Barry Callebaut’s outlook melts as chocolate sales volumes dwindle
Barry Callebaut Faces Sharp Decline in Chocolate Sales Volume
Barry Callebaut, the global leader in industrial chocolate supply, revised its financial outlook lower after the most significant quarterly drop in sales volume seen in a decade. Consumer pressure from soaring cocoa prices has weighed heavily on demand.
Market Context and Price Pressure
- Year‑on‑year cocoa bean price increase – 43%
- April to June quarter sales volume decline – 9.3%
- Quarterly drop for chocolate specifically – 6.2%
- Overall global market fall in sales volume – 4.2%
The 6.2% fall in chocolate sales was steeper than the 4.2% drop observed across the world’s chocolate market. Analysts reported that the quarterly volume slide exceeded expectations, marking the steepest quarterly downturn in a decade.
Investor Reactions
Barry Callebaut’s share price fell nearly 13% in late afternoon trading after the company announced its revised outlook. The Swiss industrial chocolate supplier, whose fiscal year ends in September, highlighted that its nine‑month sales volume was down 6.3%, below the 5.1% drop forecast by analysts surveyed by Swiss financial news agency AWP.
Revenue Performance and Price Pass‑Through
- Nine‑month sales revenue increase – 49.5%, totaling 10.9 billion Swiss francs (US$13.7 billion)
- Cocoa price rise outpaced revenue growth – indicating effective price pass‑through to customers
Updated Financial Guidance
Barry Callebaut cut its forecast for annual operating profit from recurring operations. The company now expects a high‑single‑digit gain, down from the prior guidance that anticipated a double‑digit increase.
