• Continuation of elevated and volatile bean prices (+43% year-over-year) creating unprecedented market environment
  • Global Chocolate volumes of -5.1% (-6.2% in Q3) impacted by customer behavior and U.S. specific uncertainty during Q3
  • Global Cocoa volumes of -11.3% (-22.6% in Q3) reflecting negative market demand and prioritization of volumes towards higher-return Cocoa segments and Global Chocolate in supply constrained environment
  • Driving overall Group volume decline of -6.3% (-9.5% in Q3)
• Significant revenue growth of +56.7% in local currencies in first nine months (+49.5% in CHF)
• Challenging operating environment reinforces rationale for BC Next Level strategy to build an agile, scalable model with a reset cost base
• Action plan in place to achieve deleveraging 
• Due to unprecedented market conditions, the Group revises its FY 24/25 volume guidance and now expects a mid single-digit decrease in Global Chocolate and a double-digit decrease in Global Cocoa. This results in an overall around -7% volume decrease and a mid to high single-digit increase in EBIT¹ in FY 24/25

Global Chocolate saw a -5.1% volume decrease in an overall declining chocolate confectionery market according to Nielsen (-3.0%)². The market saw its largest decline in a decade in the third quarter (-4.2%)³, with Global Chocolate volumes decreasing by -6.2%. Volume development for Food Manufacturers (-5.8%) remained impacted by market volatility and customer behavior changes. Volumes in Gourmet also decreased (-1.7%) but the channel was more resilient, with strong growth in AMEA and Latin America. In the third quarter, the Gourmet business saw -6.4% volume with quarterly volatility driven by the phasing of customer purchases.

Looking at regional performance within Global Chocolate, Latin America (+8.3%) was the strongest contributor to volume performance, supported by innovative customer solutions. Asia Pacific, Middle East and Africa (AMEA) saw positive growth (+0.5%) with negative growth in the third quarter (-2.2%), as strong growth in India, the Middle East and Indonesia was offset by negative growth in China and the South Pacific. Volumes declined in Central and Eastern Europe (-5.5%) driven by a challenging customer environment especially in Türkiye. North America reported a volume decrease of -5.8%. New customer wins were more than offset by the challenging demand environment, customer ramp up in Toluca, Mexico and additional tariff-related uncertainty, resulting in -12.3% volume in the third quarter. Volume development in Western Europe (-6.8%) was significantly impacted by customers adapting to higher and volatile cocoa bean prices, as well as by SKU rationalization.

Global Cocoa saw an -11.3% decrease in sales volume, with a -22.6% decline in the third quarter. The business saw a negative market demand impact from significant cocoa bean price increases, particularly in AMEA, CEE and Latin America. Volumes were also impacted by prioritization of volume towards higher return segments within Cocoa and to Global Chocolate in a supply constrained environment. 

Overall, the Barry Callebaut Group reported sales volume of 1,602,458 tonnes, down -6.3%, for the first nine months of the fiscal year 2024/25 (ended on May 31, 2025). Sales volume decreased -9.5% in the third quarter, as the highly volatile market environment impacted customer behavior, with particular tariff-related uncertainty in North America, as well as the impact of prioritization in the Global Cocoa business.

Sales revenue amounted to CHF 10,946.7 million, an increase of +56.7% in local currencies (+49.5% in CHF). Growth was driven by the successful pass through of significantly higher cocoa prices, which Barry Callebaut manages through its cost-plus pricing model for the majority of its business.

² _{Source: Nielsen volume growth excluding e-commerce – 26 countries, September 2024 - April/May 2025. Data subject to adjustment to match Barry Callebaut's reporting period. Nielsen data only partially reflects the out-of-home and impulse consumption.}

³ _{Source: Nielsen volume growth excluding e-commerce – 26 countries, February 2025 - April/May 2025. Data subject to adjustment to match Barry Callebaut's reporting period. Nielsen data only partially reflects the out-of-home and impulse consumption.}

The unprecedented market environment highlights the importance of BC Next Level more than ever. The company was able to make important progress on key BC Next Level initiatives in the first nine months of 2024/25. 

