Belgian-Swiss Chocolate Producer Hit by Lower Cocoa Prices

Swiss chocolate maker Barry Callebaut has lowered its operating profit outlook for the fiscal year 2025-2026, citing supply chain disruptions linked to the Iran war and overcapacity in the cocoa market, according to a statement released on Thursday, April 16, 2026.

The company, which is the world’s largest chocolate producer, announced that it now expects its operating profit to fall by approximately 15% for the fiscal year, a significant reversal from earlier forecasts. This announcement led to an immediate market reaction, with Barry Callebaut’s shares dropping by 17% on the Zurich stock exchange in a single trading session.

Market Reaction and Outlook

The 17% decline in Barry Callebaut’s share price following the profit warning reflects investor concerns about the company’s near-term profitability and its ability to navigate a complex environment marked by geopolitical tensions, shifting supply dynamics, and industry-wide overcapacity. Analysts note that while lower cocoa prices typically benefit chocolate manufacturers, the current situation is complicated by non-price factors that are constraining operational performance.

Barry Callebaut has indicated that it will monitor market conditions closely and may adjust its forecasts further depending on how supply chain disruptions evolve and whether demand for chocolate products strengthens in the second half of the fiscal year. The company emphasized that it remains focused on volume recovery initiatives despite the current headwinds.