• Sales volume up +5.3%, with solid chocolate performance (+5.9%)
• Sales revenue of CHF 8.1 billion, up +14.6% in local currencies (+12.3% in CHF)
• Operating profit (EBIT) recurring of CHF 624.7 million, up +13.5% in local currencies (+10.2% in CHF). EBIT reported of CHF 553.5 million, up +0.1% in local currencies (-2.3% in CHF)
• Net profit recurring¹ of CHF 428.5 million, up +14.1% in local currencies (+11.4% in CHF). Net profit reported of CHF 360.9 million, down -4.7% in local currencies (-6.1% in CHF)
• Continued good cash generation with adjusted Free cash flow² of CHF 358.5 million
• On track to achieve mid-term guidance³
• Thomas Intrator proposed as new member of the Board of Directors
• Proposed stable dividend of CHF 28.00 per share, a payout ratio of 43%

Expansion: In October 2022, Barry Callebaut signed a partnership with Attelli in Morocco which will accelerate the expansion of Barry Callebaut in the region. Under the terms of the agreement, Barry Callebaut acquired Attelli's manufacturing assets in Casablanca, establishing the Group’s first  chocolate production footprint in Morocco and consequently on the African continent. 
In September 2022, the Group deepened its presence in Canada by celebrating the groundbreaking of a new factory in Brantford, Ontario. Upon completion, the site will specialize in sugar-free, high protein, and other specialty chocolate products, further boosting the long-term growth of Barry Callebaut in North America. 
In August 2022, Barry Callebaut celebrated the Group's 15-years presence in China, an important chocolate gourmet market, by opening its centrally-located Greater China headquarters as well as China’s flagship CHOCOLATE ACADEMY™ Center in Shanghai. Through its global network of now 26 CHOCOLATE ACADEMY™ Centers, Barry Callebaut offers inspiration, training and personalized support for artisans, pastry chefs, confectioners, bakers and caterers.

Innovation: In October 2022, Barry Callebaut introduced a breakthrough innovation, redesigning how chocolate is made. Thanks to advances to the process of farming, fermentation and roasting of the cocoa beans, chocolate lovers can indulge in the purity of cocoa flavors, as the recipe for the new chocolate is as short as it can be. Dark chocolate is made from only cocoa and sugar, whereas Milk chocolate contains dairy as well. By introducing this innovation, Barry Callebaut is supporting brands and artisans to launch innovative and exciting chocolate creations in confectionery, bakery, pastry, desserts and ice-cream.

In September 2022, Barry Callebaut officially opened its Pilot Plant & Chocolate LAB with integrated bakery in Banbury, UK. This state-of-the-art R&D facility, together with the local CHOCOLATE ACADEMY™ Center, will strengthen the collaboration with customers in the UK and Ireland, helping them to lead the way by bringing inspiring chocolate experiences to life from concept to creation. 
In early 2022, Barry Callebaut launched in the US and Canada new plant-based innovations including dairy-free compound and dairy-free organic chocolate. The new ranges include new solutions for the baking, confectionery, snacking and ice cream segments and are catering to the growing demand for plant-based and dairy-free consumer products.

Cost leadership: In September 2022, Standard & Poor’s Global Ratings (S&P) upgraded the Group’s long-term corporate rating to ‘BBB’ flat, up from ‘BBB-’. At the same time, all senior unsecured long-term ratings assigned to the bonds issued by Barry Callebaut Services N.V. were also upgraded to ‘BBB’ flat from ‘BBB-’. The outlook for all ratings is ‘stable’. The improved ratings confirm Barry Callebaut's strong financial profile.

Sustainability: In September 2022, Sustainalytics ranked Barry Callebaut as #1 out of 584 companies in the ‘Food Products’ category. Sustainalytics is a leading player in assessing industry efforts to manage Environmental, Social and Governance (ESG) risks in supply chains. This is the fourth consecutive year that Barry Callebaut has been recognized as a leader in the management of ESG risks in its supply chain, not only in the cocoa and chocolate sector, but also in the broader food and beverage industry. 

