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Sep 27, 2020
Hershey Q3 2020 Earnings Report
Hershey's financial performance for Q3 2020 showed positive growth, driven by strong sales and effective cost management.
Key Takeaways
Hershey reported a strong third quarter with net sales increasing by 4.0% to $2,219.8 million and adjusted diluted EPS growing by more than 15%. The company experienced confectionery share gains across markets, particularly in the U.S., and saw sequential improvement in international markets and owned retail locations.
Consolidated net sales increased by 4.0% to $2,219.8 million.
Organic, constant currency net sales increased by 3.8%.
Reported net income increased by 39.0% to $447.3 million, or $2.14 per share-diluted.
Adjusted earnings per share-diluted increased by 15.5% to $1.86.
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 reinstating full-year guidance based on current visibility into sales and costs for the balance of the year.
Positive Outlook
- Full-year reported net sales are expected to increase around 1.0%.
- The net impact of acquisitions and divestitures is estimated to be a 0.5 point benefit to net sales growth.
- Full-year reported earnings per share-diluted are expected to be in the range of $6.03 to $6.11, an increase of 10.0% to 12.0% versus 2019.
- Full-year adjusted earnings per share-diluted are expected to be in the range of $6.18 to $6.24, an increase of 7% to 8% versus 2019.
Challenges Ahead
- Full-year reported net sales reflect a 2 point headwind from COVID-19 in our International & Other segment.
- The impact of foreign currency exchange is anticipated to be a 0.5 point headwind based on current exchange rates.
Revenue & Expenses
Visualization of income flow from segment revenue to net income