HERSHEY Co. shares remained volatile as the company reported sales that beat expectations, but added that adjusted earnings per share would fall dramatically in 2025 on higher commodity costs.

For 2025, the the company expects net sales to grow at least 2%, mostly driven by prices, as cocoa costs remain a pressure point. Hershey Co. said that its adjusted earnings per share for 2025 are expected to be down in the mid-30% range due in part to higher commodity costs that will not be offset by pricing and productivity improvements. 

Net sales were up 8.7% to $2.89 billion in the fiscal fourth quarter ending Dec. 31, 2024, exceeding the $2.84 billion analysts expected.

The shares initially fell and then rose 1.2% in early trading in New York. Through Wednesday’s close, the stock was down 25% in the last 12 months, compared to a 22% gain in the S&P 500 index.

Hershey has been faced with more than a year of record high cocoa costs, forcing price increases. Other packaged food makers, however, have begun running deals and discounts to lure back budget-conscious shoppers.

Earlier this week, Mondelez International Inc. reported that “unprecedented” cocoa prices would drive down adjusted earnings per share in 2025 by approximately 10%.

Bloomberg News reported last month that Hershey was seeking permission from the US Commodity Futures Trading Commission to buy a large amount of cocoa through the New York exchange. Though Hershey owns some snack food brands, including Dot’s Homestyle Pretzels and Skinnypop popcorn, it is more dependent on chocolate than Mondelez and Mars Inc.  

Hershey said last month it has begun a search for its next chief executive officer. Its current CEO Michele Buck plans to retire next year. –BLOOMBERG