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

Key Takeaways Hershey beat profit and sales estimates as the chocolate maker's price hikes helped to offset the higher cost of cocoa.The company also cut selling, marketing, and administrative expenses.

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.