Barry Callebaut lowers annual targets again due to cocoa bean prices
The world's biggest chocolatier, which supplies key food producers such as KitKat maker Nestle (NESN.S), opens new tab, expects its sales volume to fall by 7% in the year ending on August 31.
It had previously said it expected the cocoa sales volume to fall by a mid-single-digit percentage due to volatility in cocoa bean prices that trade in London at around 5,455 pounds per metric ton .
Its shares were down 2.8% at 0618 GMT in premarket, with analysts flagging concerns that the management's low visibility and another profit warning could hurt the investment case and fail to reassure investors on the difficult environment.
The low visibility "could also raise question about the company's management information system", analyst Matteo Lindauer from Vontobel said.
Despite London cocoa futures falling to an eight-month low on Monday on expectations of a rise in production in South America, industry sources told Reuters that the key West African cocoa producing region was likely to see a 10% decline in the upcoming 2025/26 season.
Barry Callebaut also lowered its operating earnings target, saying they would rise by a mid to high single-digit percentage in constant currency this year. In April, it had guided for a double-digit rise.
Its sales volume was 1.6 million tonnes in the nine months to the end of May, meeting analysts' average forecast in a company-provided poll, even as they fell 9.5% year-on-year in the third quarter of the financial year.
Despite this, revenue increased by a half during the nine-month period, as the chocolatier passed on raw material costs to its customers.
(This story has been corrected to say the company has cut its guidance three, not two, times this year, in paragraph 1)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Sun
2 hours ago
- The Sun
Fresh blow for Geri Horner after husband Christian is sacked from F1's Red Bull
GERI Horner is facing another upsetting blow following her husband Christian's sacking from F1's Red Bull. The team principal's sudden dismissal comes a year on from his sexting scandal with an employee. 2 After The Sun told how it's claimed to have prompted Geri to make a decisive move about their future, it's now been reported the Spice Girls ' book company is in £1million debt. The Mirror claims new accounts for her business, Falcon Queen Productions, had sunk a further £750,000 in the year ending August 2024, compared to a £276,000 deficit the previous year. Geri set up the firm in 2021 and launched her debut novel, Rosie Frost and the Falcon Queen two years later. In April this year she released a second title, Rose Frost: Ice On Fire. There are no such concerns withher main company, Won-derful Productions, which earned £2.16m in 12 months. Geri also has a jaw-dropping £440million net worth between her and Christian. When Christian's sexting scandal was exposed in February last year, Geri put on a very public show of support for her husband - despite it reportedly leaving her "heartbroken" and "utterly humiliated". She was by his side for the beginning of the Formula One season in Bahrain, with the couple pictured hand in hand, cuddling and even seen sharing an intimate kiss before the race. But behind the scenes it seems she had already subtly started to focus on herself and cultivating her own brand, separate from her racing boss husband. We revealed last year that the singer had begun using her maiden name for penning her children's books. At the time Geri attempted to dismiss any meaning behind the name change, telling The Sunday Times: 'That's a load of c**p. It's my writing name. "I haven't legally changed anything — Horner is the name on my passport." But the bombshell news of Christian's Red Bull sacking yesterday has reportedly prompted Geri to speed up her plans to claw back her own identity. It comes amid Geri's hopes of a Spice Girls reunion for the girlband's 30th anniversary next year. A source revealed: "She's totally focused on her writing career with kids books and is trying to get the series made into a film. "Meetings in Hollywood have happened and she's really pushing that. She'll have her head down and be focused on trying to make more of a name for herself there." Christian was the longest reigning F1 boss after becoming head honcho of the Austrian team during its inception in 2005. Allegations of inappropriate behaviour made against him in February 2024 by a female team member were dismissed following a three-week internal probe. He was accused of sending suggestive WhatsApp messages, in texts that were leaked a month later in March 2024. He denied the accusations throughout.
