Chocolate maker and cocoa processor Barry Callebaut reported a lower sales volume than expected for its first quarter on Wednesday, hit by delayed orders as its clients renegotiate product prices with retailers amid record high cocoa costs.

The chocolate company’s shares fell after it missed sales volume expectations and cut its guidance for fiscal 2025 as soaring cocoa bean prices drag demand.

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.

The Swiss-based Barry Callebaut Group has reported a further sales dip, with volumes for the first quarter of its 2024/25 year being down 2.7, to 565,238 tonnes amid a continued surge in cocoa prices,

Barry Callebaut's actual sales volume decline of 2.7% exceeded the market's expected decline of 2.2%. This drop was particularly sharp in Western Europe, where volumes fell by 7.5%. The region faced tough comparisons from a large one-off contract from the previous year, as well as impacts from customer delistings at retailers.

The Swiss chocolate company posted a jump in revenue on a big increase in cocoa-bean prices, but lowered its sales-volume guidance, citing market volatility.