Barry Callebaut (BARN) investor relations material

Executive summary

• Net profit recurring rose 66.1% year-over-year to CHF 108.9 million, driven by lower finance costs and income tax expenses.

• EBIT recurring declined 4.2% to CHF 310.9 million, impacted by lower volumes, supply disruptions, and market overcapacity, partially offset by strong cocoa profitability.

• Free cash flow reached CHF 801.8 million, reflecting significant deleveraging and improved working capital from lower cocoa bean prices.

• Group sales volume fell 6.9% year-over-year to 1,010,247 tonnes, but improved sequentially in Q2, with AMEA and Latin America returning to growth.

• Strategic focus is on restoring fundamentals, operational discipline, and empowering regional businesses to unlock growth.

Financial highlights

• Sales revenue decreased 3.7% in local currencies (7.3% in CHF) to CHF 6,752.2 million due to lower volumes.

• Gross profit increased 6.8% in local currencies to CHF 668.9 million, supported by favorable cocoa margins.

• EBITDA recurring was CHF 435.3 million, down 3.6% in CHF.

• Net working capital dropped 45.8% to CHF 3,198.9 million, mainly from lower cocoa prices.

• Net debt decreased 41% to CHF 3,604.3 million, reflecting improved cash flow and inventory management.

Outlook and guidance

• FY 2025/26 volume outlook updated to a 1–3% decrease, with positive growth expected in the second half.

• Mid-teens decrease in EBIT recurring anticipated, with most of the absolute EBIT decrease recovered at the profit before tax level.

• Net Debt/EBITDA recurring expected to be below 3.0x by year-end, assuming cocoa prices of ~GBP 3,000.

• Outlook subject to potential impacts from Middle East disruptions.

• Full strategic update on growth initiatives is scheduled for June.