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Oct 01, 2023
Hershey Q3 2023 Earnings Report
Hershey's Q3 2023 financial results were reported, reaffirming the 2023 net sales and earnings outlook.
Key Takeaways
Hershey reported strong third-quarter seasonal sell-in, with consolidated net sales increasing by 11.1% to $3,030.0 million. The company reaffirmed its full-year sales and earnings commitments, with organic, constant currency net sales increasing by 10.7%.
Consolidated net sales increased by 11.1% to $3,030.0 million.
Organic, constant currency net sales increased 10.7%.
Reported net income increased 29.9% to $518.6 million, or $2.52 per share-diluted.
Adjusted earnings per share-diluted increased 19.8% to $2.60.
Hershey
Hershey
Hershey Revenue by Geographic Location
Revenue by Geographic Location
International Revenue
CapyFin.com Forward Guidance
The Company is reiterating its net sales growth, reported earnings per share, and adjusted earnings per share outlook for the year.
Positive Outlook
- Net sales growth of approximately 8%
- Reported earnings per share growth between 13% and 15%
- Adjusted earnings per share growth between 11% and 12%
- Reported and adjusted effective tax rate of approximately 15%
- Capital expenditures of approximately $800 million to $850 million
Challenges Ahead
- Other expense, which primarily reflects the write-down of equity investments that qualify for a tax credit, of approximately $225 million to $230 million
- Interest expense of approximately $155 million
- An overall tax outlook that reflects a higher investment in tax credits
- Complications with the design or implementation of our new enterprise resource planning system
- Slower growth or recession