Barry Callebaut sets mid-term goals under CEO Schumacher's first strategy

June ⁠2 (Reuters) - Swiss chocolate maker Barry ​Callebaut expects its recurring operating profit to grow by a mid- to high-single-digit percentage ​in ‌local currencies over the medium term, it said on Tuesday as part ⁠of the first strategy under CEO Hein ⁠Schumacher. The market was expecting ​the former Unilever chief executive, appointed by Barry Callebaut in January to replace Peter Feld, to deliver clear financial targets for the company that last ​month ‌cut its operating profit forecast and said it expected volumes to fall between 1% and 3% in the current financial year.

It confirmed those targets on Tuesday.

OUTLOOK MIGHT WEIGH ON MARKET ESTIMATES

One ​of the world's top cocoa processors, which supplies key food producers ‌such as KitKat maker Nestle, forecast medium-term sales volume to rise by 2% to 4%, without ‌providing a more detailed time frame.

The company, which buys cocoa beans that it processes into cocoa butter and powder, added it expected volume ​growth to be between 1% and 3% over the next year to year-and-a-half.

In ‌this period, Barry will have some hurdles to clear as it faces customer insourcing, said Jon Cox, head of Swiss equities at Kepler ⁠Cheuvreux. "Potentially ⁠investors were looking for a bit more ‌and I assume estimates may come under pressure," Cox added about the medium-term guidance, although ​he noted ​that Barry was focused on improving profitability faster ‌than volume.

A company-provided consensus showed that analysts were expecting volumes to grow 4.1% in the upcoming fiscal year through August 2027. (Reporting by Paolo Laudani in Gdansk, editing by Milla Nissi-Prussak)

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