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Apr 04, 2021
Hershey Q1 2021 Earnings Report
Hershey experienced double-digit sales and earnings growth, driven by broad-based portfolio growth and increased consumer optimism.
Key Takeaways
Hershey reported strong first-quarter results with double-digit sales and earnings growth, leading to an increased full-year financial outlook. The company's performance was driven by continued momentum in North America and recovery in international markets.
Consolidated net sales increased by 12.7% to $2,295.9 million.
Organic, constant currency net sales increased by 12.9%.
Reported net income increased by 47.3% to $395.8 million, or $1.90 per share-diluted.
Adjusted earnings per share-diluted increased by 17.8% to $1.92.
Hershey
Hershey
Hershey Revenue by Segment
Forward Guidance
The company updated its 2021 net sales and earnings per share outlook to reflect the strength of its performance in the first quarter and expectations for the balance of the year.
Positive Outlook
- Full-year net sales growth is now expected to be in the range of 4% to 6%, an increase from the previously communicated range of 2% to 4%.
- Full-year reported earnings per share are now expected to be in the range of $6.64 to $6.86, an increase of approximately 9% to 12% from $6.11 in fiscal 2020.
- Full-year adjusted earnings per share are now expected to be in the range of $6.79 to $6.92, an increase of 8% to 10% from $6.29 in fiscal 2020, and an increase from the previously communicated range of 6% to 8%.
- Stronger than anticipated consumer mobility.
- Incremental distribution and merchandising opportunities in North America confection.
Challenges Ahead
- Higher input costs.
- Incentive compensation.
- Raw material and packaging cost inflation.
- Increased supply chain costs related to higher than anticipated demand.
- One-time incentives for manufacturing employees.