Barry Callebaut posts lower volumes amid soaring cocoa prices

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(Reuters) -Chocolate maker and cocoa processor Barry Callebaut on Wednesday reported a lower sales volume than expected for its first quarter, hit by customer-retailer pricing negotiations and delayed orders amidst record high cocoa prices.

The Switzerland-based group, which supplies chocolate for Unilever (LON:)'s soon-to-be-spun-off Magnum ice creams and Nestle (NSE:)'s KitKat bars, said its sales volume fell 2.7% to 565,000 tonnes in the quarter that ended on Nov. 30, compared with analysts' forecast of 568,000 tonnes in a company-provided consensus.

The company said it expected its full-year sales volume to fall by a low single-digit percentage. It had previously said it expected flat cocoa sales volume for the fiscal year, as the raw material trades in London at around 8,700 pounds ($10,737.54) per metric ton.

It also said it was issuing a bond worth 300 million Swiss francs ($331 million) to address the high costs and ensured liquidity.

 Empoyees of chocolate and cocoa product maker Barry Callebaut prepare chocolates after the company's annual news conference in Zurich, Switzerland November 7, 2018. REUTERS/Arnd Wiegmann/File Photo

($1 = 0.8102 pounds)

($1 = 0.9063 Swiss francs)

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