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Barry Callebaut (CH:BARN)
:BARN
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Barry Callebaut AG
(BARN)
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Rating:64Neutral
Price Target:
CHF1,037.00
▼(-14.58% Downside)
Barry Callebaut AG's overall stock score reflects strong revenue growth and operational efficiency but is tempered by financial leverage and cash flow challenges. Technical indicators show positive short-term trends, but valuation concerns and a challenging market environment, as highlighted in the earnings call, weigh on the score.
Positive Factors
Revenue Growth
Consistent revenue growth indicates strong demand for Barry Callebaut's products and effective market strategies, supporting long-term business expansion.
Operational Efficiency
Strong operational efficiency reflects the company's ability to manage costs and optimize production, enhancing profitability and competitive positioning.
Specialty Chocolates Growth
Growth in specialty chocolates highlights successful product differentiation and market penetration, contributing to long-term revenue diversification.
Negative Factors
Rising Debt Levels
Increased financial leverage can limit financial flexibility and increase risk, potentially impacting the company's ability to invest in growth opportunities.
Cash Flow Challenges
Negative cash flow can strain the company's ability to fund operations and growth internally, potentially necessitating external financing.
Volume Decline
Declining sales volume can indicate weakening demand or competitive pressures, which may affect future revenue and market share.
Barry Callebaut AG (BARN) vs. iShares MSCI Switzerland ETF (EWL)
Market Cap
CHF6.65B
Dividend Yield2.39%
Average Volume (3M)12.08K
Price to Earnings (P/E)46.2
Beta (1Y)0.69
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. Volume12,195
30 Day Avg. Volume12,081
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
CHF1,099.67Price Target Upside-9.42% Downside
Rating ConsensusHold
Number of Analyst Covering9
Barry Callebaut AG Business Overview & Revenue Model
Company DescriptionBarry 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 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: |
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant achievements in securing supply, raising liquidity, and progressing on strategic initiatives, despite facing severe challenges from bean price volatility and increased costs. The company is taking steps to mitigate these challenges through strategic pricing and operational improvements. However, the financial performance and volume declines indicate a challenging environment ahead.Q2-2025 Updates
Positive Updates
Secured Bean Supply
Barry Callebaut has secured bean supply into early 2026 to safeguard future operations and protect customer deliveries.
Additional Liquidity Raised
The company secured additional liquidity through the euro and Swiss bond issuances, reflecting strong investor confidence.
Progress on Next Level Initiatives
Significant progress has been made on the Barry Callebaut Next Level initiatives, including factory shutdowns, the start of new operations, and advancements in digital and AI capabilities.
Gourmet Business Recovery
The Gourmet segment showed resilience with a 0.7% volume growth and a broad-based recovery to 3.1% in the second quarter.
Specialty Chocolates Growth
Specialty Chocolates saw positive growth with double-digit improvements in North America, EMEA, and Latin America.
Negative Updates
Significant Impact of Bean Price Volatility
The company faced unprecedented bean price volatility, with prices nearly doubling year-on-year, impacting financial performance.
Increased Financing Costs
Financing costs increased by CHF 125 million year-on-year due to variation and initial margin costs, impacting net profit.
Volume Decline
Overall volume was down 4.7%, with significant declines in Global Cocoa and Global Chocolate due to customer behavior and operational challenges.
Cash Flow Impacted by Cocoa Bean Prices
Free cash flow was significantly impacted by a CHF 2.1 billion increase in inventory values due to rising cocoa bean prices.
Delayed Customer Orders
Historically low levels of customer coverage and stock in H1 due to a wait-and-see approach from customers, impacting short-term results.
Company Guidance
In the recent half-year results presentation, Barry Callebaut provided guidance amid a challenging environment characterized by unprecedented volatility in cocoa bean prices, which almost doubled year-on-year, impacting financial performance. The company is addressing these challenges by enhancing its operating and financing model, with a goal to drive higher returns and deleverage. Despite facing a 12-month delay in fully reflecting the CHF250 million Barry Callebaut Next Level synergies into the bottom line, they have already secured 40% of the savings. The company expects a mid-single-digit decrease in sales volume for the fiscal year while maintaining a double-digit EBIT growth in local currencies. Additionally, Barry Callebaut has expanded its liquidity through bond issuances, ensuring a strong position to navigate the market disruptions and continue investing in strategic initiatives like the Future Farming Initiative.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.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 | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 13.03B | 10.39B | 8.47B | 8.09B | 7.21B | 6.89B |
| Gross Profit | 1.37B | 1.38B | 1.35B | 1.22B | 1.15B | 1.06B |
| EBITDA | 834.89M | 710.41M | 901.65M | 778.83M | 791.98M | 703.71M |
| Net Income | 143.91M | 189.78M | 444.36M | 360.70M | 383.94M | 316.05M |
Balance Sheet | ||||||
| Total Assets | 17.84B | 15.27B | 8.52B | 7.93B | 7.35B | 7.21B |
| Cash, Cash Equivalents and Short-Term Investments | 1.61B | 978.35M | 488.33M | 880.02M | 1.10B | 1.39B |
| Total Debt | 7.72B | 4.80B | 1.80B | 2.08B | 2.38B | 2.76B |
| Total Liabilities | 15.11B | 12.43B | 5.63B | 5.03B | 4.67B | 4.85B |
| Stockholders Equity | 2.72B | 2.84B | 2.90B | 2.90B | 2.68B | 2.35B |
Cash Flow | ||||||
| Free Cash Flow | -3.31B | -2.35B | -456.69M | 189.07M | 428.66M | 271.61M |
| Operating Cash Flow | -3.04B | -2.06B | -215.10M | 464.96M | 704.08M | 552.50M |
| Investing Cash Flow | -287.24M | -280.93M | -230.99M | -301.68M | -265.01M | -304.93M |
| Financing Cash Flow | 4.42B | 2.77B | -555.00M | -381.50M | -618.98M | 591.13M |
Barry Callebaut AG Technical Analysis
Positive
1214.00
Price Trends
1084.34
Positive
1000.00
Positive
997.60
Positive
Market Momentum
28.93
Negative
71.08
Negative
78.11
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 1214 is above the 20-day moving average (MA) of 1128.35, above the 50-day MA of 1084.34, and above the 200-day MA of 997.60, indicating a bullish trend. The MACD of 28.93 indicates Negative momentum. The RSI at 71.08 is Negative, neither overbought nor oversold. The STOCH value of 78.11 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 (57)
CH:BARN
Barry Callebaut AG
1,214.00
-332.60
-21.51%
CH:GIVN
Givaudan SA
3,539.00
-673.27
-15.98%
CH:LISN
Chocoladefabriken Lindt & Spruengli AG
130,800.00
25,966.20
24.77%
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.