Barry Callebaut, the Swiss chocolatier, has announced that it saw a 6.2% increase in revenue during the first fiscal quarter. This growth can be attributed to higher pricing strategies implemented by the company.
During the quarter ended on November 30, Barry Callebaut recorded revenue of 2.24 billion Swiss francs ($2.57 billion), a rise compared to the same period the previous year. The increase in revenue was mainly driven by adjustments made to counter higher cocoa bean prices and the inflationary environment caused by tight supplies.
When measured in local currencies, sales in the first quarter experienced a growth of 14%, according to Barry Callebaut.
Despite this positive performance, sales volume only grew by 0.4%, reaching 580.88 billion metric tons. While Europe experienced growth, the rest of the world saw declines. This muted volume growth can be attributed to a weak environment for fast-moving consumer goods companies and an overall decline in the chocolate confectionery market.
To fortify its financial position, Barry Callebaut optimized its liquidity position and strengthened its balance sheet through additional financing sources. This included the launch of a CHF600 million bond to refinance an existing bond of €450 million ($488.5 million) that was scheduled to mature in May.
The company has affirmed its fiscal 2024 guidance, expecting flat volume and flat earnings before interest and taxes on a recurring basis.