Despite the positive trend in cocoa prices, global geopolitical tensions continue to pose a risk to the profitability targets of Barry Callebaut, the world’s leading manufacturer of high-quality chocolate and cocoa products.

Hein Schumacher
CEO
Barry Callebaut Group

The world’s leading manufacturer of chocolate and cocoa products, Barry Callebaut, has announced its half-year results for the fiscal year 2025/26. While the company experienced the positive impact of a historic 61% drop in cocoa bean prices on its costs, it issued a warning regarding the risks to the supply chain posed by geopolitical tensions in the Middle East.

Barry Callebaut Group CEO Hein Schumacher evaluated the period since he took office and the company’s future vision with the following words: "Reflecting on my first few months at Barry Callebaut, it is clear we have a strong market position, deep expertise, and fundamental growth opportunities. At the same time, following a turbulent period of industry disruption and transformation, there is significant work to do to reinvigorate the organization. We need to stabilize our fundamentals, further step-up our service levels, and empower our regional units."

Schumacher noted that the decrease in cocoa prices is encouraging for future chocolate market momentum and supported strong cash flow. However, he added that the unprecedented speed of the market decline, competitive overcapacity, and supply chain disruptions have impacted Operating Profit (EBIT) performance.

Historic 61% Decline in Cocoa Prices

A radical shift occurred in the cocoa market during the first half of the fiscal year: cocoa bean prices decreased by 61% compared to the start of the fiscal year, falling to GBP 2,057 per tonne. Factors contributing to this decline included favorable main crop production in West Africa and global stocks reaching healthy levels. This price drop, through its positive effect on inventory values, enabled a reduction in net working capital of approximately CHF 2.7 billion. 

MIDDLE EAST RISKS AND THE SUPPLY CHAIN

While the company is implementing its "Focus for Growth" strategy to overcome operational challenges, it maintains a cautious stance against geopolitical risks:

Geopolitical Warning: The company’s profitability outlook and volume targets remain subject to the impact of potential disruptions in the Middle East.

Supply Disruptions: Factory closures, particularly in North America, and global supply chain interruptions played a role in the 6.9% decline in volumes.

Barry Callebaut aims to return to volume growth in the second half of the year. CEO Schumacher emphasized that they will bring financial performance back to top levels through commercial and operational focus. The company plans to reduce its net debt ratio to below 3.0x by the end of the year.