Barry Callebaut , the world's largest maker of chocolate products, confirmed its midterm targets on Thursday after sales volumes rose 7.3 percent during the first nine months of its fiscal year 2010/11.
The company, which makes chocolates for groups such as Nestle and Hershey , is benefit ting from a recovery in worldwide chocolate consumption and a trend towards outsourcing chocolate production. Sales were up 12.5 percent in local currencies until the end of May driven also by higher raw material prices. They only rose 1.6 percent to 4 billion Swiss francs in francs as the strong Swiss currency took its toll, the company said in a statement.
Emerging markets contributed particularly strongly with a volume growth of 10.2 percent, the group said. Earlier this week, the group announced an outsourcing agreement in Mexico.
It also signed an important global supply agreement with Kraft Foods last year and recently expanded its contract with Hershey.
Barry Callebaut said it expected the global chocolate market to grow above 2 percent despite macroeconomic uncertainties.
The end of the crisis in the Ivory Coast had allowed cocoa prices to stabilise at high levels, the group said.
"The company assumes that raw material prices -- especially cocoa, sugar and milk powder -- will remain volatile and at high levels," it said, adding that it was able to pass on these price changes to its customers.
U.S. cocoa futures have come off a 32-year peak hit in early March because of a post-election conflict in Ivory Coast, the world's top producer.
The group, which also makes chocolate coatings and cocoa powders, targets on average 6-8 percent volume growth and earnings before interest and taxes (EBIT) growth in local currencies at least in line with volume growth through 2012/13.
The company, which makes chocolates for groups such as Nestle and Hershey , is benefit ting from a recovery in worldwide chocolate consumption and a trend towards outsourcing chocolate production. Sales were up 12.5 percent in local currencies until the end of May driven also by higher raw material prices. They only rose 1.6 percent to 4 billion Swiss francs in francs as the strong Swiss currency took its toll, the company said in a statement.
Emerging markets contributed particularly strongly with a volume growth of 10.2 percent, the group said. Earlier this week, the group announced an outsourcing agreement in Mexico.
It also signed an important global supply agreement with Kraft Foods last year and recently expanded its contract with Hershey.
Barry Callebaut said it expected the global chocolate market to grow above 2 percent despite macroeconomic uncertainties.
"The company assumes that raw material prices -- especially cocoa, sugar and milk powder -- will remain volatile and at high levels," it said, adding that it was able to pass on these price changes to its customers.
U.S. cocoa futures
The group, which also makes chocolate coatings and cocoa powders, targets on average 6-8 percent volume growth and earnings before interest and taxes (EBIT) growth in local currencies at least in line with volume growth through 2012/13.
