Barry Callebaut has published a strategic action plan, "Focus for Growth," that sets numerical targets intended to guide the company back to growth once cocoa prices settle. The plan includes a forecast of 2-4% volume growth and CHF 300-400 million in annual free cash flow under the condition that cocoa prices stabilise.
"Focus for Growth marks a shift toward sharper investment choices combined with driving operating discipline across the Group," chief executive Hein Schumacher said. "We must first stabilize our fundamentals, restore customer service and prioritize customer-centricity."
The Zurich-based chocolate maker reported about CHF 14.8 billion in sales for fiscal year 2024-25 and serves more than 15,000 customers worldwide. Under the new plan, the company is targeting mid-to-high single-digit growth in recurring EBIT and low-teens growth in recurring profit before tax, both measured in local currencies. Barry Callebaut is also aiming for a return on invested capital in the range of 11-13%.
These medium-term targets are presented on the basis of an assumed cocoa bean price of GBP 3,000. The company reiterated its fiscal 2025/26 guidance at the same time, maintaining expectations for a 1% to 3% decline in sales volumes for the full year and a mid-teens drop in recurring EBIT in local currencies.
Barry Callebaut cautioned that profitability could be affected by disruption in the Middle East, and said the near-term outlook remains challenging. To support the plan, the company intends to focus resources on five strategic priorities: global accounts, regional food manufacturers, gourmet, specialties and cocoa powders.
Initial footprint investments under the plan are concentrated in North America, with specific site mentions including Brantford and Pennsauken. The company said it operates more than 60 production facilities globally and employs over 13,000 people.
On the financial front, Barry Callebaut outlined planned capital expenditure of CHF 300-350 million annually. It is targeting a net debt to recurring EBITDA ratio below 2x over the medium term, with a near-term objective of getting below 3x. The company also signalled a dividend policy with a payout ratio above 35% of recurring profit.
This strategic blueprint prioritizes disciplined investment choices, service restoration and customer-centric measures while setting quantifiable financial objectives dependent on commodity-price conditions.