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HSY · Hershey

50 filings

10-Q

HSY 10-Q Quarterly Reports

Hershey - 50 quarterly reports

Filing 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
  1. 2026-Q3

    Hershey Quarterly Report for Q3 Ended Sep 27, 2026

    The Hershey Company's Form 10-Q for the quarter ended September 27, 2026 shows strong top- and bottom-line growth versus the prior-year period. Net sales for the third quarter were $3,275.5 million, up from $3,181.4 million, an increase of $94.1 million, or 3.0%. Growth was driven by favorable price realization of approximately 11%, partly offset by a volume decrease of approximately 10%. Gross margin rose to 46.1% from 32.6%, and operating profit increased to $817.7 million from $434.6 million. Net income was $580.8 million, and diluted EPS was $2.88, compared with $1.36 a year earlier. For the first nine months, net sales were $9,167.0 million, up 6.6%, and net income was $1,473.6 million, with diluted EPS of $7.27. The filing attributes the margin improvement largely to lower commodity costs, tariff refunds, net savings from the Advancing Agility & Automation Initiative, and favorable mark-to-market activity on commodity derivatives. Partially offsetting these benefits were higher freight and logistics costs, higher SM&A expense (up 15.4% in the quarter), and a segment loss in International. The North America Salty Snacks segment's income declined in the quarter, while North America Confectionery's segment income rose to $949.7 million. Cash from operations for the nine months was $1,638.8 million, and the company repurchased $439.4 million of common stock, repaid $500 million of notes, and paid $859.2 million in dividends. Total debt was about $5.1 billion, and cash and equivalents stood at $676.7 million at quarter end. Management cites ongoing risks, including tariffs, cocoa price volatility, supply chain costs, and the conflict in the Middle East, which the company says has not yet had a material impact on commodity prices or supply. The company also expects 2026 capital expenditures of approximately $425 million to $475 million, and it states that it believes it has sufficient liquidity for both short- and long-term needs.

    Oct 29, 2026
  2. 2026-Q2

    Hershey Quarterly Report for Q2 Ended Jun 28, 2026

    The Hershey Company's second-quarter 2026 results (three months ended June 28, 2026) showed net sales of $2.79 billion, up from $2.61 billion a year earlier, with net income of $457.7 million, or $2.26 per diluted share, versus $62.7 million, or $0.31, in the prior-year quarter. The filing states that net sales growth was driven primarily by favorable price realization of approximately 12%, partially offset by a volume decrease of approximately 8%, with LesserEvil contributing approximately a 3% benefit. Gross margin rose to 45.3% from 30.5%, reflecting favorable net price realization and AAA Initiative savings, partly offset by supply chain costs and volume declines. The prior-year quarter included $523.7 million of decreases in cost of sales tied to lower volume and savings, while commodity mark-to-market activity was a $117.4 million favorable item in cost of sales for the quarter. For the first six months, net sales were $5.89 billion, up 8.7%, and net income was $892.8 million, or $4.39 per diluted share. Cash generated from operating activities was $888.1 million, up from $508.9 million, while capital additions were $204.4 million. Cash and cash equivalents ended the period at $791.2 million, and total short- and long-term debt was $5.6 billion, including $504.2 million of current long-term debt, of which $500 million of 2.300% Notes mature on August 15, 2026. The company repurchased $439.4 million of common stock in the first half and approved an additional $500 million share repurchase authorization in June 2026, with about $270 million remaining under the December 2023 program. Management noted continued macroeconomic and geopolitical uncertainty, including tariffs and the conflict in the Middle East, and cocoa prices declined to an average of $1.80 per pound in the first half of 2026.

