Barry Callebaut (BARN) Trading Update summary

Sales performance and market environment

• Sales volume increased 0.4% to 1,710,241 tonnes over 9 months, with a 0.3% decline in Q3 amid challenging conditions.

• Gourmet & Specialties segment grew 10.9% in 9M, while Food Manufacturers saw a 1.1% decline.

• Chocolate sales volume rose 0.8% in 9M, outperforming the market in Western Europe, Latin America, and Asia Pacific.

• Global cocoa segment faced robust powder demand but a 1.6% volume decline due to supply constraints and high prices.

• Sales revenue reached CHF 7.3 billion, up 23.1% in local currencies, driven by a sharp rise in cocoa prices.

Financial impact and mitigation

• Profitability protected through cost-plus pricing, with financing costs passed to customers and visible at EBIT level.

• Working capital negatively impacted by approximately CHF 1.1bn in H1 due to bean price increases, with further impact expected.

• Additional financing secured: EUR 700M and CHF 730M bonds in Q2, plus earlier CHF 600M bond and expanded credit facilities.

Strategic initiatives and growth priorities

• Progress on long-term growth priorities, including deeper outsourcing partnerships and major customer wins in Europe and North America.

• Gourmet 2.0 initiative delivered 14% growth in 9M, with strong momentum and increased commercial focus.

• Specialties segment expanded customer penetration across most country clusters.

• Asia Pacific, Middle East, and Africa regions saw close to double-digit growth in Q3, led by Indonesia and India.

• Strategic partnership with Microsoft announced to drive digital transformation and value chain integration.