Barry Callebaut adopts determined tone with latest results, despite “unprecedented market volatility”
Barry Callebaut CEO Peter Feld remains hopeful for the 2025 despite market volatility. Pic: Barry Callebaut
Barry Callebaut has struck a determined stance on its outlook for the remainder of 2025, despite “unprecedented volatility” in cocoa markets that have seen sales volumes drop 4.7% against the previous year, to 1,085,048 tonnes, as it releases its six month results for 2025, reports Neill Barston.
Peter Feld, CEO of the Swiss headquartered firm asserted that there remained major challenges in the market for which it was prepared to handle – including the ongoing comparatively high prices of cocoa that it said had increased 95% against the same period last year.
Consequently, amid market tests impacting on its operations, the company’s net profits for the first six months of its financial year stood at €63.5 million, down 69%, which came despite sales revenues being 56% up at €7.28 billion for the period.
As the company observed, overall sales volumes for Global Chocolate decreased by -4.5% in an international market that is presently experiencing a downturn of around 2.4% amid consumer caution, according to Nielsen.
Significantly, Barry Callebaut noted that Food Manufacturers were significantly impacted by market dynamics with large pricing actions, historically low levels of customer orders and other short-term changes to customer behaviour given the volatility. Its gourmet division delivered 0.7% growth. It recovered in the second quarter with resilient demand across most territories.
On a regional level, the chocolate group stated that its strongest performing region in volume terms was within Latin America, up 7.5%, while Asia Pacific, Middle East and Africa attained 1.8% gains, while there was a 2.3% decline in North America, and figures for West Europe in sales volumes were down 7.6%, as consumers household budgets have been affected by uncertain economic conditions.
The prospect of US tariffs has also introduced another factor of uncertainty for the industry, with the Ivory Coast initially facing taxes at more than 20%. However, the latest statement to emerge from the White House yesterday confirmed that countries, with the exception of China, were being placed on a standard 10% tariff rate while any further rises were being paused for a period of 90 days.
This latest missive came in response to major stock market volatility which saw a reported figure of 6 trillion being wiped off overall market values at the prospect of fresh tariffs, though results improved at news of the suspension of tariffs, which were due to hit all commodities, including cocoa.
Peter Feld, CEO of Barry Callebaut Group commented: “We are playing to win as we navigate the disruptive market environment. The intense cocoa bean price volatility had a significant impact on the industry, customer behaviour and our financial performance in H1 24/25. Yet the market challenges further underpin the rationale and importance of BC Next Level to unlock sustainable profitable growth.
“We made strong progress on important initiatives in the first half, including all social plans completed, FTE rightsizing, implementation of our four Global Business Services (GBS) hubs, four factory closures and SKU simplification ahead of plan. We are building an even stronger supply network in North America, with plans to significantly expand capacity in the US., in addition to the recent investment in Brantford (Canada).
“At the same time, we are taking decisive strategic steps to enhance our operating and financing model in the new market reality, which will drive higher returns, enable deleveraging and ultimately build Barry Callebaut into an even stronger leader to the benefit of all our stakeholders.”
