The American chocolatier records a $460 million pretax gain on commodity derivatives as cocoa futures hit record highs last year.

The Oreo maker warned of “unprecedented” inflation for the commodity that would reduce its earnings, while the Kisses giant cautioned of a disconnect between fundamentals and market price.

Hershey forecast annual profit below Wall Street estimates on Thursday as record cocoa prices weigh on the Kit Kat maker's margins. Packaged food companies including Hershey have had to raise prices to combat high raw material costs,