economy
World's biggest chocolate maker issues profit warning as cocoa prices collapse; shares plunge 17%
Swiss chocolate maker Barry Callebaut on Thursday lowered its operating profit outlook, citing supply concerns and industry overcapacity.
TL;DR
- Barry Callebaut AG has lowered its operating profit forecast for fiscal years 2025-2026 by a mid-teens percentage.
- Factors contributing to the downgraded outlook include falling cocoa prices, industry overcapacity, and potential supply disruption linked to the Iran war.
- Cocoa prices have experienced a significant decline, down 41.6% year-to-date and 57.6% over the past 12 months.
- The closure of the Strait of Hormuz is cited as an impact on cocoa prices due to restricted supply and higher costs.
- Barry Callebaut's shares fell as much as 17% following the profit warning.