Barry Callebaut AG

H1 recurring EBIT decreased 4.2% to CHF 310.9 million. Recurring profit before tax increased 1.3% to about CHF 159.9 million, and net profit rose 66% to CHF 105.2 million, helped by lower finance costs and income tax expense. Recurring income tax expense was CHF 29.6 million versus CHF 69.4 million a year ago, and free cash flow was CHF 802 million. Net debt/EBITDA ended at 3.9x, with adjusted leverage excluding cocoa bean inventories at 2.7x. For the full year, management now expects group volume down 1% to down 3%, recurring EBIT down in the mid-teens in local currencies, and net debt/EBITDA below 3x using a working bean price assumption of GBP 3,000.

Hein Schumacher framed the quarter as a reset toward narrower priorities after what he described as an overextended period under Next Level. He said the company has strong underlying assets, but service, network execution, digital focus, and operating-model clarity all need to be tightened, with customer centricity at the center. He sounded constructive but candid, emphasizing that the new Focus for Growth plan will be about fewer initiatives, stronger accountability, and restoring confidence and growth.

Peter Vanneste emphasized that rapidly lower cocoa bean prices changed both demand and profitability dynamics. He said H1 was helped by strong cocoa profitability, but that benefit should normalize in H2, while competitive pressure in Gourmet and supply disruption weighed on EBIT; he also noted finance costs should be CHF 50 million to CHF 60 million lower versus last year. He highlighted strong cash generation of CHF 802 million, a CHF 2.5 billion reduction in net debt, and the new EUR 2 billion sustainability-linked borrowing base facility, including EUR 1.6 billion committed and EUR 400 million uncommitted liquidity.

Analysts pressed on whether the prior double-digit PBT growth target had effectively been reset, and management replied that PBT will decline for the year but less than EBIT because finance-cost savings of CHF 50 million to CHF 60 million will offset part of the drop. They also asked whether Gourmet’s commercial investments were only about price gaps; Hein said they also reflect service restoration and customer retention after disruptions, with North America and Europe needing hypercare, more staffing, and tactical investments. On reinvestment and timing, management said the actions are mostly short-term and focused on the customer-facing processes and key growth markets, not a broad return to higher spend or a new transformation program.