Barry Callebaut (BARN) Q1 2026 TU earnings summary

Executive summary

• Group sales volume declined 9.9% year-over-year, impacted by challenging markets and a temporary production suspension in Canada.

• Hein Schumacher appointed as new CEO effective January 2026, succeeding Peter Feld, signaling a shift from transformation to growth leadership.

• Strategic focus remains on innovation, with around 600 cacao coating R&D projects and the rollout of ChoViva, a non-cocoa chocolate alternative.

• BC Next Level transformation nearly complete, with most initiatives now embedded.

• Sales revenue increased by 8.9% in constant currency to CHF 3.7 billion, driven by higher cocoa pricing, though prices are now stabilizing.

Financial highlights

• Global Chocolate volumes declined 6.8%, in line with a 6.1% market decline; Global Cocoa volumes dropped 22.0% due to weak demand and strategic prioritization.

• North America volumes down 14%, with about half the decline due to the Saint-Hyacinthe plant closure.

• AMEA region achieved 0.6% volume growth, led by China and India, outperforming the market.

• Cacao coatings (compound) saw flat growth in a declining market, with strong momentum in supercompound and growth in Western Europe and AMEA.

• Sales revenue rose 8.9% in local currencies (6.4% in CHF) to CHF 3,669.4 million.

Outlook and guidance

• Fiscal year 2025/26 outlook confirmed: group volume expected to see a mid single-digit decrease, with Global Chocolate and Cocoa both declining.

• EBIT recurring growth projected at low to mid single digits in local currencies; double-digit growth in recurring Profit Before Tax.

• Free cash flow guidance remains CHF 1 billion for the year, with most generation expected in H2.

• Net debt/EBITDA recurring targeted below 3.5x by August 2026.

• Lower cocoa bean prices and increased forward bookings signal early signs of market stabilization and future growth.