Hershey grew third-quarter sales by 3 per cent as higher prices offset a steep decline in volume. Organic growth was only 0.8 per cent, with an acquisition adding to total revenue. Profit margins improved alongside pricing, productivity savings and tariff refunds. Management updated its annual outlook while North American snacks and international confectionery recorded different sales trends.
Hershey, the US confectionery and snack producer, announced third-quarter sales of approximately 3.28 billion dollars for the period ended in September. Adjusted earnings reached 2.64 dollars per share, more than double the year-earlier level. Higher sales accompanied the earnings recovery.[1], [2]
Sales increased 3 per cent, while organic constant-currency growth was 0.8 per cent. Pricing contributed about 11 percentage points, offset by roughly 10 points of lower volume. Hershey attributed the volume decline to price sensitivity, shipment timing and planned portfolio reductions. The LesserEvil snack acquisition added 2.1 points to growth. North American salty snack sales increased 22.3 per cent, while international sales declined 7.5 per cent.[1]
Net income was 580.8 million dollars. The reported gross margin rose from 32.6 per cent to 46.1 per cent. Pricing, derivative valuation gains, productivity savings, tariff refunds and lower net commodity costs supported margins. Lower volume and freight expenses worked against them. Management expects annual sales growth of approximately 5 per cent and organic growth of about 3 per cent. Adjusted earnings guidance is 8.58 dollars to 8.74 dollars per share. The outlook incorporates refunds already received during the year but excludes possible future tariff refunds.[1]
