Barry Callebaut AG (BARN) AI Stock Analysis

• Market Cap: CHF7.85B
• Dividend Yield: 2.31%
• Average Volume (3M): 12.29K
• Price to Earnings (P/E): 42.2
• Beta (1Y): 0.77
• Revenue Growth: 42.39%
• EPS Growth: -2.13%
• Country: CH
• Employees: 13,239
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Confectioners
• EPS (TTM): 33.13
• Shares Outstanding: 5,488,858
• 10 Day Avg. Volume: 11,842
• 30 Day Avg. Volume: 12,286
• 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 Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: CHF1,125.35
• Price Target Upside: -22.55% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 8
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: CHF1,482.00 ▲(2.00% Upside)
• Action: Reiterated Date: 12/11/25
• Date: Action: Reiterated 12/11/25

Barry Callebaut AG's overall stock score reflects strong revenue growth but is weighed down by financial pressures, including high leverage and negative cash flows. Technical indicators show mixed momentum, and the high P/E ratio raises valuation concerns. The earnings call provided some positive strategic insights, but the challenging environment remains a significant risk.

Positive Factors

Revenue Growth

Sustained top-line growth indicates resilient demand and expanding market penetration across customer segments. Continued revenue expansion supports scale benefits and funds strategic priorities (innovation, deleveraging), improving mid-term resilience even as margins face pressure.

Diversified Customers & Long-Term Contracts

A broad mix of multinational manufacturers and artisanal customers plus long-term contracts reduces concentration risk and delivers recurring revenue. This structural diversification smooths cycle volatility, underpins predictable cash generation, and supports sustained investment in product and operations.

Product Innovation and Category Growth

Growth in cacao coatings and active innovation initiatives (reformulations, BCOS and brand efforts) demonstrate capability to deliver differentiated, higher-value solutions. Structural innovation enhances customer stickiness, provides routes to margin improvement, and supports longer-term share gains.

Negative Factors

High Leverage

An elevated debt-to-equity ratio of 2.37 signals substantial leverage that constrains financial flexibility and raises refinancing and liquidity risk. High net debt forces management to prioritize deleveraging, limiting capacity for discretionary investment and increasing exposure to interest rate changes.

Weak Cash Flow Conversion

Persistent negative operating and free cash flows undermine the firm's ability to self-fund capital expenditures, pay down debt, or return capital. Poor cash conversion heightens dependency on external financing, complicates the path to target leverage and reduces strategic optionality over the medium term.

Margin Erosion and Volume Declines

Substantial gross margin deterioration and a 6.8% volume decline point to structural cost pressures and weakening demand mix. Eroding margins reduce earnings power and cash flow potential, making recovery reliant on sustained pricing, mix shifts, or cost efficiencies that may take multiple quarters to realize.

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 food colorants, as well as personalization sheets. It also offers cocoa powder, chocolate drinks, cappuccions, dessert drinks, dairy and non-dairy products, tea, and coffee. The company provides products under the Cacao Barry, Callebaut, Carma, Mona Lisa, Van Houten Professional, Bensdorp, Cabosse Naturals, D'Orsogna Dolciaria, IBC, and La Morella Nuts names. In addition, it offers centralized treasury and management services; and conference and training services. The company serves food manufacturers and artisans; and professional users of chocolate, including chocolatiers, pastry chefs, bakers, hotels, restaurants, or caterers. It also offers products for vending machines. The company operates primarily in the United States, Germany, the United Kingdom, Belgium, France, Mexico, Brazil, Poland, Switzerland, rest of Europe, rest of Americas, and the Asia Pacific. Barry Callebaut AG was incorporated in 1994 and is headquartered in Zürich, Switzerland.

