Hershey Q1 2024 Earnings Report
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
Hershey Revenue by Segment
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
Revenue & Expenses
Visualization of income flow from segment revenue to net income