Barry Callebaut, the world's biggest chocolate maker, has updated its mid-term volume target following the new strategy it announced in September.
The Swiss firm expects volumes to rise by a low to mid single-digit percentage from the 2025/2026 financial year onwards, after previously forecasting mid-term growth of below 5% on average for 2023-2026.
Flat Volume Growth
The company said it saw flat volumes in the 2023/2024 financial year followed by modest growth a year after.
'Barry Callebaut expects a 24-month transition period as it undertakes the actions necessary to create the profitable growth platform that delivers long-term value,' it said in a statement.
In September, the Zurich-based firm said it would spend CHF 500 million (€522.8 million) over two years as part of a plan to cut annual costs through improved services, research and development among others.
In the fiscal year through Aug. 31, the company's sales volumes fell slightly to 2.28 million tonnes, in line with analysts' expectations in a company-provided consensus.
The volumes were hit by a two-month shutdown on its largest factory in Wieze, Belgium, due to a salmonella case, weaker customer demand and rising raw material prices, the company said.
It proposed a dividend of 29 Swiss francs per share for fiscal 2022/2023, compared to 28 francs a year earlier.
'Ideally Positioned'
"Our purpose is to create the world's best chocolate solutions for our customers - now and in the future," commented Peter Feld, CEO of Barry Callebaut Group. "As the leader in the attractive, growing chocolate ingredients market and given our strength in sustainability and innovation, we are ideally positioned to outgrow the market.
"Our strategic growth priorities in combination with our BC Next Level investment program set the course for sustainable profitable growth and higher cash generation. We will deliver to our customers better value, service, quality and sustainability and make Barry Callebaut a much more resilient and profitable business, creating long-term value for all our stakeholders."
Additional reporting by ESM
