Chocolate maker Barry Callebaut has announced its first quarter results along with a new, lower, mid-term guidance of 4% to 6% volume growth.
Volumes fell 5.1% in the three months to the end of November, the company said, as it was hit by lower output at its biggest factory.
Volume Impact
Volumes fell to 579,000 tonnes, from 610,000 tonnes the previous year, said the company, whose products are used by food makers including Nestlé and Unilever.
The declines occurred as the Swiss company started ramping up production again at its Wieze factory in Belgium, which was hit by a salmonella scare last year.
Sales revenue increased by 3.8% to CHF 2.1 billion (€2.1 billion), as the company passed on raw material price increases the company said. In local currencies, revenues increased by 7.2%.
"With Wieze fully operational since the end of October and against a strong comparator, we had, as expected, a slow start to the year," chief executive Peter Boone said in a statement.
"In markets where Gourmet products were widely available, we continued to win. We are committed to achieve our current three-year mid-term guidance in this final year, based on our broad product portfolio and broad geographic and customer base."
Mid-Term Guidance
Barry Callebaut also announced a new mid-term guidance of 4% to 6% volume growth for the years 2023 to 2026, slightly down from the current 5% to 7% targeted volume growth for the three years up to 2023.
"We had expected coming out of COVID an acceleration," Boone said. "The acceleration is back to a normal trajectory."
Barry Callebaut also said it would target 8% to 10% EBIT growth in local currencies for the period 2023-2026.
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