Barry Callebaut Ag · SIX:BARN
Barry Callebaut — H1 2024/25 Earnings Presentation
34 slides from Barry Callebaut's earnings presentation, Apr 10, 2025
Slide 1: Protecting EBIT despite declining demand due to unprecedented cocoa prices
Barry Callebaut Protecting EBIT despite declining demand due to unprecedented cocoa prices Half-Year Results, Fiscal Year 2024/25 10 April 2025
Slide 2: Disclaimer
Disclaimer Certain statements in this presentation regarding the business of Barry Callebaut are of a forward-looking nature and are therefore based on management’s current assumptions about future developments. Such forward-looking statements are intended to be identified by words such as ‘believe,
Slide 3: Playing to win as we navigate turbulent market
Playing to win as we navigate turbulent market Unprecedented bean price volatility impacted customer behavior and BC’s financial 1 performance short-term Enhancing our operating and financing model in the new market reality to deleverage and 2 drive higher returns…this will take some time to be full
Slide 4: Significant impact from rapid and volatile bean prices
Significant impact from rapid and volatile bean prices London cocoa futures (in GBP/MT)1 Significantly higher and more volatile bean prices 12,000 – Prices almost doubled on average year on year – Market self-corrected at ~GBP 10,000 for second time H1 24/25 10,000 – Exchange open interest >60% lowe
Slide 5: H1 24/25: Obstacles and achievements
H1 24/25: Obstacles and achievements Key obstacles Key achievements • Market turbulence showed need to enhance cost- • Secured additional liquidity through Euro and Swiss plus coverage and speed, especially for initial and bond issuances variation margin financing costs • Strong progress on key BC N
Slide 6: Bean price volatility and market turbulence strengthen opportunity for BC
Bean price volatility and market turbulence strengthen opportunity for BC The World’s Best Chocolate Solutions 6
Slide 7: Chocolate will remain the top flavor ingredient driving consumer choice
Chocolate will remain the top flavor ingredient driving consumer choice Chocolate leads as the ingredient of choice with resilient underlying consumption trends #1 Flavor in total Food & Beverage launches 2020-2025, with 2x more launches than #2 Source: Innova, Global, 2025 84% Share of consumers th
Slide 8: Market turbulence creates significant opportunity for BC to be an even stronger partner
Market turbulence creates significant opportunity for BC to be an even stronger partner for customers Already market leader in attractive, resilient chocolate segment Expanding full range of chocolatey experiences through compound & non-cocoa alternative offerings Unique vertically integrated global
Slide 9: BC well positioned to navigate mid-term supply dynamics
BC well positioned to navigate mid-term supply dynamics Changing origin dynamics BC driving change in cocoa farming 200 Cocoa Production Evolution Index 1. North Star Strategy focusing on smallholder 180 farming in current origins (pre-competitive) 160 140 – Focusing on growing incomes, increasing y
Slide 10: Volatility and disruptive environment impacted H1 24/25 performance
Volatility and disruptive environment impacted H1 24/25 performance The World’s Best Chocolate Solutions 10
Slide 11: H1 24/25 financial performance impacted by volatility, price increases and customer behavior
H1 24/25 financial performance impacted by volatility, price increases and customer behavior Volume -4.7% impacted by challenging market, high pricing environment and delayed customer orders. Strategic pillars showed growth EBIT recurring1 +1.5%, while recurring1 net profit impacted given delay in p
Slide 12: High cocoa bean prices are impacting short-term customer behavior
High cocoa bean prices are impacting short-term customer behavior, with a knock-on effect on BC Pricing Customer behavior Selective short-term actions • Customer-retailer • Customer coverage at negotiations historic lows • Cost-effective recipe • Customers adjusting • Price pack architecture adjustm
Slide 13: H1 24/25 volumes impacted by challenging and volatile market environment
H1 24/25 volumes impacted by the challenging and volatile market environment, with low customer cover H1 volume % of Group Key drivers development H1 volume Group -4.7% Highly challenging and volatile market environment impacted customer 80% Global Chocolate -4.5% behavior and pricing, with historic
Slide 14: Growth in Latin America and AMEA offset by market pressure in Europe and North America
Growth in Latin America and AMEA offset by market pressure in Europe and North America Global Chocolate sales volume: -4.5% vs. –2.4% market1 % of Group H1 volume growth Key drivers H1 volume BC Market1 Demand impacted by higher prices, customer behavior and Western Europe -7.6% -1.7% SKU rationaliz
Slide 15: Importantly, strategic growth pillars continue to show resilience
Importantly, strategic growth pillars continue to show resilience 1 Deepen outsourcing 2 3 Scale up 4 ‘Fair share’ partnerships Gourmet 2.0 Specialties in AMEA • +0.7% volume in H1 24/25, • Double-digit growth in • High single-digit growth • Long-term trends recovering to +3.1% in Q2 North America,
Slide 16: Doubling bean prices, extreme volatility and market structure create unprecedented environment for cost+
Doubling bean prices, extreme volatility and market structure create unprecedented environment for cost+ Significantly higher Unprecedented market Phasing and customer financing costs behavior • Speed & magnitude of • Higher costs to roll short • Historically low levels of bean price increase future
