Core Insights - The Hershey Company has completed the acquisition of LesserEvil, enhancing its portfolio of better-for-you snacks and expanding its manufacturing capacity [1][3][4] Group 1: Acquisition Details - The acquisition of LesserEvil adds a high-growth brand known for organic snacks that align with consumer demand for healthier options [1][2] - LesserEvil's product line includes organic popcorn and puffs made with premium ingredients, categorized as USDA Organic and non-GMO [2][4] - The acquisition is part of Hershey's strategy to diversify its offerings and meet the growing consumer preference for better-for-you snacking [5][6] Group 2: Strategic Fit - LesserEvil complements Hershey's existing brands, including its well-known confectionery products and salty snack brands like SkinnyPop and Dot's Homestyle Pretzels [4][6] - The salty snack portfolio has shown significant growth, expanding 1.5 times faster in 2024 compared to the previous three years, indicating a strategic focus on this category [4] Group 3: Leadership and Operations - The leadership team at LesserEvil will remain in place to continue driving innovation and maintaining product quality [6] - The combined teams will focus on delivering growth and insights to ensure the right products are available to consumers at the right time [6] Group 4: Company Overview - The Hershey Company generates over $11.2 billion in annual revenues and operates in approximately 70 countries, with a diverse portfolio of iconic brands [8][9] - Hershey has a long-standing commitment to responsible operations and community support, dating back over 130 years [9]

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].

Company Overview - The Hershey Company (NYSE:HSY) produces and sells a variety of confectionery and snack products under well-known brands such as Hershey's, Reese's, Kit Kat, and Jolly Rancher [2] Market Position - Hershey is considered to be in an "unassailable position" with commodity prices, particularly cocoa, having peaked, and there is no significant competition threatening its market dominance [1] - The company is viewed as a strong earnings play, especially among food stocks, which are performing well [1] Leadership Changes - The recent transition from CEO Michele Buck to Tanner, who has a brief tenure at Wendy's, raises concerns about leadership stability, despite Tanner's extensive background at PepsiCo [2] Investment Perspective - While Hershey is acknowledged as a potential investment, there are suggestions that certain AI stocks may offer greater upside potential and less downside risk [3]

Core Insights - The Hershey Company has appointed Natalie Rothman as Chief Human Resources Officer, effective August 18, 2025, to lead its global HR function [1][3] - Rothman has over 25 years of HR experience and is recognized for her ability to build high-performing teams and modernize HR operations across various industries [2][3] Company Overview - The Hershey Company is a leading snacks company with over 20,000 employees globally, generating more than $11.2 billion in annual revenues from over 90 brand names in approximately 80 countries [5] - The company is committed to ethical and sustainable operations, with a long history of supporting education through initiatives like the Milton Hershey School [6] Leadership Experience - Rothman previously served as CHRO at Inspire Brands, where she implemented business process automation and AI tools to modernize HR operations [3] - At Advance Auto Parts, she led efforts to drive cultural change and enhance organizational capabilities through technology [3][4] Professional Affiliations - Rothman is a member of the New York and New Jersey Bar and the Human Resources Policy Association, and serves on the boards of Udemy and Pearce Services [4]

Core Insights - The Hershey Company reported strong second-quarter results for 2025, with net sales reaching $2,614.7 million, a 26.0% increase compared to the same period in 2024, driven by effective brand investments and innovation [7][13] - The company updated its full-year earnings outlook, projecting a decrease in reported earnings per share by approximately 50% and adjusted earnings per share by 36% to 38% due to tariff expenses and commodity cost mitigation strategies [5][4] - Hershey's strategic pricing and productivity enhancements are aimed at mitigating cocoa inflation and maintaining balanced growth [2][4] Financial Performance - Consolidated net sales increased by 26.0% to $2,614.7 million, with organic, constant currency net sales up 26.3% [7][13] - Reported net income was $62.7 million, or $0.31 per share-diluted, reflecting a 65.2% decrease year-over-year [7][6] - Adjusted earnings per share-diluted decreased by 4.7% to $1.21 [7][6] Segment Performance - North America Confectionery segment net sales rose 32.0% to $2,085.5 million, with volume growth driven by inventory adjustments and seasonal timing [20][22] - North America Salty Snacks segment net sales increased by 8.8% to $315.5 million, supported by reduced trade promotions [23][26] - International segment net sales grew by 4.4% to $213.7 million, with organic, constant currency net sales up 10.0% [27][28] Cost and Margin Analysis - Reported gross margin decreased to 30.5% from 40.2% in the prior year, primarily due to higher commodity costs and derivative mark-to-market losses [14][34] - Adjusted gross margin was 38.1%, down from 43.2% year-over-year [34][14] - Selling, marketing, and administrative expenses increased by 11.5%, driven by higher advertising costs [15][29] Tax and Interest Expenses - The reported effective tax rate was 57.9%, an increase of 3,150 basis points compared to the previous year, influenced by foreign rate differentials [18][34] - Interest expense was approximately $200 million, reflecting higher leverage and interest rates [8][34] Future Outlook - The company anticipates tariff expenses of approximately $170 to $180 million for the full year, impacting its financial outlook [8][5] - Hershey's guidance does not account for the potential effects of the proposed acquisition of LesserEvil [4][5]

