Sales volume for the company was up 1.7% to 541,109t, supported by growth in the US (up 8%) and the Asia Pacific regions (up 3.8%). Growth in Europe, the Middle East and Africa was relatively flat (down 0.1%) following a boom in volume during the same period the previous year (up 10.3%).
Barry Callebaut expected volumes in Europe to accelerate in the coming months, thanks to a number of recently signed deals – including a long-term annual supply deal with Burton’s Biscuit Company at the end of last year.
Revenue growth
Revenue for the period saw an increase of 3.7% in local currencies, equivalent to 0.5% growth to CHF1.88bn (£1.44bn).
Commenting on the results, chief executive Antoine de Saint-Affrique said the business had a steady start to the new fiscal year on top of a very strong prior-year base.
“We expect sales momentum to pick up in the back half of the fiscal year as additional volumes come on stream from new outsourcing contracts across all regions, as well as from recently launched innovations.
‘On track’
“Our good product mix and strong portfolio give us confidence that we are on track to deliver on our current mid-term guidance for the period ending with fiscal year 2018/19.”
Looking ahead, Barry Callebaut predicted 4-6% volume growth for the year ahead, with earnings before taxes and amortisation expected to be above volume growth in local currencies on average.
The group will share further information on its growth strategy and business model at the Investor Day, to be held on 16 April in Wieze, Belgium.
Meanwhile, Premier Foods saw sales drop despite continued growth for its key brands in its third-quarter (Q3) trading statement for the 13 weeks to 29 December 2018.
