SHERIDAN, WYOMING – Jan. 22, 2025 – Barry Callebaut, a leading manufacturer of high-quality chocolate and cocoa products, today announced its first-quarter results for fiscal year 2024/25, demonstrating resilience in the face of challenging market dynamics. The company reported a sales volume decline of 2.7%, in line with the overall market, primarily attributed to high cocoa prices impacting customer-retailer pricing negotiations, delayed orders, and SKU rationalization.
Cocoa Prices Drive Revenue Growth Amidst Market Volatility
Despite the decline in sales volume, Barry Callebaut achieved a 63.1% increase in sales revenue in constant currency, driven by a surge of over 70% in cocoa bean prices during the first quarter. This highlights the company's ability to navigate volatile market conditions while capitalizing on price increases.
Strategic Initiatives and Financial Measures to Ensure Stability
To mitigate the cash impact of rising cocoa bean prices, Barry Callebaut has proactively secured additional financing, including the successful issuance of a CHF 300 million Swiss bond. This strategic move strengthens the company's financial position and provides stability amidst market fluctuations.
BC Next Level: A Foundation for Future Growth
The company continues to make significant progress in implementing its BC Next Level strategic investment program, designed to enhance operational efficiency, drive innovation, and unlock sustainable growth. A key milestone achieved during the first quarter was the completion of all social plans in Belgium, a significant step in the company's restructuring efforts.
"Our fiscal year started with cocoa bean prices reaching new highs, creating further market pressure," said Peter Feld, CEO of Barry Callebaut Group. "While we focus on short-term operational priorities in the current environment, the significant opportunity to unlock sustainable profitable growth and value creation is evident. This underscores the rationale for our BC Next Level strategic investment program which future-proofs Barry Callebaut."
Maintaining a Positive Outlook Despite Market Challenges
Despite the challenging market environment, Barry Callebaut remains confident in its ability to deliver double-digit EBIT recurring growth in constant currency for the full fiscal year 2024/25. However, the company has adjusted its sales volume guidance to a low single-digit decrease, reflecting the impact of ongoing market volatility.
Focus on Sustainability and Customer Value
As the market leader, Barry Callebaut is committed to playing a crucial role in sourcing sustainable beans for its customers. The company's cost-plus model, combined with its focus on sustainability, positions it well to navigate the evolving market landscape and continue delivering value to its customers.
"As the market leader, we are pursuing strategic actions to adapt to the higher industry capital base and play a crucial role in sourcing sustainable beans for our customers," added Feld. "We continue to see significant growth potential in the attractive chocolate category."
About Barry Callebaut Group:
Barry Callebaut is the world’s leading manufacturer of high-quality chocolate and cocoa products – from sourcing and processing cocoa beans to producing the finest chocolates, including chocolate fillings, decorations, and compounds. The Group1 runs approximately 60 production facilities worldwide and employs a diverse and dedicated global workforce of more than 12,000 people.
Barry Callebaut serves the entire food industry, from industrial food manufacturers to artisanal and professional2 users of chocolate, such as chocolatiers, pastry chefs, bakers, hotels, restaurants, or caterers. The two global brands catering to the specific needs of these Gourmet customers are Callebaut® and Cacao Barry®.3