Zürich-based chocolate maker Barry Callebaut continued to pursue its activities in the financial year 2017/18 without sacrificing it. Operating profit and net income grew disproportionately in comparison to sales. The company's fixed space also supports lower net debt (see Table). At the same time, a Swiss company that does not sell its products to consumers but serves food manufacturers such as Nestlé, Cadbury or Hershey also seems to grow faster than the entire market. The sales volume of Barry Callebaut grew by more than 6%, while the overall market grew by about 2%.
Barry Callebaut benefits from a variety of advantages. In Western Europe, the consumption of chocolate does not grow much; However, in emerging countries such as China, India and Indonesia, more and more people are moving into middle class and applying their eating habits to Western models. In these areas, sales of Barry Callebaut have increased disproportionately.
The company also benefits from the fact that chocolates continue to outsource their production. They get so expensive manufacturing capacities and focus on marketing. Finally, some innovations also support the growth of Barry Callebaut. About a year ago, the company launched a pink, very sweet tasting of Ruby chocolate. Nestlé distributes the product (friction) containing this type of chocolate.
Shareholders of Barry Callebaut receive a 20% higher dividend, which considers the payment ratio to be roughly the long-term average. In recent years, however, the stock of chocolates has risen sharply, so dividend yield is only 1.1%.