Barry Callebaut records lower volumes amid rising cocoa prices by Reuters

(Reuters) – Chocolate maker and cocoa processor Barry Callebaut on Wednesday reported lower-than-expected first-quarter sales volume, hit by pricing negotiations between customers and retailers and delayed orders amid record high cocoa prices.

The Swiss-based group supplies chocolate Unilever (LON:) the soon-to-be-separated Magnum Ice Cream and Nestle KitKat Bars (NSE:) said its sales volume fell 2.7% to 565,000 tons in the quarter ended November 30, compared to analysts’ expectations of 568,000 tons in a consensus provided by the company.

The company said it expects its full-year sales volume to decline by low single-digits. The company had previously said that it expects the volume of cocoa sales to stabilize for the fiscal year, with raw materials being traded in London at about 8,700 pounds ($10,737.54) per metric ton.

It also said it would issue bonds worth 300 million Swiss francs ($331 million) to address rising costs and ensure liquidity.

($1 = 0.8102 pounds)

($1 = 0.9063 Swiss francs)