Skip to content
AnalystLens

Hershey Annual Report, Year Ended Dec 31, 1993

Filing Date
Filed March 11, 1994
Period End
December 31, 1993
Security
HSY
In the record · 2016–202610-K1110-Q358-K142

HSY filed 11 annual reports (10-K), 35 quarterly reports (10-Q) and 142 current reports (8-K) between 2016 and 2026.

  1. Restructuring8-K · Feb ’17Feb ’17
  2. Material agreement8-K · Nov ’18Nov ’18
  3. Leadership change8-K · Feb ’21Feb ’21
  4. Material agreement8-K · Oct ’25Oct ’25

01—Abstract

Summary

Summary of the 10-K filed March 11, 1994. Cited figures are marked; the original filing is the authoritative source.

Hershey Foods Corporation, which filed this report under that name (now The Hershey Company), manufactures, distributes and sells chocolate, confectionery, grocery and pasta products, primarily in the United States and Canada.

For 1993, net sales rose to $3,488,249 thousanda from $3,219,805 thousand in 1992, a gain the filing describes as 8%. Net income fell to $193,325 thousand, or $2.15 per share, from $242,598 thousand, or $2.69 per share, because of a $103.9 million net cumulative effect of accounting changes (FAS No. 106 and FAS No. 109). Income before cumulative effect of accounting changes was $297,233 thousand, or $3.31 per share, which includes an after-tax gain of $40.6 million from the sale of the Freia Marabou investment.

The filing also highlights acquisitions made in 1993, including Sperlari in Italy for approximately $130.0 millionb, Overspecht B.V. (OZF Jamin) in the Netherlands and Belgium for approximately $20.2 million plus $13.4 million in assumed debt, and certain Cleveland-area pasta assets for approximately $14.6 million. Management attributes the second-quarter sales and income decline to sluggish demand for existing brands that began in late in the first quarter of 1993 and has continued into early 1994.

The company repurchased 2,573,100 shares of Common Stock during 1993 under a $200 millionc program, and its capitalization ratio was 27% at year-end 1993 and 1992. The company remains heavily influenced by the Hershey Trust, which held 21,398,312 shares of Common Stock and 15,153,003 shares of Class B Stock and was entitled to cast approximately 77% of total votes. The filing states that cocoa and semolina costs are key risks, with semolina supplies expected to remain tight until the fall 1994 harvest.

02—Key points

Key Highlights

  1. Net sales of $3,488,249 thousand in 1993, up from $3,219,805 thousand in 1992.
  2. Net income of $193,325 thousand ($2.15 per share), down from $242,598 thousand ($2.69 per share), after a $103.9 million net cumulative effect of accounting changes.
  3. Income before cumulative effect of accounting changes of $297,233 thousand ($3.31 per share), including an after-tax gain of $40.6 million on the sale of the Freia Marabou investment interest.
  4. 1993 acquisitions included Sperlari (about $130.0 million), Overspecht B.V./OZF Jamin (about $20.2 million plus $13.4 million of assumed debt), and Ideal/Mrs. Weiss (about $14.6 million).
  5. Repurchased 2,573,100 shares of Common Stock in 1993 under a $200 million program; cash dividends paid were $100.5 million.
  6. Sluggish demand for existing brands began in late first quarter 1993 and continued into early 1994; the second-quarter 1993 net sales and net income declined.
  7. The Hershey Trust controls approximately 77% of total votes of both common classes.

03—Questions

Frequently Asked Questions

  1. How did Hershey's 1993 earnings compare with 1992?

    Net income was $193,325 thousand ($2.15 per share) in 1993, versus $242,598 thousand ($2.69 per share) in 1992. The decline reflects a $103.9 million net cumulative effect of accounting changes for FAS No. 106 and FAS No. 109. Before that effect, income was $297,233 thousand ($3.31 per share), which includes an after-tax gain of $40.6 million on the sale of the Freia investment.

  2. What acquisitions did the company make in 1993?

    The company bought Sperlari, an Italian confectionery business, for approximately $130.0 million in September 1993. It also purchased Overspecht B.V. (OZF Jamin) for approximately $20.2 million plus $13.4 million of assumed debt in October 1993, and certain assets of Ideal Macaroni and Weiss Noodle for approximately $14.6 million in March 1993.

  3. What is the company's financial position and capital structure?

    The capitalization ratio was 27% at December 31, 1993 and 1992. The current ratio was 1.1:1 at year-end 1993, down from 1.3:1, and total assets were $2,855,091 thousand. Stockholders' equity was $1,412,344 thousand. The company had $337,286 thousand of short-term debt and $165,757 thousand of long-term debt at year-end.

  4. What risks does the filing identify for the business?

    The filing cites cocoa beans as the most significant raw material for chocolate and confectionery products, with prices stable in 1993 but expected to possibly trend upward in 1994. Semolina for pasta is expected to remain tight until the fall 1994 harvest. It also notes sluggish demand for existing brands that continued into early 1994, and the Hershey Trust's voting control of approximately 77%.

  5. How much did the company spend on capital additions and share repurchases?

    Capital additions were $211,621 thousand in 1993, and the filing anticipates capital expenditures of about $200 million per year over the next several years. During 1993 the company repurchased 2,573,100 shares of Common Stock at an average price of $51 per share, for a total of $131,783 thousand in cash flow from repurchases of Common Stock.

04—Continue

← View all 10-K filings