Hershey's 2Q Sales Rise, Boosted by Salty Snacks

Dow Jones
Jul 30
 

Hershey logged higher sales in its latest quarter, boosted by growth for its salty snacks business in North America.

The maker of Reese's Peanut Butter Cups and Twizzlers also bumped up its guidance for the year, saying it is entering the second half of the year with momentum and increased investment behind its brands, merchandising and innovation.

"With cost visibility and operating flexibility, we are well positioned to navigate dynamic markets," Chief Executive Kirk Tanner said.

Hershey's second-quarter profit came in at $457.7 million, or $2.26 a share, compared with $62.7 million, or 31 cents a share, a year earlier.

Adjusted earnings per share were $1.90, topping estimates of $1.43 a share according to analysts polled by FactSet.

Net sales rose 6.6%, to $2.79 billion, above analyst estimates of $2.63 billion.

In North America, sales of the company's salty snacks climbed 23%, while its confectionery business recorded growth of 4.2%. International sales rose 5.7%.

On an organic, constant currency basis, net sales increased 3.6%.

For the full year, Hershey now expects sales growth of 4.5% to 5%, raising the bottom end of its prior range of 4% to 5%. The company now forecasts adjusted earnings per share of $8.36 to $8.52, up from its previous projection for $8.20 to $8.52.

 
 

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