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Mar 30
Hershey Q1 2025 Earnings Report
Hershey reported lower revenue and profit amid cost pressures and inventory timing impacts.
Key Takeaways
Hershey's Q1 2025 results reflected a significant year-over-year decline in revenue and profitability, largely driven by ERP-related volume timing, higher commodity costs, and mark-to-market derivative losses. However, salty snacks showed resilience with growth from Dot's and SkinnyPop brands.
Revenue fell 13.8% to $2.81B due to volume headwinds and fewer shipping days.
Adjusted EPS dropped 31.9% to $2.09, while reported EPS was $1.10.
Net income decreased 71.7% to $224.2M, impacted by derivative losses and higher input costs.
Salty Snacks grew 1% in revenue and improved margins, driven by Dot's and SkinnyPop performance.
Hershey
Hershey
Hershey Revenue by Segment
Hershey Revenue by Geographic Location
Revenue by Segment
North America Revenue
CapyFin.comInternational Revenue
CapyFin.comRevenue by Geographic Location
North America Revenue
CapyFin.com Forward Guidance
Hershey reaffirmed its full-year outlook despite uncertainty from tariffs and commodity pressures.
Positive Outlook
- Maintained full-year sales and EPS guidance.
- Expecting $125M in savings from agility and automation initiatives.
- Tariff impact limited to $15M–$20M in Q2.
- Acquisition of Sour Strips to slightly boost FY25 revenue.
- Reported and adjusted tax rates remain favorable at ~16%.
Challenges Ahead
- Anticipated high-40% drop in reported EPS for FY25.
- Mid-30% decline in adjusted EPS projected for FY25.
- Foreign exchange expected to be a 50 bps headwind.
- Interest expense projected to rise to $185M–$190M.
- Ongoing cost inflation and volume pressures continue to impact margins.
Revenue & Expenses
Visualization of income flow from segment revenue to net income