Barry Callebaut 3Q Sales Hampered By Pandemic, Rebound Expected

Andrew Fleming|Rogier van Sligter

Zurich, Switzerland —Barry Callebaut AG’s third quarter sales volume was down 14.3 percent as the supplier saw strong momentum from the first six months of the year slow because of lockdown measures, the company reports. For the first nine months of fiscal year 2019/20, overall sales volume was down 1.3 percent.

Antoine de Saint-Affrique, CEO of the Barry Callebaut Group, says: “As anticipated in April, COVID-19 lockdowns across the globe impacted our sales volume in the third quarter, and herewith the good momentum of the first six months of fiscal year 2019/20. Throughout the COVID-19 pandemic, the precautionary measures we put in place early on allowed us to preserve business continuity and maintain a high service level for our customers worldwide, whilst protecting the health of our employees and the communities we operate in. We expect to emerge from the crisis with even closer relationships with our customers and suppliers, with fresh insights into innovative ways of doing business and a solid financial basis.”

However, the chocolate supplier reports its saw gradual recovery in June as COVID-19 measures were lifted.

“The COVID-19 pandemic is a major unforeseen event which will have a negative impact on fiscal year 2019/20,” Saint-Affrique says. “This is why we update our mid-term guidance, excluding fiscal year 2019/20 and introducing increased metrics of, on average for the three-year period 2020/21 to 2022/23, five percent to seven percent volume growth and EBIT above volume growth in local currencies, barring any major unforeseeable events . The updated mid-term guidance starts in September 2020.”

While most regions saw sales hampered by pandemic restrictions — EMEA market sales volume was down 2.3 percent and volume from the Americas region declined 2.6 percent — the Asia-Pacific region continued delivering strong results with sales volume up 11.1 percent for the first nine months of fiscal year 2019/20.