Barry Callebaut - Updating On Chocolate After 40-50% RoR In 2026

Barry Callebaut (BYCBF) remains a 'Buy' with a revised price target of 1,450 CHF, reflecting higher cocoa price volatility and operational challenges. Recent cocoa market swings, including El Niño-driven price spikes, have pressured volumes and margins, with 2026 expected to see EBIT and volume declines. Management is executing a transformation, focusing on debt reduction, cost controls, and a shift from 'margin first' to 'volume over margin' strategy.