1305 ET - Hershey's earnings are likely to take a hit due to high cocoa prices and tariffs, Moody's Ratings says, lowering its outlook to negative from stable. Cocoa prices more than doubled in 2024 and remain elevated. Hershey has hedged some of these increases, but Moody's expects hedges locked in at higher cocoa prices will reduce profitability this year. Tariffs on cocoa imports and retaliatory duties from Canada will also pressure earnings, Moody's says. Hershey has said it plans to increase prices to offset new costs, but Moody's believes higher prices pose a risk of volumes declining and Hershey losing market share. (katherine.hamilton@wsj.com)
(END) Dow Jones Newswires
July 01, 2025 13:05 ET (17:05 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
At the request of the copyright holder, you need to log in to view this content
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.