Analyst Note| Ioannis Pontikis |
Barry Callebaut recently unveiled an ad hoc presentation detailing its revamped strategy and restructuring plan, BC Next Level. This plan necessitates an investment of CHF 500 million over the next two years, with CHF 290 million allocated to operating expenses and CHF 210 million dedicated to net capital investments. The company expects CHF 250 million in annual cost savings by 2026. While the net present value of the restructuring appears promising on paper, there's a lack of clarity on the impact on top-line growth in the coming years. Another aspect—not explicitly mentioned in the presentation but discussed during the call—is the strategy's inclusion of stock-keeping unit rationalization, which might result in a tangible impact on short-term volume.