BRRLY - Barry Callebaut AG (BYCBF) Q2 2024 Earnings Call Transcript
2024-04-10 13:58:02 ET
Barry Callebaut AG (BYCBF)
Q2 2024 Earnings Call Transcript
April 10, 2024 04:00 AM ET
Company Participants
Sophie Lang - Head of Investor Relations
Peter Feld - Chief Executive Officer
Peter Vanneste - Chief Financial Officer
Conference Call Participants
Jorn Lundahl - UBS
Andreas von Arx - Baader-Helvea
Pascal Boll - Stifel
Daniel Bürki - Zürcher Kantonalbank
Samantha Darbyshire - Berenberg
Presentation
Operator
Good morning, everyone and welcome to Barry Callebaut Half Year 2023-2024 Financial Results presentation. My name is Sophie Lang, Head of Investor Relations, and it's my pleasure to welcome those of you in person with us today at the SIX Convention Centre, and also to welcome those of you joining online via webcast.
Our session today will be hosted by our CEO, Peter Feld; and our CFO, Peter Vanneste and we're going to cover off the half year results as well as an update on BC Next Level and an update on the cocoa market environment.
Before I start I'd like to draw your attention to the disclaimer. I won't go through it in detail, but please do take note of it. And I'd also just like to remind you that today's session is being recorded.
And with that, I'd like to hand you over to our CEO, Peter Feld.
Peter Feld
Thank you very much, Sophie. Ladies and gentlemen, good morning everybody. Thank you very much also from my side for attending the half year results conference of Barry Callebaut. Since we met the last time six months ago on the 1 st November, we've made solid steps forward, both in delivering on our Barry Callebaut Next Level investment program, as well as rebuilding the commercial momentum in the group.
While we are progressing well with our plans, you know that the world has changed since the 1 st of November radically, literally cocoa prices have increased to record levels and supply has become a problem for several players in the market. The China consumer sentiment, it is the lowest ever level at this point in time and we have two major geopolitical challenges underway. In that environment and benefiting from the global presence that we have for our customers, and most importantly in the bean sourcing regions and countries, Barry Callebaut has delivered a solid performance in the first half year with volume up 0.7% and net profits up 0.8% in this first half year.
We are also starting to execute on our four long-term growth strategies that we mapped out to you and I'll speak to that in a minute. Certainly, our Barry Callebaut investment program Next Level is well on track across all different work streams. So with that and being careful in this environment, we are reiterating our 2023-2024 guidance of a flat volume in EBIT, whilst cautiously navigating these unprecedented cocoa pricing and supply situations.
So let me start saying a few words to the four growth strategies that we mapped out to you earlier. So first on gaining two or three outsourcing and partnership deals with the packaged goods customers. We're progressing very well. We have positive outsourcing growth in the first half year already with new incremental deals secured. The second pillar is the non-packaged goods side, the Gourmet side. On that you've seen in the report we're growing double digits. The third pillar is scaling up our specialties, and in that element specifically not just the specialties and decorations products, but all the specialties we're offering to our customers like, for example, vegan products. And in that, we are happy to report that we see increases in customer penetration of specialities in a majority of our country clusters....
Barry Callebaut AG (BYCBF) Q2 2024 Earnings Call Transcript