The surge in cocoa prices, coupled with higher transportation costs, led to a 650-basis-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.

The outlook for food producers who rely on cocoa is more challenging in FY25 as unforeseen weather deterioration in West Africa drives negative revisions to production forecasts, while this impact on supply suggests higher for longer costs.

The company is specifically focused on its chocolate business as it navigates cocoa cost inflation, Chief Executive Dirk Van de Put said. The company previously said it expects to raise prices.