Financial Data and Key Metrics Changes - Total Hershey net sales increased by 7% in Q4 2025, with full-year growth of 4.4% [4][13] - Consolidated net sales for 2025 reached approximately $11.7 billion, reflecting a 4.4% increase year-over-year [13] - Adjusted gross margin for Q4 was 38.3%, a decrease of 650 basis points compared to the previous year due to commodity inflation and tariff expenses [16] Business Line Data and Key Metrics Changes - North America Confectionery net sales increased by 5.3% in Q4, with net price realization contributing approximately 10 points to growth [14] - North America Salty Snacks segment net sales surged by 28% in Q4, with organic constant currency growth of 18.2% [14] - The international segment saw a slight increase in net sales by 0.4% in Q4, but organic constant currency net sales declined by 1.9% [15] Market Data and Key Metrics Changes - U.S. confection retail sales growth was in line with the category in Q4, driven by strong innovation and holiday programming [4] - The U.S. salty snacking business experienced a retail sales growth of 15.6% in Q4, contributing to an 11.3% increase for the full year [5] - International segment achieved full-year organic constant currency net sales growth of 2.2%, with market share gains in Mexico, Brazil, and the U.K. [6] Company Strategy and Development Direction - The company aims to accelerate sustainable sales growth and restore margins while positioning itself for long-term success [3] - Strategic priorities for 2026 include delivering top-line growth, improving margins, and evolving the organization for future competitiveness [8][12] - The company plans to introduce innovative products and increase brand investments to drive category excitement and growth [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating a challenging environment marked by cocoa inflation and macroeconomic volatility [3] - The outlook for 2026 includes expected net sales growth of 4% to 5%, with a focus on strategic pricing and innovation [19] - Management is cautious about potential demand headwinds, including health trends and consumer financial pressures [20] Other Important Information - The AAA Program has generated over $300 million in net savings over the past two years, with an additional $100 million projected for 2026 [7] - The company completed the acquisition of LesserEvil, enhancing its position in the salty snacks market [17] - Capital expenditures for 2026 are projected to be between $425 million and $475 million, focusing on technology investments [23] Q&A Session Summary Question: What are the expectations for 2026 net sales growth? - The company expects total net sales growth of 4% to 5% for 2026, with contributions from the acquisition of LesserEvil [19] Question: How is the company addressing commodity inflation? - The procurement team effectively navigated cocoa markets, using hedging strategies to mitigate inflation impacts [7] Question: What are the plans for advertising and brand investment in 2026? - The company plans to increase media investment by double digits, supporting momentum across its business [21]

Hershey reported lower fourth-quarter profit as tariff costs and high cocoa prices continued to hurt its bottom line. ...

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]

Group 1: Investment Moves - The company increased its stakes in three dividend stocks, specifically Brookfield Renewable Partners, Hormel Foods, and Clorox, during late 2025 and early 2026 [1] - The decision to invest in Brookfield Renewable was driven by its diversification into energy storage and nuclear power, alongside its core renewable energy business [2][3] - Hormel Foods and Clorox were initially sold to offset gains but were repurchased with increased positions due to their potential for growth and restructuring efforts [4][5] Group 2: Company Performance and Dividends - Brookfield Renewable Partners operates in key clean energy segments and has significant partnerships with major companies like Microsoft and Google, contributing to its appeal [3] - Hormel Foods has a historically high dividend yield of 4.7% and is expected to return to growth with new leadership and restructuring [6] - Clorox also has a strong dividend yield of 4.5% and is pursuing growth through the acquisition of Gojo, the owner of Purell [5][6] Group 3: Market Dynamics - The consumer staples sector has been underperforming due to changing consumer preferences and economic conditions, prompting strategic selling of certain stocks [4] - The long-term investment strategy focuses on high-yield dividend stocks, suggesting a preference for stability and reliable income [7]

Core Insights - Mondelez International, Inc. (MDLZ) reported fourth-quarter 2025 results with revenues and adjusted earnings per share exceeding Zacks Consensus Estimates, driven by pricing and operational efficiencies [1][10] - Cocoa cost inflation was significant during the quarter, but management expects costs to moderate over time [1] Financial Performance - Adjusted earnings per share were 72 cents, a 4.6% increase on a constant-currency basis, surpassing the Zacks Consensus Estimate of 70 cents [2] - Net revenues rose 9.3% year over year to $10.5 billion, exceeding the Zacks Consensus Estimate of $10.3 billion, driven by organic growth, positive foreign-currency impacts, and contributions from the Evirth acquisition [3][10] - Organic net revenues grew 5.1% year over year, with pricing contributing 9.9 percentage points, while volume/mix declined by 4.8 percentage points [4] Regional Performance - Revenues from emerging markets increased 13.2% year over year to $4.1 billion, with organic growth of 8% [5] - Revenues from developed markets rose 6.9% year over year to $6.4 billion, with organic growth of 3.4% [5] - Region-wise, revenues increased 17.3% in Europe, 8.9% in Asia, the Middle East, and Africa, and 7.9% in Latin America, while North America saw a 0.6% decline [6] Margin and Profitability - Adjusted gross profit increased modestly, but adjusted gross margin declined 100 basis points to 30.5% due to elevated raw material costs and an adverse product mix [7] - Adjusted operating income surged 22.1%, with the adjusted operating income margin improving 190 basis points to 11.9% [8] Financial Health - MDLZ ended the quarter with cash and cash equivalents of $2.1 billion and total debt of $21.2 billion [9] - The company generated $4.5 billion in net cash from operating activities and delivered free cash flow of $3.2 billion for the full year 2025 [9] Shareholder Returns - Mondelez returned $4.9 billion to shareholders through dividends and share buybacks during 2025, highlighting its commitment to disciplined capital allocation [11] Future Outlook - For 2026, Mondelez expects organic net revenue growth to range between flat and 2%, with adjusted earnings per share projected to grow between flat and 5% on a constant-currency basis [12][13] - Free cash flow is anticipated to be approximately $3 billion, with currency translation expected to boost net revenue growth by about 2% and lift adjusted EPS by roughly 6 cents [13]

