•
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.
Hershey
Hershey
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.