Barry Callebaut AG (BYCBF) Q2 2025 Earnings Call Transcript

2025-04-10 14:35:40 ET

Barry Callebaut AG (BYCBF)

Q2 2025 Earnings Conference Call

April 10, 2025 03:00 AM ET

Company Participants

Sophie Lang - Head of IR

Peter Feld - CEO

Peter Vanneste - CFO

Conference Call Participants

Joern Iffert - UBS

Jon Cox - Kepler Cheuvreux

Danping Liu - Citi

Alex Sloane - Barclays

Presentation

Sophie Lang

Good morning, everyone, and welcome to Barry Callebaut's Half Year Results Presentation for 2024-2025. I'm Sophie Lang, Head of Investor Relations, and our session today will be hosted by our CEO, Peter Feld; and our CFO, Peter Vanneste. After the presentation, we'll have a Q&A session for investors and analysts. And as normal, please limit yourself to no more than two questions.

Before we start, please take note of the disclaimer on Slide 2, and I'd also like to remind you that today's session is being recorded.

And with that, I will hand you over to our CEO, Peter Feld.

Peter Feld

Thank you very much, Sophie, and good morning and good day from my side. Thank you for joining our half year results presentation today. As you are fully aware, we are today in a never seen environment, also in our chocolate industry. On one side, we have the pleasure to create a little happy moments for millions of consumers and to operate in a category that will prevail to be a growth opportunity globally.

It is also very good to see that we have started our Next Level investment program already 18 months ago, and we're strongly progressing delivering on our set course. However, we must recognize today that we are sailing through what one could call a perfect storm right now.

The key thing that I want to leave with you is, we are here to play to win. We're in an unprecedented bean price volatility environment as we have experienced in the last 12 months, which especially in the last course, have significantly impacted customer behavior, and hence, our financial performance in the short term.

We're enhancing our operating and financing model in the new market reality to deleverage and to drive higher returns. This will take some time to be fully implemented in the market. Given offsetting costs from highly disruptive and volatile environment, we will anticipate a 12 months delay to fully reflect the Barry Callebaut Next Level savings into the bottom line.

We're confirming the initial plan of CHF250 million synergies and 75% of that to flow through into the P&L. So ultimately, we're building Barry Callebaut into an even stronger leader and unlocking sustainable, profitable growth for our next decade. So when we step back a little bit and look at the past 12 months, and one can say we've seen a never ever experienced impact from highly volatile and spiking bean prices in the sourcing countries....

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