Half Year 2025 Barry Callebaut AG Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Joern Iffert - UBS - Analyst : I would take them one by one, if it's okay. First question would be, you have stated in this CHF330 million underlying EBIT, there are some extra costs, like variation costs, inventory costs. Can you quantify these costs? And are you able to fully recover them and pass them through already in the second half? That will be the first question, please. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. APRIL 10, 2025 / 7:00AM, BARN.S - Half Year 2025 Barry Callebaut AG Earnings Call

Question: Joern Iffert - UBS - Analyst : Beyond financing, the cost you are seeing in the EBIT, so the kind of -- yeah, but underlying costs, I think it is, which were more than you expected maybe initially.

Question: Joern Iffert - UBS - Analyst : And are you able to pass it through already in the second half? Is this your assumption in the EBIT guidance?

Question: Joern Iffert - UBS - Analyst : Thank you. And the second question then, please, on the in-sourcing. You stated there is some in-sourcing happening. I think it's in Europe temporarily. Can you quantify roughly what was the volume amount? And what makes you confident that these volumes are coming back? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. APRIL 10, 2025 / 7:00AM, BARN.S - Half Year 2025 Barry Callebaut AG Earnings Call

Question: Jon Cox - Kepler Cheuvreux - Analyst : I wonder if I can come back to Joern's first question. Maybe I will sort of put it a different way. What do you think that financials line is going to look like for you in FY25? And also on the tax line as well, the effective tax rate was obviously pretty ginormous, if you can provide that one? The second question is just on the sort of one-offs we were expecting. They don't seem to be as much as expected, either in the P&L or in the cash flow statement. Now I know you mentioned that you have done something in the presentation, but when I look at your cash flow statement, the CapEx is only CHF100 million or so. I thought -- We expected probably CHF400 million or CHF500 million this year with all of the stuff going on. I can't see that in the cash flow statement. Should we expect that all to run in, including the P&L costs of the savings plan in the second half? Or with the way you've delayed by a year, your savings program, are you saying because it's all hands to the pump at the moment, we're actually going to do a lot more of that in the next financial year?

Question: Danping Liu - Citi - Analyst : I have two, one on volume, H2 volume, and one on the cost savings progress. So on volume, I just want to hear your thoughts on how confident at the moment you are with the volume development in H2. So obviously, we have a slightly easier comp looking at last year's number. And also by the sound of it, you are expecting more cost pass-through in the second half. So does it mean that right now, you have a fairly good visibility over the customer orders in H2? And then just related to that, can your customers, especially the big FMCG ones, can they delay the orders? Like what's the contract term initially with them -- can they just permanently delay the orders? Or do they need to fulfill some minimum order each year? So that's on volume. And then second thing on the cost savings progress. You mentioned that we should expect a 12-month delay for the full cost savings to be reflected in P&L. And then now the run rate at the end of half-year one, there is 40%. How should we think about the run rate at the end of this year, FY25? Should we -- so should I reach 70%, 80% run rate now, it's more like next year -- year-end, and then for this year, year-end, it should be somewhere between [40%]? Just any color on that would be very helpful.

Question: Alex Sloane - Barclays - Analyst : Can I just come back to the financing costs and your ability to pass through, so you've guided CHF350 million, obviously, dependent on where bean prices go, but CHF350 million is a base case? How much of that do you expect to be able to pass on to customers this year? And I guess, kind of more broadly in the subsequent years, what's the -- is there any change in your thinking in terms of your ability to pass on this financing cost? Is the big miss that we've seen in the first half on this front just purely timing? Or is it actually getting harder to pass on these costs to customers given everything else you're having to pass on? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. APRIL 10, 2025 / 7:00AM, BARN.S - Half Year 2025 Barry Callebaut AG Earnings Call