How the Company Makes Money

Barry Callebaut generates revenue primarily through the sale of chocolate and cocoa products, which are categorized into two main segments: the chocolate segment and the cocoa segment. The chocolate segment includes a wide array of chocolate products tailored for different customer needs, while the cocoa segment focuses on cocoa powders and other related products. The company benefits from a diversified customer base, including large multinational food manufacturers and smaller craft chocolatiers. Key revenue streams come from long-term contracts with major clients, which provide stable cash flows, and the development of innovative products that meet changing consumer preferences. Additionally, Barry Callebaut has established significant partnerships with various companies in the food industry, allowing it to leverage synergies and expand its market reach, further contributing to its earnings.

Barry Callebaut AG Financial Statement Overview

Summary

Barry Callebaut AG shows strong revenue growth but faces significant challenges in profitability and cash flow management. The increasing leverage and declining margins suggest financial pressures, while negative cash flows highlight liquidity challenges.

Income Statement

Barry Callebaut AG has demonstrated a strong revenue growth rate of 13.49% in the most recent year, indicating robust sales performance. However, the gross profit margin has decreased over the years, from 15.92% in 2021 to 9.60% in 2025, suggesting increased cost pressures. The net profit margin has also declined, reflecting challenges in maintaining profitability. Despite these pressures, the company maintains a positive EBIT margin, though it has slightly decreased from previous years.

Balance Sheet

The company's debt-to-equity ratio has increased significantly to 2.37 in 2025, indicating higher leverage and potential financial risk. This is a concern as it suggests increased reliance on debt financing. The equity ratio has decreased, reflecting a lower proportion of equity financing. Return on equity has also declined, indicating reduced efficiency in generating profits from shareholders' equity.

Cash Flow

Barry Callebaut AG faces challenges in cash flow management, with negative operating and free cash flows in recent years. The free cash flow growth rate is significantly negative, and the operating cash flow to net income ratio is also negative, indicating difficulties in converting income into cash. The free cash flow to net income ratio is positive, but the overall cash flow position remains weak.

Breakdown	Aug 2025	Aug 2024	Aug 2023	Aug 2022	Aug 2021
Income Statement
Total Revenue	14.79B	10.39B	8.47B	8.09B	7.21B
Gross Profit	1.42B	1.38B	1.35B	1.22B	1.15B
EBITDA	890.48M	710.41M	901.65M	778.83M	791.98M
Net Income	185.87M	189.78M	444.36M	360.70M	383.94M
Balance Sheet
Total Assets	12.64B	15.27B	8.52B	7.93B	7.35B
Cash, Cash Equivalents and Short-Term Investments	1.94B	978.35M	488.33M	880.02M	1.10B
Total Debt	6.21B	4.80B	1.80B	2.08B	2.38B
Total Liabilities	10.02B	12.43B	5.63B	5.03B	4.67B
Stockholders Equity	2.62B	2.84B	2.90B	2.90B	2.68B
Cash Flow
Free Cash Flow	-337.48M	-2.35B	-456.69M	189.07M	428.66M
Operating Cash Flow	-42.52M	-2.06B	-215.10M	464.96M	704.08M
Investing Cash Flow	-269.50M	-280.93M	-230.99M	-301.68M	-265.01M
Financing Cash Flow	1.19B	2.77B	-555.00M	-381.50M	-618.98M

Barry Callebaut AG Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1453.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:BARN, the sentiment is Positive. The current price of 1453 is above the 20-day moving average (MA) of 1386.80, above the 50-day MA of 1299.85, and above the 200-day MA of 1073.22, indicating a bullish trend. The MACD of 42.11 indicates Negative momentum. The RSI at 68.05 is Neutral, neither overbought nor oversold. The STOCH value of 79.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CH:BARN.

Barry Callebaut AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LISN	72 Outperform	CHF28.72B	44.61	―	1.29%	7.37%	-5.49%
GIVN	70 Outperform	CHF27.69B	25.31	―	2.24%	5.93%	6.00%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
BARN	54 Neutral	CHF7.85B	42.24	―	2.31%	42.39%	-2.13%