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Jul 04, 2021
Hershey Q2 2021 Earnings Report
Net sales and earnings increased due to robust recovery in away-from-home consumption and international markets and sustained elevated at-home consumption.
Key Takeaways
Hershey's Q2 2021 financial results showed strong growth with a 16.5% increase in consolidated net sales and a 12.4% increase in reported net income. The company updated its full-year financial outlook, reflecting the strength of its performance and the acquisition of Lily's Sweets, LLC.
Consolidated net sales increased by 16.5% to $1,989.4 million.
Organic, constant currency net sales increased by 15.5%.
Reported net income increased by 12.4% to $301.2 million, or $1.45 per share-diluted.
Adjusted earnings per share-diluted increased by 12.2% to $1.47.
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
The company is updating its 2021 net sales and earnings outlook to reflect the strength of its performance in the second quarter and the acquisition of Lily's Sweets, LLC.
Positive Outlook
- Full-year net sales growth is now expected to be in the range of 6% to 8%, an increase from the previously communicated range of 4% to 6%.
- This increase is driven by stronger than anticipated recovery in the company's away-from-home business and international markets, as well as the acquisition of Lily's.
- Full-year reported earnings per share are now expected to be in the range of $6.59 to $6.85, an increase of 8% to 12% from $6.11 in fiscal 2020.
- Full-year adjusted earnings per share are still expected to be in the $6.79 to $6.92 range, unchanged from the previously communicated 8% to 10% increase from $6.29 in fiscal 2020.
- Increased profit from higher sales is expected to be offset primarily by incremental tax reserves incurred in the second quarter in connection with an adverse ruling in a non-U.S. tax litigation matter, as well as higher supply chain costs associated with servicing higher volume.
Challenges Ahead
- The net impact of acquisitions and divestitures is anticipated to be a 0.7 point benefit.
- This slight decrease versus the previously communicated range of 9% to 12% is due to incremental costs to execute and integrate the Lily's acquisition.
- The company also expects A reported and adjusted effective tax rate in the range of 17 to 18%.
- Other expense of approximately $120 to $130 million.
- Interest expense of approximately $130 million.
Revenue & Expenses
Visualization of income flow from segment revenue to net income