Factory shutdown to hit Barry Callebaut after 9-month sales rise

By Silke Koltrowitz

ZURICH -Barry Callebaut expects a “notable monetary affect” in its fourth quarter from the shutdown of its Wieze manufacturing unit because the world’s greatest chocolate maker mentioned on Wednesday that robust demand boosted gross sales within the 9 months to Might.

Gross sales volumes grew 7.9% to 1,751 thousand tonnes within the first 9 months of Barry Callebaut’s fiscal yr 2021/22, whereas gross sales income elevated 13.5% to six.076 billion Swiss francs ($6.27 billion), the Zurich-based group mentioned in an announcement, additionally confirming its mid-term targets.

The worldwide chocolate confectionery market grew only one.4% throughout that interval, Barry Callebaut mentioned, and it outpaced it due to robust demand throughout areas and a continued restoration in its gourmand enterprise that caters to bakeries and cooks.

The corporate halted manufacturing at its Wieze web site in Belgium – the world’s greatest chocolate manufacturing unit – after detecting salmonella in June, however mentioned cleansing was progressing properly and it anticipated to restart manufacturing early subsequent month and return to full capability over the next weeks.

“Although the complete monetary affect of the incident continues to be being assessed, the Group expects it to be notable for the monetary leads to the fourth quarter 2021/22,” it mentioned.

“I assume a 2% group affect on a full-year foundation from the manufacturing unit’s momentary closure, its greatest and round a fifth of group quantity,” mentioned Kepler Cheuvreux analyst Jon Cox, including that the damaging affect might attain 10% within the quarter.

Shares, down about 5% up to now this yr, opened 0.4% increased.

Barry Callebaut, which passes increased uncooked materials prices on to prospects like Nestle, confirmed it expects common quantity development of 5-7% per yr and earnings earlier than curiosity and tax above quantity development in native currencies for the interval ending on Aug. 31 subsequent yr.

($1 = 0.9683 Swiss francs)