Swiss chocolate processor Barry Callebaut cut its profit outlook after cocoa prices slumped, sending shares down more than 15%. The Zurich‑based group now expects earnings before interest and tax to shrink by a mid‑teens percentage this fiscal year, reversing earlier growth guidance and highlighting the challenge for new chief executive Hein Schumacher.

Schumacher cited a rapid cocoa price collapse, competitive excess capacity, volume declines and supply shocks linked to the Iran war and a Canadian plant closure. These factors turned cocoa‑related pricing negative, forcing the company to charge customers less after buying cocoa at higher costs, while first‑half EBIT fell 4.2% to SFr310.9mn.

Analysts note that falling cocoa prices have not yet filtered into retail chocolate prices, which remain about 10% higher than a year ago. GLP‑1 weight‑loss drugs add a long‑term demand risk, questioning whether chocolate volumes can sustain growth once the market recovers in the near future.

Despite the weaker earnings outlook, Barry Callebaut forecasts a modest full‑year decline of 1‑3% and expects volumes to rebound in the second half. The company warns that ongoing Middle East tensions could further impact performance, but it believes falling cocoa prices will eventually support market recovery.