Barry Callebaut (BARN) investor relations material

Executive summary

• Group volume returned to positive growth in Q3 (+5.7%) after more than two years of declines, driven by strong demand in cocoa and chocolate, especially in EMEA/AMEA and improved service in North America, despite a challenging market.

• The "Focus for Growth" action plan was launched, prioritizing five growth areas and reinforcing fundamentals and leadership in value-added chocolate and cocoa solutions.

• Strategic regional realignment and empowerment of local teams to enhance responsiveness and execution, including organizational changes in MENA, SEWA, and APAC.

• Early operational improvements included enhanced customer service, supply chain, and quality management, with no critical quality incidents or product recalls year-to-date.

• Sales revenue decreased by 9.5% in local currencies (12.7% in CHF) to CHF 9.6 billion, reflecting lower cocoa bean-related pricing.

Financial highlights

• Group volume declined 2.8% for the first nine months, but Q3 saw a 5.7% increase, marking a turnaround.

• Global chocolate volumes declined 2.3% over nine months, outperforming the market's 5.6% drop, and turned positive in Q3.

• Global cocoa volumes fell 4.9% in nine months, but surged 18% in Q3 following price corrections.

• EMEA/AMEA volumes grew 10.3% in Q3, with strong gains in China, India, and Australia.

• Completed EUR 849 million bond buyback across three maturities to reduce debt and future finance costs, with an upfront cost of CHF 15-16 million.

Outlook and guidance

• FY 2025/26 volume expected to decrease by around 1%, at the upper end of previous guidance.

• Maintaining guidance for a mid-teens decrease in EBIT (recurring, local currencies).

• Net finance cost expected at CHF 313-330 million for the fiscal year due to bond buyback.

• Leverage target reiterated: net debt/EBITDA recurring below 3x, with ongoing deleveraging.

• Volume growth of 1%-3% expected over the next 12-18 months as recovery continues.