Education
About Us
Working with TipRanks
Follow Us
Barry Callebaut (CH:BARN)
:BARN
Top Page
Barry Callebaut AG
(BARN)
Rating:62Neutral
Price Target:
CHF995.00
▲(4.90% Upside)
Positive Factors
Price Target
There is a potential upside to the price target of 30.8%, indicating positive growth expectations.
Valuation
At a 10x 12-month forward P/E, the company's valuation appears attractive, reflecting a nearly 60% discount to its ten-year average.
Negative Factors
Earnings
The recent 1H25 earnings release was disappointing, with a significant miss and a cut in FY25 guidance.
Profitability
Adjusted net profit of CHF64m was well below estimates, affected by delayed pricing and higher financing costs.
Volume Decline
The 1H25 volume decline of -5% fell short of expectations due to delayed customer orders impacting results more than anticipated.
Barry Callebaut AG (BARN) vs. iShares MSCI Switzerland ETF (EWL)
Market Cap
CHF5.20B
Dividend Yield3.06%
Average Volume (3M)20.53K
Price to Earnings (P/E)36.1
Beta (1Y)0.66
Revenue Growth45.87%
EPS Growth-49.83%
CountryCH
Employees13,239
SectorConsumer Goods
Sector StrengthN/A
IndustryFood Confectioners
Share Statistics
EPS (TTM)5.85
Shares Outstanding5,488,858
10 Day Avg. Volume12,821
30 Day Avg. Volume20,529
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
CHF1,018.57Price Target Upside7.39% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
Barry Callebaut AG Business Overview & Revenue Model
Company DescriptionBarry Callebaut AG is a global leader in the chocolate and cocoa industry, headquartered in Zurich, Switzerland. The company operates in two main segments: Cocoa and Chocolate, providing an extensive range of products including cocoa powders, chocolate bars, and specialty chocolates. With a strong focus on sustainability, Barry Callebaut sources high-quality cocoa and chocolate ingredients for various applications, serving a diverse clientele that includes food manufacturers, artisans, and retailers worldwide.
How the Company Makes MoneyBarry Callebaut generates revenue primarily through the sale of chocolate and cocoa products. Its revenue model is built on supplying bulk chocolate and cocoa ingredients to manufacturers in the confectionery, bakery, and beverage sectors. Key revenue streams include direct sales to large food manufacturers and partnerships with artisanal producers, allowing the company to cater to both large-scale industrial clients and niche markets. Additionally, the company benefits from long-term contracts and relationships with key customers, which provide stable revenue. Strategic initiatives, such as investing in sustainable sourcing practices and expanding production capacities in emerging markets, further enhance its earnings potential.
Barry Callebaut AG Earnings Call Summary
Earnings Call Date:Apr 10, 2025
(Q2-2025)
| % Change Since: -10.09%|
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted Barry Callebaut's strategic advancements and financial stability through its investment program and secured liquidity. However, significant challenges from cocoa bean price volatility, increased operational costs, and volume declines weighed heavily on financial performance. The company is navigating these challenges with delayed cost savings implementation.Q2-2025 Updates
Positive Updates
Strong Progress in Next Level Investment Program
Barry Callebaut has achieved 40% of the CHF250 million synergy target, with 36% of SKUs phased out and significant advancements in factory footprint optimization and digital initiatives.
Secured Liquidity and Financial Stability
The company successfully raised financing through a CHF300 million Swiss bond and an oversubscribed EUR1.8 billion bond, maintaining a strong balance sheet and comfortable liquidity.
Growth in Gourmet and Specialty Chocolates
Gourmet business showed resilience with a 0.7% volume growth, rebounding to 3.1% in the second quarter. Specialty Chocolates saw positive growth with a double-digit improvement in North America, EMEA, and Latin America.
Negative Updates
Significant Impact of Cocoa Bean Price Volatility
Bean prices nearly doubled year-on-year, leading to increased financing costs and market structure expenses, impacting short-term financial performance.
Volume Decline Driven by Market Dynamics
Overall volume decreased by 4.7% in the first half, with notable declines in Global Cocoa and Global Chocolate segments due to high bean prices and customer behaviors.
High Financing and Operational Costs
Financing costs increased by CHF125 million year-on-year due to higher bean prices and margin calls, coupled with operational challenges leading to a decline in net profit.
