By Roshan Fernandez
Hershey's quarterly profit and sales beat analysts' expectations, but the candy maker warned that surging cocoa prices will hurt its financial performance this year.
Chief Executive Michele Buck said cocoa prices would "put significant pressure" on earnings. On an adjusted basis, the Pennsylvania-based chocolatier forecasts earnings per share will fall in the mid-30% range for 2025.
The maker of Reese's Peanut Butter Cups and Pirate's Booty pointed to other issues such as exchange rates and taxes. It also faces challenges ranging from weakening demand to increased scrutiny on processed food.
High cocoa prices remain a challenge for Hershey's rivals, too. Mondelez International said Tuesday it expects adjusted earnings per share to fall about 10% this year, due to rising cocoa costs.
Hershey's stock gained about 4% in premarket trading.
-- Quarterly net income more than doubled from a year earlier to $796.6 million, boosted by gains on commodity derivatives.
-- Hershey earned $2.69 a share, on an adjusted, diluted basis. Analysts polled by FactSet had expected $2.37 a share.
-- Sales rose 8.7% to $2.89 billion. That beat consensus forecasts of $2.84 billion.
-- Sales of salty snacks, which have fallen in some recent quarters, leapt nearly 36% from a year earlier.
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(END) Dow Jones Newswires
February 06, 2025 07:41 ET (12:41 GMT)
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