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Mar 31, 2024
Hershey Q1 2024 Earnings Report
Hershey's Q1 2024 financial results were announced, with the company reaffirming its 2024 net sales and earnings outlook.
Key Takeaways
Hershey reported a strong start to 2024, with consolidated net sales increasing by 8.9% to $3,252.7 million and net income rising by 36.5% to $797.5 million, or $3.89 per share-diluted. The company reaffirms its 2024 net sales growth of 2% to 3% and adjusted earnings per share growth of approximately 0%.
Consolidated net sales increased by 8.9% to $3,252.7 million.
Organic, constant currency net sales increased by 8.6%.
Reported net income increased by 36.5% to $797.5 million, or $3.89 per share-diluted.
Adjusted earnings per share-diluted increased by 3.7% to $3.07.
Hershey
Hershey
Forward Guidance
The Company is reiterating its net sales growth, reported earnings per share and adjusted earnings per share outlook for the year.
Positive Outlook
- Net sales growth of 2% to 3%.
- Reported earnings per share growth of approximately 0%.
- Adjusted earnings per share growth of approximately 0%.
- A reported and adjusted effective tax rate of approximately 13%.
- Advancing Agility & Automation Initiative savings of $100 million.
Challenges Ahead
- Other expense, which primarily reflects the write-down of equity investments that qualify for a tax credit, of approximately $220 million to $230 million.
- Interest expense of approximately $165 million to $175 million, reflecting a higher interest rate environment.
- Capital expenditures of approximately $600 million to $650 million, driven by core confection capacity expansion and continued investments in a digital infrastructure including the build and upgrade of a new enterprise resource planning (“ERP”) system across the enterprise.
- Derivative mark-to-market losses
- Business realignment activities