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Dec 31, 2024
Hershey Q4 2024 Earnings Report
Hershey's net sales and earnings increased, driven by organic growth and strategic pricing actions.
Key Takeaways
The Hershey Company reported strong fourth-quarter and full-year 2024 financial results, with net sales increasing by 8.7% and organic constant currency net sales up by 9.0%. Net income saw a significant increase of 130.6%, while adjusted earnings per share also rose by 33.2%. The company is navigating expected pressures from rising cocoa prices in 2025 by focusing on top-line growth, share momentum, and productivity programs.
Consolidated net sales increased by 8.7% to $2,887.5 million.
Organic, constant currency net sales grew by 9.0%.
Reported net income increased by 130.6% to $796.6 million.
Adjusted earnings per share increased by 33.2% to $2.69.
Revenue by Geographic Location
Forward Guidance
The company expects net sales growth of at least 2%, driven primarily by net price realization. Reported earnings per share is expected to be down in the high-40% range and adjusted earnings per share to be down in the mid-30% range.
Positive Outlook
- Net sales growth of at least 2% driven by net price realization.
- Sour Strips acquisition to provide an approximate 30 basis point benefit to net sales growth.
- Advancing Agility & Automation Initiative savings of approximately $125 million.
- The company projects adjusted earnings per share to be down in the mid-30% range when excluding one-time costs associated with cost savings initiatives and acquisition integration activities.
- A reported and adjusted effective tax rate in the range of approximately 14% to 15%.
Challenges Ahead
- Reported earnings per share is expected to be down in the high-40% range.
- Higher commodity costs are expected to put significant pressure on 2025 earnings.
- Rebased incentive compensation is expected to negatively impact earnings.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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