The Hershey Company (NYSE:HSY) Q1 2023 Earnings Conference Call April 27, 2023 8:30 AM ET Company Participants Melissa Poole - VP, IR Michele Buck - Chairman and CEO Steve Voskuil - SVP and CFO Conference Call Participants Andrew Lazar - Barclays Ken Goldman - JPMorgan Cody Ross - UBS Nick Modi - RBC Pamela Kaufman - Morgan Stanley David Palmer - Evercore ISI Max Gumport - BNP Paribas Bryan Spillane - Bank of America Merrill Lynch Michael Lavery - Piper Sandler Rob Dickerson - Jefferies Jonathan Feeney - Co ...

Business Segments and Operations - The company operates through three segments: North America Confectionery, North America Salty Snacks, and International, with each segment focusing on specific product categories and key markets[9] - The company's sales are typically higher during the third and fourth quarters due to seasonal and holiday-related patterns[20] - The company engages in research and development activities across multiple countries to develop new products, improve existing ones, and enhance production processes[23] Acquisitions and Portfolio Expansion - In December 2021, the company completed the acquisition of Pretzels Inc. and Dot's Pretzels, LLC, enhancing its salty snacks portfolio and pretzel category expertise[10] - In June 2021, the company acquired Lily's Sweets, LLC, adding sugar-free and low-sugar confectionery products to its portfolio[11] Sales and Distribution - Approximately 28% of the company's consolidated net sales in 2022 were made to McLane Company, Inc., a major U.S. wholesale distributor[16] - The percentage of total consolidated net sales outside the United States was 12.5% for 2022, 13.0% for 2021, and 13.6% for 2020[27] Raw Materials and Supply Chain - Cocoa products are the most significant raw materials, with West Africa accounting for approximately 70% of the world's cocoa bean supply[18] - Cocoa futures contract prices decreased by 0.9% in 2022 compared to 2021, trading between $1.06 and $1.22 per pound[203] - Cocoa production in Ghana decreased by nearly 30% in 2022, while remaining stable in the rest of West Africa[203] - U.S. refined sugar prices ranged from $0.53 to $0.71 per pound in 2022, driven by tight domestic supply and strong demand[205] - Corn prices traded between $5.62 and $8.25 per bushel in 2022, influenced by global grain stock tightness due to the Russia-Ukraine conflict[206] - Fluid dairy milk prices ranged from $0.23 to $0.26 per pound in 2022, higher than 2021 due to reduced U.S. milk production and increased global demand[207] - Hard wheat prices traded between $7.72 and $13.21 per bushel in 2022, while soft wheat prices ranged from $7.40 to $12.29 per bushel, reaching historic highs[208] - Peanut prices in the U.S. ranged from $0.55 to $0.64 per pound in 2022, driven by higher competing crop prices and a smaller peanut crop[208] - Almond prices traded between $2.00 and $2.25 per pound in 2022, lower than 2021 due to large crop yields and high inventory levels[208] Environmental Commitments - The company aims to achieve a 50% absolute reduction in Scope 1 and 2 GHG emissions and a 25% absolute reduction in Scope 3 GHG emissions by 2030, compared to a 2018 baseline[25] - The company has made voluntary commitments to reduce environmental impacts, including eliminating commodity-driven deforestation and reducing greenhouse gas emissions[25] Marketing and Brand Strategy - The company's marketing strategy focuses on strong brand equities, product innovation, and superior product quality, supported by promotional programs and an efficient distribution network[17] International Operations and Assets - The percentage of total long-lived assets outside the United States was 17.9% as of December 31, 2022, and 18.8% as of December 31, 2021[27] Workforce and Labor Relations - The Company employed approximately 18,075 full-time and 1,790 part-time employees worldwide as of December 31, 2022[28] - Collective bargaining agreements covered approximately 6,470 employees, or 33% of the Company's worldwide workforce[28] Financial Risk Management - A hypothetical 100 basis point increase in interest rates would have increased interest expense by approximately $4.5 million for 2022 and $2.4 million for 2021 on short-term debt[195] - A 100 basis point increase in market interest rates would decrease the fair value of fixed-rate long-term debt by approximately $187 million at December 31, 2022, and $319 million at December 31, 2021[196] - The net fair value of foreign currency forward exchange contracts was an asset of $3.9 million at December 31, 2022, and $2.8 million at December 31, 2021[199] - An unfavorable 10% change in year-end foreign currency exchange rates would have declined the fair value of foreign currency forward exchange contracts by $18.4 million at December 31, 2022, and $24.8 million at December 31, 2021[199] - The Company uses futures and options contracts to hedge price volatility for raw materials such as cocoa, sugar, corn, dairy, wheat, natural gas, and diesel fuel, typically covering 3 to 24 months[202] - Dairy futures liquidity is less developed, making it difficult to hedge dairy costs for extended periods[202] - The notional value of open commodity derivative contracts was $243.0 million as of December 31, 2022, down from $313.2 million in 2021[210] - A 10% decrease in underlying commodity prices would have increased net unrealized losses by $25.1 million in 2022, offset by reduced commodity purchase costs[210]

