Latest news with #HSY
Express Tribune
02-06-2025
- Entertainment
- Express Tribune
We must dig deep to figure out someone's intentions'
In an interview with Ambreen Fatima, fashion designer Hassan Sheheryar Yasin (HSY) shared his views on the vitriol that actors like Fawad Khan and Hania Aamir received for not condemning India's war crimes as strongly as their fans hoped they would. "The eyes are the windows to a man's soul. One must dig deep to figure out what someone's actual mindset and intentions are," HSY said. "I know Fawad very well, and I know how much of a die-hard Pakistani he truly is. He's my friend." The designer also added Mahira Khan to his observation. "Mahira, another friend of mine, is devoted to Pakistan. I know how much she works to promote the Pakistani sentiment and does what she can for those who cannot raise their own voices." Bringing up yet another showbiz friend, he continued, "Hania is a relatively recent entry in the industry. I've seen her since the beginning of her career. I've also worked with her. We're friends and we share mutuals. Hania is very pro-Pakistan." HSY reckoned that the criticism was fuelled by a collective anger or passion that netizens have for showbiz. "Those watching must believe that they are a part of a celebrity's life, and rightfully so because they are involved in everything, be it the movies or the promotions," he acknowledged. HSY reasoned that, perhaps, the mentioned stars weren't able to express themselves as strongly as their fans were hoping they would. "I can't say anything about that because your opinions are valid," he said. "But I can vouch for my friends and safely say that they didn't intend to cause any hurt." The designer added that everyone can speculate as much as they want, but they won't have the answers to everything. In the same way, he can speak about Fawad at a friend's capacity, nothing less or more. "I am aware of the public's disapproval of his statement," HSY said. "Because he is my friend, I'll share my perception of him. But neither has anyone paid me to do so nor is this benefitting me in any way. HSY is going to remain HSY. But I can uplift someone else's truth because that's the right thing to do." He, however, reiterated that public criticisms weren't misplaced. "Yes, the public's belief that celebrities should confidently speak out is valid. And we are the ones who should be taking that stand because every drop counts and makes one Pakistan, which is not a small thing. So wherever I am qualified to talk about Pakistan, I try to do so to the best of my abilities," he vowed. What the stars said Following India's aerial attack on Pakistani civilians last month, multiple local celebrities took to social media to condemn the aggression, stand in solidarity with the victims, and call out Indian celebrities who celebrated the loss of lives in Pakistan. This included Mahira, who decried India's "war and hate rhetoric" and asserted that the Indian entertainment industry was claiming victory in fear-induced silence. "To me, that silence is your greatest defeat. You attack cities in the middle of the night and call it a victory? Shame on you," she said. Fawad, meanwhile, offered his deepest condolences to those injured and killed in "this shameful attack". Adding a prayer for the deceased and the bereaved, he said, "A respectful request to all: stop stoking the flames with rabble-rousing words. It's not worth the lives of innocent people. May better sense prevail, InshaAllah. Pakistan Zindabad!" Joining the chorus, Hania rued India's aggression with a heavy heart. "A child is gone. Families are shattered. And for what? This is not how you protect anyone. This is cruelty - plain and simple. You don't get to bomb innocent people and call it a strategy. This isn't strength. This is shameful. This is cowardly. And we see you." Netizens criticised some of the artists for not outright naming India as the aggressor and upholding peaceful sentiments while Indian artists stood by their war-mongering narrative.
