Barry Callebaut Reports Lower-Than-Expected Q1 Sales Volume
Chocolate giant Barry Callebaut's first-quarter sales volume fell 2.7% to 565,000 tonnes, below analysts' estimates of 568,000 tonnes. The decline was attributed to delayed orders as clients renegotiate product prices with retailers amidst record-high cocoa costs.
Despite the sales volume shortfall, the company expects full-year sales volume to decline by a low single-digit percentage. However, it maintains its target for double-digit growth in recurring operating profit on a constant currency basis.
Premarket shares rose 3.2% as investors focused on the reaffirmed profit guidance and the progress of the company's "BC Next Level" transformation plan.
Cocoa prices in London remain elevated at around 8,700 pounds ($10,738) per metric ton, prompting analysts to predict a challenging 2025 for the chocolate industry. Barry Callebaut also announced the issuance of a 300 million Swiss franc ($331 million) bond to address high costs and liquidity.
Analysts noted the impact of rising cocoa prices on results, questioning the volume resilience of the category post-transformation.