Cadbury-parent Mondelez International forecast a bigger-than-estimated drop in its annual profit on Tuesday, signaling pressures from higher costs, including from surging cocoa prices, sending its shares down nearly 6% after the bell.

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.

Mondelez International, Inc. MDLZ posted fourth-quarter 2024 results, with the top line increasing year over year but missing the Zacks Consensus Estimate. The bottom line decreased from the year-ago quarter’s level and missed the consensus mark amid a challenging operating environment marked by cocoa cost inflation.