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Barry Callebaut AG (CH:BARN)
:BARN
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Barry Callebaut AG
(BARN)
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Rating:54Neutral
Price Target:
CHF1,204.00
▼(-3.76% Downside)
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
Strong revenue growth indicates robust sales performance and market demand, supporting the company's long-term expansion and market position.
Strategic Initiatives
Strategic initiatives and innovations enhance operations and customer experience, potentially leading to improved competitiveness and market share.
Cash Generation
Returning to cash generation strengthens financial health, enabling debt reduction and providing resources for strategic investments.
Negative Factors
Rising Debt Levels
Higher leverage indicates increased reliance on debt, which can strain financial flexibility and pose risks to long-term stability.
Volume Decline
Declining volumes in key segments suggest challenges in maintaining market share and could impact future revenue growth.
Cost Pressures
Rising costs can erode profit margins, affecting profitability and limiting the ability to invest in growth opportunities.
Barry Callebaut AG (BARN) vs. iShares MSCI Switzerland ETF (EWL)
Market Cap
CHF6.86B
Dividend Yield2.27%
Average Volume (3M)12.29K
Price to Earnings (P/E)36.9
Beta (1Y)0.75
Revenue Growth42.39%
EPS Growth-2.13%
CountryCH
Employees13,239
SectorConsumer Defensive
Sector Strength42
IndustryFood Confectioners
Share Statistics
EPS (TTM)33.13
Shares Outstanding5,488,858
10 Day Avg. Volume11,842
30 Day Avg. Volume12,286
Financial Highlights & Ratios
PEG Ratio-0.69
Price to Book (P/B)2.66
Price to Sales (P/S)0.73
P/FCF Ratio-3.21
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
CHF1,232.50Price Target Upside-1.48% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Barry Callebaut AG Business Overview & Revenue Model
Company DescriptionBarry Callebaut AG is a leading global manufacturer of high-quality chocolate and cocoa products, headquartered in Zurich, Switzerland. The company operates in two main segments: chocolate and cocoa, supplying a diverse range of products to food manufacturers, artisans, and food service companies worldwide. Its core offerings include chocolate bars, pralines, and cocoa powders, as well as customized solutions and innovations for various applications in the food industry.
How the Company Makes MoneyBarry 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 Earnings Call Summary
Earnings Call Date:Nov 05, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 16, 2026
Earnings Call Sentiment Neutral
The earnings call reflected a company making progress in cash generation and strategic initiatives but facing significant challenges in volume declines, market volatility, and cost pressures. While there are positive developments in specific segments, the overall environment remains challenging.Q4-2025 Updates
Positive Updates
Return to Cash Generation
The company returned to cash generation in H2 and made strong progress on its deleverage agenda, supported by actions from the BC Next Level journey.
Recurring EBIT Growth
Recurring EBIT increased by 6.4% in constant currency, aided by pricing through increased cost of financing and mix.
Working Capital Actions
The company made significant progress in working capital actions, including diversifying sourcing, optimizing purchase timing, and introducing a letter of credit facility.
Cacao Coatings Growth
Cacao coatings saw positive growth, particularly in Western Europe and Latin America, driven by innovation and reformulation efforts.
Innovation and Strategic Initiatives
The company launched several initiatives, including BCOS and a new brand purpose with Callebaut, to enhance operations and customer experience.
Negative Updates
Volume Decline
The company experienced a volume decline of 6.8%, with notable declines in Global Cocoa (12.8%) and Global Chocolate (5.3%).
Impact of Cocoa Market Volatility
The cocoa market turbulence created a challenging B2B environment, impacting volume development and net profit, which decreased by 36% in local currencies.
Higher Net Debt
Net debt remained high at CHF 4.3 billion, although it is fully backed by high-quality inventory.
Challenges in North America
Intervention in the Toluca, Mexico factory and other operational issues led to residual impacts on customer requalification.
Cost Pressures
The company faced significant cost pressures due to unprecedented market disruption costs, inflation, and structural investments.
Company Guidance
During the Barry Callebaut Full Year Results Presentation for 2024-2025, key guidance metrics were discussed, indicating a strategic focus on deleveraging and growth. The company aims to reduce its net debt to EBITDA ratio to below 3.5x by the end of fiscal 2026, with a current leverage of 4.5x, down from a peak of 6.5x. This reduction is supported by strong cash generation and a balanced debt maturity profile, with CHF 700 million due annually over the next five years. Barry Callebaut also plans to enhance customer experience and competitiveness, innovate solutions, and target optimization opportunities. Despite a challenging environment with a 6.8% decline in group volume, the company projects low to mid-single-digit EBIT growth and double-digit growth in profit before tax for the upcoming fiscal year. Free cash flow showed a decline of CHF 312 million for the year, but a strong cash inflow of CHF 1.8 billion in the second half was achieved, mainly due to operational improvements and strategic actions.Barry Callebaut AG Financial Statement Overview
Summary
Barry Callebaut AG shows strong revenue growth and operational efficiency, but increasing financial leverage and cash flow challenges pose potential risks. The company needs to address its cash flow issues to maintain financial stability and support future growth.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.65
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.55
Neutral
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.40
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 13.03B | 14.79B | 10.39B | 8.47B | 8.09B | 7.21B |
| Gross Profit | 1.37B | 1.42B | 1.38B | 1.35B | 1.22B | 1.15B |
| EBITDA | 834.89M | 890.48M | 710.41M | 901.65M | 778.83M | 791.98M |
| Net Income | 143.91M | 185.87M | 189.78M | 444.36M | 360.70M | 383.94M |
Balance Sheet | ||||||
| Total Assets | 17.84B | 12.64B | 15.27B | 8.52B | 7.93B | 7.35B |
| Cash, Cash Equivalents and Short-Term Investments | 1.61B | 1.94B | 978.35M | 488.33M | 880.02M | 1.10B |
| Total Debt | 7.72B | 6.21B | 4.80B | 1.80B | 2.08B | 2.38B |
| Total Liabilities | 15.11B | 10.02B | 12.43B | 5.63B | 5.03B | 4.67B |
| Stockholders Equity | 2.72B | 2.62B | 2.84B | 2.90B | 2.90B | 2.68B |
Cash Flow | ||||||
| Free Cash Flow | -3.31B | -337.48M | -2.35B | -456.69M | 189.07M | 428.66M |
| Operating Cash Flow | -3.04B | -42.52M | -2.06B | -215.10M | 464.96M | 704.08M |
| Investing Cash Flow | -287.24M | -269.50M | -280.93M | -230.99M | -301.68M | -265.01M |
| Financing Cash Flow | 4.42B | 1.19B | 2.77B | -555.00M | -381.50M | -618.98M |
Barry Callebaut AG Technical Analysis
Positive
1251.00
Price Trends
1193.86
Positive
1125.53
Positive
1025.44
Positive
Market Momentum
8.06
Positive
60.12
Neutral
46.78
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 1251 is above the 20-day moving average (MA) of 1239.35, above the 50-day MA of 1193.86, and above the 200-day MA of 1025.44, indicating a bullish trend. The MACD of 8.06 indicates Positive momentum. The RSI at 60.12 is Neutral, neither overbought nor oversold. The STOCH value of 46.78 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
UnderperformOutperform
Sector (62)
CH:BARN
Barry Callebaut AG
1,251.00
75.19
6.39%
CH:GIVN
Givaudan SA
3,145.00
-701.93
-18.25%
CH:LISN
Chocoladefabriken Lindt & Spruengli AG
117,600.00
21,453.00
22.31%
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.