Callebaut profit rises and partnership expansions

 9 November 2010 – Barry Callebaut has reported a gain in full-year profit that beat analysts’ estimates. Net income in the 12 months through August rose 11% to 251.7 million Swiss francs (€188m).

The market for chocolate will probably expand 1-2% worldwide this fiscal year, compared with the long- term average of 2-3% growth, the Swiss company said.

“With regard to the economic situation, we are cautiously optimistic,” said chief executive officer Juergen Steinemann on a conference webcast.

The company also plans to expand its strategic partnerships with local food manufacturers in order to “tap into the full potential” of emerging markets, Steinemass also noted. “This agreement confirms the trend towards outsourcing and strategic partnerships in the chocolate industry.”

In September, Callebaut secured a long-term supply contract with Kraft Foods, which saw the firm invest €51m to expand production capacity in North America, the Ivory Coast, Malaysia and Europe, more than doubling its existing business with the US food group.

The company aims to double volume by the year through August 2015 at the gourmet unit, whose competitors include Valrhona, Felchlin and Belcolade. Acquisitions that would allow Callebaut’s industrial bulk division to enter more emerging markets might also be of interest, Steinemann said.

Callebaut also plans to separate its European consumer unit by the end of the year to make the division easier to sell. However, the company noted that it is not “under pressure” to sell the division.