Chocolate manufacturer Barry Callebaut has posted an 11% increase in first half net profits. However, the company said that its profitability continues to be held back by the poor performance of its US confectionery business Brach’s.

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Boosted by growing demand from food companies to outsource production, the world’s largest producer of bulk chocolate reported profits of CHF125.2m (US$102m), up from CHF112.7m the year before.


Sales grew 4% to CHF2.31bn from CHF2.22bn and operating profit grew 7.3% to CHF190m from CHF177m.


Brach’s loss of market share in the US resulted in restructuring changes of CHF3.5m, Barry Callebaut said. Barry Callebaut said it is reviewing options for Brach’s, including possible sale.


The company said that it is on track to hit annual growth targets for a three-year period ending in two years. It aims to increase operating profit by 8-10%, net profit by 12-15% and organic sales by 3-5%.

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Growth is currently driven by emerging markets with recent factory openings in China and Russia, the company added.

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