Hershey Reports Fourth-Quarter and Full-Year 2025 Financial Results; Provides 2026 Outlook

Core Insights - The Hershey Company reported a consolidated net sales increase of 7.0% to $3,091.0 million for the fourth quarter of 2025, with organic, constant currency net sales rising by 5.7% [8][16] - The company anticipates full-year 2026 net sales growth of 4% to 5%, driven by net price realization and increased innovation [9][10] Fourth-Quarter 2025 Financial Results Summary - Reported net income for the fourth quarter was $320.0 million, or $1.57 per share-diluted, reflecting a decrease of 59.9% [8][19] - Adjusted earnings per share-diluted for the fourth quarter were $1.71, a decrease of 36.4% compared to the previous year [8][36] - Reported gross margin decreased by 17.0 percentage points to 37.0%, influenced by higher commodity costs and lower volume [17][19] Full-Year 2025 Financial Results Summary - Consolidated net sales for the full year reached $11,692.6 million, an increase of 4.4% [8] - Reported net income for the full year was $883.3 million, or $4.34 per share-diluted, a decrease of 60.3% [8][19] - Adjusted earnings per share-diluted for the full year were $6.31, a decrease of 32.7% compared to 2024 [8][36] 2026 Full-Year Financial Outlook Summary - The company expects reported earnings per share-diluted to be in the range of $7.77 to $8.19, an increase of 79% to 89% versus 2025 [9][10] - Adjusted earnings per share-diluted are projected to be between $8.20 and $8.52, reflecting a growth of 30% to 35% compared to 2025 [9][10] Segment Performance - North America Confectionery segment net sales increased by 5.3% to $2,478.5 million, driven by net price realization [22] - North America Salty Snacks segment net sales surged by 28.0% to $357.0 million, with the acquisition of LesserEvil contributing approximately 10 percentage points to growth [25] - International segment net sales increased by 0.4% to $255.6 million, but organic, constant currency net sales decreased by 1.9% due to volume declines [28][29] Cost and Expense Analysis - Selling, marketing, and administrative expenses rose by 12.1% in the fourth quarter, driven by higher compensation and advertising costs [18] - Unallocated corporate expenses increased by 20.9% to $236.3 million, attributed to higher compensation costs and capability investments [30]