Barry Callebaut

9-Month Key Sales Figures, Fiscal Year 2023/24

11 July 2024

Key messages

1

2

3

4

Slight increase in sales volume in an unprecedented environment (+0.4% 9M, -0.3% Q3)

Delivering on our long-term Strategic Growth Priorities, BC Next Level investment program and capturing current market opportunities

Securing additional financing to mitigate bean price impact on cash flow

Confirming FY 2023/24 guidance of flat volume and flat EBIT1 growth in a highly challenging supply and demand environment

The World's Best Chocolate Solutions

3

1 On a recurring basis in constant currency

Slightly positive volume in challenging market

Volume growth

+0.4%

+1.0%

+0.4%

-0.3%

+0.8%

+0.7%

+1.3%

+0.5%

-0.2%

-1.6%

-1.1%

-3.3%

Group

Global Chocolate

9M 23/24

Q1 23/24

Q2 23/24

Q3 23/24

Global Cocoa

The World's Best Chocolate Solutions

4

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

-1.1%

-1.5%

-2.4%

-1.6%

Soft demand for large global customers,

66%

Manufacturers

partially offset by Private Label performance

Strong demand across regions, regaining

Gourmet &

+10.9%

-

+16.1%

-

share post-Wieze. Q3 benefit from phasing

14%

Specialties

of customer purchases in a rising cocoa

price environment

Global Cocoa

Demand for cocoa powder robust. Supply

-1.6%

-

-3.3%

-

constrained environment impacted sales for

20%

cocoa butter and cocoa liquor

The World's Best Chocolate Solutions

5

1 Source: Nielsen chocolate confectionery volume growth excluding e-commerce - 26 countries, September 2023 - April/May 2024. Data subject to adjustment to match Barry Callebaut's reporting period. Nielsen data only partially reflects the out-of-home and impulse consumption.

Volume positive across most Chocolate regions

Chocolate sales volume: +0.8% 9M (+0.5% Q3)

9M volume growth

Q3 volume growth

9M growth drivers

% of Group

9M volume

BC

Market1

BC

Market1

Capturing the consumer shift from Food

Western

32%

+2.1%

-2.1%

+2.0%

-2.3%

Manufacturers to Private Label. Strong Gourmet

Europe

demand

Central and

-0.2%

+1.0%

-6.8%

+1.5%

Slowdown in Q3 driven by certain large global and

13%

Eastern Europe

regional accounts

-1.4%

-3.9%

-0.5%

-4.2%

Weak consumer sentiment impacted large Food

24%

North America

Manufacturers, while regional accounts and

Gourmet saw solid demand

Latin America

+6.2%

-0.1%

+6.1%

-0.2%

Brazil the key contributor to growth, with

3%

particularly strong momentum in Gourmet

Asia Pacific,

+2.7%

-0.9%

+9.8%

+0.8%

Double-digit growth excluding Greater China. Q3

8%

Middle East

performance supported by improved growth in

and Africa

Indonesia

The World's Best Chocolate Solutions

6

1 Source: Nielsen chocolate confectionery volume growth excluding e-commerce - 26 countries, September 2023 - April/May 2024. Data subject to adjustment to match Barry Callebaut's reporting period. Nielsen data only partially reflects the out-of-home and impulse consumption.

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

of H1

4,400

8,000

3,900

60%

End

3,400

6,000

2,900

50%

6,710 GBP

2,400

4,000

as of 9th July 2024

40%

1,900

2,000

1,400

30%

0

900

Oct-23

Feb-24

Apr-24

400

20%

Feb-23

Mar-23

Apr-23

May-23

Jun-23

Jul-23

Aug-23

Sep-23

Nov-23

Dec-23

Jan-24

Mar-24

May-24

Jun-24Jul-24

80/81 82/83 84/85 86/87

88/89 90/91 92/93 94/95 96/97 98/99 00/01 02/03 04/05 06/07 08/09 10/11 12/13 14/15

16/17 18/19

23/24

20/21 22/23

The World's Best Chocolate Solutions

7

1 Source: ICCO

Impact of cocoa market disruption on BC financials

Top-lineBottom-line

•

Mix shift within Food

•

Profitability protected

Manufacturers from large

through cost-plus pricing

branded players to Private

Label

•

Gourmet growth solid, less

•

Financing costs passed on

impacted as smaller bean

to customers, visible at the

component in end product

EBIT level and offset at the

net profit level

Free cash flow

  • Impacted by long cycle between bean contracting & customer sales
  • ~CHF 1.1bn negative bean impact on working capital in H1, more to come in H2

The World's Best Chocolate Solutions

8

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 issuance to refinance the existing EUR 450M senior bond due mid May 2024
  • Revolving Credit Facility extension from EUR 900M to EUR 1,312.5M
  • Syndicated Term Loan of EUR 262.5M and a tenor of 2 years

The World's Best Chocolate Solutions

9

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 Excludes one-time BC Next Level costs

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Barry Callebaut AG published this content on 11 July 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 July 2024 05:10:01 UTC.