Barry Callebaut targets mid-to-high single-digit profit growth under new CEO strategy
The chocolate maker plans annual capital investments of up to CHF 350 million while prioritizing North America and strengthening its customer-focused growth strategy.
SWITZERLAND – Swiss chocolate manufacturer Barry Callebaut has unveiled its first strategic plan under Chief Executive Officer Hein Schumacher, targeting mid- to high-single-digit growth in recurring operating profit in local currencies over the medium term.
The strategy, branded “Focus for Growth,” is designed to strengthen operational discipline, improve customer service and concentrate investments on key growth areas across the business.
“Focus for Growth marks a shift toward sharper investment choices combined with driving operating discipline across the Group,” Schumacher said. “We must first stabilize our fundamentals, restore customer service and prioritize customer-centricity.”
The announcement comes as investors seek greater clarity on the company’s long-term direction following Schumacher’s appointment in January. The former Unilever chief executive succeeded Peter Feld and is tasked with steering the company through a challenging operating environment.
Barry Callebaut, one of the world’s largest cocoa processors and a supplier to major food manufacturers, including Nestlé, expects medium-term sales volume growth of between 2% and 4%. Over the next 12 to 18 months, the company forecasts volume growth of between 1% and 3%.
Despite its long-term growth ambitions, the company maintained its expectation for a mid-teens decline in recurring earnings before interest and taxes (EBIT) in local currencies for the current financial year. It also warned that profitability could be affected by ongoing disruption in the Middle East.
As part of the new strategy, Barry Callebaut plans annual capital expenditure of between CHF 300 million and CHF 350 million. The company is also targeting a net debt-to-recurring EBITDA ratio of below 2x over the medium term, with a near-term objective of reducing the ratio to below 3x.
In addition, the company outlined a dividend payout ratio of more than 35% of recurring profit.
The strategy focuses on five priority areas: global accounts, regional food manufacturers, gourmet products, specialties, and cocoa powders. Initial investment efforts will be concentrated in North America, including facilities in Brantford, Canada, and Pennsauken, United States.
Barry Callebaut operates more than 60 production facilities worldwide and employs over 13,000 people, serving customers across the global food and beverage industry.
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