Photo: Mikkel Houmøller / CC BY-SA 4.0
Chocolate supplier Barry Callebaut reported a second consecutive quarter of volume growth on Wednesday, but its profit outlook showed that the recovery in orders is not translating into a sharp earnings rebound.
Volumes rose 5.7% in the fiscal fourth quarter, while full-year volumes fell 0.7%, according to the company’s annual results. It expects volume growth of 1% to 3% in fiscal 2026/27 and recurring operating-profit growth of 3% to 5% in constant currencies.
For chocolate shops, bakers and food manufacturers, the outlook is a sign that cocoa costs and purchasing decisions remain important even as demand improves. The company did not announce a retail chocolate-price cut.
Cocoa assumptions remain important
Barry Callebaut based its new outlook on a cocoa bean price of £4,000 per metric ton. Reuters reported that this was above the roughly £3,000 assumption the company used in July.
Annual sales revenue fell 17.6% in Swiss francs to CHF 12.2 billion, reflecting lower cocoa-linked sales prices. Recurring operating profit fell 15.6% to CHF 594 million, the company said.
The company also generated approximately CHF 2.0 billion in free cash flow and reduced net debt by 42.5%. Its proposed dividend of CHF 29 a share was unchanged from the prior year.
JBizNews Desk | Zurich
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