Barry Callebaut AG (CH:BARN)
:BARN
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Barry Callebaut AG
(BARN)
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Rating:51Neutral
Price Target:
CHF1,270.00
▲(17.05% Upside)
Action:ReiteratedDate:04/16/26
The score is held back primarily by weakening profitability, higher leverage, and weak technicals (below key moving averages with negative MACD). The latest earnings call provides partial support due to strong cash generation and deleveraging, but lowered EBIT guidance and execution risks keep the overall rating only moderate. Valuation is somewhat demanding at a 31x P/E, with a moderate dividend yield offering limited offset.
Positive Factors
Strong free cash flow and deleveraging
Sustained high free cash flow in a peak buying season and large year-on-year net debt reduction materially improve financial flexibility. This durable cash generation supports capex, working capital cycles and remediation investments, lowering refinancing risk and enabling execution of strategic initiatives.
Negative Factors
Elevated leverage and higher debt reliance
Elevated leverage constrains financial flexibility and heightens sensitivity to interest rates and commodity swings. With a higher debt burden, the company faces reduced capacity for discretionary investment, increased financing costs and greater execution risk if cash generation weakens or margins compress.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow and deleveraging
Sustained high free cash flow in a peak buying season and large year-on-year net debt reduction materially improve financial flexibility. This durable cash generation supports capex, working capital cycles and remediation investments, lowering refinancing risk and enabling execution of strategic initiatives.
Read all positive factors
Barry Callebaut AG (BARN) vs. iShares MSCI Switzerland ETF (EWL)
Market Cap
CHF6.41B
Dividend Yield2.31%
Average Volume (3M)12.29K
Price to Earnings (P/E)22.2
Beta (1Y)0.69
Revenue Growth9.39%
EPS Growth68.92%
CountryCH
Employees13,239
SectorGeneral
Sector StrengthN/A
IndustryFood Confectioners
Share Statistics
EPS (TTM)19.81
Shares Outstanding5,488,858
10 Day Avg. Volume11,842
30 Day Avg. Volume12,286
Financial Highlights & Ratios
PEG Ratio-14.57
Price to Book (P/B)2.21
Price to Sales (P/S)0.39
P/FCF Ratio-17.14
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
CHF1,180.38Price Target Upside8.79% Upside
Rating ConsensusHold
Number of Analyst Covering8
EPS Forecast (FY)44.12
Revenue Forecast (FY)CHF12.70B
Barry Callebaut AG Business Overview & Revenue Model
Company Description
Barry Callebaut AG, together with its subsidiaries, manufactures and sells cocoa and chocolate products. The company provides chocolates, compounds, chips and chunks, cocoa, cacao fruit, fillings, coatings, nuts, decorations and inclusions, and fo...
How the Company Makes Money
Barry Callebaut makes money primarily by selling cocoa and chocolate products to business customers (B2B). Key revenue streams include: (1) Cocoa ingredients: processing cocoa beans into semi-finished ingredients such as cocoa liquor/mass, cocoa b...
Barry Callebaut AG Earnings Call Summary
Earnings Call Date:Apr 16, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Neutral
The call presented a mixed picture: strong financial resilience (CHF 802m free cash flow, significant deleveraging, net profit and PBT resilience, diversified financing) and clear, focused management actions (leadership simplification, Focus for Growth plan) are compelling positives. However, material operational weaknesses (volume declines, North America supply disruptions, quality incidents), pressured Gourmet margins from rapid cocoa price moves, and a downgraded EBIT outlook are significant near-term negatives. Management has a concrete remediation plan and balance sheet strength to execute it, but execution risks and external uncertainties (Middle East, cocoa market volatility) temper near-term upside.Positive Updates
Strong cash generation and deleveraging
Generated CHF 802 million free cash flow in H1 despite peak buying season; net debt reduced by ~CHF 2.5 billion year-on-year; reported leverage (net debt / EBITDA) fell to 3.9x from 6.5x (Feb prior year) and adjusted leverage excluding cocoa bean inventories is 2.7x.
