Barry Callebaut Group, one of the world’s leading manufacturers of chocolate and cocoa products, reported a decline in sales volumes during the first nine months of fiscal year 2025/26, while highlighting improving momentum in the third quarter across several strategic markets. The company said ongoing market challenges, supply disruptions and changing cocoa price dynamics affected performance, but recent improvements indicate a gradual recovery in demand and operational execution.
For the nine-month period ended May 31, 2026, Barry Callebaut’s sales volume decreased by 2.8% to 1,557,239 tonnes. Despite the overall decline, the company returned to volume growth in the third quarter, recording a 5.7% increase. The positive quarterly performance was supported by stronger demand in Global Cocoa following the cocoa market correction earlier in the year, continued expansion momentum in the Asia Pacific, Middle East and Africa (AMEA) region, and progress in restoring service levels in North America.
The company said its performance reflects a challenging environment for the global chocolate industry, where inflationary pressures, high cocoa prices and changing consumer behavior have continued to impact demand. According to Nielsen data, the global chocolate confectionery market declined by 5.6% during the first nine months of the fiscal year and decreased by 4.4% in the third quarter.
Global Chocolate Business Faces Market Pressure
Barry Callebaut’s Global Chocolate segment recorded a volume decline of 2.3% during the first nine months. The company noted that performance was influenced by weaker market demand, as well as supply chain disruptions in North America during the first half of the fiscal year. However, the business returned to growth in the third quarter as operational improvements helped restore customer service levels and support renewed demand.
Within the Food Manufacturers business, volumes declined 2.3% over the nine-month period. The segment experienced pressure from difficult market conditions and supply challenges, particularly in North America, although quarterly performance improved as customer deliveries stabilized.
The Gourmet business recorded a 2.8% volume decline during the period. Barry Callebaut attributed the decline to intense competitive pressure caused by fluctuations in cocoa bean prices. The rapidly changing cocoa cost environment created challenges for customers and suppliers across the premium chocolate market.
Strong Growth in AMEA Supports Regional Performance
Regional performance varied significantly across markets. The strongest contributor to Global Chocolate volume growth was the Asia Pacific, Middle East and Africa region, which achieved a 10.3% increase in volumes during the nine-month period.
Barry Callebaut said AMEA benefited from market share gains in China, continued growth momentum in India and successful customer acquisitions in Australia. These positive developments helped offset weaker market conditions in Japan and South Korea.
Central and Eastern Europe (CEE) reported a slight volume decline of 0.7%. Growth among regional and local Food Manufacturers was offset by challenges with larger global customers operating in a difficult market environment.
Latin America experienced a modest volume decline of 1.2%, mainly due to timing and phasing effects during the third quarter. Western Europe recorded a 2.5% decrease, reflecting continued pressure from weaker chocolate market conditions. However, the region showed signs of stabilization, returning to slightly positive growth in the third quarter.
North America remained the most challenging market, with volumes declining 7.6% during the first nine months. The decline was primarily caused by supply network disruptions and difficult market conditions. Barry Callebaut said volumes turned positive in the third quarter as the company continued rebuilding service capabilities and responding to increased customer contracts and orders.
Global Cocoa Benefits from Market Recovery
Barry Callebaut’s Global Cocoa business recorded a 4.9% volume decline over the nine-month period, but performance improved significantly in the third quarter, with volumes increasing 18%.
The company said the recovery was driven by stronger demand following the correction in the cocoa market earlier in the year, combined with a lower comparison base. Cocoa powder demand remained particularly strong, especially in Latin America and Asia, where some customers increased inventory levels.
Global Cocoa also benefited from one-time cocoa butter opportunities during the third quarter, helping strengthen overall performance in the segment.
Revenue Impacted by Lower Cocoa Pricing
Barry Callebaut reported sales revenue of CHF 9,557.1 million for the first nine months of fiscal year 2025/26. Revenue decreased by 9.5% in local currencies and by 12.7% in Swiss francs.
The decline reflected lower sales volumes and the impact of reduced cocoa bean-linked pricing. In the third quarter alone, sales revenue declined 21.0% in local currencies and 23.4% in Swiss francs due to significantly lower cocoa prices compared with earlier periods.
Launch of Focus for Growth Strategy
In June, Barry Callebaut introduced its “Focus for Growth” action plan, designed to strengthen the company’s operational foundation and reinforce its position as a value-added, end-to-end chocolate and cocoa solutions provider.
As part of this strategy, the Group is enhancing regional empowerment while maintaining global functional coordination. The initiative aims to improve speed, agility and customer responsiveness by bringing selected capabilities and teams closer to regional business operations.
Effective September 1, 2026, the MENA (Middle East & North Africa) and SEWA (South East & West Africa) country clusters will move from AMEA to CEE. Barry Callebaut said the change reflects geographic proximity, customer preferences and supply chain relationships.
From fiscal year 2026/27, CEE will become CEMEA (Central & Eastern Europe, Middle East & Africa), while AMEA will transition into Asia Pacific (APAC).
Debt Reduction Through Bond Buyback
Barry Callebaut also completed a bond buyback tender in June involving its outstanding Senior Guaranteed Euro-denominated Notes issued by Barry Callebaut Services NV. The final accepted amount totaled EUR 849 million.
The transaction is expected to support the company’s efforts to reduce gross debt, improve credit metrics and lower financing costs. Barry Callebaut expects to record an upfront cost of approximately CHF 15 million during fiscal year 2025/26 as a result of the buyback.
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