Hershey is cautioning on its 2024 profit growth as the company contends with rising cocoa costs that are leading to higher prices for chocolate.
Cocoa futures prices have doubled over the past year and hit an all-time high of
“The magnitude and pace of recent price increases seem to be unprecedented,” wrote Citi analyst Thomas Palmer.
With less than a week to go until
Still, Hershey CEO
“Given where cocoa prices are, we will be using every tool in our toolbox, including pricing, as a way to manage the business,” Buck said during the company’s quarterly earnings conference call.
Margins may also face some pressure.
“The confection business is going to bear the brunt of the margin impact due to cocoa,” Chief Financial Officer
Hershey's stock ended Friday down 3.4%.
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