In recent months, Barry Callebaut collaborated with Conseil Café Cacao (CCC) in Côte d’Ivoire on a traceability trial project in the region of Aboisso, that includes the merging of Barry Callebaut's data with government-owned farmer data. The aim of the trial project is to feed the learnings into a consolidated national farm database, currently being built by the CCC.

Region EMEA – Robust performance in light of temporary stoppage of Wieze factory 

In Region EMEA (Europe, Middle East and Africa) the salmonella incident at the Wieze factory in Belgium and the resulting temporary production stoppage, followed by a gradual ramp-up towards the end of the fiscal year, had a notable impact on volume and profit. Supported by the strong growth in the first nine months of the fiscal year, volume in the Region increased by +4.3% to 1,040,018 tonnes for the full fiscal year 2021/22. As of October 2022, the cleaning of the Wieze factory neared completion and the factory is again operating at normal capacity. Excluding the first-time consolidation of Europe Chocolate Company (ECC) since September 2021, organic volume growth was +3.0%, well ahead of the declining regional chocolate confectionery market (-1.3%). Food Manufacturers, particularly in Western Europe, was impacted by a significant volume drop in the fourth quarter, due to the incident in the Wieze factory, affecting its healthy volume growth thus far. The Gourmet & Specialties business was not immediately impacted by the incident and continued its strong growth trajectory across the Region. Sales revenue amounted to CHF 3,341.0 million, up +13.9% in local currencies (+6.8% in CHF). Operating profit (EBIT) reported amounted to CHF 267.2 million, down -15.6% in local currencies (-21.2% in CHF). Excluding the non-recurring impact linked to the incident at the Wieze factory and the cost for the closure of the chocolate factory in Moreton, UK, EBIT recurring amounted to CHF 351.9 million, up +10.5% in local currencies (+3.7% in CHF) reflecting the positive mix and effective cost control.

Region Americas – Smart growth leading to double-digit EBIT increase

Region Americas continued its strong growth trajectory and reached a new record volume of 649,389 tonnes, up +6.4%, clearly ahead of the regional underlying chocolate confectionery market (+0.7%)7. Food Manufacturers' growth was broad based and supported by the ongoing trend for 'better-for-you' products. Gourmet & Specialties continued to show strong growth. Sales revenue increased by +16.2% in local currencies (+19.7% in CHF) and amounted to CHF 2,190.2 million. Operating profit (EBIT) recurring8 grew well ahead of the volume at +14.8% in local currencies (+18.5% in CHF) and amounted to CHF 221.0 million, benefiting from a strong segment and margin-accretive product mix.

Region Asia Pacific – Strong growth momentum

In Region Asia Pacific strong volume growth continued at +15.8% and reached 160,304 tonnes in fiscal year 2021/22, clearly outpacing the underlying chocolate confectionery market (+11.0%). Strong growth with Food Manufacturers continued in key markets such as India and China, though some markets, including Australia, still experienced ripple effects from COVID-19. Despite the challenging comparison base, the Gourmet & Specialties business continued its strong growth. Sales revenue increased by +23.3% in local currencies (+23.4% in CHF) to CHF 547.8 million, mainly reflecting the inflationary environment. Operating profit (EBIT) amounted to CHF 59.1 million, up +2.9% in local currencies (+3.8% in CHF). EBIT growth lagged volume growth mainly due to upfront investments in growth, particularly in Australia. Nevertheless, the Region's profitability per tonne remained well ahead of the Group average.

Global Cocoa – Rebound in profitability as expected

Sales volume in Global Cocoa increased by +2.5% to 456,970 tonnes in fiscal year 2021/22. Sales revenue amounted to CHF 2,012.9 million, up +12.0% in local currencies (+11.5% in CHF). Operating profit (EBIT) recurring⁸ showed as expected a rebound to CHF 91.5 million, up +7.5% in local currencies (+5.8% in CHF) thanks to a normalized cocoa market.

