Higher cocoa prices and costs linked to new factories in Russia and China have weighed on half-year profits at Barry Callebaut, the business-to-business chocolate maker.
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The Switzerland-based group today (3 April) posted operating profit of CHF200.4m (US$196.6m) for the six months to 29 February, an increase of 1.3% on the year.
Barry Callebaut said cocoa prices jumped 50% between last September and the end of February and it had only been able to increase prices on branded consumer goods from the New Year.
The company said the start-up of factories in Russia and China had also had an impact on profits.
Nevertheless, first-half revenue climbed 21.1% to CHF2.6bn. Volumes were up 10.3%, growing three times faster than the global chocolate market, Barry Callebaut said.
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By GlobalDataCEO Patrick De Maeseneire said the last six months had seen the business make “significant investments in our future”.
He added: “We are now optimally positioned to accelerate our profitable growth going forward and we will be able to fully benefit from scale effects.”
