Barry Callebaut has reported a 5.2% decline in net profit to CHF241.1m (£160.1m) as part of its full-year results.
In the company’s financial report for the fiscal year to 31 August 2012, sales volume saw 8.7% growth to more than 1.37 million tonnes (t) compared to the same period last year, while sales revenue increased by 11.5% to CHF4.8bn (£3.2bn).
Barry Callebaut’s European market sales volume increased by 6.9% to 688,203t and sales revenue grew by 5.1% to CHF2.15bn (£1.43bn), while operating fell by 1.7% to CHF232.2m (£154.4m).
The firm said ramp-up costs related to outsourcing agreements, higher factory and supply chain costs, and investments in adapting structures as well as its Gourmet range impacted operating profit.
Juergen Steinemann, chief executive of Barry Callebaut, said: “Barry Callebaut achieved a strong volume growth in the past fiscal year, significantly beating the market. Thanks to an especially vibrant fourth quarter, we were even able to accelerate our pace. Overall business activity remained solid both in developed and emerging markets.
“We invested significantly in structures, factories, our Gourmet business and ‘Sustainable Cocoa’. These deliberate investments, together with the ramp-up costs associated with various partnership agreements, affected our bottom-line results.”
He added that despite the difficult economic environment, particularly in western Europe, Barry Callebaut expects to achieve an average 6-8% growth in volume and ebita until 2014/15.