Company Overview - Hershey Co. is positioned as a strong dividend growth stock, with a focus on domestic production to mitigate risks from international tariffs and geopolitical issues [4][5] - The company operates 14 plants in the U.S. and has additional facilities in Brazil, India, Canada, and Mexico, which provides insulation against potential retaliatory tariffs [4][5] Financial Performance - Cocoa prices, which account for approximately 20% of Hershey's cost of goods sold, have been volatile, impacting stock performance [7] - Hershey's stock is down about 1.4% this year, while the S&P 500 has gained approximately 4.4% [8] - Despite rising cocoa prices, they are forecasted to decline by 13% in 2026, which could benefit Hershey in the long term [8] Product Strategy - Hershey is adapting to changing consumer preferences by launching new products that reduce reliance on chocolate, such as the Reese peanut-butter-filled pretzels [11] - The company has made strategic acquisitions, including two plants from Weaver Popcorn Manufacturing, to diversify its product offerings and mitigate cocoa price fluctuations [11] Cost Management - Hershey is implementing a two-year restructuring plan aimed at saving $300 million through automation and streamlined production, which has positively impacted free cash flow [12] - The increase in free cash flow has enabled a 32% boost to Hershey's dividend in 2024, highlighting the company's commitment to returning value to shareholders [12][13] Dividend Outlook - Hershey's current dividend yield is 3.3%, which is more than double the S&P 500 average, with a focus on payout growth as a key investment driver [13] - The stock's price has historically tracked the dividend payout, suggesting potential for a "snap back" in stock performance as cocoa prices retreat and cost-cutting measures take effect [13][14] Market Stability - Hershey is characterized by low volatility, with a five-year beta rating of 0.28, indicating it is less volatile than the S&P 500, making it an attractive option in uncertain market conditions [14]

Core Insights - The Hershey Company is experiencing increased investor interest ahead of its Q1 2025 earnings release, despite a 14% decline in stock price over the past year [1][2][3] - Investors are potentially shifting focus from cost pressures to Hershey's strong brand portfolio and strategic evolution, which may provide defensive positioning and growth potential [2][3] Financial Performance - Hershey's management has guided for a significant drop in Adjusted EPS for fiscal year 2025, projected to decline in the mid-30% range due to rising cocoa prices [5] - Cocoa futures have recently retreated by as much as 30% from record highs, indicating a potential easing of cost pressures [6][7] Business Strategy - Hershey is diversifying its product offerings beyond confectionery, with successful salty snack brands and a pending acquisition of LesserEvil, which aligns with consumer trends towards healthier snacks [9][10] - The company is expected to achieve at least 2% net sales growth in fiscal 2025, reflecting strong brand loyalty and effective pricing strategies [8] Operational Efficiency - Hershey's "Advancing Agility & Automation Initiative" is projected to deliver approximately $125 million in savings during 2025, aiding in cost management and funding for innovation [12] - The company maintains a strong dividend yield of 3.28%, supported by a 15-year track record of annual dividend increases [11][13] Market Positioning - The stock price decline from its 2023 peak may present an entry point for investors seeking quality in a defensive sector [16] - The upcoming Q1 2025 earnings report is crucial, with investors looking for updates on volume performance, margin management, and cocoa cost outlook [15][16] Investment Consideration - Hershey offers a combination of defensive stability and growth potential, making it a compelling option for investors amid easing cost pressures and ongoing strategic initiatives [17][18]

