Hershey (HSY) came out with quarterly earnings of $2.69 per share, beating the Zacks Consensus Estimate of $2.38 per share. This compares to earnings of $2.02 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 13.03%. A quarter ago, it was expected that this chocolate bar and candy maker would post earnings of $2.50 per share when it actually produced earnings of $2.34, delivering a surprise of -6.40%.Over the last four quarters, ...

Hershey announced better-than-expected earnings despite rising raw material costs, driven by robust pricing strategies and diversifying its portfolio.The Hershey Company (HSY 0.81%), a leading North American confectionery and snack company, released its fourth-quarter 2024 earnings on February 6, 2025.The results exceeded market expectations, with key metrics such as Non-GAAP earnings per share (EPS) reported at $2.69, well above the analyst estimate of $2.37. Revenue came in at $2,887.5 million, beating fo ...

Financial Data and Key Metrics Changes - The company reported net sales growth of 8.7% in Q4 2024, with organic constant currency net sales growing 9%, slightly ahead of expectations [22] - Adjusted earnings per share for Q4 were $2.69, supported by strong productivity and cost management despite low double-digit input cost inflation [27] - Adjusted gross margin increased by 60 basis points in Q4, reflecting stronger pricing and productivity gains [25] Business Line Data and Key Metrics Changes - North America Confectionery segment reported an organic constant currency net sales increase of 5.9%, driven by approximately four points of price realization [22] - North America Salty Snacks segment saw a significant increase of 35.9% in net sales, reflecting a tailwind from inventory adjustments and strong performance in brands like Skinny Pop and Dots pretzels [24] - Retail sales in North American salty snacks accelerated to 7.1% in Q4, with Skinny Pop retail sales increasing by 4.7% [13] Market Data and Key Metrics Changes - The International segment experienced organic constant currency net sales growth of 15%, driven by strong holiday and innovation contributions [23] - In Mexico and EMEA, the company reported double-digit constant currency organic sales growth, while India saw high single-digit growth [14] - Cocoa market remains volatile, with high prices expected to pressure earnings in 2025, although supply fundamentals are improving [16][30] Company Strategy and Development Direction - The company is focused on driving top-line growth and share momentum while executing transformation and efficiency programs [6] - Plans for 2025 include a strong year of innovation and media investment across the confection business, with fewer but larger innovations [11] - The company aims to improve its cost structure by nearly $900 million between 2023 and 2026 while investing in capabilities and technology [19] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the pressure from rising cocoa prices but emphasized a focus on long-term growth and efficiency [18] - The company expects net sales growth of at least 2% for the full year 2025, driven primarily by price realization [15] - Management expressed confidence in navigating short-term market challenges while maintaining a focus on long-term growth strategies [35] Other Important Information - The company welcomed new leadership for its U.S. Confectionery and Salty Snacks divisions, aiming to leverage fresh perspectives and internal knowledge [20] - The company plans to maintain its dividend and elevate share buybacks as a priority, projecting a decline in shares outstanding by approximately 50 basis points for the year [34] Q&A Session Summary Question: What are the expectations for cocoa prices in 2025? - Management indicated that cocoa prices are expected to remain high, impacting earnings, but they have good visibility into costs and supply [16][30] Question: How does the company plan to address input cost inflation? - The company is focused on productivity and cost management, with a target to improve its cost structure significantly over the next few years [19] Question: What are the growth expectations for the International segment? - The International segment is expected to see continued expansion driven by household penetration, distribution, and innovation momentum, despite some competitive pressures [14]

Financial Data and Key Metrics Changes - The company reported net sales growth of 8.7% in Q4 2024, with organic constant currency net sales growing 9%, slightly ahead of expectations [23] - Adjusted gross margin increased by 60 basis points in Q4, reflecting stronger pricing and productivity gains [26] - Adjusted earnings per share for Q4 were $2.69, supported by robust net sales growth and effective cost management [28] Business Line Data and Key Metrics Changes - North America Confectionery segment saw an organic constant currency net sales increase of 5.9%, driven by approximately four points of price realization [24] - North America Salty Snacks segment experienced a significant increase of 35.9% in net sales, aided by inventory adjustments and strong performance from Skinny Pop and Dots pretzels [25] - Retail sales in North American salty snacks accelerated to 7.1% in Q4, with Skinny Pop and Dots pretzels contributing to growth [13] Market Data and Key Metrics Changes - The U.S. Candy, mint, and gum retail sales increased by 2% in Q4, indicating seasonal strength and growth in everyday business [7] - International segment achieved double-digit constant currency organic sales growth in Mexico and EMEA, with high single-digit growth in India [14] - Cocoa market remains volatile, with high prices expected to pressure earnings in 2025, although supply fundamentals indicate a slight surplus [16][31] Company Strategy and Development Direction - The company is focused on driving top-line growth and share momentum while executing transformation and efficiency programs [6] - Plans for 2025 include a strong year of innovation and media investment across the confection business [11] - The company aims to improve its cost structure by nearly $900 million between 2023 and 2026 while investing in capabilities and technology [20] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the pressure from rising cocoa prices but emphasized a commitment to long-term growth and efficiency [18] - The company expects net sales growth of at least 2% for the full year 2025, driven primarily by price realization [15] - Management expressed confidence in navigating short-term market challenges while focusing on long-term growth strategies [37] Other Important Information - The AAA program delivered $143 million in net savings in 2024, exceeding the target, with an increased savings target of $350 million for 2025 [27] - The company plans to maintain its dividend and prioritize share buybacks, projecting a decline in shares outstanding by approximately 50 basis points for the year [36] Q&A Session Summary Question: What are the expectations for cocoa prices in 2025? - Management indicated that cocoa prices are expected to remain high, impacting earnings, but they have good visibility into costs and supply [31] Question: How does the company plan to address competitive pressures in international markets? - The company expects continued expansion driven by household penetration, distribution, and innovation momentum despite competitive pressures [14] Question: What are the key growth drivers for the North America Salty Snacks segment? - Growth is expected to be driven by increased distribution, merchandising, media, and innovation, with solid mid-single-digit growth anticipated [25]

