Hershey beat Wall Street expectations for quarterly sales and profit on Thursday, riding on benefits from higher prices of its chocolates and candies at a time when demand has slowed.

Shares of the 129-year-old company slipped and have fallen over 17% this year. 

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When supply chain disruptions and the Russia-Ukraine war pushed up prices of everything from transport to commodities like sugar, many packaged food companies including Hershey raised the prices of their products to offset the impact of these costs.

But several rounds of price hikes in the last two years have now hit demand and customers have started to push back on pricier consumables like chocolates and candies as they struggle with higher interest rates and grocery prices.

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Overall organic prices rose by 9.8% in the third quarter, while organic volumes increased by only 0.9%.

Hershey still expects to see a sales boost from major holidays like Halloween when customers stock up on Reese's peanut butter cups and milk duds for trick-or-treat events.

CEO Michele Buck said consumers were buying Halloween candy closer to the holiday this year, unlike last year when inventory unavailability spurred earlier purchases.

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Hershey's net sales rose to $3.03 billion in the quarter ended Oct. 1 from $2.73 billion a year earlier. Analysts on average had expected $2.95 billion, according to LSEG data.

Excluding one-off items, it earned $2.60 per share, topping estimates of $2.45 per share.

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The company also reaffirmed its annual profit forecast of $9.46 to $9.54 per share and sales expectations for an 8% rise.