Vending
Hershey predicts lower 2025 profits due to soaring cocoa prices
February 7, 2025
Hershey is forecasting lower-than-expected profits for 2025, citing record-high cocoa prices as a major factor, according to a report from Reuters. The company expects adjusted earnings per share between $6 and $6.18, significantly below analysts' estimates of $7.34.
"We expect the surge in cocoa prices to put significant pressure on 2025 earnings," Michele Buck, CEO or Hershey Company, told the news outlet.
Like other packaged food companies, Hershey has been forced to raise prices to offset rising raw material costs, particularly cocoa, which has nearly tripled in price in 2024 due to supply issues in West Africa. Despite the profit warning, Hershey's shares rose about 3% in premarket trading after the company reported better-than-expected fourth-quarter results, driven by a rebound in demand and strength in its North America salty snacks business.
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