Yahoo
18-05-2025
- Business
- Yahoo
Why Hershey's Bitter Stock Performance Could Become Much Sweeter
Hershey stock is down by more than 40% since peaking two years ago. High cocoa prices have cut into sales, and revenue has begun to fall. A high dividend yield and low P/E ratio could draw investors back to Hershey stock as cocoa supplies rise. 10 stocks we like better than Hershey › In today's market environment, one stock that faces ongoing struggles is confectionery and snack giant Hershey (NYSE: HSY). The company has dealt with ongoing cocoa shortages that pressure its margins, and the stock has slipped more than 40% over the last two years. The question for investors is how they should react to these conditions. Although the current business environment and raw material shortages bring significant headwinds for Hershey, investors have good reason for optimism about the chocolate stock. Here's why. Hershey has left an increasingly bitter taste in the mouths of investors over the last couple of years. The biggest challenge has been rising cocoa prices. As recently as the fall of 2022, cocoa traded for below $2,000 per metric ton. Now, amid supply shortages, cocoa prices briefly spiked above $12,000 per metric ton, and today, the price is still around $10,000 per metric ton. Countries such as Ivory Coast produce the majority of the world's cocoa, and with crop yields suffering due to disease and poor weather in those countries, prices shot much higher. Despite efforts to offer more non-chocolate products, Hershey's candy sales in North America made up 82% of the company's revenue in the first quarter of 2025. Passing rising cocoa costs on to consumers helped Hershey end 2024 with a 0.3% annual gain. Still, net sales fell 14% in the first quarter of 2025 to $2.8 billion. Moreover, like many businesses, inflationary pressures and the higher interest-rate environment had a chilling effect on growth. Also, recent purchases of Sour Strips and Weaver Popcorn led to high integration costs and worries about its supply chain. Nonetheless, Hershey remains an entrenched player in the chocolate and snack industry, and a closer look at the stock may show some cause for optimism. Despite such challenges, Hershey guided for a net sales gain of at least 2% for 2025. That would indicate that its customer base remains loyal to its products even amid expectations that customers may buy less while cocoa prices remain elevated. On its earnings call, Hershey also mentioned that the top three cocoa producers experienced a 20% increase in supply this season, which offers the company some welcome relief. Additionally, Hershey shareholders currently earn $5.48 per share in annual dividends. Its yearly payout has also risen for 15 consecutive years, which begins to foster an expectation of annual payout hikes. Thanks to the rising dividend and falling stock price, shareholders earn a dividend yield of 3.4%, far above the S&P 500 average of 1.3%. Also, that dividend cost the company almost $1.1 billion in 2024. Hershey generated more than $1.9 billion in free cash flow during the same period despite its business challenges, implying that it can afford to maintain the payout and the streak of dividend increases. Furthermore, investors will not have to pay much of a premium for that income stream. Hershey stock trades at 20 times earnings, well below the five-year average P/E ratio of 25. Considering that and the aforementioned drop in the stock price over the last two years, the company could see a recovery as cocoa shortages continue to abate. After cocoa shortages, high prices, and falling sales left a bitter taste in the mouths of investors, Hershey stock might finally find itself in a position for a sweet recovery. Indeed, conditions look dire due to sky-high cocoa prices. Moreover, revenue levels have begun to suffer as the company failed to fully compensate for lower sales with higher prices in Q1. Still, the company believes it can register a gain in net sales in 2025, indicating customers remain loyal to its brands. Furthermore, a rising dividend yield and a falling valuation give income investors good reasons to start adding shares. Such conditions indicate that Hershey stock can recover as investors witness Hershey and the chocolate industry at large moving on from the cocoa shortage. Before you buy stock in Hershey, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Hershey wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $642,582!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $829,879!* Now, it's worth noting Stock Advisor's total average return is 975% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 12, 2025 Will Healy has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Hershey. The Motley Fool has a disclosure policy. Why Hershey's Bitter Stock Performance Could Become Much Sweeter was originally published by The Motley Fool 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
15-05-2025
- Business
