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Apr 02, 2023
Hershey Q1 2023 Earnings Report
Hershey's first quarter 2023 financial results were reported, with net sales and earnings outlook raised for 2023.
Key Takeaways
Hershey reported a strong start to the year with double-digit sales and earnings growth in the first quarter of 2023. Increased investments and strong execution drove resilient consumer demand. The company raised its full-year net sales growth and earnings-per-share outlook.
Consolidated net sales increased by 12.1% to $2,987.6 million.
Organic, constant currency net sales increased by 12.2%.
Reported net income increased by 10.9% to $587.2 million, or $2.85 per share-diluted.
Adjusted earnings per share-diluted increased by 17.0% to $2.96.
Revenue by Geographic Location
Forward Guidance
The Company is raising its net sales growth and earnings-per-share outlook for the year to the high end of its previous range. Net sales growth is expected to be ~8% and adjusted earnings per share growth ~11%.
Positive Outlook
- Net sales growth ~8%
- Reported earnings per share growth ~15%
- Adjusted earnings per share growth ~11%
- A reported and adjusted effective tax rate of approximately 16%
- Capital expenditures of approximately $800 million to $900 million
Challenges Ahead
- Other expense, which primarily reflects the write-down of equity investments that qualify for a tax credit, of approximately $185 million to $195 million
- Interest expense of approximately $145 million to $155 million
- Derivative mark-to-market gains
- Business realignment activities
Historical Earnings Impact
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Avg. Return Before/After Earnings
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