KC Sullivan, President, CNBC
Posted on 04/17/2026 6:47:35 AM PDT by Diana in Wisconsin
Swiss chocolate maker Barry Callebaut on Thursday slashed its operating profit forecast, citing falling cocoa prices, industry overcapacity and potential supply disruption linked to the Iran war.
The company, which is the world’s largest chocolate maker, said it now expected earnings before interest and tax (EBIT) to decrease by “mid-teens” percentage in its 2025 to 2026 fiscal year.
The outlook reflects a significant downgrade from just three months earlier, when the Zurich-headquartered company said it was preparing for a return to growth.
Hein Schumacher, who was appointed Barry Callebaut CEO in late January, said Thursday that the firm has an “unparalleled market position” and fundamental growth opportunities, while warning of a “turbulent period” of industry disruption.
“In the first half of our fiscal year, cocoa bean prices decreased, which is encouraging for future chocolate market momentum and supported strong free cash flow generation,” Schumacher said in a statement.
“Yet the unique speed of the market decrease combined with a competitive overcapacity market, volume declines and supply disruption impacted EBIT performance and adjusted our profitability outlook for the year as we prioritize restoring volume and leading the market back to growth,” he added.
Shares of Barry Callebaut fell as much as 17% on Thursday. The stock was last seen trading off by around 15.8% shortly after 2:30 p.m. London time (9:30 a.m. ET).
Cocoa prices fell 0.72% on Wednesday, reaching $3,537.28 per tonne. Despite rallying over the past week, cocoa prices have slumped 41.6% since the start of the year, and are down 57.6% over the past 12 months, according to Trading Economics data.
Like most commodities, the closure of the Strait of Hormuz has impacted cocoa prices with restricted supply and higher costs. However, much stronger harvests compared to recent years, when prices have soared, have kept a lid on cocoa costs.
Dear FRiends,
We need your continuing support to keep FR funded. Your donations are our sole source of funding. No sugar daddies, no advertisers, no paid memberships, no commercial sales, no gimmicks, no tax subsidies. No spam, no pop-ups, no ad trackers.
If you enjoy using FR and agree it's a worthwhile endeavor, please consider making a contribution today:
Click here: to donate by Credit Card
Or here: to donate by PayPal
Or by mail to: Free Republic, LLC - PO Box 9771 - Fresno, CA 93794
Thank you very much and God bless you,
Jim
There is that big solar boiler Electric plant in the Arizona desert that they are abandoning. The one with all the mirrors.
They could move that to Switzerland.
They could only make chocolate in the summer but it would be SO GREEN!
Yes...I melt them down and mix in stuff...then toss on waxpaper...and refrigwerate in a plastic container...take as needed...lol
Clasen Chocolate is the best melting dark chocolate for candy making by far in my opinion.
Low bitterness and excellent creaminess.
Chocolate is medicine!
I love Payday bars. Good stuff!
Going to Aldi today...need mushrooms for stroganoff....
and boneless, skinless thighs for Chicken French. I make a lot and freeze...such a delightful lunch and in less than 10 minutes.
. . . and the chocolate-coated version of Payday is in fact covered in a “chocolatey coating,” i.e., it contains no actual chocolate. An increasing number of manufacturers are switching to the fake “chocolatey” stuff.
Most cocoa beans come from West Africa and Latin America. The actions of the U.S., Israel, and Iran have zero impact on the price of cocoa. Since cocoa beans are a tree crop, I would think there would be less use of the fertilizer products sourced from the Persian Gulf than for cotton and row crops. Cocoa harvesting is mostly manual labor. The only possible effect would be that of higher fuel prices hauling the beans to market.
Great, now do blueberries
Great, now do blueberries
It sounds like they are going to keep their present pricing while others will lower theirs and take business from them.
KC Sullivan, President, CNBC
Dark chocolate is a gift from God. I can be in a rotten mood, but toss a Dove dark chocolate morsel into my mouth, and the scowl turns into a smile. I am a certified chocoholic, but only dark, so can the milk chocolate junk. During the Christmas and New Years holidays I make chocolate nut rum balls with dark chocolate and my homemade vanilla extract. It seems I never make enough.
Women and children hardest hit.
“Chocolate is medicine”
Medicine I take daily
“…then toss on waxpaper...and refrigwerate in a plastic container...take as needed...”
Sounds like a recipe from Elmer Fudge.
“...falling cocoa prices,”
El Chapo will be angry. LOL.
Hi, I’m TheDon, and I am a certified dark chocoholic. It works. ;<)
Interesting...”world’s biggest” but I’ve never seen any of their brands/products in any shop anywhere.
Bad news in Chocolate City.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.