- Yahoo
HSY Q1 Earnings Call: Management Addresses Volume Declines, Tariff Uncertainty, and Product Innovation
Chocolate company Hershey (NYSE:HSY) met Wall Street's revenue expectations in Q1 CY2025, but sales fell by 13.8% year on year to $2.81 billion. Its non-GAAP profit of $2.09 per share was 8.2% above analysts' consensus estimates. Is now the time to buy HSY? Find out in our full research report (it's free). Revenue: $2.81 billion vs analyst estimates of $2.81 billion (13.8% year-on-year decline, in line) Adjusted EPS: $2.09 vs analyst estimates of $1.93 (8.2% beat) Adjusted EBITDA: $727.7 million vs analyst estimates of $668.1 million (25.9% margin, 8.9% beat) Adjusted EPS guidance for the full year is $6.09 at the midpoint, roughly in line with what analysts were expecting Operating Margin: 13.2%, down from 32.5% in the same quarter last year Free Cash Flow Margin: 9%, down from 10.9% in the same quarter last year Organic Revenue fell 13.2% year on year (8.6% in the same quarter last year) Sales Volumes fell 15% year on year (3.4% in the same quarter last year) Market Capitalization: $33.09 billion Hershey's first quarter results, as discussed on the earnings call, were shaped by steep year-on-year declines in both sales volumes and revenue, which management attributed primarily to ongoing consumer value-seeking behavior and economic pressure. Pricing actions provided some offset, but CEO Michele Buck noted that elevated cocoa costs and consumer trade-downs continued to weigh on chocolate demand, particularly in the instant consumables segment. The company also pointed to solid momentum in its sweets and salty snacks portfolios, with innovation cited as a positive driver, especially in non-chocolate categories. Looking ahead, management's full-year guidance reflects the expectation of persistent cost inflation—particularly from cocoa and potential new tariffs—alongside incremental mitigation actions. CFO Steve Voskuil described the path to earnings growth in 2026 as 'narrower, more challenging,' and highlighted the importance of ongoing productivity initiatives, pricing, and sourcing changes. The company expects new product launches, particularly in the Reese's brand, and enhanced distribution to support share stability, but acknowledged the need for aggressive management of both external and internal headwinds. Hershey's management emphasized the impact of macroeconomic challenges, commodity costs, and ongoing product innovation on recent performance. They also elaborated on their mitigation strategies for tariffs and input inflation, as well as shifts in consumer behavior. Tariff and Cocoa Cost Pressures: Management explained that the combination of elevated cocoa prices and new tariffs could create an unmitigated headwind of up to $100 million per quarter in the second half of the year. The company is lobbying for exemptions and actively pursuing productivity, pricing, and sourcing changes to mitigate these impacts. Shifting Consumer Behavior: CEO Michele Buck highlighted continued value-seeking among consumers, with migration to value channels such as club and dollar stores. She noted that while chocolate remains an "emotional" purchase, these pressures resulted in lower volumes, especially in instant consumables. Sweets and Salty Snacks Momentum: Management reported double-digit share gains in the sweets category and steady performance in salty snacks, driven by innovation and targeted investments. The expansion into better-for-you brands, such as the recently acquired LesserEvil, is intended to reach younger and more diverse consumers. Capacity and Supply Chain Investments: Hershey completed a major billion-dollar expansion in chocolate processing, enhancing vertical integration and supply chain flexibility. This investment aims to provide agility and support innovation across both chocolate and non-chocolate categories. Product Reformulation and Price Pack Architecture: The company is deploying price pack architecture—adjusting product sizes and pricing—to offer better perceived value and manage input costs. R&D and supply chain investments support rapid reformulation in response to regulatory and consumer trends, such as natural ingredient requirements and evolving SNAP rules. Management's outlook for the remainder of the year centers on navigating commodity inflation, tariffs, and evolving consumer preferences, while leveraging innovation and operational efficiency to stabilize margins and drive future growth. Mitigation of Cost Inflation: The company is focused on mitigating cocoa and tariff-related cost increases through a combination of pricing actions, supply chain adjustments, and lobbying for policy relief. Innovation Pipeline: New product launches, particularly a major Reese's innovation slated for the fall, are expected to support category share and potentially drive growth in the second half of the year. Channel and Portfolio Shifts: Management believes expanding the better-for-you and