Slide 17: +1.5% recurring EBIT offsetting volume decline and passing through majority of cost increases
+1.5% recurring EBIT offsetting volume decline and passing through majority of significant cost increases In CHF million Recurring1 EBIT per tonne +6.5% +1.5% 12 345 339 -6 -35 296 -13 Includes ~CHF 38M BC Next Level savings EBIT HY 2023/24 Gross Profit SG&A, Others EBIT HY 2024/25 One-offs FX EBIT
Slide 18: Net profit impacted as cost+ not able to immediately fully pass major increases
Net profit impacted as cost+ not able to immediately fully pass major increases in unprecedented volatility In CHF million +1.5% > CHF 3 billion of cost increases 339 345 passed on, delay to pass remaining increases in turbulent market 296 -35 -13 -69.4% 216 -197 35 66 31 -69 EBIT EBIT One-offs FX E
Slide 19: The bean market context significantly impacts industry cash requirements
The bean market context significantly impacts industry cash requirements High and volatile bean Higher initial and Seasonal inventory prices variation margins levels • +95% year-on-year • 9x higher initial margins • Inventory levels always • H1 24/25 increase from due to market volatility higher at
Slide 20: Secured additional liquidity with continued support from the investment community
Secured additional liquidity with continued support from the investment community Financing actions in H1 24/25… …Ensure solid liquidity position • February 2025: Oversubscribed EUR 1,750M bond • Undrawn bridge term loan facility entered into issuance, with 3-year tranche and 6.5-year tranche by the
Slide 21: FCF development heavily driven by the substantial bean price impact on working capital
FCF development heavily driven by the substantial bean price impact on working capital In CHF million Operational improvements offset by: -188 -1,116 -2,114 • Higher bean volumes due to seasonality • Higher finished goods due to demand 99 -141 -207 slowdown -164 • Impact of higher interest, tax and
Slide 22: Higher bean prices increased inventory valuation, resulting in higher leverage levels
Higher bean prices increased inventory valuation, resulting in higher leverage levels FY 23/24 H1 24/25 Movement Inventory Semi finished & Cocoa bean Semi finished & Cocoa bean stock CHF M finished stock (RMI) 5,622 finished products (RMI) 7,335 +1,713 products +2,294 Net Debt Cocoabean Cocoa bean C
Slide 23: Clear plan underway to drive returns and deleverage in new bean price reality
Clear plan underway to drive returns and deleverage in new bean price reality Pricing for higher cost of capital requirements to drive ROIC Reducing length of working capital cycle, including through key customer collaboration Accelerating inventory-linked financing Step up from BC Next Level cost s
Slide 24: Adjusting pricing and reducing working capital cycle, including through key customer collaboration
Adjusting pricing and reducing working capital cycle, including through key customer collaboration Customer collaboration & Pulling all levers to shorten the commercial actions cash cycle • Adapting pricing for higher cost of capital and to • Leveraging flex blending capabilities drive ROIC: Passing
Slide 25: Progressing on BC Next Level initiatives
Progressing on BC Next Level initiatives The World’s Best Chocolate Solutions 25
Slide 26: Important progress made on BC Next Level initiatives in H1 24/25
Important progress made on BC Next Level initiatives in H1 24/25 • ~40% run-rate cost savings to date • ~36% SKUs phased out (vs. >30% target) • Factory footprint: Progressing with 4 closures, starting up 2 and planning to add capacity at 2 locations • Social plans completed in all global locations
Slide 27: In this new reality, BC Next Level is more important than ever
In this new reality, BC Next Level is more important than ever Trusted Chocolate Solutions Advisor Best-in-class Customer experience: • Value • Service • Sustainability • Quality / Food Safety Ingredients Supplier The World’s Best Chocolate Solutions 27
Slide 28: Our journey
Our journey 2023/24 2024/25 2025/26 Building the foundation Execute BC Next Level and Stabilize and scale impact fight disruption • Announced BC Next Level • Delivering BC Next Level • Deleveraging and shortening cash cycle • Hardwired enabling functions • Accelerating digitalization • Finance trans
Slide 29: Highly disruptive & volatile environment results in 12-month delay for BC Next Level savings
Highly disruptive & volatile environment results in 12- month delay for BC Next Level savings flow through We are continuing to deliver on NL and related savings, and are responding to unparalleled disruption in supply and market with: 1. Increased costs related to market volatility 2. Temporary cos
Slide 30: Outlook & Guidance
Outlook & Guidance The World’s Best Chocolate Solutions 30
Slide 31: Confirming long-term strategy while adjusting FY 24/25 volume outlook
Confirming long-term strategy while adjusting FY 24/25 volume outlook in a volatile market • Mid single-digit decrease in sales volume in a challenging market • Double-digit EBIT recurring growth in local currencies • During the BC Next Level transition period, the dividend per share will not be low
Slide 32: Appendix
Appendix The World’s Best Chocolate Solutions 32
Slide 33: Raw material price developments
Raw material price developments Indexed Raw material price changes January 2023 to February 28, 2025 450% 400% 350% 269% Cocoa beans 300% 250% 200% -13% Milk powder 150% 100% 50% -4% Sugar world 0% -50% -100% -46% Sugar EU Dec-24 Jul-23 Jul-24 Aug-23 Oct-23 Jan-24 Feb-24 Jan-23 Mar-23 Aug-24 Sep-24
Slide 34: World's Best Chocolate Solutions
World’s Best Chocolate Solutions The World’s Best Chocolate Solutions 34