Latest news with #HSY
Yahoo
01-08-2025
- Business
- Yahoo
The Hershey Co (HSY) Q2 2025 Earnings Call Highlights: Strong Sales Growth Amidst Earnings Pressure
Release Date: July 30, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points The Hershey Co (NYSE:HSY) reported strong net sales growth of 26% in Q2 2025, driven by robust performance in North America confectionery and salty snacks. The company achieved a significant share gain of approximately 90 basis points in the US retail market for candy, mint, and gum. Hershey's innovative product launches, such as the Pokemon Kiss and Reese's Oreo cup, are driving strong consumer engagement and repeat purchases. The company's strategic pricing actions and productivity initiatives are expected to restore adjusted gross margins by over 500 basis points in 2026. Hershey's international segment saw double-digit constant currency net sales growth in Brazil and mid-single digits in Europe, indicating strong performance in these regions. Negative Points The Hershey Co (NYSE:HSY) reported a decline in adjusted earnings per share by 4.7% year over year, impacted by higher commodity costs and increased tax rates. Net sales trends within the international segment were below expectations due to unfavorable currency translation and softer category growth in Mexico. The company anticipates a decline in adjusted earnings per share by 36% to 38% for the full year, primarily due to higher cocoa costs and tariffs. Adjusted gross margin decreased by 510 basis points in Q2 2025, affected by commodity inflation and incremental tariff expenses. The company faces ongoing challenges with cocoa price volatility and tariffs, which are expected to create additional earnings pressure through the remainder of 2025. Q & A Highlights Q: Can you provide more details on the recent price increase for the US confection portfolio and its expected impact? A: Michelle Bach, Chairman and CEO, explained that Hershey announced a new price action on their US confection portfolio, which represents roughly 80% of total net sales. This includes a combination of list price and price pack architecture, expected to deliver an estimated 16 points of pricing contribution. The action is projected to benefit adjusted gross margin without significantly affecting sales for 2025. Q: How is Hershey addressing the ongoing cocoa inflation and what are the expectations for cocoa costs in the future? A: Michelle Bach noted that despite some retreat in cocoa prices, they remain volatile and elevated. Hershey anticipates inflation in cocoa input costs in 2026 due to robust hedging practices. They are implementing innovative sourcing and hedging strategies to manage costs and expect a larger global surplus for the 2025-2026 crop season. Q: What are the key drivers behind the strong performance in North America confectionery and salty snacks segments? A: Steve Voskull, Senior Vice President and CFO, highlighted that the strong performance was driven by net price realization and volume growth, with the latter impacted by the lap of planned inventory decreases and the timing of Easter. The North America confectionery segment saw a 32% net sales growth, while salty snacks increased by 8.8%, supported by innovation and distribution gains. Q: Could you elaborate on the international segment's performance and the factors affecting it? A: Steve Voskull mentioned that international segment net sales increased by 4.4%, with foreign currency translation posing a 6-point headwind. Organic constant currency net sales grew by 10%, but volume was below expectations due to category softness in Mexico and lower export demand. Despite these challenges, Hershey gained market share in Mexico. Q: What is the outlook for Hershey's adjusted earnings per share (EPS) for the full year? A: Steve Voskull stated that the full-year adjusted EPS is expected to decline between 36% and 38%, reflecting strong first-half results, incremental pricing, and successful cocoa procurement strategies. However, these are offset by higher taxes and current tariff policies. Without tariffs, the full-year adjusted EPS outlook would have been raised. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
29-07-2025
- Business
- Yahoo
Hershey Likely to Post Strong Quarterly Results But Tariffs Expected to Weigh on Guidance, RBC Says
Hershey (HSY) is expected to report second-quarter results above market expectations amid strong con Sign in to access your portfolio
Yahoo
28-07-2025
- Business
- Yahoo
What Makes The Hershey Company (HSY) a Stable Food Dividend Stock?
The Hershey Company (NYSE:HSY) is included among the 10 Best Food Stocks with Dividends. A close-up of hands deftly moulding a bar of chocolate. The Hershey Company (NYSE:HSY) is a well-known consumer staples company primarily recognized for its confections and snacks. While the company has broadened its product range to include items like popcorn and pretzels, chocolate remains one of its core offerings. Seen as an affordable indulgence, Hershey's chocolate continues to be highly popular, driving steadily increasing sales over time. The Hershey Company (NYSE:HSY) recently revealed it will increase prices for the second time in just over a year, attributing the hike to ongoing high cocoa costs that will lead to a double-digit rise in candy prices. While cocoa prices have dropped from their record high of $12,000 per metric ton, they still trade above $8,000 per metric ton. Many analysts expect these elevated prices to persist in the near term, largely due to last year's adverse weather conditions in Western Africa. The Hershey Company (NYSE:HSY) is also a strong dividend payer, having raised its payouts for 15 consecutive years. The company offers a quarterly dividend of $1.37 per share and has a dividend yield of 2.93%, as of July 27. While we acknowledge the potential of HSY as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: READ NEXT: and Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Wall Street Journal
22-07-2025
- Business
- Wall Street Journal
Hershey Lifts Candy Prices, Citing High Cocoa Costs
Inflation isn't finished with your chocolate bar. Hershey HSY 2.79%increase; green up pointing triangle is raising prices on its candy, a company official said, in response to continued high cocoa costs.
Yahoo
22-07-2025
- Business
- Yahoo
Hershey to raise prices on its chocolates owing to high cocoa costs
(Reuters) -Hershey (HSY) said on Tuesday it has told retailers that it would be raising prices on its candies due to a surge in costs of cocoa, the key ingredient for its products. "This change is not related to tariffs or trade policies. It reflects the reality of rising ingredient costs including the unprecedented cost of cocoa," a company spokesperson told Reuters. Hershey did not clarify the extent of price increases and which products will be impacted. Cocoa prices have risen sharply in the last two years due to supply problems in Ghana and the Ivory Coast, touching a record in December. Since then, the price of cocoa has fallen to an eight-month low, though it remains elevated above levels from earlier in the decade. Bloomberg was the first to report the company was implementing a roughly double-digit price increase. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
