Portugal Colonial - Cocoa lynchpin sees chocolate lovers make hesitant return

The group, which says it runs the world's biggest chocolate factory in Belgium and provides cocoa products to nearly all major makers, warned however that any improvement would be "gradual".

Barry Callebaut said sales volumes increased for the first time in two years in the quarter from March to May this year, as it revealed its latest results.

It said that sales volume fell 2.8 percent to 1.5 million tonnes over the first nine months of its financial year up, but had increased 5.7 percent in the third quarter.

Asia, the Middle East and Africa boosted sales over the nine months, while Western Europe was down 2.5 percent and North America 7.6 percent.

It predicted that for the whole financial year up to the end of August, sales volumes would be down about one percent.

The group attributed the belated increase to increased demand for cocoa powder and some customers "replenishing their stocks".

Its turnover over the nine months fell 12.7 percent against the previous year to 9.5 billion Swiss francs ($11.75 billion), below analysts forecasts.

The group's performance reflects the roller coaster ride by cocoa prices over the past five years when it has been buffeted by wars, poor harvests and economic worries in key markets.

Barry Callebaut's turnover exploded when prices took off in 2024. But orders started falling when customers lost their sweet tooth as the price of a bar of chocolate rose by up to 50 percent.

The group does not sell direct to consumers but provides cocoa and chocolate preparations to major firms around the world, including Hershey, Mondelez and Nestlé as well as cake, cookie and ice cream makers.

The cocoa price hit a record high of 12,931 dollars a tonne in New York in December 2024. But then gradually fell to 2,846 dollars a tonne through 2025 and early 2026.

Fears that the Middle East war could cut off fertiliser supplies through the strategic Strait of Hormuz and that the new El Nino weather phenomenon could hit the harvest have pushed the price back up again to 4,613 dollars a tonne in recent days.

X.Matos--PC