Barry Callebaut Ag · SIX:BARN
Barry Callebaut — 9M FY2023/24 Earnings Presentation
15 slides from Barry Callebaut's earnings presentation, Jul 11, 2024
Slide 1: 9-Month Key Sales Figures, Fiscal Year 2023/24
Barry Callebaut 9-Month Key Sales Figures, Fiscal Year 2023/24 11 July 2024
Slide 2: Disclaimer
Disclaimer Certain statements in this presentation regarding the business of Barry Callebaut are of a forward-looking nature and are therefore based on management’s current assumptions about future developments. Such forward-looking statements are intended to be identified by words such as ‘believe,
Slide 3: Key messages
Key messages Slight increase in sales volume in an unprecedented environment (+0.4% 1 9M, -0.3% Q3) Delivering on our long-term Strategic Growth Priorities, BC Next Level 2 investment program and capturing current market opportunities 3 Securing additional financing to mitigate bean price impact on
Slide 4: Slightly positive volume in challenging market
Slightly positive volume in challenging market Volume growth +1.0% +0.4% +0.4% -0.3% +1.3% +0.8% +0.7% +0.5% -0.2% -1.1% -1.6% -3.3% Group Global Chocolate Global Cocoa 9M 9M23/24 23/24 Q1 23/24 Q2 23/24 Q3 23/24 The World’s Best Chocolate Solutions 4
Slide 5: Strong growth for Gourmet, large Food Manufacturers seeing softer demand
Strong growth for Gourmet, large Food Manufacturers seeing softer demand % of Group 9M volume growth Q3 volume growth 9M growth drivers 9M volume BC Market1 BC Market1 Food Soft demand for large global customers, Manufacturers -1.1% -1.5% -2.4% -1.6% partially offset by Private Label performance 66%
Slide 6: Volume positive across most Chocolate regions
Volume positive across most Chocolate regions Chocolate sales volume: +0.8% 9M (+0.5% Q3) % of Group 9M volume growth Q3 volume growth 9M growth drivers 9M volume BC Market1 BC Market1 Capturing the consumer shift from Food Western Europe +2.1% -2.1% +2.0% -2.3% Manufacturers to Private Label. Stron
Slide 7: Significant cocoa market disruption continues
Significant cocoa market disruption continues London cocoa future 2nd continuation (in GBP/ MT) Global Cocoa Bean Stocks (September, kMT)1 12,000 Closing Stocks Stock-to-grind Ratio 4,900 70% 10,000 4,400 End of H1 3,900 60% 8,000 3,400 6,000 2,900 50% 6,710 GBP as of 9th July 2024 2,400 4,000 40% 1
Slide 8: Impact of cocoa market disruption on BC financials
Impact of cocoa market disruption on BC financials Top-line Bottom-line Free cash flow • Mix shift within Food • Profitability protected • Impacted by long cycle Manufacturers from large through cost-plus pricing between bean contracting & branded players to Private customer sales Label • Gourmet gr
Slide 9: Additional financing to address the impact of the unprecedented bean price increase
Additional financing to address the impact of the unprecedented bean price increase Increasing our solid and diversified funding sources: • June 2024: EUR 700M 5-year bond issuance • May 2024: CHF 730M triple-tranche bond issuance In addition to financing already secured in H1: • CHF 600M bond issua
Slide 10: FY23/24 outlook
FY23/24 outlook • Highly challenging supply and demand environment – Bean supply turbulence – Customer environment & cocoa-related price increases – Cocoa price volatility • Flat volume growth • Flat EBIT growth on recurring basis1 in constant currency The World’s Best Chocolate Solutions 10 1 Exclu
Slide 11: Starting to deliver on long-term Strategic Growth Priorities
Starting to deliver on long-term Strategic Growth Priorities 1 Deeper outsourcing 2 3 Scale up 4 ‘Fair share’ partnerships Gourmet 2.0 Specialties in AMEA • Tony's Chocolonely • +14% growth in 9M, • Increase in customer • Close to double-digit long-term good underlying penetration of growth in Q3, w
Slide 12: Concluding remarks
Concluding remarks Slight increase in sales volume in an unprecedented environment (+0.4% 1 9M, -0.3% Q3) Delivering on our long-term Strategic Growth Priorities, BC Next Level 2 investment program and capturing current market opportunities 3 Securing additional financing to mitigate bean price impa
Slide 13: Appendix
Appendix The World’s Best Chocolate Solutions 13
Slide 14: Cocoa combined ratio and raw material price development
Cocoa combined ratio and raw material price development European Combined Ratio – 6-month forward ratio Indexed Raw material price changes Jan 2023 to May 31st 2024 5.00 500 Combined 4.50 ratio 4.8x 450 4.00 400 Butter 3.50 ratio 350 Cocoa beans 344% 3.00 300 2.50 250 2.00 200 Sugar world 1.50 150 1
Slide 15: World's Best Chocolate Solutions
World’s Best Chocolate Solutions The World’s Best Chocolate Solutions 15