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Jun 29, 2025
Hershey Q2 2025 Earnings Report
Hershey reported a surge in revenue but faced significantly lower profitability in Q2 2025.
Key Takeaways
Hershey posted strong top-line growth in Q2 2025 with a 26% rise in revenue driven by volume recovery and favorable holiday timing, but bottom-line performance declined sharply due to higher commodity costs and derivative losses.
Revenue rose 26.0% year-over-year to $2.61 billion due to volume recovery and early seasonal shipments.
Reported EPS dropped to $0.31, while adjusted EPS was $1.21.
Net income decreased significantly to $62.7 million from $180.9 million a year ago.
Gross margin and operating margin both declined due to increased costs and derivative losses.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Hershey updated its FY25 outlook, projecting lower earnings due to tariff expenses, but affirmed revenue growth expectations.
Positive Outlook
- Net sales still expected to grow at least 2% for FY25.
- Tariff mitigation efforts through pricing and productivity enhancements.
- Adjusted EPS now guided at $5.81–$6.00.
- Cost savings from agility and automation initiatives raised to $150M.
- Sour Strips acquisition expected to add to sales.
Challenges Ahead
- Reported EPS now projected to decline by ~50%.
- Adjusted EPS forecast reduced to a 36–38% decline.
- Full-year tariff expense expected to reach $170–$180 million.
- Higher interest and other expenses impacting bottom line.
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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