I think this must help you understand how it works. Here, I have kept the volume and other raw material prices constant to simplify things for your understanding. Also, the end consumption of chocolate has always been detached from the price movements because there is no alternative to chocolate and the demand has only been growing for centuries.
I have considered that Lotus was able to pass on 100% of the price hike but realistically even if they are able to pass on 70-80% of the hike the bottom line will still grow.
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