Delayed Implementation of Cost Savings
Due to market volatility, there is a 12-month delay in fully realizing the Next Level program's cost savings in the P&L.
Company Guidance
During the call, Barry Callebaut provided guidance on various metrics. They anticipate a mid-single-digit decrease in sales volume due to a challenging environment but are maintaining their commitment to double-digit recurring EBIT growth in local currencies. The company has faced increased financing costs, which rose by CHF125 million year-on-year, primarily due to unprecedented cocoa bean price volatility. The bean price nearly doubled, significantly impacting customer behavior and financial performance. Despite these challenges, Barry Callebaut has secured additional liquidity through euro and Swiss bond issuances and has over 70% of their orders booked for the fiscal year. They are progressing with their Next Level cost savings plan, having achieved 40% of the targeted CHF250 million in synergies, although the full impact on the bottom line is delayed by 12 months due to current market disruptions. The company has also committed to ensuring the dividend per share will not be lower than in fiscal year '23-'24 during the transition period.Barry Callebaut AG Financial Statement Overview
Summary
Barry Callebaut AG shows strong revenue growth and operational efficiency. However, increasing financial leverage and cash flow challenges are potential risks. The cash flow situation is concerning with negative free cash flow, and the company needs to address these issues for financial stability.Income Statement
Barry Callebaut AG has demonstrated solid revenue growth over the years, with a notable increase from the previous year. The gross profit margin remains strong, but there has been a decline in net profit margin due to reduced net income. However, the EBIT and EBITDA margins indicate robust operational efficiency.75
Positive
Balance Sheet
The company's financial leverage has increased, as shown by a higher debt-to-equity ratio, indicating rising debt levels. Despite this, the equity ratio remains reasonable, and the return on equity is satisfactory, reflecting the company's ability to generate profits from its equity base.65
Positive
Cash Flow
The cash flow situation is concerning, with a negative free cash flow and operating cash flow. This could challenge the company's ability to finance its operations and growth without external funding. However, the historical ability to maintain free cash flow to net income ratio shows some resilience.50
Neutral
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 10.39B | 8.47B | 8.09B | 7.21B | 6.89B |
| Gross Profit | 1.38B | 1.35B | 1.22B | 1.15B | 1.06B |
| EBITDA | 710.41M | 901.65M | 778.83M | 791.98M | 703.71M |
| Net Income | 189.78M | 444.36M | 360.70M | 383.94M | 316.05M |
Balance Sheet | |||||
| Total Assets | 15.27B | 8.52B | 7.93B | 7.35B | 7.21B |
| Cash, Cash Equivalents and Short-Term Investments | 978.35M | 488.33M | 880.02M | 1.10B | 1.39B |
| Total Debt | 4.80B | 1.80B | 2.08B | 2.38B | 2.76B |
| Total Liabilities | 12.43B | 5.63B | 5.03B | 4.67B | 4.85B |
| Stockholders Equity | 2.84B | 2.90B | 2.90B | 2.68B | 2.35B |
Cash Flow | |||||
| Free Cash Flow | -2.35B | -456.69M | 189.07M | 428.66M | 271.61M |
| Operating Cash Flow | -2.06B | -215.10M | 464.96M | 704.08M | 552.50M |
| Investing Cash Flow | -280.93M | -230.99M | -301.68M | -265.01M | -304.93M |
| Financing Cash Flow | 2.77B | -555.00M | -381.50M | -618.98M | 591.13M |
Barry Callebaut AG Technical Analysis
Negative
948.50
Price Trends
926.69
Positive
906.47
Positive
1047.35
Negative
Market Momentum
11.42
Positive
50.42
Neutral
32.92
Neutral
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 948.5 is below the 20-day moving average (MA) of 993.40, above the 50-day MA of 926.69, and below the 200-day MA of 1047.35, indicating a neutral trend. The MACD of 11.42 indicates Positive momentum. The RSI at 50.42 is Neutral, neither overbought nor oversold. The STOCH value of 32.92 is Neutral, 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
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Performance Comparison
CH:BARN
Barry Callebaut AG
948.50
-411.73
-30.27%
CH:GIVN
Givaudan SA
3,320.00
-791.12
-19.24%
CH:LISN
Chocoladefabriken Lindt & Spruengli AG
115,200.00
7,799.66
7.26%
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.