Q3 2024 Barry Callebaut AG Corporate Sales Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Jorn Lundahl - UBS Investment Bank - Analyst : Good morning and thanks for taking my questions. And I would limit it to and give the queue. Maybe the first one, please. On volume trends, can you share with us a little bit what is happening the exit rates in Q3? Your full year guidance implies volumes down and somewhat in Q4. And then the question is, really are you confident this outsourcing deal signed that you can meet your fiscal year 2025 volume growth guidance? And this would be the first one and then the second one, I will take afterwards, if that's okay.

Question: Jorn Lundahl - UBS Investment Bank - Analyst : Okay. And thank you for this. And then I know it's the trading statement, but I really apologize to ask a question now on the EBIT guidance. Just to understand that what is happening bottom up? I mean, first half EBIT like for like was 373 or 375. Your guidance for the second half implies something around 280, 285, so a significant deterioration. Despite volumes are more or less the same in the second half versus the first half. First, cost saving coming through and then you have higher margin module mix growing nicely in the second half. And the question is, is there anything bottom up we need to consider? Was there anything some one-off gains supporting H1, which is not recurring in H2, which can help us do better understand the guidance for the second half. without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. JULY 11, 2024 / 6:30AM, BARN.S - Q3 2024 Barry Callebaut AG Corporate Sales Call

Question: Jorn Lundahl - UBS Investment Bank - Analyst : Okay. Thank you, very much.

Question: Alex Sloane - Barclays PLC - Analyst : Yeah, hi. Morning all, thanks for taking the questions. A couple for me. Just in terms of the Gourmet growth in quarter three, obviously very impressive. Is it possible for you to know kind of what is phasing in that versus what is market share regain and how much unwind should we expect in Q4? And does that continue into H1 or H2 in your view? And second one, just in terms of the combined ratio you show in the appendix. Obviously, we're in kind of pretty uncharted territory 4.8. What's the expected impact on profitability here in global cocoa, and when does this come through? Are there any offsetting factors to consider? And then just one final one. Just in terms of the working capital outflow in H2, are you able to quantify that at all versus the CHF1.1 billion outflow in H1. Thank you, very much.

Question: Alex Sloane - Barclays PLC - Analyst : Thank you very much.

Question: Jon Cox - Kepler Cheuvreux - Analyst : Yeah, good morning, guys. Just coming back on the guidance. You will get some benefits on the cost cutting this year. When you talk about recurring EBIT, does that include maybe the 10 million to 20 million you're going to get and this this year. And I can go on this EBIT question to start with. At the same time, you're getting the gains or the gross profit level, you were better than expected in H1, it seems that guidance is a outdated unless you see something that we certainly don't. As part of that at the net profit level, you've obviously done a lot of refinancing this year. What do you think your net financing costs will be on the P&L for the year as a whole? I think consensus is around 170 some of us are closer to 200, but the amount of financing you're doing, it looks like it could be over 200 -- well over 200. Can you comment on the auto. And I'm just wondering why you didn't move to a net profit guidance given the fact the EBIT guidance look so a day and maybe some in the market don't quite understand what's going on with you passing through the financing costs at the gross level much bigger than expected, finance charges likely coming this year. Thank you.

Question: Jon Cox - Kepler Cheuvreux - Analyst : So you don't think anything should change in terms of the consensus at the moment or the net profit level.

Question: Jon Cox - Kepler Cheuvreux - Analyst : Okay. Thank you.

Question: Daniel Buerki - Znrcher Kantonalbank - Analyst : Yeah, thank you. Just some housekeeping questions. Coming back to the time and financial expenses in the full year. Could you give some guidance on this because we have more moving parts than usual? And maybe on the CapEx, how much maintenance CapEx and how much investments on body next level? And the second one, you mentioned, a new food manufacturing customer in the US. Was this already in the numbers in the third quarter and could you give an indication how big this additional outsourcing contract would be for you? Thank you very much.

Question: Daniel Buerki - Znrcher Kantonalbank - Analyst : The final one was on the North America outsourcing contract.

Question: Daniel Buerki - Znrcher Kantonalbank - Analyst : Thank you.

Question: Antoine Prevot - Bank of America Crop - Analyst : Good morning, everyone. Thank you, for taking my question. A quick one. So in each one, you said your customer needs between 3% and 8% pricing to offset inflation, considering this type up of cocoa price. How has it evolves, right now? And what are your current up-to-date expectations on your customer pricing? Thank you.

Question: Antoine Prevot - Bank of America Crop - Analyst : Thank you. And a quick follow-up one. So on the SKU pruning negative headwinds for this year, are you still expecting kind of record low single digits negative impact as it change or anything to comment on that? Thank you.

Question: Antoine Prevot - Bank of America Crop - Analyst : Thank you.