Barry Callebaut launches Focus for Growth strategic action plan
Barry Callebaut has announced the launch of Focus for Growth, an action plan designed to "strengthen its fundamentals and leadership position as a value-added, end-to-end chocolate and cocoa solutions provider."
Designed to "restore execution excellence and capture growth where customer needs are evolving fastest," the plan aims to bolster the strengths of the group's integrated business model, while deliberately pivoting toward higher value-added solution sales.
The Swiss chocolatier will resolutely shift toward premium segments in attractive markets by accelerating growth in its Gourmet business and expanding specific specialties, "thereby reinforcing its position as a trusted solutions provider."
"We will continue to diversify our sourcing portfolio as the world's largest cocoa bean processor to ensure future security of supply and strengthen operational resilience," added Barry Callebaut CEO Hein Schumacher.
Medium-term targets established
Over the medium term, the group is targeting volume growth of 2% to 4% and an increase in recurring EBIT in local currencies in the "mid-to-high single digits," leading to an increase in recurring pre-tax profit in local currencies in the low teens.
Also in the medium term, Barry Callebaut expects free cash flow of CHF 300m-400m, as well as a ROIC (return on invested capital) of between 11% and 13%, with a stable or increasing dividend and a target payout ratio exceeding 35%.
Anticipating a gradual recovery in market demand following a period of exceptional volatility, the group expects a return to volume growth of 1% to 3% over the next 12 to 18 months. It also reiterated its guidance for FY 2025-2026.
Barry Callebaut AG is a Switzerland-based company engaged in the food processing industry. The Company produces cocoa, chocolate and confectionery products for the food industry, from industrial food manufacturers to artisanal and professional users of chocolate, such as chocolatiers, pastry chefs, bakers, hotels, restaurants or caterer. Its manufacturing process involves all stages of the cocoa and chocolate value chain from the sourcing of raw materials to the delivery of the finished products. The Company’s global activities are divided into four geographic-based segments: Global Cocoa, Europe, Americas, and Asia Pacific. The Company operates more than 50 chocolate and cocoa factories, and is present in over 30 countries. The Company operates Nyonkopa, a licensed buying company based in Ghana, as a subsidiary.
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