ZURICH/LONDON (Reuters) - Swiss chocolate maker Barry Callebaut (S:BARN) reported higher half-year sales and profits on Wednesday as cost cuts helped counter the impact of the surging Swiss franc, and confirmed mid-term targets subject to the currency swings.
The company, which sells chocolate and other cocoa products to companies like Nestle (VX:NESN) and Hershey (N:HSY), said sales rose nearly 12 percent to 3.244 billion Swiss francs (2 billion pounds) in the half year ending Feb. 28.
Net profit rose nearly 11 percent to 132.4 million francs.
Analysts on average were expecting first-half sales up 10.2 percent to 3.20 billion Swiss francs and net income up 6.7 percent to 128 million francs, according to a Reuters poll.
Switzerland-based companies like Barry Callebaut are seeing the value of their international sales and profits reduced by the higher Swiss franc. The currency soared against the euro in January following the Swiss National Bank's surprise removal of a cap on its value. It has since weakened slightly, but remains roughly 10 percent higher than before the cap fell.
Barry Callebaut conducts nearly all of its business outside Switzerland, so has very limited operational exposure to the soaring franc, it said in January, warning however, that translation would bite.