    Jul 30, 2026
  3. 2026-Q1

    Hershey Quarterly Report for Q1 Ended Mar 29, 2026

    The Hershey Company's first quarter 2026 (quarter ended March 29, 2026) showed strong top- and bottom-line growth. Net sales rose to $3,104.2 million from $2,805.4 million, an increase of $298.8 million, or 10.6%, driven mainly by favorable price realization of approximately 10%, a 2% benefit from the LesserEvil acquisition, and a 1% foreign currency benefit, partially offset by a volume decrease of approximately 2%. Gross margin expanded to 39.4% from 33.7%, and operating profit rose to $640.7 million from $369.2 million. Net income was $435.1 million, or $2.13 per diluted share, versus $224.2 million, or $1.10, a year earlier. Beneath the consolidated results, segment performance was mixed. North America Confectionery net sales grew 8.3% to $2,489.9 million with segment income up 13.8%, while volume declined approximately 4%. North America Salty Snacks sales rose 26.0%, largely from LesserEvil, but segment income fell 18.1% to $34.3 million on higher supply chain costs, including a voluntary temporary product withdrawal. International segment income fell 46.8% to $15.3 million despite 16.1% sales growth. Management continues to cite higher commodity, tariff and supply costs as pressures, and notes that cocoa futures prices averaged $1.86 per pound in the quarter, down approximately 49% from the 2025 annual average of $3.64. Cash generation and liquidity remained solid. Operating cash flow was $468.8 million, and cash and cash equivalents stood at $877.0 million at quarter end against total debt of $5.2 billion on the balance sheet. The company paid $288.0 million in dividends and repurchased $69.3 million of stock, and it expects 2026 capital expenditures of approximately $425 million to $475 million. Management says it has sufficient liquidity for both short- and long-term needs, and it flagged ongoing uncertainty from tariffs, the Middle East conflict and possible refund requests following a February 20, 2026 ruling.

    Apr 30, 2026
  4. 2025-Q3

    Hershey Quarterly Report for Q3 Ended Sep 28, 2025

    The Hershey Company's third-quarter 2025 results (quarter ended September 28, 2025) showed sharply lower profitability despite higher sales. Net sales rose to $3,181.4 million from $2,987.5 million, an increase of 6.5%, driven by favorable price realization of approximately 6% and slightly positive volume. However, gross margin fell to 32.6% from 41.3%, primarily due to unfavorable commodity (cocoa) and tariff costs and unfavorable mix. Operating profit declined 29.1% to $434.6 million, and net income fell 38.1% to $276.3 million, with diluted EPS of $1.36 versus $2.20 a year earlier. The effective tax rate rose to 25.7% from 14.0%. For the first nine months of 2025, net sales were $8,601.6 million, up 3.4%, while net income declined 60.5% to $563.2 million and diluted EPS was $2.77 versus $7.00. Gross margin for the nine months was 32.3% compared with 45.0%. The nine-month results also include $244.4 million of unfavorable mark-to-market activity on commodity derivatives within cost of sales, and the filing notes commodity derivative losses of $387.9 million in unallocated items. Operating cash flow was $1,350.8 million, down from $1,590.0 million. The balance sheet reflects a larger debt load. In the first quarter of 2025 the company issued $2.0 billion of net-proceeds notes, and it repaid $600 million of maturing notes. Total short- and long-term debt was $5.4 billion, and cash rose to $1.2 billion. Management states it expects tariff expense to negatively impact full-year results and that 2025 capital expenditures will be approximately $425 million. The company also announced it would remove certified colors from its snacks by the end of 2027 and expects the LesserEvil acquisition to close by the end of 2025.