The Hershey Company (NYSE:HSY) Q4 2022 Earnings Conference Call February 2, 2023 8:30 AM ET Company Participants Melissa A. Poole - VP, IR Michele Buck - Chairman and CEO Steve Voskuil - SVP and CFO Conference Call Participants Andrew Lazar - Barclays Robert Moskow - Credit Suisse Ken Goldman - JPMorgan Bryan Spillane - Bank of America Merrill Lynch Michael Lavery - Piper Sandler Cody Ross - UBS Chris Growe - Stifel Nick Modi - RBC Jason English - Goldman Sachs Pamela Kaufman - Morgan Stanley Christopher Ca ...

The Hershey Company (NYSE:HSY) Q3 2022 Earnings Conference Call November 4, 2022 8:30 AM ET Company Participants Melissa A. Poole – Vice President-Investor Relations Michele Buck – Chairman and Chief Executive Officer Steve Voskuil – Senior Vice President and Chief Financial Officer Conference Call Participants Andrew Lazar – Barclays Bryan Spillane – Bank of America Michael Lavery – Piper Sandler Robert Moskow – Credit Suisse Ken Goldman – J.P. Morgan Alexia Howard – Bernstein Pamela Kaufman – Morgan Sta ...

The Hershey Company (NYSE:HSY) Q2 2022 Earnings Conference Call July 28, 2022 8:30 AM ET Company Participants Melissa Poole - Vice President of Investor Relations Michele Buck - Chairman & Chief Executive Officer Steve Voskuil - Senior Vice President & Chief Financial Officer Conference Call Participants Andrew Lazar - Barclays Alexia Howard - Bernstein Robert Moskow - Credit Suisse Ken Goldman - JPMorgan Jason English - Goldman Sachs Bryan Spillane - Bank of America Michael Lavery - Piper Sandler Chris Gr ...

The Hershey Company (NYSE:HSY) Q1 2022 Earnings Conference Call April 28, 2022 8:30 AM ET Company Participants Melissa Poole – Vice President-Investor Relations Michele Buck – Chairman and Chief Executive Officer Steve Voskuil – Senior Vice President and Chief Financial Officer Conference Call Participants Andrew Lazar – Barclays Robert Moskow – Credit Suisse Ken Goldman – J.P. Morgan Jason English – Goldman Sachs Alexia Howard – Bernstein Bryan Spillane – Bank of America Michael Lavery – Piper Sandler Cody ...

The Hershey Company (NYSE:HSY) Q4 2021 Earnings Conference Call February 3, 2022 8:30 AM ET Company Participants Melissa Poole – Vice President, Investor Relations Michele Buck – Chairman and Chief Executive Officer Steve Voskuil – Senior Vice President and Chief Financial Officer Conference Call Participants Andrew Lazar – Barclays Robert Moskow – Credit Suisse Nik Modi – RBC Capital Markets Jason English – Goldman Sachs Michael Lavery – Piper Sandler Ken Zaslow – Bank of America Ken Goldman – JPMorgan Br ...

The Hershey Company (NYSE:HSY) Q3 2021 Earnings Conference Call October 28, 2021 8:30 AM ET Company Participants Michele Buck – Chairman and CEO Melissa Poole – Vice President of Investor Relations Steve Voskuil – Senior Vice President and CFO Conference Call Participants Jason English – Goldman Sachs Andrew Lazar – Barclays Robert Moskow – Credit Suisse Ken Goldman – JP Morgan Bryan Spillane – Bank of America Nick Modi – RBC Capital Markets Michael Lavery – Piper Sandler Alexia Howard – Bernstein Steve Pow ...