The global snack market is increasingly characterized by a competitive landscape where larger companies acquire smaller ones. Chocolate manufacturer Hershey (HSY.US) released its annual report showing that in the 12 months ending December 31, 2025, the company's revenue reached $11.69 billion (approximately 81.13 billion yuan), a year-on-year increase of 4.38%. However, its net profit attributable to shareholders was $883 million (6.13 billion yuan), a decrease of 60.2% compared to the previous year.
Looking solely at the fourth quarter of 2025, the company's revenue was $3.09 billion (21.44 billion yuan), representing a 7.0% year-on-year growth. Net profit attributable to shareholders was $320 million (2.22 billion yuan), a decline of 59.9% compared to the same period last year.
Hershey's gross profit margin for the full year 2025 was 33.5%, down from 47.3% in the previous year. The gross profit margin reported for the fourth quarter of 2025 decreased by 17 percentage points to 37.0%. The company stated in its financial report that the decline in gross margin was due to higher commodity costs, increased tariff expenses, and lower sales volume during the reporting period compared to previous years.
Hershey's primary business is chocolate, and the main raw material for chocolate is cocoa. Data from the Commodity Price Network of the Ministry of Commerce of the People's Republic of China shows that the price of cocoa (New York) began rising in the second quarter of 2024 and remained at high levels from late 2024 to early 2025. Overall, cocoa prices in 2025 were higher than in 2024, which was one of the factors contributing to the lower gross margin and net profit. However, cocoa prices have begun to decline since the start of 2026.
Hershey has a relatively positive outlook for its 2026 performance, forecasting revenue growth of 4% to 5% and earnings per share growth between 79% and 89%.
In 1907, Hershey's KISSES chocolates, regarded as an icon of the American chocolate industry, were introduced. The brand entered the Chinese market in 1995.
Presently, the global snack market continues to exhibit a trend of industry consolidation. Hershey acquired an 80% stake in Shanghai Golden Monkey Food Joint Stock Co., Ltd. in 2013. In 2016, Mondelez International attempted to acquire Hershey, but the bid was blocked by the Hershey Trust Company, the controlling shareholder. In 2024, Mondelez again made a takeover offer for Hershey, but the deal ultimately fell through due to an inability to agree on terms.