Barry Callebaut: Volumes in Line, Sales Ahead Due to High Cocoa Prices, but Free Cash Flow Affected

Barry Callebaut reported its nine-month trading update with volume up 0.4% in the first half (down 0.3% in the third quarter) for the group and up 0.8% for the global chocolate business ahead of a challenging and, overall, declining chocolate confectionery market (down 1.5%, according to Nielsen). Volume growth was positive across most regions, with Western Europe up 2.1%, compensating for lackluster performance in North America (down 1.4%) thanks to business coming from the consumer shift to private-label products and strong gourmet demand (volumes up 10.9%). Revenue was up 16.3%, or up 23.1% in local currencies, driven by a significant increase in cocoa bean prices. The latter's price during the period fluctuated between GBP 3,000 per ton and almost GBP 10,000 per ton, closing at about GBP 7,000 per ton at the end of May 2024, highlighting the volatile environment in which the company operates.