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.

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.

Hershey (HSY -1.90%) is struggling today. One of the biggest problems is inflation, but not the kind that consumers dealt with coming out of the coronavirus pandemic. Cocoa prices

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.

Hershey's large cocoa purchase amid surging prices may hurt margins, with cocoa prices up 300% since 2023, risking further financial strain. Learn more on HSY stock here.

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

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