Chocolate brand Galler raises capital for turnaround

Chocolate brand Galler becomes more Belgian again, after a capital increase of 12.6 million euros – meant to survive a series of crises – leaves just half of the company in foreign hands.

Recovery plan

Galler has suffered years of continuing setbacks, and already on the verge of bankruptcy in 2018, when founder Jean Galler sold his last shares to the family of the Qatari sheikh family Al Thani. Since then, the Covid-19 pandemic, inflation and the cost-of-living crisis only dealt further blows to the company. Moreover, its Chaudfontaine plant was also devastated by the deadly flooding in the region in 2021.

To cope with the recent explosion in cocoa prices, the Belgian company is increasing its capital by 12.6 million euros. It has found support from existing shareholders, but the regional government of Wallonia has also committed to the company. As a result, 49.6 % of the shares are now held by Belgians, while the Qatari shareholder sees its stake dwindle from 70 % to just 50.4 %.

At the same time, Galler is drawing up a recovery plan. Two thirds of the new capital will be used to reduce the company’s debt, part of which stems from the 2021 floodings. According to L’Echo, the chocolate brand will use the remaining 5.1 million euros to improve efficiency, cope with rising cocoa prices and strengthen working capital. Galler also intends to continue its commitment to international expansion.