Hershey Q2 2022 Earnings Report
Key Takeaways
Hershey's business momentum continued in the second quarter, with double-digit sales growth in each segment resulting in strong earnings per share performance. The company is raising its financial expectations for the year and investing more heavily in its brands, capabilities and people in the second half to continue this momentum into 2023.
Consolidated net sales of $2,372.6 million, an increase of 19.3%.
Organic, constant currency net sales increased 14.1%.
Reported net income of $315.6 million and $1.53 earnings per share-diluted, an increase of 5.5%.
Adjusted earnings per share-diluted of $1.80, an increase of 22.4%.
Hershey
Hershey
Forward Guidance
The Hershey Company is increasing its net sales outlook to reflect continued strength in consumer demand and net price realization. Price elasticities are expected to moderate from the second quarter, but remain favorable to historical levels, as inflation and fewer government benefits are expected to weaken consumers’ buying power. Profit from increased sales growth is expected to more than offset higher supply chain costs, elevated advertising and merchandising levels and increased incentive compensation costs, to deliver higher reported and adjusted earnings per share growth.
Positive Outlook
- Net sales growth 12% - 14%
- Reported earnings per share growth 9% - 12%
- Adjusted earnings per share growth 12% - 14%
- Strength in consumer demand
- Net price realization
Challenges Ahead
- Inflation
- Fewer government benefits
- Higher supply chain costs
- Elevated advertising and merchandising levels
- Increased incentive compensation costs