Barry Callebaut Ag · SIX:BARN
Barry Callebaut — Q1 FY2024/25 Earnings Presentation
14 slides from Barry Callebaut's earnings presentation, Jan 22, 2025
Slide 1: 3-Month Key Sales Figures, Fiscal Year 2024/25
Barry Callebaut Volume in line with market in a difficult environment triggered by high cocoa prices. Reiterating year end guidance for double-digit EBIT recurring growth in constant currency 3-Month Key Sales Figures, Fiscal Year 2024/25 22 January 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: Key messages
Key messages -2.7% Q1 volume in a declining market (-2.6%1), impacted by customer-retailer pricing 1 negotiations, delayed orders and SKU rationalization 2 Sales revenue +63.1% in constant currency, driven by >70% rise in cocoa bean prices in Q1 Additional financing secured to manage cash impact fro
Slide 4: Major cocoa market acceleration in the start of our fiscal year, with increased volatility
Major cocoa market acceleration in the start of our fiscal year, with increased volatility at far higher levels • Significant increase in cocoa bean prices since London cocoa futures (in GBP/MT)1 the start of the fiscal year, reaching a peak of GBP 9,926 on 18th Dec, driven by hedge fund activity &
Slide 5: Underpinning BC Next Level strategic rationale more than ever
Underpinning BC Next Level strategic rationale more than ever Unlocking BC’s full potential and improving end-to-end connectivity from bean to bar Important progress in Q1: • Completion of Belgium social plans • Negotiations for Intra site in Italy Recognized • Compound R&D center Chocolate • Planni
Slide 6: Ensuring liquidity and planning additional actions to increase returns on higher capital base
Ensuring liquidity and planning additional actions to increase returns on higher capital base Additional financing actions • January 2025: CHF 300M bond issuance, with 6-year tranche and 10-year tranche • December 2024: EUR 1,000M Bridge Term Loan Facility • October 2024: Additional Revolving Credit
Slide 7: Short-term pressure on chocolate market volumes given customer pricing negotiations and promotions
Short-term pressure on chocolate market volumes given customer pricing negotiations and promotions Market trends in Global Chocolate Confectionery • Market volume -2.6%1 in Q1, deteriorating vs. -1.0% over the past 12 months • Food manufacturers started new rounds of price increases of ~10% year-on-
Slide 8: Q1 volumes impacted by a declining market, as short-term demand reacts to cocoa bean price spikes
Q1 volumes impacted by a declining market, as short- term demand reacts to cocoa bean price spikes % of Group Q1 volume growth Key drivers Q1 volume BC Market1 -2.7% - Group Challenging short-term market conditions, in reaction to higher 80% Global Chocolate -3.4% -2.6% cocoa bean prices, as well as
Slide 9: Strong growth in Latin America and AMEA offset by market pressure in Europe and North America
Strong growth in Latin America and AMEA offset by market pressure in Europe and North America Global Chocolate sales volume: -3.4% % of Group Q1 volume growth Key drivers Q1 volume BC Market1 High base of comparison, with large prior year one-off contract. Western Europe -7.5% -1.6% Demand impacted
Slide 10: Updating our volume outlook for FY 24/25
Updating our volume outlook for FY 24/25 • Sales volume now expected to see a low single-digit decrease given the impact of further cocoa bean price increase on market pricing and demand • Confirming double-digit EBIT recurring growth1 in volatile market context The World’s Best Chocolate Solutions
Slide 11: Barry Callebaut is the leader in chocolate solutions and BC Next Level will unlock our full potential
Barry Callebaut is the leader in chocolate solutions and BC Next Level will unlock our full potential Market leader in attractive chocolate market underpinned by long-term global growth trends Providing chocolate solutions is becoming more complex. BC uniquely well positioned to win given vertically
Slide 12: Appendix
Appendix The World’s Best Chocolate Solutions 12
Slide 13: Raw material price developments
Raw material price developments Indexed Raw material price changes January 2023 to November 30, 2024 600% 500% 388% Cocoa beans 400% 92% Milk powder 300% 200% 102% Sugar world 100% 51% Sugar EU 0% The World’s Best Chocolate Solutions 13
Slide 14: World's Best Chocolate Solutions
World’s Best Chocolate Solutions The World’s Best Chocolate Solutions 14