Core Insights - Immersion Investment Partners achieved a net return of 4.9% in Q4 2025, outperforming the Russell 2000 Index's return of 2.2% and the Russell Microcap Index's gain of 6.3% [1] - The yearly return for Immersion Investment Partners was 45.4%, significantly higher than the Russell 2000 Index's 12.8% and the Russell Microcap Index's 23.0% [1] - The firm expressed concerns about energy demands and unclear monetization paths in the context of massive investments in AI, indicating potential investment opportunities for companies with innovative business models [1] Company Focus: Mama's Creations, Inc. - Mama's Creations, Inc. (NASDAQ:MAMA) reported a stock price of $15.38 per share as of February 3, 2026, with a 22.06% return in the past month and a 97.69% increase over the past twelve months [2] - The company has a market capitalization of $625.248 million [2] - In Q3 fiscal results, Mama's Creations, Inc. achieved net sales growth of 50% to $47.3 million, exceeding consensus expectations of $43.2 million, driven by a recent acquisition and 18% organic sales growth [3] - The acquisition of Crown contributed $10 million in revenue during the quarter, with nearly 15 of the 18 percentage points of growth attributed to volume [3] - The integration of Crown has been described as seamless, with gross margins at 23.6% compared to a consensus of 21.9%, and EBITDA margins at 8% versus a consensus of 6.1% [3] - The company generated $3.8 million in adjusted EBITDA, up from $1.74 million a year ago, and $3.7 million in free cash flow compared to a $1.9 million outflow in the previous year [3]

Core Insights - John B. Sanfilippo & Son (JBSS) represents an investment opportunity in the growing popularity of nuts, which are currently experiencing rising prices, indicating favorable market conditions for the company [1] Company Overview - JBSS is positioned to benefit from the increasing demand for nuts, which is a positive trend for its business operations [1] Market Trends - The nut market is witnessing a surge in popularity, leading to higher prices, which is advantageous for companies like JBSS that are involved in nut production and distribution [1]

Core Insights - John B. Sanfilippo & Son (JBSS) represents an investment opportunity in the growing popularity of nuts, which are currently experiencing rising prices, indicating favorable market conditions for the company [1] Company Overview - JBSS is positioned to benefit from the increasing demand for nuts, which is a positive trend for its business operations [1] Market Trends - The nut market is witnessing a surge in popularity, leading to higher prices, which is advantageous for companies like JBSS [1]

Core Insights - The company reported a net sales decline of 5.2% year over year, primarily due to the bakery business, with approximately $18 million of the revenue decline attributed to this segment [1][7] - Management highlighted a 200 basis-point improvement in consolidated gross margin to 27.9%, driven by early savings from Project Apollo, plant consolidation, and a favorable product mix [2][7] - The company achieved sales of $343.8 million and adjusted EBITDA of $27 million, reflecting a 7% increase compared to the prior year [3][7] Financial Performance - The company reported adjusted earnings per diluted share of $0.33, while reported earnings per diluted share were $0.05 due to one-time charges [15] - Operating cash flow for the quarter was $36 million, with capital expenditures of $19 million [17] - The company ended the quarter with $67 million in cash and no long-term debt, alongside approximately $210 million in borrowing capacity [5][17] Project Apollo and Cost Management - Project Apollo delivered over $3 million in net savings in Q1, with a reiterated target of $20 million run-rate savings [6][8] - The quarter included $6.1 million in non-recurring closure costs, with an expectation of an additional $5 million in FY26 [6][8] - Management expects portfolio optimization to result in an approximate 3% decline in sales for fiscal 2026 [7] Segment Performance - The food service segment saw a net sales decline of $19.7 million, or 8.3%, largely due to the lower-margin bakery business [10] - Retail net sales increased by $1.2 million, or 2.6%, driven by improved handheld volume [11] - Frozen beverage net sales remained flat at $78.7 million, with modest increases in beverage sales [12] Innovation and Market Outlook - The company has a robust innovation pipeline, with planned shipments including new pretzel varieties and Dippin' Dots products [19] - Management acknowledged weaker box office performance impacting sales but expressed optimism for fiscal 2026 based on improved trends [19]

McIlhenny Company, the US-based manufacturer of Tabasco sauce, has appointed Nestlé executive Adam Graves as its new CEO. He replaces Harold Osborn, who retired in April after 25 years with the family-owned business, including the past five years as CEO. In a statement yesterday (2 February), McIlhenny said Graves has a “proven track record” of growing brands in the consumer-packaged goods industry. Graves, who joined the company on 26 January, spent 20 years at Nestlé, with roles across the Americas. ...