Nov 5 (Reuters) - Barry Callebaut said on

Wednesday that it expected a mid single-digit percentage decline

in sales of cocoa products in its upcoming financial year, as it

continues to face pressure from high cocoa prices.

The company, which supplies chocolate for Unilever's ( UL )

soon-to-be-spun-off Magnum ice creams and Nestle's

KitKat bars, also forecast recurring core earnings

(EBIT) growth in a low to mid single-digit percentage, measured

in local currencies, for the 2025/26 financial year.

The company, whose ingredients are present in one out of

four chocolate and cocoa products consumed worldwide, said its

sales volume fell 6.8% to 2.1 million tonnes in the financial

year that ended in August.

Analysts were expecting 2.1 million tonnes on average, a

company-provided poll showed.

Volumes fell 8% in the fourth quarter between June and

August, according to a Reuters calculation.

NEW GUIDANCE, OLD PROBLEMS

Analysts had contrasting reactions to the new forecast the

Zurich-based company provided.

Vontobel's Matteo Lindauer said the the new guidance was a

"welcome shift" from last year's unattainable targets. However,

Kepler Cheuvreux's Jon Cox called the targets cautious and said

the stock may come under pressure as a result.

Barry Callebaut's shares were seen falling 3% in premarket

indications as of 0713 GMT.

"Industry conditions stay challenging, as underscored by

recent commentary from key customers such as Mondelez ( MDLZ ) and

Hershey," Lindauer said.

In October, Mondelez ( MDLZ ) cut its annual profit

forecast, citing weakening spending among value-conscious

consumers in North America and Europe, while higher cost of

cocoa added pressure.