• The four global business service centers (GBS) have largely been ramped up
• The simplification of the product portfolio is now complete, with 3,157 SKUs phased out
• During the third quarter, two new greenfield sites in Brantford (Canada) and Neemrana (India) were officially opened
• The Group also launched a new logistic performance initiative, rolling out real-time track and trace for shipments to provide customers with more transparency and faster decision making

As previously communicated, given that the highly disruptive and volatile environment has created higher temporary offsetting costs, Barry Callebaut expects a 12-month delay for BC Next Level savings to be fully reflected in the bottom line. However, the company confirms its initial plan of CHF 250 million of cost savings with 75% flowing through.

Barry Callebaut is taking action to support deleveraging from the level of 6.5x Net Debt / recurring EBITDA as of February 2025, which was predominantly due to the significant increase in inventory value due to the cocoa bean price acceleration. The plan is based on three main areas: 

1. Reducing net working capital, with a key focus on structurally lowering inventory levels. Initiatives include prioritizing volume to highest-return areas, diversifying sourcing origins and increasing bean blending capabilities

2. Increasing EBITDA, supported by pricing actions to cover higher financing costs, delivery of BC Next Level cost savings and further efficiency opportunities

3. Enhancing funding mix and greater use of inventory-linked financing solutions to reduce dependence on bean price fluctuations

Due to unprecedented market conditions, the Group revises its FY 24/25 volume guidance and now expects a mid single-digit decrease in Global Chocolate and a double-digit decrease in Global Cocoa. This results in an overall around -7% volume decrease and a mid to high-single digit increase in EBIT recurring in local currencies in FY 24/25.

During the first nine months of fiscal year 2024/25, terminal market⁴ prices for cocoa beans increased significantly, driven by a range of factors. Prices accelerated from a starting price of GBP 5,332 to a high of GBP 9,425, before closing the period at GBP 6,453 per tonne on May 31, 2025. On average, cocoa bean prices increased by +43% versus the prior-year period. The first months of the 2024/25 harvest saw good arrivals of beans in West Africa and non-West Africa origins, with adverse weather conditions in the later part of the period impacting the mid-crop.

Global sugar prices averaged -17% lower than the same period last year, driven by improving fundamentals across most exporting regions, including Brazil, the world’s largest producer. In Europe, sugar prices fell by an average of -33%, reflecting increased sugar beet acreage for the 2024/25 campaign, which concludes in September. This expansion resulted in a better-supplied market compared to the same period last year.

Dairy prices increased on average by +1% compared to the prior year. Global dairy inventories have remained balanced due to limited growth in milk supply and healthy export activity, excluding the tariff-related slowdown in U.S. trade. As a result, prices, while higher than a year ago, have remained generally stable at elevated levels. 

⁴ _{Source: London terminal market prices for 2nd position, September 2024 to May 2025. Terminal market prices exclude Living Income Differential (LID) and country differentials.} 

Further information is available at the following link on the Barry Callebaut website.

Barry Callebaut Group 9-Month Key Sales Figures

This will be a virtual presentation for analysts and investors, hosted by Peter Feld, CEO, and Peter Vanneste, CFO, which can also be followed via telephone or webcast. Dial-in and access details can be found here.

Financial Calendar for Fiscal Year 2024/25

About Barry Callebaut Group:

With annual sales of about CHF 10.5 billion in fiscal year 2023/24, the Zurich-based Barry Callebaut Group is the world’s leading manufacturer of chocolate and cocoa products – from sourcing and processing cocoa beans to producing the finest chocolates, including chocolate fillings, decorations and compounds. The Group runs more than 60 production facilities worldwide and employs a diverse and dedicated global workforce of more than 13,000 people. The Barry Callebaut Group serves the entire food industry, from industrial food manufacturers to artisanal and professional users of chocolate, such as chocolatiers, pastry chefs, bakers, hotels, restaurants or caterers. The global brands catering to the specific needs of these Gourmet customers are Callebaut^® and Cacao Barry^®, Carma^® and the decorations specialist Mona Lisa^®. The Barry Callebaut Group is committed to make sustainable chocolate the norm to help ensure future supplies of cocoa and improve farmer livelihoods. It supports the Cocoa Horizons Foundation in its goal to shape a sustainable cocoa and chocolate future.