    Oct 30, 2025
  5. 2025-Q2

    Hershey Quarterly Report for Q2 Ended Jun 29, 2025

    The Hershey Company's Form 10-Q for the quarter ended June 29, 2025 shows a sharp earnings decline alongside higher sales. Net sales were $2.61 billion in the second quarter, up 26.0% from $2.07 billion a year earlier, while gross margin fell to 30.5% from 40.2% and operating profit dropped to $192.8 million from $287.9 million. Net income was $62.7 million, or $0.31 per diluted share, versus $180.9 million, or $0.89, in the prior-year quarter. The filing attributes the margin compression mainly to higher commodity costs, particularly cocoa, and to higher supply chain costs. Six-month net sales were $5.42 billion, up 1.7%, while six-month net income fell to $286.9 million from $978.3 million. Balance sheet and cash flow changes are notable. Total debt rose to about $5.6 billion, and the company issued $2.0 billion of long-term notes in the first quarter of 2025 while reducing short-term commercial paper borrowings by about $1.2 billion. Inventories rose to $1.84 billion from $1.25 billion at year-end, and operating cash flow was $508.9 million for the first six months, down from $894.7 million. Cash and equivalents increased to $912.3 million. Management said it believes liquidity is sufficient and that it expects 2025 capital expenditures of $425 million to $450 million. The filing also discloses pending and subsequent events. Hershey agreed on March 31, 2025 to acquire LesserEvil, LLC, which it expects to close by the end of 2025 using cash and short-term borrowings. The company is assessing the One Big Beautiful Bill Act, signed July 4, 2025. An executive employment agreement with Kirk Tanner, dated July 7, 2025, is incorporated by reference from a Form 8-K.

    Jul 30, 2025
  6. 2025-Q1-A2

    Hershey Quarterly Report (Amendment) for Q1 Ended Mar 30, 2025

    The Hershey Company filed this Amendment No. 2 on Form 10-Q/A to its Quarterly Report for the fiscal quarter ended March 30, 2025. The amendment corrects Item 5, Other Information, which covers Rule 10b5-1 trading arrangements. Amendment No. 1, filed May 20, 2025, had added Chairman, President and CEO Michele Buck's trading plan, which was adopted on February 27, 2025, but omitted a February 28, 2025 modification to that plan. The filing states that the omission resulted from an administrative error and that this amendment provides information about the plan as modified. The amendment does not change the financial statements in the original filing, which was filed May 1, 2025, and it includes no financial statements. It does not restate or update other information in the original filing or Amendment No. 1. Its new certifications from the principal executive and financial officers are filed under Item 6, and the paragraphs of those certifications covering internal control over financial reporting are omitted. For investors, the main disclosure is the set of insider sale plans listed in the table. Ms. Buck's plan covers 108,370 shares to be sold through October 31, 2025, after her February 28 modification increased the total by 77,160 shares from 31,210. Three other officers also adopted plans to sell shares in 2025. The filing reports 147,990,276 Common Stock shares and 54,613,514 Class B Common Stock shares outstanding as of April 25, 2025.

    Jul 3, 2025
  7. 2025-Q1-A

    Hershey Quarterly Report (Amendment) for Q1 Ended Mar 30, 2025

    The Hershey Company filed this Amendment No. 1 on Form 10-Q/A to its Form 10-Q for the fiscal quarter ended March 30, 2025, which was originally filed on May 1, 2025. The amendment's sole substantive purpose is to add a Rule 10b5-1 trading arrangement entered into by Michele G. Buck, Chairman, President and Chief Executive Officer, during the quarter, which the company says was inadvertently omitted from Item 5 of the original filing. The amendment contains no financial statements, and the company states that it does not amend or restate other information in the original filing. The filing states that no changes were made to the financial statements in the original filing. The amendment also discloses Rule 10b5-1 plans adopted during the quarter by three other officers: Rohit Grover, Senior Vice President, International (sale of 4,000 shares, plan duration through 12/31/2025); Jennifer L. McCalman, Vice President, Chief Accounting Officer (sale of 974 shares, through 8/28/2025); and James Turoff, Senior Vice President, General Counsel and Secretary (sale of 3,900 shares, through 11/28/2025). Ms. Buck's plan, adopted February 27, 2025, covers the sale of 31,210 shares and runs through October 31, 2025. The filing states that no other Rule 10b5-1 or non-Rule 10b5-1 trading arrangements were entered into or terminated by directors or officers during the period. The cover page reports 147,990,276 shares of Common Stock and 54,613,514 shares of Class B Common Stock outstanding as of April 25, 2025. The amendment also includes new Section 302 certifications from the Chief Executive Officer, Michele G. Buck, and the Chief Financial Officer, Steven E. Voskuil, with certain paragraphs omitted as permitted by the filing's stated rules.

