Barry Callebaut, the Swiss chocolate group, has seen the strength of the Swiss franc weigh on its first-quarter sales.
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The company said today (21 January) that its revenue in the three months to 30 November inched up by 0.7% to CHF1.43bn (US$1.3bn).
In local currencies, sales rose 7.2% to CHF1.52bn.
Barry Callebaut said good growth in the emerging markets of Eastern Europe and Asia, together with market share gains in North America, helped offset lower sales in the mature markets of Western Europe.
The Zurich-based company saw sales volumes for the first quarter rise 2% to 338,513 tonnes.
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By GlobalDataThe company’s revenue in the Americas grew by 30.6% in local currencies . When measured in Swiss francs, it increased by 24.6% to CHF294.8m.
In Europe, the company experienced a decline in sales volume of 4.1% to 230,824 tonnes. Sales revenue for the quarter in local currencies was up 0.5% but fell 6.3% to CHF1.03bn when measured in Swiss francs.
Sustained double-digit sales growth in Eastern Europe could not compensate for the slowdown in several Western European markets, where consumer spending dropped amid the economic downturn.
“Barry Callebaut succeeded in growing its business in the first quarter despite challenging market conditions,” said Patrick De Maeseneire, CEO. “After an unusually weak month of November we saw a marked pick-up in orders in December. Our expansion into high-growth markets is paying off.
“While we expect customers and consumers, especially in the mature markets of Western Europe, to remain cautious, we believe that our strategy built upon geographic expansion, innovation and cost leadership positions us well to weather the tough economic environment.”
De Maeseneire said he remains confident the company will reach its four-year financial target of a net profit growth of 13-16%.
