Barry Callebaut, Belgian roots chocolate maker, welcomes profit keeping Russian factories

The chocolate company Barry Callebaut celebrates its first semester results with difficult political decisions ahead. The Swiss company with Belgian roots announced this Wednesday that it will keep operating in Russia. Despite the images from the war in Ukraine creating "enormous pressure", the chocolate producer opted to help customers and 500 employees who are still working in its three Russian factories.

"We are under enormous pressure just watching the images we get from the war and we cannot not look into the boardroom of other companies," said the CEO, the Dutchman Peter Boone, to international media.

Largest factory is in Flanders

Barry Callebaut's head office is in Zurich, Switzerland, but it has several production sites in Belgium, in particular in Lebbeke-Wieze (East Flanders), where the largest chocolate factory in the world is located.

The group, which presents itself as the "world's leading manufacturer of high-quality cocoa and chocolate products", also announced this Wednesday a turnover of 4 billion Swiss francs (about 3.95 billion euros) in its first half of 2021-2022 (from September 2021 to February 2022), an increase of 16.5% over one year.

“During the first six months of the 2021/2022 financial year, we continued our solid growth trajectory, significantly outperforming the underlying chocolate confectionery market, generated good volumes, good profitability and always satisfactory cash flow", rejoiced Boone.

The chocolate company reported a relative stability in the price of cocoa beans (+2.9% over one year) during its first semester 2021-2022 (from September 2021 to February 2022). On the other hand, the prices of sugar (+31.6% on average) and dairy products (+46%) soared.

Its recurring operating income (ebit) increased by 8%, to 318.1 million Swiss francs, while its net profit increased by nearly 10%, to 224.8 million francs (approximately 222 million euros ).

(VIV)

Header image: © BELGA PHOTO LIEVEN VAN ASSCHE. Chocolate piece at the Callebaut chocolate factory in Wieze, near Lebbeke, Tuesday 07 February 2006.