figures reported under "Global Sourcing & Cocoa" include all sales of
cocoa products to third-party customers in all Regions while the figures shown
under the respective Region show all chocolate sales.


Press Release: http://hugin.info/100441/R/1741222/584982.pdf

[HUG#1741222]