Sky News
2 hours ago
- Sky News
Heidi Alexander says 'fairness' will be government's 'guiding principle' when it comes to taxes at next budget
Another hint that tax rises are coming in this autumn's budget has been given by a senior minister. Speaking to Sunday Morning with Trevor Phillips, Transport Secretary Heidi Alexander was asked if Sir Keir Starmer and the rest of the cabinet had discussed hiking taxes in the wake of the government's failed welfare reforms, which were shot down by their own MPs. Trevor Phillips asked specifically if tax rises were discussed among the cabinet last week - including on an away day on Friday. Tax increases were not discussed "directly", Ms Alexander said, but ministers were "cognisant" of the challenges facing them. Asked what this means, Ms Alexander added: "I think your viewers would be surprised if we didn't recognise that at the budget, the chancellor will need to look at the OBR forecast that is given to her and will make decisions in line with the fiscal rules that she has set out. "We made a commitment in our manifesto not to be putting up taxes on people on modest incomes, working people. We have stuck to that." Ms Alexander said she wouldn't comment directly on taxes and the budget at this point, adding: "So, the chancellor will set her budget. I'm not going to sit in a TV studio today and speculate on what the contents of that budget might be. "When it comes to taxation, fairness is going to be our guiding principle." Afterwards, shadow home secretary Chris Philp told Phillips: "That sounds to me like a barely disguised reference to tax rises coming in the autumn." He then went on to repeat the Conservative attack lines that Labour are "crashing the economy". 10:43 Mr Philp then attacked the prime minister as "weak" for being unable to get his welfare reforms through the Commons. Discussions about potential tax rises have come to the fore after the government had to gut its welfare reforms. Sir Keir had wanted to change Personal Independence Payments (PIP), but a large Labour rebellion forced him to axe the changes. With the savings from these proposed changes - around £5bn - already worked into the government's sums, they will now need to find the money somewhere else. The general belief is that this will take the form of tax rises, rather than spending cuts, with more money needed for military spending commitments, as well as other areas of priority for the government, such as the NHS.
Daily Mail
4 hours ago
- Daily Mail
EXCLUSIVE Truth about how 'frugal' 24-year-old junior sales executive who wants to retire at 40 REALLY saved £95,000
She is seen as a twenty-something graduate who by living frugally has saved £95,000 towards being able to retire by the age of 40. Mia McGrath says she has saved her sizable nest egg by cutting back on life's luxuries like takeaways and boasts of eating pasta meals for as little as £1 a time while living at home with her parents. But despite urging followers to cut back on luxury spending, Mia is also cultivating a parallel brand as a model and lifestyle influencer. Mia, who is signed to both Memesis Models and W Model Management, runs a second Instagram account under her full name, showcasing a far glossier life - with shots from holidays in Paris, Barcelona and Corfu, nights out in Chelsea, and shopping sprees at Prada. The junior sales executive is also facing claims she is in fact paid thousands of pounds by big brands like the BBC, American Express, British Airways and Marshmallow car insurance to promote them. Quite how much she receives is unclear as Mia Rose McGrath - her username across multiple platforms - doesn't declare this publicly. So adept is Mia at offering her services as a way for corporations to 'reach' young people that she even provides a breakdown of her influencer profile in the style of a media sales executive. She details her audience reach by age (85% of those following her posts are aged 18-34, for example), by country and by audience numbers reached: an astonishing 3.1million at last count. She even pitches direct to potential sponsors: 'I'm a 24-year-old London-based creator who has grown a TikTok account to over 125k followers, specialising in personal finance and investing content. 'While my niche focuses on finance, I've also worked on creating UGC [user generated content - ie her posts] for skincare and lifestyle brands, blending creativity with authenticity to connect with audiences.' All this seems distinctly at odds with the tone of her main output to TikTok viewers, describing herself as a 'fashion girly' and 'your financially literate bestie'. And her USP on social media comes from that professed financial literacy: she routinely lectures young people on how to achieve wealth young and offers tips on how to emulate her savings success. And she provides links that go straight to online trading platforms to assist. Of course influencers being paid to produce or promote content for commercial organisations is nothing new - and there's no suggestion that Mia is flouting any of the rules around this practice. But when your whole personal brand is about being relatable on a financial level as you're just the same as other struggling 24 year olds, then perhaps there are issues with this. Social media marketing expert Hannah O'Donoghue Hobbs told MailOnline: 'Mia should be more transparent about how much money she is getting from these affiliated brands. 