(Reuters) -Cadbury-Parent Mondelez International Forecast a Bigger-Estimated Drop in Its Annual Profit on Tuesday, Signaling Pressures from Higher Costs, Including from Surgging Coco Its shares down Nearly 6% after the Bell.

Prices of Cocoa – a key ingredient in chocolate – have increased relatively over the past year, Forcing Companies Such as Mondelez to Hike Price of their products.

That has pushed budget-strained consumers, who was alredy grappling with a cost-off-living crisis, foot cheaper alternatives.

Chicago-Based Mondelez Expects Its 2025 Profit to Fall 10% on an adjusted basis, compared with analysts’ average estimate of a a 6.7% decline, decording to data Compiled by Lseg.

“This Outlook does not reflect any impression of important tarifs by the US and potential retail actions by another countries, as the tariff and trade environment is the incoretain and rapidly Evolving And Toblerone Maker said.

Mondelez’s Volumes in Europe, Its Larget Market by Revenue, Fell in the Fourth Quarter on Account of Incremental Price Hikes. In North America, However, Volumes Increased Following A 0.9-Percentage-Point Reduction in Pries.

The surge in cocoa prices, coupled with higher transportation costs, LED to a 650-Bas-Point Decline in the company’s Adjusted Gross Profit Margin to 31.5%.

Mondelez Reported Net Revenue of $ 9.60 billion for the three months ended dec. 31, compared with the estimates of $ 9.64 billion.

On an adjusted basis, it earrned 65 cents per share, below analysts’ estimate of 66 cents per share.