Linked In
News In
Linked In

You are viewing 1 of your 2 complimentary articles.

Register now to receive full access.

Already registered?

Login | Join us now

Cocoa grind margins on the up, Barry Callebaut says

Twitter Linkedin

Cocoa processing margins are on the rise, Swiss chocolate maker Barry Callebaut said, as it forecast its sales volumes to increase from April of this year.

The company saw its total sales volumes edge down, thanks to a planned withdrawal of its less profitable cocoa delivery contracts.

But chief executive Antoine de Saint-Affrique said "we have good visibility on volume growth and expect acceleration in the second half of the fiscal year".

Barry Callebaut confirmed its guidance for cocoa volumes growing by 4-6% through 2017-18.

Shares opened up 1.7%, but trimmed gains, up 0.2% on the day in afternoon deals, at 1,236.00 Swiss francs.

Rising margins

Cocoa grinding margins are trending upward, but the industry has seen recent setbacks, Barry Callebaut said.

The company saw the saw an improvement in the combined ratio, the value of cocoa butter and powder compared to that of unprocessed cocoa beans.

"The combined ratio is heading in the right direction, though volatility remains high," the company said.

"After a significant recovery at the end of October 2016, the combined cocoa ratio again experienced a downturn; however, it is still at a higher level compared to the prior year."

Chocolate volumes rise, cocoa falls

Barry Callebaut saw sales volumes fall as part of a planned rationalisation of its cocoa business, but chocolate volumes rose, and the company expects rising sales by the second half of the year.

Sales volumes dipped 0.4% year on year, to 492,931 tonnes in the September to November period.

Revenues rose 4.2%, to 1.89bn, ahead of analyst expectations.

Outpacing the market

Barry Callebaut managed to grow chocolate sales volumes in Europe and the Americas, despite the fact that total chocolate demand fell in those regions.

The company's sales volume in Europe, Middle East, Africa rose 2.2% to 225,087 tonnes.

And sales in the Americas rose 1.4%, to 113,112 tonnes.

Sales in the Asia Pacific region grow faster, with volumes up 8.8%, at 22,544 tonnes.

By William Clarke

Twitter Linkedin
Related Stories

Hedge funds turn net bullish on ags - ahead of price drop to historic low

Speculators are wrong-footed in soymeal, in which they hike bullish bets just before a price tumble. But they fare better in cotton and cocoa

Soft commodities better bets than grains for 2018, says Commerzbank

Indeed, investors are overrating prospects for corn and wheat futures. But cocoa futures have scope for gains, and coffee could see a "price surge"

Agricultural commodity prices poised for gains - particularly in 2019

... FocusEconomics analysis of broker forecasts shows, even as the market negotiates what Bcom terms a "key test" of whether price lows have been set

Evening markets: La Nina fears help ags outperform, for once

... posting small gains, rather than declines seen in other commodities, and shares. But La Nina is not a help for all ag contracts
Home | About | RSS | Commodities | Companies | Markets | Legal disclaimer | Privacy policy | Contact

Our Brands: Comtell | Feedinfo | FGInsight

© 2017 and Agrimoney are trademarks of Agrimoney Ltd
Agrimoney is part of the Briefing Media group
Agrimoney Ltd is registered in England & Wales. Registered number: 09239069