    May 20, 2025
  8. 2025-Q1

    Hershey Quarterly Report for Q1 Ended Mar 30, 2025

    The Hershey Company's first-quarter 2025 Form 10-Q (quarter ended March 30, 2025) shows a sharp earnings decline. Net sales were $2,805.4 million versus $3,252.7 million in the prior-year quarter, a decrease of 13.8%, driven by a volume decline of approximately 15% in the first quarter, partly offset by price realization of approximately 2%. Gross margin fell to 33.7% from 51.5%, reflecting $618.9 million of higher costs (primarily cocoa), $251.6 million of unfavorable mark-to-market activity on commodity derivatives, lower volume and unfavorable mix. Operating profit declined 65.1% to $369.2 million, and net income fell to $224.2 million from $797.5 million, with diluted EPS of $1.10 versus $3.89. The company also recorded $16.4 million of business realignment costs tied to its Advancing Agility & Automation Initiative. Balance sheet and liquidity changed meaningfully during the quarter. Cash and cash equivalents rose to $1.5 billion from $730.7 million at year-end 2024, after the company issued $2.0 billion of net proceeds from four senior notes totaling $2.0 billion in principal, and reduced short-term debt to $144.6 million from $1,307.0 million by repaying commercial paper. Long-term debt rose to $5,177.3 million (non-current portion) from $3,190.2 million. Operating cash flow was $396.7 million, versus $569.1 million a year earlier, and capital additions were $145.5 million. Quarterly dividends paid totaled $271.6 million, and no shares were repurchased in the quarter, compared with $494.2 million of repurchases in the prior-year period. Management cited elevated cocoa prices (an average futures price of $4.30 per pound, up approximately 25% from the 2024 average), shifting consumer behavior, and tariff uncertainty as ongoing pressures. The filing states that tariffs did not have a material impact on results in the quarter, but it flags continued uncertainty. Management also said the pending LesserEvil acquisition, announced March 31, 2025, is expected to close by mid-2025, financed with cash on hand and short-term borrowings.

    May 1, 2025
  9. 2024-Q3

    Hershey Quarterly Report for Q3 Ended Sep 29, 2024

    The Hershey Company's Form 10-Q for the quarter ended September 29, 2024 shows a weaker third quarter and nine-month period. Net sales for the third quarter were $2,987.5 million, down 1.4% from $3,030.0 million a year earlier, driven by a volume decline of approximately 3% and partly offset by price realization of approximately 2%. Gross margin fell to 41.3% from 44.9%, citing commodity costs (notably cocoa), higher supply chain costs, unfavorable mix and business realignment costs. Net income declined 13.9% to $446.3 million and diluted EPS fell to $2.20 from $2.52. For the nine months, net sales were $8,314.7 million (down 2.3%) and diluted EPS was $7.00 versus $7.36. Operating profit for the third quarter was $613.2 million, down 16.7%, and business realignment costs rose to $27.6 million in the quarter, tied to the Advancing Agility & Automation initiative, whose total pre-tax cost is estimated at $200 million to $250 million through 2026. Management states that cocoa futures averaged $3.32 per pound in the first nine months of 2024, versus a 2023 annual average of $1.49, and that consumer demand for its products continued to decline. On the balance sheet, cash rose to $614.951 million and short-term debt increased to $1.196 billion, with current portion of long-term debt at $904.8 million. Cash dividends paid totaled $814.3 million and share repurchases were $494.2 million in the nine months. Management says it believes it has sufficient liquidity, and it expects 2024 capital expenditures of $575 million to $600 million.

