Barry Callebaut (BARN) Q3 24/25 TU earnings summary

Executive summary

• Group sales volume declined 6.3% year-over-year, driven by historic cocoa price volatility and strategic volume prioritization in both chocolate and cocoa segments.

• Revenue surged 56.7% in local currencies (nearly 57% overall), reflecting successful pass-through of a 43% year-over-year cocoa price increase via cost-plus pricing.

• Strategic focus on high-return chocolate segments, outsourcing, specialties, and AMEA regions, with strong growth in Latin America and Asia Pacific.

• Transformation initiatives (BC Next Level) advanced, including operational agility, digitalization, portfolio simplification, and new greenfield sites, though some cost savings are delayed by 12 months.

• Customer partnerships and organizational culture strengthened, with digital tools and new operating models enhancing efficiency and experience.

Financial highlights

• Group sales volume down 6.3% for the nine months, with Global Chocolate volume down 5.1% and Global Cocoa down 11.3%.

• Revenue increased 56.7% in local currencies, closely tracking the 43% cocoa price increase passed through to customers.

• EBIT recurring expected to see a mid- to high-single-digit increase in local currency for the year.

• Financing costs for the year expected to be somewhat above CHF 350 million, with H2 net profit improving versus H1 but still slightly negative.

• Group sales revenue reached CHF 10,946.7 million (+56.7% in local currencies), with sales volume at 1,602,458 tonnes.

Outlook and guidance

• FY 24/25 guidance revised: mid single-digit decrease in Global Chocolate volume, double-digit decrease in Global Cocoa, overall group volume down around 7%.

• Recurring EBIT projected to increase mid to high single digits in local currencies.

• Full impact of deleveraging actions expected in 12–18 months, with first improvements by fiscal year-end.