Barry Callebaut returns to growth after two-year slump

Barry Callebaut results overview

• Barry Callebaut achieved first quarterly Group volume growth in two years
• Q3 Group volume increased 5.7% despite chocolate market weakness
• Nine-month Group volume remained down 2.8% after weak first half
• Revenue fell 9.5% as lower cocoa prices reduced pricing
• Focus for Growth strategy targets recovery, market share and growth

The Barry Callebaut Group has returned to volume growth for the first time in two years.

The world’s largest chocolate supplier reported a 5.7% increase in Group volume in Q3, according to its Nine-Month Key Sales Figures for FY2025/26 released on Thursday.

However, weaker performance during the first half of the year meant Group volume remained down 2.8% overall.

Chocolate volumes

Global chocolate volumes were also down overall (-2.3%) but experienced a 3.2% bump in Q3.

The return to growth suggests some customers are beginning to normalise purchasing patterns after a prolonged period of cocoa price volatility and supply chain disruption.

The result is particularly encouraging given that the global chocolate market declined by 4.4% in Q3, suggesting Barry Callebaut outperformed the wider market.

And the company, which supplies customers including Mars, Inc., Nestlé and Mondelēz International, attributed the performance to “continued momentum in AMEA and restoring service levels in North America”.

Similarly, global cocoa volumes dropped 4.9% for the nine months, with growth accelerating to 18% in Q3, as the strong market correction in cocoa prices earlier in the year significantly elevated demand.

But it isn’t all good news for the multinational as revenues have failed to follow the same pattern as volumes.

Lower year-on-year cocoa bean prices weighed on sales revenue, which fell 9.5% in local currencies (12.7% in CHF) to CHF 9.6bn (€10.4bn) during the first nine months.

The decline reflected lower prices charged to customers for cocoa-related products compared with the same period last year, when cocoa costs were significantly higher.

Outlook

Looking ahead, the group expects volumes to decline by around 1% for FY2025/26, an improvement on the 2.8% decline reported for the first nine months.

“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,” says CEO Hein Schumacher. “At the same time, the chocolate market remains challenging and our improvement will be gradual.”

That outlook remains dependent on cocoa market conditions, which continue to be difficult to predict following several years of unprecedented volatility.

Having said that, the Group has implemented its new Focus for Growth strategy, a plan to restore operational performance, improve customer service and concentrate investment on higher-growth, higher-margin areas of the business.

The strategy includes a greater focus on premium products, the expansion of its Gourmet and Specialties divisions, and prioritising 10 key markets, with the company targeting medium-term volume growth of 2-4%.

It’s also expanding its alternative chocolate offering, investing in cocoa-reduced and cocoa-free products that help manufacturers mitigate the impact of volatile cocoa prices and supply constraints.

The Zurich-based company has been growing its portfolio of cacao coatings and chocolate alternatives, positioning them as cost-effective solutions for customers looking to reformulate products without sacrificing taste, functionality or consumer appeal.

For now, the results suggest Barry Callebaut’s recovery is beginning to gain traction, with volume growth returning and key markets showing signs of improvement. Yet with demand still fragile and cocoa market conditions unpredictable, it will likely take several more quarters before it becomes clear whether the company’s turnaround and Focus for Growth strategy can deliver sustained growth.

Schumacher remains confident, however, insisting the company is “unwavering” in its focus on strengthening its fundamentals to “gain market share and drive sustained profitable growth”.