Barry Callebaut posts 42% revenue surge despite decline in global cocoa, chocolate volumes
Barry Callebaut reports strong revenue growth driven by pricing, despite declining volumes and market volatility.
SWITZERLAND – Barry Callebaut, the global leader in chocolate and cocoa manufacturing, has announced a 42.4% increase in revenue to CHF14.79 billion (US$15.9 billion) for its 2024/25 financial year, supported primarily by higher pricing.
Despite topline growth, the company reported a decline in sales volumes, reflecting challenging market conditions and shifts in consumer behaviour.
Total sales volumes fell by 6.8% to 2.13 million tonnes. The Global Chocolate segment recorded a 5.3% volume decline, while Global Cocoa experienced a sharper drop of 12.8%.
According to the company, softer consumption trends, coupled with a strategic emphasis on return generation within the cocoa segment, contributed significantly to the volume contraction.
Chief Executive Officer Peter Feld described the financial year as one characterized by unprecedented market volatility affecting both the company and its customers. He noted that despite these pressures, Barry Callebaut implemented decisive measures in the second half of the year to stabilize performance and strengthen its balance sheet.
Operating profit (EBIT) increased by 42.4% to CHF635.1 million (US$784.36M). However, recurring EBIT remained virtually unchanged, falling marginally by 0.1% to CHF703.4 million (US$868.7M).
The company attributed its recurring net profit decline of 35.9% to reduced volumes and increased investment in digital capabilities and organisational capacity building. These expenses were aimed at navigating industry disruptions and supporting long-term transformation efforts.
Barry Callebaut generated CHF1.8 billion in free cash flow during the second half of the year, though full-year free cash flow stood at CHF –3.1 billion. The company credited its BC Next Level efficiency programme and cost-plus pricing model for helping offset rising expenses and market pressures.
Looking ahead to the 2025/26 fiscal year, Barry Callebaut plans to focus on reducing leverage to below 3.5x Net Debt/EBITDA and preparing for a return to growth. The company expects the first half to remain challenging, with recovery anticipated later in the year.
Global Chocolate volumes are projected to decline mid-single digits, while Global Cocoa volumes are expected to fall mid-to-high single digits due to continued focus on return on invested capital.
The group forecasts low-to-mid single-digit growth in recurring EBIT and double-digit growth in recurring profit before tax, measured in local currencies.
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