Raw material price developments 

During fiscal year 2021/22, the cocoa bean price¹⁰ fluctuated between GBP 1,636 and GBP 1,882 per tonne and closed at GBP 1,878 per tonne on August 31, 2022. On average, the cocoa bean price increased by +4.2% versus prior year. While the global bean supply and demand expectations for 2021/22 indicate a deficit, large stocks carried from prior-year surpluses allow for sufficient bean supply, which should lead to an overall more balanced situation. The average combined ratio slightly increased to 3.6x, compared to 3.5x in prior year. This was the result of a rising cocoa powder price, while cocoa butter price suffered from the ripple-effects of the COVID-19 pandemic. Towards the end of the fiscal year 2021/22, cocoa butter price started to increase thanks to strong chocolate consumption in Europe and the US.
The world market price for sugar increased on average by +18.7%. This was due to a substantially lower Brazilian crop and a macro-environment impacted by high energy prices and geopolitical uncertainties. Sugar price in Europe increased on average by +56.4% during the fiscal year 2021/22. Robust demand was confronted with low supply due to reduced acreage and dry weather. The  additionally surging energy costs contributed to the strong price increase. 
The dairy price increased on average by +51.5% during the fiscal year 2021/22. Increasing demand coupled with a substantial decline in milk supply, driven by drought in the northern hemisphere and input inflation due to the war in Ukraine, pushed dairy product prices to historical highs.

¹⁰ _{Source: London terminal market prices for 2nd position, September 2021 to August 2022. Terminal market prices exclude Living Income Differential (LID) and country differentials.}

Payout to shareholders

The Board of Directors is proposing to shareholders at the Annual General Meeting of Shareholders (AGM) on December 14, 2022, a stable payout of CHF 28.00 per share. This corresponds to a payout ratio of 43% of the reported net profit, for once above the targeted ratio of 35-40% due to the above-mentioned one-off impact on net profit. The dividend will be paid to shareholders on, or around, January 11, 2023, subject to approval by the Annual General Meeting of Shareholders.

Board of Directors

All members of the Board will stand for reelection for another term of office of one year. The Board of Directors proposes to elect Thomas Intrator (Swiss national) as a new member of the Board. Thomas Intrator led a distinguished career in international shipping, trading, energy and risk management at Cargill, culminating in his last role as President and CEO of Cargill SA. His expertise in energy, logistics, trading and risk management will make a significant contribution to expand the Board expertise in these important areas.

Annual General Meeting

The Annual General Meeting (AGM) of Shareholders 2021/22, scheduled for December 14, 2022, will this year again take place with personal attendance of shareholders. Details can be found on the Group website and in the invitation to the AGM which will be sent by mid-November 2022.

Further information is available in the following publications:

• Online Annual Report 2021/22
• Annual Report 2021/22 (PDF) 
• Short Report 2021/22 English and German

Media and Analyst Conference of the Barry Callebaut Group

Financial Calendar for Fiscal Year 2022/23

(September 1, 2022 to August 31, 2023)

About Barry Callebaut Group:

With annual sales of about CHF 8.1 billion (EUR 7.8 billion / USD 8.6 billion) in fiscal year 2021/22, the Zurich- based Barry Callebaut Group is the world’s leading manufacturer of high-quality chocolate and cocoa products – from sourcing and processing cocoa beans to producing the finest chocolates, including chocolate fillings, decorations and compounds. The Group runs more than 65 production facilities worldwide and employs a diverse and dedicated global workforce of more than 13,000 people.

The Barry Callebaut Group serves the entire food industry, from industrial food manufacturers to artisanal and professional users of chocolate, such as chocolatiers, pastry chefs, bakers, hotels, restaurants or caterers. The global brands catering to the specific needs of these Gourmet customers are Callebaut^® and Cacao Barry^®, Carma^® and the decorations specialist Mona Lisa^®.

The Barry Callebaut Group is committed to make sustainable chocolate the norm by 2025 to help ensure future supplies of cocoa and improve farmer livelihoods. It supports the Cocoa Horizons Foundation in its goal to shape a sustainable cocoa and chocolate future.