Core Insights - The Hershey Company reported a significant decline in net sales and earnings for the first quarter of 2025, with net sales decreasing by 13.8% to $2,805.4 million compared to the same period in 2024 [6][12][41] - The company is facing challenges due to heightened cost pressures and ongoing tariff negotiations, but maintains a strong balance sheet that allows for continued investment in strategic initiatives and acquisitions [2][3] Financial Performance - Consolidated net sales for Q1 2025 were $2,805.4 million, down 13.8% from $3,252.7 million in Q1 2024 [6][41] - Reported net income was $224.2 million, or $1.10 per diluted share, representing a decrease of 71.7% compared to $797.5 million, or $3.89 per diluted share, in the prior year [6][41] - Adjusted earnings per share for Q1 2025 were $2.09, down 31.9% from $3.07 in Q1 2024 [6][41] Segment Performance - North America Confectionery segment net sales decreased by 15.0% to $2,300.1 million, with organic, constant currency net sales down 15.2% [18][41] - North America Salty Snacks segment net sales increased by 1.0% to $277.8 million, driven by a volume increase of approximately 4 points [22][41] - International segment net sales decreased by 15.9% to $227.5 million, with organic, constant currency net sales down 7.9% [25][41] Cost and Margin Analysis - Reported gross margin for Q1 2025 was 33.7%, a decrease of 1,780 basis points from 51.5% in Q1 2024, primarily due to higher commodity and manufacturing costs [13][41] - Adjusted gross margin was 41.2%, down 370 basis points from the previous year [13][41] - Selling, marketing, and administrative expenses decreased by 9.6% compared to Q1 2024, reflecting reduced advertising and lower compensation costs [14][41] Outlook and Guidance - The company expects net sales growth of at least 2% for the full year 2025, with reported earnings per share projected to decline in the high-40% range and adjusted earnings per share expected to decline in the mid-30% range [4][5] - The impact of the Sour Strips acquisition is anticipated to contribute approximately 30 basis points to net sales growth for the full year 2025 [4]

Core Viewpoint - The Hershey Company is acquiring LesserEvil to expand its portfolio into the better-for-you snacking market, aligning with changing consumer preferences [1][3][7] Group 1: Acquisition Details - Hershey plans to acquire LesserEvil, a brand known for organic snacks, which will enhance its snack portfolio [1][2] - The acquisition is subject to regulatory approval and is expected to close later this year [1] - LesserEvil's focus on bold flavors and clean ingredients complements Hershey's existing brands [2][3] Group 2: Strategic Implications - This acquisition will broaden Hershey's healthier snack offerings and introduce new product categories [3] - LesserEvil's manufacturing capabilities are expected to improve production efficiency for Hershey [3] - The move reflects Hershey's strategy to balance its traditional confectionery business with modern snacking trends [3][7] Group 3: Market Context - Hershey is undergoing a transformation to drive long-term growth by streamlining operations and improving efficiency [5] - The company is enhancing its marketing strategy to align with consumer trends and integrate its supply chain [5] - Hershey faces challenges such as high cocoa prices, changing consumer spending habits, and increased competition [6]

Core Viewpoint - The Hershey Company has announced a definitive agreement to acquire LesserEvil, a brand known for organic snacks, which will enhance Hershey's snacking portfolio and expand its market reach [1][2]. Company Strategy - The acquisition of LesserEvil is aimed at creating a multi-category, better-for-you snacks platform, allowing Hershey to reach new consumers and eating occasions [2]. - Hershey's President and CEO, Michele Buck, emphasized that LesserEvil complements existing brands and adds manufacturing capabilities to meet growing consumer demand [2]. Brand and Market Position - LesserEvil is recognized for its innovative approach to snacks, focusing on bold flavors and organic ingredients, which aligns with current consumer trends towards healthier options [2][3]. - The leadership team of LesserEvil will remain in place to drive growth and innovation within the company post-acquisition [2]. Cultural Alignment - The CEO of LesserEvil highlighted the cultural fit between the two companies, noting a shared commitment to responsible business practices and long-term vision [3]. - Hershey's legacy and commitment to excellence provide a supportive environment for LesserEvil to continue its growth and impact [3]. Financial Overview - The Hershey Company generates over $11.2 billion in annual revenues and operates in approximately 70 countries, showcasing its significant market presence [6].