The American chocolatier records a $460 million pretax gain on commodity derivatives as cocoa futures hit record highs last year.

Hershey forecast annual profit below Wall Street estimates on Thursday as record cocoa prices weigh on the Kit Kat maker's margins.

Hershey's Q4 earnings beat expectations, driven by strong sales growth, but rising cocoa prices pose challenges for its 2025 earnings outlook.

Key Takeaways Hershey beat profit and sales estimates as the chocolate maker's price hikes helped to offset the higher cost of cocoa.The company also cut selling, marketing, and administrative expenses.

The Oreo maker warned of “unprecedented” inflation for the commodity that would reduce its earnings, while the Kisses giant cautioned of a disconnect between fundamentals and market price.

The chocolate maker easily beats quarterly estimates but issues disappointing guidance because of higher cocoa prices.