Story
Barry Callebaut Reports First Volume Growth in Two Years, But Cuts Full-Year Forecast
Summary
The world's largest chocolate maker posted a 5.7% sales volume increase for its third quarter, a positive turn after two years, but warned that full-year volumes would still fall and recurring operating profit would see a mid-teens percentage decline.
Barry Callebaut AG (SIX:BARN) reported its first quarterly sales volume growth in more than two years, but the positive signal was tempered by a lowered full-year outlook, reflecting persistent challenges in the global chocolate market.
A Quarter of Contrasts
The Swiss chocolate maker announced that sales volumes grew by 5.7% in the third quarter of its 2025-26 fiscal year. The company attributed the increase to strong demand in its Global Cocoa business, continued momentum in the Asia Pacific, Middle East, and Africa (AMEA) region, and progress in restoring service levels in North America.
Despite the quarterly uptick, volumes for the first nine months of the fiscal year, ending May 31, were still down 2.8% to 1,557,239 tonnes. Sales revenue for the nine-month period fell to CHF 9.56 billion from CHF 10.95 billion a year earlier, a drop the company linked to lower volumes and a sharp decline in cocoa bean prices.
Cautious Outlook Amid Challenging Market
Looking ahead, Barry Callebaut revised its forecast for the full fiscal year. The company now expects a volume decrease of approximately 1% and maintained its guidance for a mid-teens percentage decrease in recurring operating profit (EBIT) in local currencies.
Ad"We are encouraged by the return to positive volume growth in the third quarter," said Chief Executive Hein Schumacher in a statement. However, he cautioned that "the chocolate market remains challenging and our improvement will be gradual." The company cited Nielsen data showing the global chocolate confectionery market declined by 4.4% in the third quarter.
Performance by Segment
The company's performance varied significantly across its business units and regions for the nine-month period:
- Global Chocolate: Volumes declined 2.3% over nine months but turned positive in the third quarter with 3.2% growth.
- Global Cocoa: Nine-month volumes fell 4.9%, but third-quarter growth accelerated sharply to 18.0%, driven by demand in Latin America and Asia.
- North America: Volumes were down 7.6% for the period due to supply issues, though they also saw positive growth in the third quarter.
- AMEA: This was the strongest region, with volumes up 10.3% over the nine months.