Barry Callebaut AG (BARN) rose the most in more than a month in Zurich trading after the world’s largest maker of bulk chocolate said it will invest 26.8 million Swiss francs ($28.2 million) to expand in North America.
The stock rose as much as 2.3 percent to 866 francs, the steepest intraday advance since May 9. The Zurich-based company said it’s boosting chocolate molding capacity in Vermont and has agreed to buy the Ontario assets of Batory Industries Co.
“The Americas is the fastest-growing region for Barry,” Jean-Philippe Bertschy, an analyst at Bank Vontobel, wrote in a note, citing a first-half volume increase of almost 20 percent in the region. The case for investing in the shares “remains intact with strong volume growth expected from outsourcing contracts, and expansion in new territories.”
The two projects will increase Barry Callebaut’s production capacity in the region by 60,000 tons. The facilities will help the company supply the Midwest area, according to a company statement. Investments in North America in 2011 and 2012 have totaled 95.9 million francs, Barry Callebaut said.
The stock was up 1.2 percent at 863.50 francs at 2:41 p.m.
To contact the reporter on this story: Dermot Doherty in Geneva at email@example.com
To contact the editor responsible for this story: Celeste Perri at firstname.lastname@example.org