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Apr 03, 2022
Hershey Q1 2022 Earnings Report
Delivered strong double-digit sales and earnings growth with ongoing momentum across business units.
Key Takeaways
The Hershey Company reported a strong first quarter with double-digit sales and earnings growth. The company raised its full-year financial outlook due to this strong performance and increased visibility into recently acquired businesses.
Consolidated net sales increased by 16.1% to $2,666.2 million.
Organic, constant currency net sales increased by 11.5%.
Reported net income increased by 35.3% to $533.5 million, or $2.57 per share-diluted.
Adjusted earnings per share-diluted increased by 31.8% to $2.53.
Hershey
Hershey
Forward Guidance
The company is raising its 2022 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
- Sustained consumer demand
- Favorable price elasticities across all segments
- Increased visibility into customer orders
- Increased visibility into programs of the recently acquired Dot’s and Pretzels businesses
- Elasticities were stronger than anticipated in the first quarter
Challenges Ahead
- Consumers’ buying power is further pressured by inflation
- Fewer government benefits as the year progresses
- Incremental profit from higher sales is expected to be partially offset by supply chain inflation
- Higher costs to serve incremental demand
- Slightly higher adjusted earnings per share growth