Barry Callebaut FY 2025/26 results: Key takeaways
- Barry Callebaut sales revenue fell 15.2%
- Recurring EBIT dropped 14.1% to CHF604.5m amid pressures
- Volumes declined 0.7% but outperformed the wider chocolate market
- Gourmet volumes surged 13.6% as customers adapted to pricing
- Barry Callebaut forecasts growth recovery and higher profits next year
Barry Callebaut Group has posted its full-year 2025/26 results and the numbers make for grim reading.
The world’s largest cocoa and chocolate supplier saw sales revenue fall by 15.2%, something it attributes to lower year-on-year cocoa prices.
Recurring operating profit fell 14.1% to CHF604.5m, as falling cocoa prices hit earnings in its Gourmet business and reduced income from cocoa-related financing costs.
Though lower financing costs helped offset many of the losses, meaning the impact on pre-tax earnings was less severe than the drop in operating profit suggests.
Similarly, the Group generated more than CHF2bn in free cash flow during the year, helping to reduce net debt by 42.5% and strengthen resilience against volatile cocoa prices.
The stronger balance sheet appears to have given the company confidence to maintain its proposed dividend at CHF29 per share, unchanged from the previous year.
And, it wasn’t all bad news for the Swiss-Belgian business.
Sales volumes fell just 0.7% over the year, with Barry Callebaut returning to growth in the final quarter, outperforming the wider chocolate confectionery market, which contracted by 4.3%.
Another encouraging sign was its Gourmet division, where fourth-quarter volumes jumped 13.6% as customers responded to new pricing, helping build momentum into the new financial year.
“Earlier this year, we launched Focus for Growth to strengthen our fundamentals, sharpen our portfolio and accelerate growth in value-added cocoa and chocolate solutions,” said Barry Callebaut CEO Hein Schumacher in a statement. “Our FY 2025/26 results demonstrate early progress, including a return to volume growth in the second half of the year, strong free cash flow generation and significant deleveraging. We have also taken decisive action to focus the business on the customers, segments and contracts where we can create the greatest value and build a stronger, more resilient platform for profitable growth.”
Focus for Growth gains momentum
The Focus for Growth strategy prioritises higher-value customers, contracts and market segments, as the supplier to majors including Mondelēz, Nestlé and Ferrero shifts focus from pursuing volume at any cost to delivering more profitable and resilient growth.
And it’s already showing signs of progress, with volumes in its 10 priority markets rising 7% in the second half of the year, alongside improvements in customer satisfaction.
It’s also investing in innovation and manufacturing capacity to support future growth, and has already launched Flavourcode, a proprietary cocoa fermentation platform designed to create consistent flavour profiles for chocolatiers, chefs and food manufacturers.
The company’s also reshaping its manufacturing footprint, investing in capacity in Canada and Indonesia while consolidating operations at larger, more efficient sites to improve productivity and reduce complexity.
At the same time, it’s reviewing its organisational structure to streamline decision-making, reduce complexity and create a more scalable cost base. The aim is to deliver profit growth ahead of volume growth as the Focus for Growth strategy progresses.
Shifting customer relationships
Barry Callebaut’s customer portfolio is evolving, with significant developments involving two of the industry’s biggest players: The Hershey Company and Mondelēz International.
Hershey
Barry Callebaut has revealed that its long-standing commercial partnership with Hershey, which began in 2007, is set to expire at the end of 2027. While the two companies are continuing discussions over the future scope of their relationship, Barry Callebaut expects the transition of some volumes ahead of the agreement’s expiry to reduce group sales volumes by around 1% in FY 2026/27.
Hershey accounted for approximately 4% of the group’s sales volume in FY 2025/26.
Despite the expected volume impact, Barry Callebaut said profitability should remain unaffected as it prioritises higher-value growth opportunities.
Mondelēz
By contrast, Barry Callebaut signed a 15-year strategic agreement with Mondelēz, under its Future Farming Initiative, aimed at boosting long-term cocoa supply resilience.
The partnership will initially focus on high-tech cocoa farming in Brazil, with the goal of increasing productivity, diversifying sourcing and creating a more stable cocoa supply chain.
The agreement reflects growing customer demand for deeper collaboration on issues such as sustainability, traceability and supply security, while supporting Barry Callebaut’s wider strategy of focusing on differentiated, profitable growth rather than volume alone.
Can Barry Callebaut bounce back?
After a challenging year, Barry Callebaut is forecasting a return to growth in FY 2026/27. The chocolate giant expects volumes to increase by 1-3%, while recurring pre-tax profit is forecast to jump by around 30%.
The company said it will prioritise higher-value opportunities in key markets, while productivity initiatives and organisational improvements are expected to support 3-5% growth in recurring EBIT.
It also expects to maintain a stronger balance sheet, with net debt remaining at or below 2.9 times EBITDA.
The outlook reflects growing confidence that the industry giant has turned a corner after returning to volume growth in the third and fourth quarters.
“While market conditions remain challenging, we are navigating them with increased confidence in our ability to ignite future growth through innovation and enhanced customer service,” says Schumacher. “We are entering the year more focused, more disciplined and better equipped to deliver on our commitments.”
Elsewhere, the company’s also preparing for changes at board level.
Boardroom changes
Barry Callebaut will also see changes at board level, with long-serving director Fernando Aguirre and Daniela Bosshardt both set to step down at the company’s Annual General Meeting on 9 December 2026. The board thanked both members for their contributions, with Aguirre having served since 2013 and Bosshardt since 2025. All other board members will stand for re-election for another one-year term.
To strengthen its leadership team, the board has nominated Debra Crew for election as a new director. Crew brings more than three decades of consumer goods experience, most recently serving as CEO of Diageo. Her career has also included senior leadership roles at PepsiCo, Mars, Nestlé Dreyer’s Grand Ice Cream and Kraft Foods. She currently serves as Independent Chair of Stanley Black & Decker.
The appointment would add significant expertise in consumer markets, business transformation and value creation as Barry Callebaut looks to accelerate its Focus for Growth strategy and return to sustainable growth.
Whether those measures are enough to deliver the profit recovery Barry Callebaut is forecasting for FY 2026/27 will be closely watched by its competitors, customers and investors.
