The revised outlook reflects Moody's anticipation of prolonged deterioration in Barry Callebaut's cash generation, making recovery in credit metrics over the next 12 to 18 months more challenging than expected. The company's cash generation has been affected by several factors, including volume pressure, delays in realizing the full benefits of the company's BC Next Level cost savings programme, and lower than expected cash generation in the first half of its fiscal year ending August 2025. Paolo Leschiutta, a Moody's Ratings Senior Vice President and lead analyst for Barry Callebaut, stated that the company's profitability and liquidity remain adequate and cocoa industry fundamentals are still positive. However, he also noted that the company's ability to rapidly recover cash generation over the next 12 to 18 months remains uncertain, and failure to improve credit metrics could result in a rating downgrade.