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Mar 30, 2025
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.
Revenue by Segment
Revenue by Geographic Location
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
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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