Barry Callebaut Q3 sales volumes rise for first time in two years

SWITZERLAND – Barry Callebaut has reported its first quarterly sales volume growth in two years, with third-quarter volumes rising 5.7 percent year-on-year as the company benefited from stabilising operations in North America, stronger global cocoa demand and continued momentum across Asia, the Middle East and Africa (AMEA). 

The company said the improved performance has prompted it to revise its full-year outlook for the financial year ending in August. It now expects sales volumes to decline by 1 percent, an improvement from the 2.5 percent decline previously forecast in the company-provided consensus. 

According to Barry Callebaut, the recovery was driven by stronger Global Cocoa demand, continued growth in the AMEA region and improved customer service levels in North America following operational challenges earlier in the year. 

Global Chocolate volumes also returned to growth during the third quarter, increasing 3.2 percent. However, volumes for the first nine months of the financial year remained 2.3 percent lower than the corresponding period last year, reflecting the continued challenges facing the global chocolate market. 

The company said its Food Manufacturers division recorded a 2.3 percent decline in volumes over the first nine months due to challenging market demand and supply disruptions in North America during the first half of the year. However, the segment returned to growth during the third quarter. 

Meanwhile, Gourmet volumes declined 2.8 percent over the nine-month period as falling cocoa bean prices created what the company described as “intense competitive dynamics” across the market. 

Chief Executive Officer Hein Schumacher said the latest quarterly performance signals encouraging progress, although the company expects recovery to remain gradual. 

“We are encouraged by the return to positive volume growth in the third quarter, which partly reflects early signs of stabilising fundamentals and service levels in North America. At the same time, the chocolate market remains challenging and our improvement will be gradual,” Schumacher said. 

He added, “During the quarter, we took targeted steps to evolve our organizational set up and advance our Focus for Growth journey by strengthening regional empowerment while preserving global functional alignment. We are unwavering in our focus on further reinforcing our fundamentals to gain market share and drive sustained profitable growth.” 

Barry Callebaut launched its Focus for Growth initiative in June to strengthen operational and financial performance while stabilising core operations and prioritising areas with the highest value creation potential. 

Commenting on the strategy earlier this year, Schumacher said, “Following a period of unprecedented industry disruption and transformation, we must first stabilize our fundamentals, restore customer service, and prioritize customer-centricity. At the same time, we are accelerating our focus on higher-value and differentiated solutions for everyday chocolatey occasions.” 

The company continues investing in long-term growth through a partnership with Planet A Foods to develop cocoa-free chocolate alternatives.  

It has also committed €250 million to modernise its Wieze factory in Belgium, an additional €125 million for its Halle facility, and recently opened a global innovation centre in Singapore focused on AI-driven chocolate product development. 

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