Financial Data and Key Metrics Changes - Total Hershey net sales increased by 6.5% year-over-year, with organic constant currency net sales growth of 6.2%, driven by strong innovation and strategic brand investments [8][21] - Adjusted gross margin decreased by 850 basis points year-over-year to 31.8%, impacted by commodity inflation and unfavorable mix, partially offset by higher volume and net price realization [25][29] - Adjusted earnings per share (EPS) is expected to decline between 36% and 37% due to higher supply chain costs and strategic brand investments [20][29] Business Line Data and Key Metrics Changes - North America Confectionery segment net sales increased by 5.6% year-over-year, with a 40 basis point benefit from the Sour Strips acquisition [22] - North America salty snacks segment net sales increased by 10%, with volume growth of approximately 11% driven by brands like Dots and Skinny Pop [23][15] - International segment net sales increased by 12.1%, with strong growth in Brazil and Europe, driven by net price realization and innovation [24][18] Market Data and Key Metrics Changes - Retail takeaway growth in the US candy, mint, and gum category was 5.4%, with nonseasonal business increasing to 6.6% [9] - Consumption growth exceeded category growth in four of the top five franchises, with notable increases in Reese's (7%), Hershey (11%), and Jolly Rancher (nearly 30%) [10] - The Halloween season began slower than anticipated, but the company remains confident in consumer participation rates [12][13] Company Strategy and Development Direction - The company aims to become a multi-category snacking leader, focusing on strong execution and innovation [7][6] - Plans to increase investments in technology for consumer data insights and supply chain agility in 2026 [14][30] - The company is committed to managing cost inflation and driving productivity to enable brand investments [14][32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the underlying trajectory of the business, raising the net sales outlook to approximately 3% growth [19] - The company is optimistic about cocoa supply fundamentals improving, despite ongoing inflation challenges [30][31] - Management acknowledged the dynamic marketplace and the need for flexibility in investment strategies [32] Other Important Information - The company did not repurchase any shares in the third quarter, with $470 million remaining from the $500 million authorization [28] - Capital expenditures for the third quarter were $86 million, reflecting a decrease from the prior year [27] Q&A Session Summary Question: What are the expectations for the Halloween season? - Management noted that while Halloween performance has been disappointing, they are analyzing trends and adjusting strategies for future seasons [12][13] Question: How is the company addressing commodity inflation? - The company is committed to managing cost inflation through various levers and is focused on productivity to support brand investments [14][30] Question: What is the outlook for international markets? - The company expects low single-digit constant currency growth in Mexico, facing economic challenges but gaining share in chocolate [18]

Hershey raised its full-year outlook as higher prices bolstered the candymaker’s performance https://t.co/f8Ea0goNpK ...

Hershey reported lower third-quarter profit as tariffs and poor harvests in West Africa raise the price of cocoa inputs. ...

Financial Performance - Consolidated net sales for Q3 2025 were $3,181.4 million, an increase of 6.5% compared to Q3 2024[5] - Reported net income was $276.3 million, or $1.36 per diluted share, a decrease of 38.2% year-over-year[5] - Adjusted earnings per share-diluted were $1.30, a decrease of 44.4% compared to the previous year[5] - Operating profit for Q3 2025 was $434,583,000, a decrease of 29.2% from $613,164,000 in Q3 2024[44] - Total net sales for the company increased by 6.5% to $3,181,418, while total segment income decreased by 22.4% to $615,615[47] - Operating profit fell by 29.1% to $434,583, with income before income taxes down 28.3% to $371,910[47] Segment Performance - North America Confectionery segment net sales increased by 5.6% to $2,615.6 million, with a segment income decrease of 21.2%[21] - North America Salty Snacks segment net sales rose by 10.0% to $321.0 million, with a segment income increase of 6.9%[24] - International segment net sales increased by 12.1% to $244.8 million, but reported a loss of $13.6 million[26] - North America Confectionery net sales increased by 5.6% to $2,615,600, while segment income decreased by 21.2% to $571,475[47] - North America Salty Snacks net sales rose by 10.0% to $321,020, with segment income up 6.9% to $57,747[47] - International segment net sales grew by 12.1% to $244,798, but segment income turned to a loss of $13,607 compared to a profit of $14,207 last year[47] Cost and Expenses - Unallocated corporate expense increased by 38.9% to $193.1 million, primarily due to higher incentive compensation costs[29] - The company incurred business realignment costs of $2,211,000 in Q3 2025, compared to $27,635,000 in Q3 2024[44] - Unallocated corporate expenses rose by 38.9% to $193,128, impacting overall profitability[47] Tax and Profitability Metrics - The effective tax rate for Q3 2025 was approximately 25.7%, an increase of 1,170 basis points compared to Q3 2024[18] - Reported gross profit for Q3 2025 was $1,037,334,000, compared to $1,232,719,000 in Q3 2024, reflecting a decline of 15.8%[33] - Reported gross margin for Q3 2025 was 32.6%, down from 41.3% in Q3 2024[36] - Non-GAAP gross margin for Q3 2025 was 31.8%, compared to 40.3% in Q3 2024[36] - Non-GAAP net income for Q3 2025 was $263,699,000, down 44.4% from $474,238,000 in Q3 2024[33] Outlook and Strategic Initiatives - The company raised its full-year net sales growth outlook to approximately 3%[6] - The company is focused on enhancing long-term profitability through initiatives like the Advancing Agility & Automation Initiative[39] Balance Sheet Highlights - Cash and cash equivalents increased to $1,163,017 from $730,746, reflecting a significant liquidity improvement[49] - Total assets rose to $13,579,426 from $12,946,861, indicating growth in the company's asset base[49] - Long-term debt increased to $4,677,086 from $3,190,210, suggesting a rise in leverage[49] - Total stockholders' equity decreased to $4,564,446 from $4,714,654, reflecting a decline in equity value[49]

