Swiss chocolate giant Barry Callebaut has posted a steep decline in chocolate and cocoa sales volumes for the first nine months of its 2024/25 fiscal year — even as revenues soared. Kennedy’s Confection reports.

The company’s latest results, released today, reveal a stark contrast between topline growth and core volume performance. Barry Callebaut’s total chocolate sales volume dropped by 5.1%, while cocoa volumes plummeted 11.3%, with an even steeper third-quarter decline of -22.6% for cocoa alone. These drops contributed to an overall group volume decline of 6.3% for the nine-month period.

Cocoa prices up, volume down

The dramatic drop in cocoa sales volumes comes as the industry grapples with historic price increases. Average cocoa bean prices rose by +43% year-over-year, reaching a high of GBP 9,425 per tonne before closing the period at GBP 6,453 per tonne as of May 31, 2025. This price surge, driven by volatile weather and supply constraints, forced Barry Callebaut to prioritise higher-margin segments and scale back cocoa sales in lower-return markets.

The company attributes the cocoa volume plunge to both weakened market demand and internal strategic choices: “Volumes were impacted by prioritisation of volume towards higher return segments within Cocoa and to Global Chocolate in a supply-constrained environment,” the report noted.

“Customers are managing end-consumer price increases, causing short-term B2B disruption, further impacting our volume”

The company’s Global Chocolate division wasn’t spared either. The 5.1% drop in chocolate volumes outpaced the broader chocolate confectionery market decline of 3.0%, as tracked by Nielsen. The third quarter saw a particularly difficult period, with a 6.2% fall in chocolate volumes amid changing customer behavior and ongoing price pressures.

Barry Callebaut’s regional performance was uneven. Latin America was a bright spot, with +8.3% growth in chocolate volume, supported by innovative customer offerings. AMEA (Asia Pacific, Middle East & Africa) posted modest growth of +0.5%, though the third quarter saw declines in China and the South Pacific. In contrast, North America experienced a 5.8% volume dip, deepening to -12.3% in Q3, exacerbated by tariff-related uncertainties. Western Europe fared even worse, with chocolate volumes down 6.8% as customers adjusted to high cocoa costs and SKU reductions.

Despite the sales volume setbacks, Barry Callebaut managed to increase its sales revenue by +56.7% in local currencies and +49.5% in CHF, reaching CHF 10.95 billion. This surge was largely driven by its “cost-plus” pricing model, which allowed the company to pass on the steep rise in cocoa prices to customers.

However, the company acknowledged that this pricing pass-through created additional challenges downstream: “Customers are managing end-consumer price increases, causing short-term B2B disruption, further impacting our volume,” CEO Peter Feld explained.

Further declines expected

Looking ahead, Barry Callebaut has adjusted its full-year forecast to reflect the difficult operating environment. The company now expects a mid single-digit volume decrease in Global Chocolate and a double-digit volume decrease in Global Cocoa — translating to an overall ~7% volume decline. Still, it forecasts a mid to high single-digit increase in EBIT in local currencies, suggesting profitability may hold up despite weaker output.

To weather the storm, Barry Callebaut is pushing forward with its “BC Next Level” transformation strategy. This includes phasing out over 3,100 SKUs, ramping up global service centers, and opening new production sites in Canada and India. Additionally, the company has launched a real-time logistics initiative to enhance supply chain transparency.

Facing a high 6.5x Net Debt to EBITDA ratio (as of February 2025), largely due to increased cocoa inventory values, Barry Callebaut is implementing a deleveraging plan. This includes optimizing working capital, securing more efficient funding, and blending cocoa bean sources to manage price volatility.

Editorial contact:
Editor: Kiran Grewal kgrewal@kennedys.co.uk