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Jul 02, 2023
Hershey Q2 2023 Earnings Report
Hershey's Q2 2023 financial results were reported with an updated 2023 earnings outlook.
Key Takeaways
Hershey reported a strong second quarter with net sales increasing by 5.0% to $2,490.3 million. Net income increased by 29.4% to $407.0 million, or $1.98 per share-diluted, and adjusted earnings per share-diluted increased by 11.7% to $2.01. The company reaffirmed its 2023 net sales outlook, updated its full-year reported earnings outlook to reflect additional acquisition costs, and raised its full-year adjusted earnings outlook.
Consolidated net sales increased by 5.0% to $2,490.3 million.
Organic, constant currency net sales increased by 5.0%.
Reported net income increased by 29.4% to $407.0 million, or $1.98 per share-diluted.
Adjusted earnings per share-diluted increased by 11.7% to $2.01.
Revenue by Geographic Location
Forward Guidance
The Company is reiterating its net sales growth, reducing its reported earnings-per-share, and raising its adjusted earnings-per-share outlook for the year. The company expects net sales growth of approximately 8%, reported earnings per share growth of 13% - 15%, and adjusted earnings per share growth of 11% - 12%.
Positive Outlook
- Net sales growth of approximately 8%.
- Reported earnings per share growth of 13% - 15%.
- Adjusted earnings per share growth of 11% - 12%.
- A reported and adjusted effective tax rate of approximately 16%.
- Capital expenditures of approximately $800 million to $850 million, driven by core confection capacity expansion and continued investments in a digital infrastructure including the build and upgrade of a new ERP system across the enterprise.
Challenges Ahead
- Other expense, which primarily reflects the write-down of equity investments that qualify for a tax credit, of approximately $180 million to $190 million.
- Interest expense of approximately $155 million.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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