sweets lines, as well as prioritizing value-oriented retail channels, will help counter softness in core chocolate demand and address shifting consumer behavior. Ken Goldman (JPMorgan): Sought quantification of potential tariff impacts and how mitigation efforts might reduce unmitigated costs for Q3 and Q4; management estimated up to $100 million per quarter unmitigated, with all mitigation levers in play. Andrew Lazar (Barclays): Asked about the outlook for nonseasonal chocolate growth in the second half and the early impact of pricing strategies in instant consumables; management reported early signs of improvement and expects share to be neutral to up as new programming rolls out. Max Gunport (BNP Paribas): Questioned whether snacking weakness reflects only consumer value-seeking or also a shift to healthier eating; management emphasized that chocolate and sweets have held up well, with minimal elasticity and stable category demand. Robert Moskow (TD Cowen): Queried the financial rationale for recent capacity expansions amid lower chocolate volume outlooks; management stressed enhanced agility, supply control, and support for innovation as key benefits. Christopher Carey (Wells Fargo Securities): Requested insight into price pack architecture and reformulation efforts; management explained that offering various sizes and recipes can enhance value perception and allow cost flexibility, supported by investments in R&D and the supply chain. Looking forward, the StockStory team will be monitoring (1) the effectiveness of Hershey's tariff mitigation strategies and lobbying efforts, (2) the performance and consumer reception of major new product launches, especially in the Reese's brand, and (3) the ability of the company's price pack architecture and reformulation initiatives to maintain category share and offset volume declines. Developments in regulatory policy and consumer trends toward value and health will also be important to evaluate. Hershey currently trades at a forward P/E ratio of 26.2×. Should you load up, cash out, or stay put? Find out in our free research report. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
Yahoo
07-05-2025
- Business
- Yahoo
The Hershey Company (NYSE:HSY): A Discounted Sweet Treat
We came across a bullish thesis on The Hershey Company (NYSE:HSY) on ValueInvestorsClub by angus309. In this article, we will summarize the bulls' thesis on HSY. The company's shares were trading at $186.36 when this thesis was published, vs. the closing price of $163.28 on Apr 25. The Hershey Company (HSY): Among Takeover Rumors Hedge Funds Are Buying A close-up of hands deftly molding a bar of chocolate. HSY manufactures and sells confectionery products and pantry items in the United States and internationally through its three segments: North America Confectionery, North America Salty Snacks, and International. It controls 36% of the chocolate market in the US with high single-digit sales coming from international markets like Mexico, Brazil and India. The stock is down almost 40% from its peak in 2023 due to a number of reasons. First, the launch of the weight-loss drug Ozempic by Novo Nordisk has been a popular hit due to its effectiveness. It is estimated that people will consume 20-30% fewer calories due to the influence of this medication, thereby impacting the sales of HSY. Another factor for underperformance is the torrential rains in Ghana and Ivory Coast leading to black pod disease and lower yield. HSY is expected to face higher input costs, which would reduce margins. While these headwinds are valid arguments by bears, HSY has been in the business for over a century. The likelihood of Americans reducing their intake of chocolates seems far-fetched when considering long-term consumption patterns. Moreover, HSY has expanded beyond chocolates and offers products like SkinnyPop popcorn and Dot's Pretzels that can provide a hedge if consumers shy away from high-calorie treats. The concern surrounding mounting input costs can also be dealt with since HSY has the flexibility to pass on increased costs to its customers. This was done in 2023 when a 10% hike in price enabled HSY to increase its revenue by 11% without a major drop in volume. The popularity of Feastables by Mr. Beast is another potential cause for concern. The brand is set to grow exponentially but the ability to capture market share may be constrained by lack of scale in manufacturing and distribution. HSY can also turn the tide by launching healthier versions that may offer direct competition to Feastables. HSY is trading at 15x trailing 12-month earnings, which seems unjustified for a company that saw its earnings grow by almost 15% from 2007 to 2023. The forward dividend yield is close to 3.4%, with ROIC exceeding WACC by 18 percentage points. Factoring in a high capital return, a growing dividend and a multiple higher than the S&P 500, the fair value of HSY's stock is $225. This is 40% higher than the current market price.
