As the rising price of cocoa began to bite, Barry Callebaut’s volumes fell

By Paolo Laudani

(Reuters) – Chocolate maker and cocoa processor Barry Callebaut on Wednesday reported lower-than-expected sales for the first quarter, hit by delayed orders as customers renegotiated product prices with retailers amid high cocoa costs.

The shares were down 4.3% against Europe’s benchmark STOXX 600 index by 0824 GMT. Vontobel analyst Jean-Philippe Bertchy said the company was facing a “continuing challenge”, with rising raw material prices set to remain.

The Switzerland-based group, which supplies Unilever’s soon-to-be launched Magnum ice cream and Nestle’s KitKat bar chocolate, saw sales fall 2.7% to 565,000 tonnes in the quarter ended November 30, below analysts’ expectations. A forecast of 568,000 tonnes was agreed by the company.

The company expects annual sales to fall by a single-digit percentage after previously forecasting flat cocoa sales for the year. He, however, reaffirmed his double-digit growth target for recurring operating profit in constant currency.

Cocoa trades at 9,240 pounds ($11,379) per metric ton in London, and analysts say the chocolate industry faces a tough phase in 2025, facing unprecedented raw material prices that could lead to further price increases in the youth sector.

Baader Helvia analysts said the effects of higher cocoa prices are starting to show in the results.

“The category may not be as resilient to volume as management would like investors to believe,” they said in a note to clients, adding that valuations will prompt investors to question the long-term metrics of the post-transformation business model.

Barry Callabout said he was issuing a 300 million Swiss franc ($331 million) bond to address the high cost and guaranteed amount.

($1 = 0.8120 pounds)

($1 = 0.9063 Swiss francs)

(Reporting by Paolo Laudani in Gdansk; Editing by Mila Nici)