Barry Callebaut working on cost-effective solutions as bean price remains volatile
In the face unprecedented volatility and turmoil over the last 18 months, Barry Callebaut says it will prioritise volumes, collaborate with customers and improve its flexibility and resistance to changes in the price of cocoa beans.
In its nine month key sales figures report for the fiscal Year 2024/25, Barry Callebaut Group noted that global chocolate saw a -5.1% volume decrease in an overall declining chocolate confectionery market according to Nielsen (-3.0%). The market saw its largest decline in a decade in the third quarter (-4.2%), with global chocolate volumes decreasing by -6.2%.
Volumes for food manufacturers (-5.8%) remained impacted by market volatility and customer behaviour changes. Volumes in gourmet also decreased (-1.7%) but the channel was more resilient, with strong growth in AMEA and Latin America. In the third quarter, the Gourmet business saw -6.4% volume with quarterly volatility driven by the phasing of customer purchases.
Looking at regional performance within global chocolate, Latin America (+8.3%) was the strongest contributor to volume performance, supported by innovative customer solutions. Asia Pacific, Middle East and Africa (AMEA) saw positive growth (+0.5%) with negative growth in the third quarter (-2.2%), as strong growth in India, the Middle East and Indonesia was offset by negative growth in China and the South Pacific.
Volumes declined in Central and Eastern Europe (-5.5%) driven by a challenging customer environment especially in Türkiye. North America reported a volume decrease of -5.8%.
New customer wins were more than offset by the challenging demand environment, customer ramp up in Toluca, Mexico and additional tariff-related uncertainty, resulting in -12.3% volume in the third quarter. Volume development in Western Europe (-6.8%) was significantly impacted by customers adapting to higher and volatile cocoa bean prices, as well as by SKU rationalisation.
Global cocoa saw an -11.3% decrease in sales volume, with a -22.6% decline in the third quarter. The business saw a negative market demand impact from significant cocoa bean price increases, particularly in AMEA, CEE and Latin America.
Overall, the Barry Callebaut Group reported sales volume of 1,602,458 tonnes, down -6.3%, for the first nine months of the fiscal year 2024/25 (ended on May 31, 2025). Sales volume decreased -9.5% in the third quarter.
Sales revenue amounted to CHF 10,946.7 million, an increase of +56.7% in local currencies (+49.5% in CHF). Growth was driven by the successful pass through of significantly higher cocoa prices.
The group said it will take a series of measures to counter cocoa bean price volatility in three main areas:
- Reducing net working capital, with a key focus on structurally lowering inventory levels. Initiatives include prioritising volume to highest-return areas, diversifying sourcing origins and increasing bean blending capabilities
- Increasing EBITDA, supported by pricing actions to cover higher financing costs, delivery of BC Next Level cost savings and further efficiency opportunities
- Enhancing funding mix and greater use of inventory-linked financing solutions to reduce dependence on bean price fluctuations.