'I know she does admit to having some privileges, due to her being an influencer, which means she's been able to find things more affordable. But I believe she needs to be more loud and proud about it. 'If you're going to make a living out of posting on Instagram, shout about - literally explains every perk you're getting so you are being super real with your followers and be as open as you can be as a creator.' Mia has repeatedly spoken in videos about her plan to 'soft retire' in just 16-years time - when she turns 40 in 2041. By this, she apparently means that she will still do part time work or things she's 'passionate' about, but won't need to work full time to 'stay alive'. She added: 'I'm not underestimating the work that goes into content creating, it can be an absolute graft and to build the TikTok following she has is no joke but her income stream from paid promos etc should be made clear. 'A lot of these brands look at the numbers, rather than the actual content, and jump on board. 'It's called 'vanity metrics', it will appease board members but they sometimes don't necessarily give too much thought into what these influencers are actually posting.' WIth this underpinning goal, she tells how she has already accrued £80,000 in savings - and regularly shares insights on her frugal lifestyle which involves shunning treats like takeaways, daily coffees and croissants as well as boozy trips to the pub. She has also says that a significant part of her accrued savings had come from saving money on rent by living at home with her parents. On one of her TikTok videos she told how living at home for a year and a half after graduating from university helped her save ''50 to 70' percent of her income at the time- or £22,500. Of course, to be able to do this, it helps if the family home is a £900,000 house in a pleasant corner of Lewisham, South East London. For someone who lives her life so apparently openly online, Mia has been relatively guarded about her family but those parents are Danny McGrath, an actor and drama teacher, and mum Louise Balmain, who adopted her after she was born in China. She also has a sister, Emily. Apart from saving money from avoiding rent she also rails against wasting income on fripperies like food treats and throwaway fashion. 'These are the things I just don't spend money as a financially responsible 24-year-old who wants to retire early,' she said in one TikTok video, which has racked up more than 500,000 views. She then cites ordering food via her phone as a waste of money and says she doesn't even have the Deliveroo app on her phone: 'I won't get a takeaway if I can't be bothered to cook. If you can cook really good food, you just don't need to get a takeaway.' In a similar vein, she also says she won't treat herself to a daily coffee or a pastry: ''I don't see the point of buying one every single day. They're four or five pounds sometimes. That really adds up,' she says. She also appears to be unwilling to splash the cash on trinkets, referencing the viral 'labubu' trend - 'monster toys' that have grown popular on social media - and said she would never be caught buying one. She also doesn't buy 'extra' make-up and skincare beyond the 'capsule' collection she sticks to. She said: 'I couldn't tell you the last time I tried out a new product. I really just stick to the same routine of the same essential products and I just top up when they run out.' And when it comes to nights out, again abstemiousness is the rule, she says: 'I'm just not a big drinker. If I'm out with friends, I'll probably just have one or two.' Despite all this frugality, she is apparently now making enough money from her day job - her LinkedIn says she is a Junior Sales Account Manager for a fashion company - combined with what she calls her 'side hustles' that she can now contemplate spending £15,000 a year on rent. Because Mia has recently moved in with boyfriend Archie Steves a few months ago to a two-bedroom flat in Clapham, South London. She and Archie now pay £1250 each a month for the attractive property in London's Zone two. She says despite this big new monthly outgoing, she can still invest £1,300 in shares every month and has a dividend stock portfolio- with links so that fans can emulate her in this. She has also said she's hoping to increase her savings to £100,000 by the end of this year. Her commercial interests will certainly help.