Forbes
23-04-2025
- Business
- Forbes
This Soaring Dividend Doesn't Care About Tariffs
CHICAGO, IL - JULY 16: In this photo illustration, Hershey's chocolate bars (Photo Illustration by ... More) Trade war volatility rages on—and we contrarians are playing offense and defense with a 'homegrown' stock whose dividend has skyrocketed in the last five years. This unsung stock soared double-digits in the 2022 mess—and it's doing so again. More on that history in a second. First, that skyrocketing dividend is the key to our 'offense' here. That's because dividend growth is the No. 1 predictor of stock gains—and a rising payout is the ultimate 'magnet,' pulling share prices higher as it grows. And this company's stock has fallen well behind its payout growth, handing us a 'sweet' (hint!) current yield of 3.3%. With more payout growth 'baked in' (another hint!), we can expect that 'starter yield' to rise over time, on a buy made today. Defense? Well, this one has a policy of making its products where it sells them, so it has little to worry about from tariffs. All right, I'll knock off the teasing here. I'm talking about The Hershey Co. (HSY), a stock we hold in the portfolio of my Hidden Yields advisory. It really needs no introduction: Everyone knows these brands. Since its founding in Pennsylvania back in 1894, Hershey has seen it all on the trade and economic fronts. Tariffs? What's old is new again for this historic firm: The average US tariff rate on imports was around 20% when it was founded in 1894, according to Statista. And of course, the company endured the Great Depression (when the famed Smoot-Hawley Tariff Act saw another spike in protectionism, and tariffs). In fact, it not only endured the Depression, it started paying out regular dividends in the thick of it—in 1930, to be exact. The company has maintained payouts ever since, and in the last few years has dropped ever-larger increases on investors, culminating in its latest, a 32% hike, announced a little more than a year ago (more on that in a moment). Maybe its experience with high tariffs is what drove the company to make its products where it sells them: In the US, the bulk of its snack foods are made in, well, Hershey, Pennsylvania, as well as at plants in Virginia, Tennessee, Utah and Illinois. It also operates in a range of other nations, including Brazil, Canada, India and Malaysia, and Mexico. The fact that these plants mainly sell in the regions in which they operate is another 'tariff plus' if those countries slap retaliatory tariffs on products they import from the US. As I mentioned a second ago, a bit over a year back, Hershey dropped a 32% payout hike on investors, part of an ever-increasing range of hikes that started in 2021. Normally, a hike like that would send the stock on a 'sugar high' (okay, I'll really stop now!), as investors took note and bid the share price up in lockstep. But that didn't happen this time—which is the first part of our buying opportunity here: HSY Dividend Magnet Cocoa supply was the culprit for Hershey's malaise. World production peaked back in 2021, followed by two consecutive declines in cocoa harvests. US imports fell off a cliff, from an average of 425,000 metric tons annually to only 198,000 metric tons in 2023 and 2024. Cocoa is a big input cost for Hershey, about 20% of the cost of goods sold, so higher cocoa prices hit the bottom line directly. You can see the stock moving counter to cocoa prices in the chart below: HSY/Cocoa Chart Then, a funny thing happened—the price of cocoa continued higher, but Hershey's FCF rebounded. Management began a two-year restructuring plan with the goal of saving $300 million through increased automation and streamlined production. Cocoa prices have been quietly easing, as we saw in the previous chart. Cheaper chocolate will bring more profits and boost Hershey shares, as they have in the past. Which brings me back to where we started: tariffs. After the Trump Administration paused its reciprocal tariffs, we're left, at least for now, with the baseline 10% global tariff, including on major cocoa exporters to the US, such as Ivory Coast, Ecuador, Ghana, the Dominican Republic and Papua New Guinea. That's not great, obviously, but it's priced in, with the stock trading at 15-times trailing-12-month earnings, well below the five-year average of 25. And one last thing: This stock is a standout for its low-volatility, with a five-year beta rating of 0.28, meaning it's less than a third as volatile as the S&P 500. So if the market is down, say, 3% on a day, Hershey should only be down less than 1%. But the reality is much better than that: HSY actually gained 22% in the dumpster-fire year that was 2022, while the average S&P 500 stock dropped 18%! It's pulling a repeat this year, too—only down about 2% on a total-return basis, as of this writing, compared to a negative 10% return for the S&P 500. It's a rare stock that gives us both strong upside and low volatility—and the mainstream crowd has totally missed this. Let's take advantage of their delayed reaction and buy HSY now. Brett Owens is Chief Investment Strategist for Contrarian Outlook. For more great income ideas, get your free copy his latest special report: How to Live off Huge Monthly Dividends (up to 8.7%) — Practically Forever. Disclosure: none
