USA- Hershey, an American multinational company and one of the largest chocolate manufacturers in the world, has reported a 30% increase in net income for the quarter ending Oct. 1.
According to the company’s recent financial results, net income the quarter was US$518.58 million, equal to US$2.60 per share on the common stock, up 30% from $399.5 million, or $2 per share, in the same period a year ago.
The company reported consolidated net sales of US$$3.03 billion, up 11% from US$2.73 billion the year before. Its impressive results beat Wall Street expectations of 2.95 billion.
Hershey benefitted from higher prices of its chocolates and candies at a time when demand has slowed.
The most recent quarterly results included costs related to the acquisition of two manufacturing plants from Weaver Popcorn Manufacturing, Inc.
They also feature costs related to the integration of the 2021 acquisition of Dot’s Pretzels, LLC and Pretzels Inc. into the company’s North America Salty Snacks segment.
Costs related to building and upgrading the company’s new ERP system for implementation across its North America Salty Snacks segment in the fourth quarter of fiscal 2023 have also been included.
Buck, Chairman of the Board, President, and CEO of the Hershey Company said: “As we exit the year, we expect confection retail trends to improve as consumers prioritize seasonal traditions and in-store seasonal merchandising levels remain comparable to the prior year.” She added, “Our teams did an excellent job building inventory in the quarter to prepare for our October ERP transition and a fantastic job with implementation. The new system is now up and running, and we are successfully taking and shipping orders.”
Hershey intends to lean its presence in channels where consumers are increasing trips and partnering with retailers to capitalize on the incrementality of snacks and confection in the basket.
Executives at the company iterated full-year net sales growth of approximately 8%, unchanged from the previous guidance issued following the second quarter.
Reported earnings per share growth is expected to be in the range of 13% to 15%, also unchanged from previous guidance.