COVID-19 Forces Barry Callebaut to Look for Liquidity

The biggest cocoa processing firm in the world is looking to boost its liquidity as global markets hang in the balance during the ongoing coronavirus pandemic. In a release of its half-year results for the fiscal year 2019/2020 this week, Barry Callebaut said it is tapping into its credit facility as a safeguard from potential financial turbulence in the months ahead. 

“Due to the uncertainty in the financial markets, Barry Callebaut took the precautionary decision to draw the full amount of its Revolving Credit Facility (RCF), in total EUR 1 billion with a tenor of six months, to create an alternative to the group’s Commercial Paper Program (equivalent to around EUR 450 million) and to increase access to liquidity,” the company said in a press release Thursday. 

Barry Callebaut’s production sites have not experienced significant disruptions during the outbreak, according to the company, although its retail sales have slipped as consumers visit restaurants and retail stores less frequently during government-imposed virus mitigation measures.  

“COVID-19 is a major unforeseen event. While we have put in place precautionary measures to support the continuation of our operations, its impact on business growth and profitability cannot be quantified at this stage as it depends on the duration and severity of the pandemic,” said Barry Callebaut Chief Executive Officer Antoine de Saint-Affrique in a statement.

The company reported its sales volume grew by 5.4% and its sales revenue grew by 2.4% in Swiss currency during the first half of the fiscal year 2019/2020.

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