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Business

Chocolate market recovering says Barry Callebaut after sales volumes rise

ZURICH (Reuters) -Swiss chocolate maker Barry Callebaut confirmed its mid-term guidance on Wednesday after reporting an 8.9% rise in sales volumes in the three months to Nov. 30, helped by easier comparisons and a strong performance of its business for chefs and caterers.

Sales volumes reached 610,048 tonnes in the first quarter of the group’s fiscal year 2021/22, while sales revenue rose 14% to 2.032 billion Swiss francs ($2.22 billion), the Zurich-based group said in a statement.

Global demand for chocolate confectionery recovered last year, and Barry Callebaut is benefiting from big food groups outsourcing chocolate production.

“The increase (in sales revenue) was impacted by the overall inflationary environment, which Barry Callebaut manages through its cost-plus pricing model for the majority of its business,” said Barry Callebaut, which supplies chocolate to Nestle and Hershey.

Barry Callebaut passes on price increases to its customers under its cost-plus model.

Volumes in the group’s chocolate business grew 9.6%, while its gourmet unit that caters to chefs and restaurants saw a stronger recovery from the pandemic, with volumes rising 33.8%, the world’s biggest chocolate maker said.

The group also confirmed its mid-term guidance of 5%-7% average volume growth over the three-year period to its fiscal 2022/23.

Last week, Swiss peer Lindt & Spruengli posted a 13.3% rise in organic sales for 2021.

($1 = 0.9173 Swiss francs)

(Reporting by Silke Koltrowitz, editing by Kirsti Knolle and John Revill)

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