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Jun 30, 2024

Hershey Q2 2024 Earnings Report

Hershey's financial performance in Q2 2024 was impacted by consumer pullback on discretionary spending and planned inventory reductions, but saw growth in the confection category and momentum in Salty Snacks.

Key Takeaways

Hershey's Q2 2024 results showed a decrease in consolidated net sales by 16.7% to $2,074.5 million, and a decrease in reported net income of 55.1% to $180.9 million, or $0.89 per share-diluted. Adjusted earnings per share-diluted decreased by 36.8% to $1.27. The company is updating its full-year outlook, expecting net sales growth of approximately 2% and a slight decrease in adjusted earnings per share.

Consolidated net sales decreased by 16.7% to $2,074.5 million.

Organic, constant currency net sales decreased by 16.8%.

Reported net income decreased by 55.1% to $180.9 million, or $0.89 per share-diluted.

Adjusted earnings per share-diluted decreased by 36.8% to $1.27.

Total Revenue
$2.07B
Previous year: $2.49B
-16.7%
EPS
$1.27
Previous year: $2.01
-36.8%
Total Organic Net Sales Growth
-16.8%
Previous year: 5%
-436.0%
Gross Profit
$834M
Previous year: $1.13B
-26.4%
Cash and Equivalents
$467M
Previous year: $446M
+4.7%
Free Cash Flow
$195M
Total Assets
$12.4B
Previous year: $11.5B
+7.7%

Hershey

Hershey

Forward Guidance

The Company is updating its net sales growth, reported earnings per share and adjusted earnings per share outlook for the year.

Positive Outlook

  • Net sales growth ~2%
  • A reported and adjusted effective tax rate of approximately 13%
  • Advancing Agility & Automation Initiative savings of $100 million.

Challenges Ahead

  • Reported earnings per share growth Down 3% to Down 1%
  • Adjusted earnings per share growth Down slightly
  • Other expense of approximately $220 million to $230 million
  • Interest expense of approximately $165 million to $175 million
  • Capital expenditures of approximately $600 million to $625 million