Seasoned HR Executive Brings 25+ Years of Leadership Experience in Building High-Performing Teams and Modernizing HR OperationsHERSHEY, Pa., Aug. 18, 2025 /PRNewswire/ -- The Hershey Company (NYSE: HSY) today announced the appointment of Natalie Rothman as Chief Human Resources Officer, effective August 18, 2025. Rothman will lead Hershey's global human resources function and report to President and Chief Executive Officer Kirk Tanner. Natalie Rothman, Chief Human Resources Officer, The Hershey Company ...

Core Viewpoint - The Hershey Company announced plans to remove all artificial food dyes from its snacks and candies by the end of 2027, which has positively impacted its stock performance and mitigated regulatory risks [2][4]. Group 1: Company Announcement - Hershey plans to eliminate artificial food dyes from its products by the end of 2027, aligning with consumer preferences for healthier options [2]. - The decision follows increased scrutiny on synthetic dyes from regulatory bodies and state-level initiatives to ban or label such dyes [2]. Group 2: Market Reaction - Hershey's stock rallied 6.8% on the announcement, indicating positive investor sentiment and a potential rotation in market sectors [1]. - The removal of artificial dyes is seen as a risk mitigation strategy, enhancing the safety of Hershey's 3.3% dividend amidst regulatory uncertainties [4].

Financial Data and Key Metrics Changes - The company expects EPS to decline about 30% for the first half of the year, with Q2 expected to be down less than Q1, which was down over 30% [12][13][14] - Gross margin for Q2 is expected to decrease by approximately 700 basis points, influenced by tariff components and increased SG&A expenses [14][13] Business Line Data and Key Metrics Changes - The company reported a 10% increase in its business, with a 100 basis point increase in market share, particularly in the sweets category [23] - The company anticipates low single-digit growth in everyday chocolate for the second half of the year, driven by strong innovation [35] Market Data and Key Metrics Changes - The company has seen strong growth in international markets, particularly in Brazil, where organic sales grew double digits [98] - The competitive environment in international markets has normalized, aiding the company's performance [98] Company Strategy and Development Direction - The company is focused on mitigating tariff impacts through various strategies, including lobbying and operational adjustments [10][9] - The company aims to continue growing its chocolate business while expanding into the salty snacks and sweets categories, targeting younger and more diverse demographics [79][78] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in a path to earnings growth next year, despite current tariff challenges [20][21] - The company is actively monitoring consumer sentiment and adapting its strategies to maintain market share amid a weak consumer environment [31][30] Other Important Information - The company is not planning any buybacks for the year but remains open to capital allocation opportunities depending on how the year unfolds [99] - The company is investing in innovation and marketing to ensure long-term growth, particularly in the chocolate category [113][114] Q&A Session Summary Question: What is the risk of tariff expenses in Q3 and Q4? - Management indicated that unmitigated tariff impacts could reach up to $100 million per quarter, primarily from cocoa and Canadian retaliatory tariffs [8][9] Question: How should investors think about the magnitude of EPS decline in Q2? - Management expects EPS to be down about 30% for the first half, with Q2 showing a decline less than Q1 due to strong net sales [12][14] Question: What is the outlook for earnings growth next year? - Management maintains a positive outlook for earnings growth next year, despite the challenges posed by tariffs [20][21] Question: How is the company addressing consumer trends towards healthier eating? - Management noted that while consumer sentiment is weak, the chocolate category remains resilient, and they are focusing on premium and permissible products [31][30] Question: What is the competitive landscape in the U.S. chocolate market? - Management reported no significant changes in the competitive landscape, with smaller players softening and larger players increasing innovation [124] Question: How will the company approach pricing in light of cocoa prices? - Management confirmed that pricing will increase in Q2 and Q3 as part of their seasonal pricing strategy [128]