Barry Callebaut (BARN) Q1 25/26 TU earnings summary

Executive summary

• CEO transition announced: Hein Schumacher appointed as new CEO effective January 2026, succeeding Peter Feld, to lead the next growth phase after major transformation and stabilization post-cocoa crisis.

• Group sales volume declined by 9.9% year-over-year to 509,401 tonnes, reflecting challenging market conditions and a temporary production suspension in Canada.

• Sales revenue increased by 8.9% in constant currency to CHF 3.7 billion, driven by higher cocoa pricing, though prices are now stabilizing.

• Focus shifts from internal transformation to external growth, customer centricity, and balance sheet strengthening.

• Strategic focus remains on innovation, with around 600 cacao coating R&D projects and the international rollout of ChoViva, a non-cocoa chocolate alternative.

Financial highlights

• Group volume declined 9.9% year-over-year in Q1 25/26, with Global Chocolate down 6.8% and Global Cocoa down 22.0%.

• Global chocolate volumes declined in line with a 6.1% market drop; North America volumes down 14% due to a temporary plant closure.

• Cacao coatings (compound) volumes remained flat in a declining market, with growth in Western Europe and AMEA.

• Sales revenue rose 8.9% in local currencies (6.4% in CHF) to CHF 3,669.4 million.

• Food Manufacturers volume fell 7.4%, while Gourmet was more resilient, down 3.6%.

Outlook and guidance

• Fiscal year 2025/26 outlook confirmed, expecting mid single-digit volume decrease for Global Chocolate and mid- to high-single-digit decrease for Global Cocoa.

• Group volume expected to see a mid single-digit decrease, with low to mid single-digit EBIT and double-digit profit before tax growth (recurring, in local currencies).

• H1 expected to remain challenging; improvements anticipated in H2 as lower bean prices stimulate demand and promotions.

• One-time operating expenses of around CHF 60 million expected for BC Next Level.

• Net debt/EBITDA recurring targeted below 3.5x by August 2026.