Hershey has recently revealed that it expects tariffs to cost the company between $15 million and $20 million in the second quarter of 2025. Despite these additional expenses, Hershey remains firm on its full-year financial outlook, showcasing confidence in its ability to manage these disruptions. Reuters noted this in their recent coverage, highlighting the resilience of the confectionery giant.

In response to financial pressures, Hershey has laid out a multi-year cost-savings strategy. This plan includes increased automation and an overhaul of operational efficiency, which could lead to job reductions. Additionally, Hershey is considering further price hikes and changes in packaging to counterbalance rising cocoa and sugar costs, as reported by Confectionery News. These efforts are part of Hershey's broader strategy to offset economic impacts while maintaining operational stability.

Furthermore, Hershey is aware that even with these measures, rising cocoa prices pose a significant challenge. The company has expressed concerns that price increases might not fully cover the escalating costs of cocoa, potentially impacting its adjusted gross profit margins for 2025. This situation underscores the complex environment Hershey operates in, balancing between cost containment and maintaining profitability.