Barry Callebaut records 2.7% decrease in sales volume after cocoa prices hikes

SWITZERLAND – Barry Callebaut (BC) in January has recorded 2.7% decrease in sales volume impacted by customer-retailer pricing negotiations, delayed orders and Stock Keeping Unit rationalization which resulting in market decline in the FY 24/25.

The company reported sales volume of 565,238 tonnes during the first three months of fiscal year 2024/25 which ended in November 30, 2024.

Barry Callebaut said it was issuing a bond worth 300 million Swiss francs (US$331m) to address the high costs and ensure its liquidity.

The company also confirmed FY 2024/25 outlook for double-digit EBIT recurring growth in constant currency. Sales volume guidance lowered to low single-digit decrease given impact of further market volatility.

Well positioned as market leader with cost-plus model, planning additional actions to increase returns on higher capital base, access to sustainable beans for customers is the next level for unlocking Barry Callebaut’s full potential. 

 Peter Feld, CEO of Barry Callebaut Group said, “Our fiscal year started with cocoa bean prices reaching new highs, creating further market pressure. 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. As part of BC Next Level, we completed all social plans in Belgium, the largest part of our restructuring. Over the past few months, we secured additional liquidity through the recent bond issuances.”

He also added that they are pursuing strategic actions to adapt to the higher industry capital base and play a crucial role in sourcing sustainable beans for our customers.

 The highly challenging and volatile market environment impacted short-term customer and consumer demand, resulting in a sales volume decrease. 

Sales revenue amounted to CHF 3,449.8m (US$3819.11m), an increase of 63.1% in local currencies and 53.9% in CHF (Swiss franc).

The increase was driven by Barry Callebaut’s cost-plus pricing model as the business passed through the significantly higher cocoa bean price to customers.

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