Barry Callebaut $BARN drops 17% as FY EBIT outlook shifts to mid-teens decline

Barry Callebaut $BARN fell as much as 17% after the Swiss chocolate supplier reset its FY 2025/26 profit outlook to a mid-teens decline in recurring EBIT. The move met the Tier-1 threshold because it paired a double-digit stock reaction with concrete guidance and commodity data. CNBC reported that the shares were still down about 15.8% shortly after 2:30 p.m. London time.

The primary source is Barry Callebaut's H1 FY 2025/26 results release. The company said cocoa bean prices fell 61% from the start of the fiscal year and averaged 42% below the prior-year period. That drop helped future chocolate-market recovery prospects but hurt near-term profitability because of volume declines, supply disruption, overcapacity, and temporary pressure in Gourmet from a long position in a declining cocoa market.

Metric | H1 FY 2025/26 | Change
Sales volume | 1,010,247 tonnes | -6.9%
Recurring EBIT | CHF 310.9M | -4.2% local currencies
Global Chocolate EBIT | CHF 279.0M | -17.3% local currencies
Free cash flow | CHF 801.8M | vs. CHF -2,114.0M a year earlier

The updated guidance now calls for group volume to decrease 1%-3% in FY 2025/26, with positive growth expected in the second half. Profitability guidance moved to a mid-teens decline in recurring EBIT, while net debt to recurring EBITDA is expected to fall below 3.0x. Barry Callebaut also completed a EUR 2.0B sustainability-linked borrowing base facility on April 13, including EUR 1.6B of committed financing.

For investors across food, confectionery, and commodity-linked equities, the message is that lower cocoa is not automatically margin relief when inventory timing and pricing mechanics move faster than customer demand. The next check points are the full Focus for Growth update in June, the July 9 9-month sales figures, and whether Middle East disruption changes the second-half recovery path.

Not investment advice. Verify all figures with primary sources before acting.