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 $5,874 per metric ton on Friday.
Bad weather in West Africa is being blamed for damaging crop yields, which is pushing cocoa prices higher.
But with inflation concerns still top of mind, many shoppers are pulling back on their spending and eyeing rising food prices cautiously.
Hershey Co. anticipates its full-year earnings per share being relatively flat, partly due to higher cocoa and sugar costs.
Persons:
Hershey, ”, Thomas Palmer, Michele Buck, ” Buck, Steven Voskuil
Organizations:
Citi, Hershey, Hershey Co
Locations:
West Africa