Hershey beats Q2 estimates as strong Easter demand boosts sales and profits
Hershey Co. (HSY.N) reported second-quarter earnings on July 30 that surpassed Wall Street expectations, fueled by strong Easter demand for its confectionery and salty snack products.
The chocolate maker posted net sales of $2.61 billion, beating analysts’ estimates of $2.52 billion, according to LSEG data. Adjusted profit came in at $1.21 per share, ahead of the projected 99 cents, News.Az reports, citing Reuters.
Hershey said sales volume jumped 21% during the quarter ended June 29, helped by the timing of Easter (April 20 this year) and early shipments of Halloween orders. The company also raised prices by about 5% compared to a 1% increase a year ago, offsetting soaring cocoa costs.
The Pennsylvania-based company maintained its annual forecast but warned that full-year tariff expenses could reach $170 million-$180 million, far higher than the $15 million-$20 million incurred during the quarter.
Outgoing CEO Michele Buck said Hershey is taking “pivotal steps” to mitigate cocoa inflation through strategic pricing. The company recently announced that Kirk Tanner, formerly of Wendy’s, will succeed Buck as CEO on August 18.
Hershey’s shares edged up to $186.65 in premarket trading following the results. The company has also pledged to remove artificial colors from its snacks within the next two years.
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