Barry Callebaut lifts outlook after first half results

The world's leading manufacturer of high-quality chocolate and cocoa products, Barry Callebaut, reported a decline in sales volume for the first half of its financial year. Headquartered in Switzerland, the company attributed the performance to a combination of sluggish market demand and industry-wide overcapacity. Despite the recent downturn, the firm expressed confidence in a recovery, raising its full-year volume outlook as it anticipates a return to growth in the upcoming quarters. Between September and February, the company's sales volume dropped by 6.9% compared to the previous year, totaling 1.01 million metric tons. This figure slightly exceeded analyst expectations, which had averaged around 1 million tons according to a company-compiled poll. Barry Callebaut acts as a major supplier for global consumer brands, providing chocolate for products such as KitKat bars produced by NESTLE SA-REG and MAGNUM ICE CREAM CO NV/THE treats, which are brands associated with major consumer goods companies like UNILEVER PLC. Looking ahead, the chocolate maker expects to see positive volume growth during the second half of the year. The company has updated its guidance for fiscal 2025/26, now projecting a volume decline of between 1% and 3%. This is a notable improvement from its previous forecast, which had suggested a mid-single-digit percentage drop. Market analysts had previously modeled a more significant 4.6% decline for the full year, suggesting that the company's internal projections are more optimistic than current consensus estimates.