Barry Callebaut, chocolate and cocoa products manufacturer, has reported its key sales figures for the first quarter of fiscal year 2024/25. The challenging market environment, driven by a dramatic rise in cocoa bean prices, has led to a slight decline in sales volume but a significant increase in revenue.

Key Highlights:

  • Sales Volume: Declined by -2.7% year-on-year to 565,238 tonnes, in line with a shrinking global chocolate market (-2.6%). The decline was influenced by customer-retailer pricing negotiations, delayed orders, and stock-keeping unit (SKU) rationalisation.
  • Revenue Growth: Sales revenue surged by +63.1% in local currencies (+53.9% in CHF), reflecting a cost-plus pricing strategy that passed record-high cocoa prices onto customers.

Cocoa bean prices soared over 70% during the quarter, reaching GBP 7,708 per tonne by November 30, 2024. This surge prompted Barry Callebaut to secure CHF 300 million in additional financing through a Swiss bond issuance to manage increased working capital requirements.

Regionally, the strongest volume growth was seen in Asia Pacific, the Middle East, and Africa (+6.4%), with robust demand in India and Indonesia. Latin America achieved double-digit growth (+13.2%), driven by innovation and a diverse product portfolio. However, Western Europe (-7.5%) and Central and Eastern Europe (-4.5%) faced declines due to market contraction and SKU rationalisation.

CEO Peter Feld reaffirmed Barry Callebaut’s commitment to its “BC Next Level” strategic program, which aims to simplify operations, enhance digitalisation, and secure sustainable cocoa sourcing. The company maintained its guidance for double-digit EBIT growth in constant currency for FY 2024/25 but adjusted its sales volume outlook to reflect a low single-digit decrease amid ongoing volatility.

Barry Callebaut remains optimistic about the long-term growth potential in the chocolate category, supported by its cost-plus model and leadership in sustainable cocoa sourcing.

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