Cost PressuresCocoa inflation is likely to be over 50% in 2025, contributing to double-digit increases in the cost of goods sold and pressuring gross margins significantly.
Financial PerformanceHershey reported net sales of $2.075 billion, which was significantly below the estimated $2.3 billion, with a steep decline in organic sales of -16.8% versus an estimate of -7.5%.
Market DynamicsHershey's retail growth decelerated to -2.7%, and market share declined by 123 basis points, attributed to weaker retail merchandising and softer sales in convenience stores.