New York cocoa futures hit a record high of nearly $10,500 a ton on Monday. (representative)
Zurich:
Barry Callebaut, the world’s largest chocolate supplier to the food industry, said on Wednesday that soaring global cocoa prices had eroded profits.
Net profit fell by two-thirds to 76.8 million Swiss francs ($84.9 million) in the first half of the year to the end of February.
The company said revenue rose 19% in local currency and 11% in Swiss francs due to higher cocoa prices, while sales volumes were broadly stable, rising slightly by 0.7% to 1.1 million tonnes.
New York cocoa futures hit a record high of nearly $10,500 a ton on Monday, surging 140% since the start of the year. That number rose by more than 60% last year amid supply concerns.
“Food manufacturers continue to be affected by weak consumer demand in a high-inflation environment,” Barry Callebaut said in a statement.
Still, the company said it was able to increase chocolate sales by 1.0% despite data showing the global confectionery market contracted by 2.0% due to a shift towards private labels aimed at cost-conscious consumers.
Its cocoa sales volume fell 0.7% as the market was affected by higher prices.
Chief executive Peter Feld said first-half financial results were solid given market conditions.
“We remain cautious given the significant price increases over the past six months and the potential impact on our customers and supply partners,” he said.
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