(Bloomberg) -- The sharp rise in cocoa prices is leading to big gains at Hershey Co.

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The chocolate and salty-snack company said on Friday that its first-quarter sales and profit sailed past analyst estimates after it hiked prices in response to cocoa shortages.

Sales in North American confectionery, the company’s biggest category, jumped double digits for the period ending March 31, with prices up nearly 6%. Hershey shares slid 2% in New York trading at 9:35 a.m., having gained 5.1% this year through Thursday.

Poor harvests in West Africa have led to deep cocoa shortages, sending prices soaring to nearly $12,000 per ton in recent weeks. In response, companies like Hershey have been raising prices on their products to deal with the fallout in the short term.

In the long term, the company said it’s looking to diversify its cocoa supply in other regions around the world.

“Cocoa is critical to our long-term business resilience and success,” Chief Executive Officer Michele Buck said in prepared remarks, noting the crop decline in West Africa. “We are encouraged by the growth in other regions around the world and steps being taken in West Africa to improve supply.”

Buck said Hershey has taken steps to ensure its cocoa supply and doesn’t expect volatility to affect its outlook for the year. The company reaffirmed its full-year forecast of net sales growth of 2% to 3%.

“Cocoa costs remain a key wild card for 2025, but it does not plan to address its positioning for 2025 until later this year at the earliest,” Piper Sandler analyst Michael Lavery wrote in a note to investors.

Read More: Why Cocoa Prices Spiked, What It Means for Consumers: QuickTake

(Updates with shares in third paragraph, analyst comment in final paragraph.)

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