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Key takeaways

  • Barry Callebaut expects sales to decline in the coming fiscal year due to the impact of high cocoa prices.
  • Despite the anticipated drop in sales volumes, the company expects EBIT growth to be in the low to mid-single digits.
  • Analysts’ reactions to Barry Callebaut’s outlook were mixed.

Barry Callebaut predicts a decline in cocoa product sales volumes for the next fiscal year. This drop is attributed to persistently high cocoa prices, which are putting the company under pressure. Nevertheless, for the 2025/26 fiscal year, Barry Callebaut expects recurring growth of its core profit (EBIT).

Sales volume drops

The company, which is responsible for supplying ingredients in a quarter of all chocolate and cocoa products consumed worldwide, reported a decline in sales volume of 6.8 percent to 2.1 million tons in the fiscal year through August. Analysts had expected an average sales volume of 2.1 million tons. The fourth quarter, from June through August, saw an even sharper drop of 8 percent.

Analysts’ responses to Barry Callebaut’s new forecasts were mixed. Some saw the guidance as a positive change compared to last year’s unattainable targets. Others viewed the objectives as cautious and predicted potential pressure on the company’s share price.

Industry challenges persist

Barry Callebaut is not the only one facing ongoing challenges. Mondelez and Hershey are also struggling. In October, Mondelez lowered its annual profit outlook due to reduced consumer spending in North America and Europe, further aggravated by rising cocoa costs. (jv)

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