• -2.7% sales volume in Q1 24/25 in a declining market (-2.6%)¹, impacted by customer-retailer pricing negotiations, delayed orders and SKU rationalization
• Sales revenue up +63.1% in constant currency, driven by a >70% rise in cocoa bean prices in Q1 24/25
• Additional financing secured to manage cash impact from the recent bean prices, including successful launch of CHF 300 million Swiss bond
• Further relevant progress made on implementing BC Next Level, including the important completion of all social plans in Belgium
• Confirming FY 2024/25 outlook for double-digit EBIT recurring growth in constant currency. Sales volume guidance lowered to low single-digit decrease given impact of further market volatility

• Well positioned as market leader with cost-plus model, planning additional actions to increase returns on higher capital base, access to sustainable beans for customers and BC Next Level unlocking Barry Callebaut’s full potential 

   

The Barry Callebaut Group reported sales volume of 565,238 tonnes during the first three months of fiscal year 2024/25 (ended November 30, 2024). The highly challenging and volatile market environment has impacted short-term customer and consumer demand, resulting in a sales volume decrease of -2.7%. 

Global Chocolate saw a -3.4% volume decrease, in an overall declining chocolate confectionery market according to Nielsen (-2.6%)². Food Manufacturers (-3.8%) saw slower demand, impacted by ongoing customer-retailer pricing negotiations, some short-term consumer reaction to higher prices and SKU (stock-keeping unit) rationalization. Given the recent cocoa bean price acceleration, customers have been delaying orders. Volumes also decreased in Gourmet (-1.5%), with limited product availability in North America due to prioritization following the Mexico quality intervention as well as the effect of SKU rationalization in Western Europe.

Looking at regional performance within Global Chocolate, Asia Pacific, Middle East and Africa (AMEA, +6.4%) was the strongest contributor. AMEA saw strong growth outside of China, with good momentum in India and Indonesia as well as a robust volume development for Gourmet. Latin America saw double-digit volume growth (+13.2%) led by Brazil, supported by increased demand for innovation and the strength of a diversified product portfolio. North America reported a volume decrease of -1.9%, impacted by decisive action to temporarily shut down the Toluca, Mexico facility proactively and slower demand for large Food Manufacturers. Central and Eastern Europe (-4.5%) was impacted by lower volumes for several large global and regional Food Manufacturer customers, especially in Türkiye. Volume development in Western Europe (-7.5%) was partly impacted by the high base of comparison, with a large one-off contract in the prior year. The rest of the decrease was linked to the declining chocolate confectionery market, customer-retailer negotiations and the effect of SKU rationalization.

Sales volume for Global Cocoa was around flat (+0.3%). Demand for cocoa powder remained robust and the business was able to capture some customer opportunities. Cocoa liquor continued to be impacted by the supply constrained environment. 

Sales revenue amounted to CHF 3,449.8 million, an increase of +63.1% in local currencies (+53.9% in CHF). The increase was driven by Barry Callebaut's cost-plus pricing model as the business passed through the significantly higher cocoa bean price to customers.

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

Barry Callebaut’s BC Next Level strategic investment program is unlocking the company's full potential and leading position in the chocolate ingredients market by moving Barry Callebaut closer to markets and customers while fostering simplicity and digitalization. As previously announced, BC Next Level includes a strategic investment of net CHF 500 million in areas most relevant for customers and will in turn unlock CHF 250 million of cost savings, of which 75% are expected to flow-through to the bottom line.

Barry Callebaut advanced with BC Next Level in first three months of the year. The signing of social plans has now also been completed in Belgium including a final agreement with the European Works Council. This follows the successful completion of social plans in Germany (Norderstedt, Hamburg and Cologne), France, Poland, the Netherlands, Malaysia (Port Klang) and the UK. Progress was also made in the negotiation for the closure of the Intra site in Italy, the launch of a new Compound R&D center in Singapore and in planning excellence.

Given the more than 70% increase in cocoa bean prices in the first quarter, the Group has adapted its outlook on industry wide working capital requirements this year. Barry Callebaut continues to address this development and ensured liquidity with a successful return to the Swiss bond markets in January. The CHF 300 million issuance consists of a six-year tranche of CHF 160 million and a ten-year tranche of CHF 140 million.

Since the start of the fiscal year, cocoa bean prices have accelerated significantly, creating a further impact on market pricing and demand. In that context, sales volume for fiscal year 2024/25 is now expected to see a low single-digit decrease. The Group reiterates guidance for double-digit EBIT growth on a recurring basis in constant currency. 

During the first three months of fiscal year 2024/25, terminal market³ prices for cocoa beans increased significantly, driven largely by hedge fund activity. Prices surged from a minimum price of GBP 4,355 towards the start of the period and accelerated to a closing price of GBP 7,708 per tonne on November 30, 2024. On average, cocoa bean prices increased by +72% 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 in line with expectations.

Global sugar prices averaged -22% lower than the same period last year, driven by improving fundamentals in key producing regions. Unlike the prior year, when El Niño disrupted sugarcane development in India and Thailand, conditions at the end of 2024 have shown no such impact. In Europe, sugar prices fell by an average of -44%, reflecting increased sugar beet acreage for the 2024/25 campaign, higher domestic supply, a strong pace of Ukrainian exports during 2023/24, and a decline in energy prices. 

Dairy prices increased on average by +3% compared to the prior year, driven by a slower-than-expected recovery in global milk supply, while global demand for dairy products remained robust.

³ _{Source: London terminal market prices for 2nd position, September 2024 to November 2024. Terminal market prices exclude Living Income Differential (LID) and country differentials.} 

Further information is available at the following link on the Barry Callebaut website: www.barry-callebaut.com/en/about-us/investors/results-presentations 

Barry Callebaut Group 3-Month Key Sales Figures, Fiscal Year 2024/25

This will be a presentation/ audio webcast for analysts and investors, hosted by Peter Feld, CEO, and Peter Vanneste, CFO. Dial-in and access details can be found here.

Financial Calendar for Fiscal Year 2024/25

(September 1, 2024 to August 31, 2025)

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.