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Sep 29, 2024
Hershey Q3 2024 Earnings Report
Hershey's Q3 2024 financial performance was affected by high cocoa prices and a challenging consumer environment, with net sales decreasing by 1.4% and adjusted earnings per share decreasing by 10.0%.
Key Takeaways
Hershey's Q3 2024 results reflect a challenging environment with a decrease in net sales and earnings. The company is focused on driving top-line and market share growth by focusing on key customers, expanding the chocolate portfolio, accelerating sweets, and maximizing seasonal strength.
Consolidated net sales decreased by 1.4% to $2,987.5 million.
Organic, constant currency net sales decreased by 1.0%.
Reported net income decreased by 12.7% to $446.3 million, or $2.20 per share-diluted.
Adjusted earnings per share-diluted decreased by 10.0% to $2.34.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
The Company is reducing its net sales growth, reported earnings per share and adjusted earnings per share outlook for the year.
Positive Outlook
- Reported and adjusted effective tax rate of approximately 11%.
- Advancing Agility & Automation Initiative savings of approximately $100 million.
Challenges Ahead
- Net sales growth ~2% to Flat
- Reported earnings per share growth (3)% to (1)% to (9)% to (6)%
- Adjusted earnings per share growth Down slightly to Down mid-single-digits
- Other expense, which primarily reflects the write-down of equity investments that qualify for a tax credit, of approximately $260 million to $270 million.
- Interest expense of approximately $170 million, reflecting a higher interest rate environment.
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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