{"url":"https://www.wsj.com/business/earnings/barry-callebaut-shares-plunge-after-profit-warning-bb7b0f24","title":"Barry Callebaut Shares Plunge After Profit Warning","domain":"wsj.com","imageUrl":"https://images.pexels.com/photos/29188957/pexels-photo-29188957.jpeg?auto=compress&cs=tinysrgb&h=650&w=940","pexelsSearchTerm":"chocolate factory","category":"Business","language":"en","slug":"2197c9de","id":"2197c9de-57cf-4310-9c8d-e4c1010f34d0","description":"Barry Callebaut shares plunged after the company cut its full-year operating profit outlook due to cocoa overcapacity and supply disruptions.","summary":"## TL;DR\n- Barry Callebaut shares plunged after the company cut its full-year operating profit outlook due to cocoa overcapacity and supply disruptions.\n- Recurring half-year EBIT fell 4.2% to 310.9 million Swiss francs amid 6.9% lower sales volume.\n- New CEO's plan faces headwinds from rapid market shifts, signaling prolonged pressure on chocolate industry earnings.\n\n## The story at a glance\nBarry Callebaut, the Swiss chocolate maker that supplies companies like Mondelez, issued a profit warning tied to its new CEO's growth strategy. Shares dropped 16% in early European trading Thursday after the announcement.[[1]](https://www.wsj.com/business/earnings/barry-callebaut-shares-plunge-after-profit-warning-bb7b0f24)[[2]](https://www.reuters.com/business/barry-callebaut-eyes-volume-rebound-after-half-year-decline-2026-04-16) The update came with half-year results showing weaker earnings from industry turbulence. This reflects ongoing cocoa market volatility after years of high prices.\n\n## Key points\n- Shares fell 16% Thursday morning but remain up 44% from a year earlier.[[1]](https://www.wsj.com/business/earnings/barry-callebaut-shares-plunge-after-profit-warning-bb7b0f24)\n- Company now expects recurring EBIT to drop by a mid-teens percentage this fiscal year, down from prior low- to mid-single-digit growth guidance.[[2]](https://www.reuters.com/business/barry-callebaut-eyes-volume-rebound-after-half-year-decline-2026-04-16)\n- Half-year recurring EBIT declined 4.2% in local currencies to **310.9 million Swiss francs** ($398 million), with sales volume down 6.9% to 1.01 million metric tons.[[2]](https://www.reuters.com/business/barry-callebaut-eyes-volume-rebound-after-half-year-decline-2026-04-16)\n- Full-year sales volume outlook narrowed to a 1%-3% decline, with rebound expected in second half through August.[[2]](https://www.reuters.com/business/barry-callebaut-eyes-volume-rebound-after-half-year-decline-2026-04-16)\n- Factors include cocoa overcapacity from ample West African harvests, competitive pressures, volume drops, and supply issues like a Canadian factory closure and Iran war-related disruptions.[[2]](https://www.reuters.com/business/barry-callebaut-eyes-volume-rebound-after-half-year-decline-2026-04-16)\n\n## Details and context\nThe profit hit stems from a sharp cocoa market reversal after 2024 peaks, creating overcapacity as beans pile up in Ghana and Ivory Coast, which supply nearly half the world's cocoa.[[2]](https://www.reuters.com/business/barry-callebaut-eyes-volume-rebound-after-half-year-decline-2026-04-16) Cocoa futures have plunged, but weak demand persists amid customer caution on orders.\n\nNew CEO **Hein Schumacher**, formerly of Unilever, took over recently to push sales growth faster, but this adds short-term costs in a disrupted environment.[[1]](https://www.wsj.com/business/earnings/barry-callebaut-shares-plunge-after-profit-warning-bb7b0f24) Barry Callebaut supplies industrial chocolate to makers like Oreo producer Mondelez.\n\nPast volatility—high prices curbed demand earlier—has led to repeated guidance cuts, testing the sector's resilience.\n\n## Key quotes\n\"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,\" new CEO **Hein Schumacher** said in a statement.[[2]](https://www.reuters.com/business/barry-callebaut-eyes-volume-rebound-after-half-year-decline-2026-04-16)\n\nThe CEO said there was significant work needed to reinvigorate the company after a turbulent period of industry disruption.[[1]](https://www.wsj.com/business/earnings/barry-callebaut-shares-plunge-after-profit-warning-bb7b0f24)\n\n## Why it matters\nCocoa swings expose vulnerabilities across the chocolate supply chain, from processors like Barry Callebaut to consumer brands. Investors face earnings pressure in a sector hit by overcapacity after boom-bust cycles. Watch volume recovery in coming quarters and cocoa futures for signs of stabilization, though disruptions could linger.","hashtags":["#business","#chocolate","#cocoa","#earnings","#stocks"],"sources":[{"url":"https://www.wsj.com/business/earnings/barry-callebaut-shares-plunge-after-profit-warning-bb7b0f24","title":"Original article"},{"url":"https://www.reuters.com/business/barry-callebaut-eyes-volume-rebound-after-half-year-decline-2026-04-16","title":""}],"viewCount":2,"publishedAt":"2026-04-16T09:49:46.848Z","createdAt":"2026-04-16T09:49:46.848Z","articlePublishedAt":"2026-04-16T00:00:00.000Z"}