US chocolate maker Hershey cut its sales growth forecast for the year, blaming weaker growth in China.
The chocolate maker now estimates net sales will increase by 2.5%-3.5% this year, down from its previous prediction of 4.5%-5.5%.
The company also announced plans to cut 300 jobs, out of its total workforce of about 13,000.
Hershey generates most of its chocolate sales in China in one-stop shops carrying a wide range of goods.
“Macroeconomic challenges and trends are affecting consumer shopping behaviour resulting in continued softness within the China modern trade,” the company said.
Hershey now plans to focus on distributing to smaller format stores and focusing on brands that deliver the highest return.
The company found more robust growth at home. “The company’s North America confectionery business is on track to deliver on its 2015 financial objectives, driven by solid gross margin expansion,” it said.
Hershey is North America’s biggest chocolate maker. As well as Hershey chocolate bars, it also makes Reece’s Peanut Butter Cups.
Shares in Hershey fell more than 2.5% in New York trading.