Barry Callebaut closed the first nine months of the 2025/26 fiscal year with signs of improvement after more than two years of difficulty. The Swiss group, a world leader in chocolate and cocoa solutions, reported a return to volume growth in the third quarter, despite a still challenging market environment.
In the first nine months of the fiscal year, ending May 31, 2026, total volumes decreased by 2,8% to 1,56 million tonnes. However, the third quarter saw a reversal of the trend, with a 5,7% increase, the first positive figure in over two years.
The chocolate business also showed signs of recovery. Volumes declined 2,3% in the nine months, but returned to positive territory in the third quarter with a 3,2% increase, supported by strong growth in the Asia-Pacific, Middle East, and Africa (AMEA) region and the gradual restoration of service levels in North America.
The market environment remains challenging. According to Nielsen, the global chocolate market contracted 4,4% in the third quarter, following a 5,6% decline in the first nine months, confirming continued weak demand.
The Global Cocoa sector recorded a 4,9% decline in the nine months, but growth jumped to 18% in the third quarter, supported by the correction in cocoa prices that occurred at the beginning of the year, which revived purchases and also encouraged some stock rebuilding operations.
On the geographical front, the AMEA region was the best performer with volume growth of 10,3%, thanks to share gains in China, continued expansion in India and new contracts in Australia.
Central and Eastern Europe limited the decline to 0,7%, while Western Europe recorded a 2,5% decline, but returned to slightly positive territory in the third quarter. In Latin America, volumes fell by 1,2%, while North America closed with a 7,6% decline, impacted by supply issues in the first half of the year, but with a recovery in demand in recent months.
Revenue reached 9,56 billion Swiss francs, down 9,5% at constant exchange rates and 12,7% in Swiss francs, mainly due to the effect of the decline in cocoa prices and the resulting reduction in selling prices.
In June the group also launched the strategic plan Focus for Growth, intended to strengthen the company's competitiveness through greater regional autonomy, a more agile organizational structure, and improved commercial coordination.
As part of the reorganization, from 1 September 2026, the Middle East and North Africa and South-East/West Africa clusters will move from the AMEA region to the Central and Eastern Europe region, which will take on the new name CEMEA, while AMEA will become APAC.
Also in June, Barry Callebaut completed a bond buyback worth €849 million, a transaction that will reduce debt, improve financial indicators, and contain financing costs, although it will result in a one-off expense of approximately CHF15 million in the current financial year.
For the full fiscal year 2025/26, the group now expects a decrease in volumes of around 1%, while confirming a reduction in recurring EBIT in the mid-teens at constant exchange rates and the objective of bringing the net debt/recurring EBITDA ratio below 3.
CEO Hein Schumacher emphasized that the return to volume growth is an encouraging sign, while acknowledging that the recovery in the chocolate market will be gradual and that the group will continue to focus on strengthening its industrial and commercial bases to regain market share and sustain profitable growth in the long term.
