Barry Callebaut Shares Plunge 17% After Profit Warning Amid Cocoa Price Collapse
Barry Callebaut, the world's largest chocolate maker, issued a significant profit warning on Thursday, causing its shares to plummet by as much as 17%. The Swiss company slashed its operating profit outlook for the 2025-2026 fiscal year, projecting a mid-teens percentage decrease in earnings before interest and tax (EBIT). This marks a sharp reversal from its previous growth expectations stated just three months prior. CEO Hein Schumacher attributed the downgrade to a combination of falling cocoa prices, industry overcapacity, volume declines, and supply disruptions linked to the ongoing Iran war. Although lower cocoa prices have supported free cash flow generation, the rapid market decrease and competitive pressures have negatively impacted profitability. Cocoa prices have dropped significantly, falling 41.6% since the start of the year and 57.6% over the past twelve months, despite recent geopolitical tensions affecting supply routes like the Strait of Hormuz. The company aims to prioritize restoring volume and leading the market back to growth during this turbulent period of industry disruption.
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Barry Callebaut Shares Plunge 17% After Profit Warning Amid Cocoa Price Collapse
Barry Callebaut, the world's largest chocolate maker, issued a significant profit warning on Thursday, causing its shares to plummet by as much as 17%. The Swiss company slashed its operating profit outlook for the 2025-2026 fiscal year, projecting a mid-teens percentage decrease in earnings before interest and tax (EBIT). This marks a sharp reversal from its previous growth expectations stated just three months prior. CEO Hein Schumacher attributed the downgrade to a combination of falling cocoa prices, industry overcapacity, volume declines, and supply disruptions linked to the ongoing Iran war. Although lower cocoa prices have supported free cash flow generation, the rapid market decrease and competitive pressures have negatively impacted profitability. Cocoa prices have dropped significantly, falling 41.6% since the start of the year and 57.6% over the past twelve months, despite recent geopolitical tensions affecting supply routes like the Strait of Hormuz. The company aims to prioritize restoring volume and leading the market back to growth during this turbulent period of industry disruption.
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