Swiss cocoa and chocolate products manufacturer Barry Callebaut has reported that its net profit for the first half of 2012-13 declined 7.4cto CHF116.4m ($124.5m), compared with CHF125.7m ($134.4m) for the same period in 2011-12.
The company has attributed the decline to lower EBIT in combination with an increase in net financial expenses and taxes.
For the period ended 28 February 2013, the sales revenues decreased 2.4% to CHF2.39bn ($2.55bn), compared with CHF2.44bn ($2.61bn) due to lower average prices for cocoa ingredients - cocoa beans, cocoa butter, and cocoa powder.
During the period, sales volume increased 7.8% to 745,256t compared to 691,061t a year ago, operating profit (EBIT) decreased 2.1% to CHF173.8m ($185.9m), while gross profit increased 5.5% to CHF357.3m ($382.2m).
Barry Callebaut chief executive officer Juergen Steinemann said that the EBIT was impacted by the unfavourable combined cocoa ratio as well as additional factory and supply chain costs due to strong growth in some regions causing capacity constraints.
"Based on our four strategic pillars, Expansion, Innovation, Cost Leadership and Sustainable Cocoa, we will continue to deliver robust volume growth," Steinemann said.
The company expects cocoa processing results to improve in the second half of the fiscal year and cost base to increase at a slower pace than volume, except for non-recurring costs related to the closing and integration of the acquisition of the Cocoa Ingredients Division from Petra Foods.
In December, Barry Callebaut announced plans to acquire the Cocoa Ingredients Division of Petra Foods as part of its efforts to support the further growth of its chocolate business.