Exhibit 99.1 FINANCIAL CONTACT: MEDIA CONTACT: Anoori Naughton Allison Kleinfelter anaughton@hersheys.com akleinfelter@hersheys.com Hershey Reports Fourth-Quarter and Full-Year 2024 Financial Results; Provides 2025 Outlook HERSHEY, Pa., February 6, 2025 - The Hershey Company (NYSE: HSY) today announced net sales and earnings for the fourth quarter and full-year ended December 31, 2024. "I am pleased to see the consumer response to our agile innovation, marketing and in-store execution as we end the year wit ...

Core Insights - The Hershey Company reported a strong performance in Q4 2024, with consolidated net sales increasing by 8.7% to $2,887.5 million, and organic, constant currency net sales rising by 9.0% [10][13] - The company anticipates challenges in 2025 due to rising cocoa prices, projecting a reported earnings per share decline in the high-40% range, while adjusted earnings per share is expected to decrease in the mid-30% range [5][6] Financial Performance - Q4 2024 reported net income was $796.6 million, or $3.92 per share-diluted, marking a 130.6% increase year-over-year [10][42] - For the full year 2024, consolidated net sales reached $11,202.3 million, a slight increase of 0.3% compared to 2023 [10][42] - The company’s reported gross margin improved by 1170 basis points to 54.0% in Q4 2024, driven by derivative mark-to-market gains and net price realization [14][42] Segment Performance - North America Confectionery segment net sales increased by 6.0% to $2,354.2 million in Q4 2024, with organic, constant currency net sales up by 5.9% [20][43] - North America Salty Snacks segment saw a significant net sales increase of 35.9% to $278.9 million, with volume growth driven by inventory timing and promotional events [23][43] - International segment net sales rose by 9.8% to $254.5 million, with double-digit volume growth in key markets [26][43] Cost Management and Outlook - The company expects net sales growth of at least 2% in 2025, primarily from net price realization, but anticipates significant pressure on earnings due to higher commodity costs and tax rates [5][6] - Selling, marketing, and administrative expenses decreased by 5.5% in Q4 2024, reflecting lower compensation costs and reduced technology investments [15][43] - The effective tax rate for Q4 2024 was reported at (10.2)%, a decrease from (9.2)% in the prior year [17][42]

The Hershey Company's (NYSE: HSY ) stock hasn't seen much rest of late. The share price keeps falling. We all thought that after declining by over $100 from its all-time high it seemed to have found a bottom, but in the lastI focus on long term growth and dividend growth investing. I follow both the US and the European stock markets, looking for undervalued stock and/or for high quality dividend growing companies that provide me with cash to reinvest. Over time, I have come to realize that profitability is ...

Core Viewpoint - The Hershey Company (HSY) is expected to report growth in both revenue and earnings for the fourth quarter of 2024, with revenue estimates at $2.85 billion, reflecting a 7.3% increase year-over-year [1]. Revenue and Earnings Estimates - The consensus estimate for earnings per share (EPS) remains at $2.38, indicating a 17.8% increase from the previous year [2]. - The North America Confectionery segment is projected to see a 5.8% sales increase for the fourth quarter [5]. Innovation and Market Strategy - Hershey's brand strength is bolstered by continuous innovation, with products like Reese's Caramel and Reese's Lava leading in their categories [3]. - The company is evolving its marketing organization to better align with consumer needs and is integrating its supply chain to enhance efficiency [4]. Operational Challenges - Hershey faces challenges from high cocoa prices and changing consumer behavior, with a shift towards value-seeking impacting foot traffic in traditional retail channels [6]. - Despite these challenges, improvements in price realization and supply-chain productivity are expected to provide some relief, although a contraction in adjusted gross margin of 160 basis points is anticipated [7]. Earnings Prediction Model - Current models do not predict a definitive earnings beat for Hershey, as it holds a Zacks Rank of 5 (Strong Sell) and an Earnings ESP of -1.52% [8].

In its upcoming report, Hershey (HSY) is predicted by Wall Street analysts to post quarterly earnings of $2.38 per share, reflecting an increase of 17.8% compared to the same period last year. Revenues are forecasted to be $2.85 billion, representing a year-over-year increase of 7.3%.Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 4.4% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during thi ...

HERSHEY, Pa., Feb. 3, 2025 /PRNewswire/ -- The Hershey Company (NYSE: HSY) announced today that it will make a presentation at the 2025 Consumer Analyst Group of New York (CAGNY) conference in Orlando, FL, at 1 p.m. ET on Tuesday, February 18, 2025. Michele G. Buck, Chairman, President and Chief Executive Officer, and Steven E. Voskuil, Senior Vice President and Chief Financial Officer, will be the principal speakers for Hershey.The presentation will be webcast live via The Hershey Company corporate website ...