Core Insights - The Hershey Company reported strong third-quarter results, exceeding expectations due to innovation, strategic brand investments, and effective market execution, leading to an upward revision of its full-year outlook for net sales and earnings per share [2][3]. Financial Performance - Consolidated net sales for Q3 2025 reached $3,181.4 million, marking a 6.5% increase compared to Q3 2024. Organic, constant currency net sales rose by 6.2% [8][10]. - Reported net income was $276.3 million, or $1.36 per diluted share, reflecting a 38.2% decrease year-over-year. Adjusted earnings per share were $1.30, down 44.4% [8][10]. - The company anticipates net sales growth of approximately 3% for the full year 2025, up from a previous estimate of at least 2% [4][5]. Segment Performance - North America Confectionery segment net sales increased by 5.6% to $2,615.6 million, with organic, constant currency net sales up 5.2% driven by net price realization [16][36]. - North America Salty Snacks segment net sales grew by 10.0% to $321.0 million, with volume increasing approximately 11 points [19][21]. - International segment net sales rose by 12.1% to $244.8 million, with a volume increase of approximately 6% [23][36]. Cost and Margin Analysis - Reported gross margin decreased to 32.6% from 41.3% in Q3 2024, while adjusted gross margin fell to 31.8% from 40.3% [11][28]. - Selling, marketing, and administrative expenses increased by 1.5% year-over-year, with advertising expenses down by 5.0% [12][36]. - The reported operating profit was $434.6 million, a decrease of 29.1% compared to the prior year, resulting in an operating profit margin of 13.7% [13][36]. Tax and Corporate Expenses - The effective tax rate for Q3 2025 was reported at 25.7%, an increase of 1,170 basis points from the previous year [14][36]. - Unallocated corporate expenses rose by 38.9% to $193.1 million, primarily due to higher incentive compensation and consulting fees [25][36].

U.S. retailers are offering more discounts on Hershey goods ahead of its biggest holiday, Halloween, according to data, as the candymaker hiked prices due to rising costs from tariffs and cocoa inflat... ...

Key Takeaways Hershey's transformation and ERP initiatives are driving operational and marketing gains.Pricing actions and the AAA program are likely to have supported top-line growth in the third quarter.High cocoa prices and increased brand investments are expected to have pressured profitability.The Hershey Company (HSY) is likely to register an increase in the top line when it reports third-quarter 2025 earnings on Oct. 30. The Zacks Consensus Estimate for Hershey’s quarterly revenues is pegged at $3.12 ...

Core Insights - The article highlights three top consumer brands offering attractive dividend yields ranging from 2.91% to 4.89%, presenting opportunities for passive income amidst market volatility [1]. Company Summaries - **Constellation Brands**: - Forward dividend yield is 2.91% - Shares have decreased by 49% from recent highs due to macroeconomic challenges, presenting a buying opportunity - The company owns popular Mexican beer brands, including Modelo and Corona, with new product Corona Sunbrew becoming the top new beer brand in the U.S. [3][4] - **Hershey**: - Forward dividend yield is 2.97% - Stock has fallen by 33% from previous highs due to record cocoa prices and poor harvests, making it a good buying opportunity - Hershey has a strong brand presence with top products like Reese's, contributing to an $11 billion snack business, and has paid dividends for 95 years, indicating financial stability [5][6][7][8] Market Context - Both Constellation Brands and Hershey are facing near-term challenges but have profitable businesses that support their dividend payments, making them attractive for income investors [7].

Core Insights - The Hershey Company is a leading U.S. confectionery and snacks manufacturer with a market capitalization of approximately $37.3 billion, selling products in around 85 countries [1] - Analysts expect Hershey to report a fiscal Q3 2025 profit of $1.08 per share, a significant decline of 53.9% from $2.34 per share in the same quarter last year [2] - For fiscal 2025, the projected EPS is $5.93, down 36.7% from $9.37 in fiscal 2024, but expected to rebound to $6.65 in fiscal 2026, reflecting a year-over-year growth of 12.1% [3] Stock Performance - Hershey's shares have gained marginally over the past 52 weeks, underperforming the S&P 500 Index's 14.5% increase but outperforming the Consumer Staples Select Sector SPDR Fund's 2.8% decline [4] - The stock has experienced weak performance due to rising raw material costs, particularly cocoa prices, which have pressured margins and challenged demand sustainability amid price increases [5] Analyst Ratings - The consensus rating for Hershey's stock is cautious, with a "Hold" rating overall; among 22 analysts, three recommend a "Strong Buy," 16 suggest a "Hold," and three advise a "Strong Sell" [6] - The average analyst price target for Hershey's stock is $190.67, indicating a modest upside potential of 3.5% [6]

AI was the top theme at SPARK Talent 2025. While more talent acquisition professionals are warming to the idea that AI can bring recruiting efficiency and cost savings to their jobs and organizations, proving this to the C-suite is often the challenge for HR leaders.During a case study and Q&A session with attendees at SPARK TALENT, Debra Simmers, Global Head of Talent Acquisition at The Hershey Company, talked about the use of AI in talent acquisition. In response to an attendee’s question about how to inf ...