Negative Updates
Volume decline in H1 and North America disruption
Group volumes fell 6.9% in H1; North America volumes declined 12.6% (impacted by the St. Hya factory operational incidents and network disruptions), requiring recovery actions and tactical investments to rebuild service and inventories.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong cash generation and deleveraging
Generated CHF 802 million free cash flow in H1 despite peak buying season; net debt reduced by ~CHF 2.5 billion year-on-year; reported leverage (net debt / EBITDA) fell to 3.9x from 6.5x (Feb prior year) and adjusted leverage excluding cocoa bean inventories is 2.7x.
Read all positive updates
Company Guidance
Barry Callebaut updated guidance: group volumes now expected to decline -1% to -3% for the full year (implying a return to positive growth in H2), recurring EBIT is guided to a mid‑teens % decline in local currencies, and net debt/EBITDA is targeted below 3x using a GBP 3,000 working mean price; management expects to recover more than half of the absolute EBIT decline at the profit‑before‑tax level driven by a planned CHF 50–60m reduction in finance costs. Key H1 metrics: recurring EBIT ~CHF 311m (‑4.2%), volumes down 6.9% (Q2 -3.6%), free cash flow CHF 802m, net debt reduced by ~CHF 2.5bn to leverage 3.9x (adjusted 2.7x excluding cocoa bean inventories), inventories 10% lower vs Feb last year, CHF 183m CapEx in H1; market context: cocoa beans fell ~53% in eight weeks to GBP 2,057 (short‑term view GBP 2,000–3,000; medium term GBP 3,000–5,000), and the group has secured a EUR 2bn sustainability‑linked borrowing base facility (EUR 1.6bn committed + EUR 400m uncommitted).Barry Callebaut AG Financial Statement Overview
Summary
Income Statement
65
Positive
Balance Sheet
55
Neutral
Cash Flow
40
Negative
| Breakdown | TTM | Aug 2025 | Aug 2024 | Aug 2023 | Aug 2022 | Aug 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 14.25B | 14.79B | 10.39B | 8.47B | 8.09B | 7.21B |
| Gross Profit | 1.43B | 1.42B | 1.38B | 1.35B | 1.22B | 1.15B |
| EBITDA | 903.67M | 890.48M | 710.41M | 901.65M | 778.83M | 791.98M |
| Net Income | 243.19M | 185.87M | 189.78M | 444.36M | 360.70M | 383.94M |
Balance Sheet | ||||||
| Total Assets | 12.01B | 12.64B | 15.27B | 8.52B | 7.93B | 7.35B |
| Cash, Cash Equivalents and Short-Term Investments | 1.62B | 1.94B | 978.35M | 488.33M | 880.02M | 1.10B |
| Total Debt | 5.23B | 6.21B | 4.80B | 1.80B | 2.08B | 2.38B |
| Total Liabilities | 9.49B | 10.02B | 12.43B | 5.63B | 5.03B | 4.67B |
| Stockholders Equity | 2.51B | 2.62B | 2.84B | 2.90B | 2.90B | 2.68B |
Cash Flow | ||||||
| Free Cash Flow | 2.62B | -337.48M | -2.35B | -456.69M | 189.07M | 428.66M |
| Operating Cash Flow | 2.91B | -42.52M | -2.06B | -215.10M | 464.96M | 704.08M |
| Investing Cash Flow | -305.67M | -269.50M | -280.93M | -230.99M | -301.68M | -265.01M |
| Financing Cash Flow | -2.56B | 1.19B | 2.77B | -555.00M | -381.50M | -618.98M |
Barry Callebaut AG Technical Analysis
Negative
1085.00
Price Trends
1374.30
Negative
1313.62
Negative
1178.85
Negative
Market Momentum
-53.79
Positive
25.97
Positive
8.89
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:BARN, the sentiment is Negative. The current price of 1085 is below the 20-day moving average (MA) of 1312.35, below the 50-day MA of 1374.30, and below the 200-day MA of 1178.85, indicating a bearish trend. The MACD of -53.79 indicates Positive momentum. The RSI at 25.97 is Positive, neither overbought nor oversold. The STOCH value of 8.89 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CH:BARN.
Barry Callebaut AG Peers Comparison
UnderperformOutperform
Sector (55)
CH:BARN
Barry Callebaut AG
1,169.00
437.33
59.77%
CH:GIVN
Givaudan SA
2,785.00
-1,138.60
-29.02%
CH:LISN
Chocoladefabriken Lindt & Spruengli AG
100,900.00
-15,901.49
-13.61%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.