    Nov 7, 2024
  10. 2024-Q2

    Hershey Quarterly Report for Q2 Ended Jun 30, 2024

    The Hershey Company's second-quarter 2024 Form 10-Q shows a sharp earnings decline. Net sales for the three months ended June 30, 2024 were $2,074.5 million versus $2,490.3 million a year earlier, with a volume decline of approximately 18% attributed in part to accelerated first-quarter shipments ahead of the ERP system implementation, which was completed at the beginning of the second quarter. Net income fell to $180.9 million from $406.9 million, and diluted EPS was $0.89 versus $1.98. Gross margin compressed to 40.2% from 45.5%, driven by higher commodity costs (primarily cocoa), unfavorable mark-to-market activity on commodity derivatives, higher business realignment costs and unfavorable mix. Operating profit declined 48.7% to $287.9 million. The prior-year quarter also included $77.4 million of write-downs on tax-credit partnership investments, which made the year-over-year comparison in other expense look favorable. For the first six months, net sales were $5,327.2 million, down 2.8%, and net income was $978.3 million, down 1.6%, with diluted EPS of $4.80 versus $4.83. Cocoa futures averaged $3.34 per pound in the first half of 2024, compared with a 2023 annual average of $1.49, and management describes the cocoa price outlook as uncertain. Operating cash flow was $894.7 million, and the company repurchased $494.2 million of shares and paid $543.9 million in dividends. Total debt was $5.4 billion, including $1,321.3 million of short-term debt and $605.2 million of current long-term debt maturing within the next year. Management states it believes liquidity is sufficient for its short- and long-term needs. The company's Advancing Agility & Automation initiative, approved in February 2024, is estimated to cost $200 million to $250 million through 2026, with ongoing annual savings of approximately $300 million expected at program conclusion. Capital expenditure guidance for 2024 was narrowed to $600 million to $625 million.

    Aug 1, 2024
  11. 2024-Q1

    Hershey Quarterly Report for Q1 Ended Mar 31, 2024

    The Hershey Company's first-quarter 2024 Form 10-Q, covering the three months ended March 31, 2024, reports net sales of $3,252.7 million, up 8.9% from $2,987.6 million in the prior-year quarter, with net income of $797.5 million (up 35.8%) and diluted EPS of $3.89 versus $2.85. Gross margin expanded to 51.5% from 46.3%, driven in part by a $218.0 million unallocated mark-to-market gain on commodity derivatives recognized in the quarter. The filing attributes the net sales increase to 5.2% favorable price realization and a 3.4% volume increase, with volume helped by accelerated shipments ahead of the ERP system implementation, which the company completed in early second quarter 2024. Segment income rose in North America Confectionery but declined in North America Salty Snacks and International. Cash generated from operations was $569.2 million, down from $755.4 million, as working capital and tax timing absorbed cash. Short-term debt rose to $1.29 billion from $719.8 million, largely from commercial paper, and the company repurchased $494.2 million of stock. Cocoa futures prices rose sharply in the quarter, and management expects 2024 capital expenditures of approximately $600 million to $650 million. The company also approved the Advancing Agility & Automation initiative in February 2024, with total pre-tax costs estimated at $200 million to $250 million through 2026. Investors should note that cocoa price volatility remains a key risk, and that the quarter's margin improvement relied heavily on non-cash derivative gains that the company excludes from segment income. Management said it expects some moderation in consumer spending for the rest of 2024.

    May 3, 2024
  12. 2023-Q3

    Hershey Quarterly Report for Q3 Ended Oct 1, 2023

    The Hershey Company's Form 10-Q for the quarter ended October 1, 2023 shows net sales of $3.03 billion for the third quarter, up 11.1% from $2.73 billion a year earlier, and net sales of $8.51 billion for the first nine months, up 9.5%. Net income for the quarter rose 29.8% to $518.6 million, and diluted EPS rose 29.9% to $2.52. The filing attributes the sales growth primarily to price realization (9.8% in the quarter and 9.1% year to date), with volume up only 0.9% in the quarter and 0.4% year to date. Management notes that net sales and net income gains were driven primarily by price and minimal volume increases, with incremental supply chain costs and gross margin pressure. Gross margin reached 44.9% in the quarter versus 40.6% a year earlier, helped by favorable year-over-year commodity derivative mark-to-market activity. Balance sheet and cash flow items were shaped by debt and capital activity. Long-term debt rose to $4.09 billion from $4.10 billion at year-end 2022, after the company issued $750 million of 2023 Notes (4.250% due 2028 and 4.500% due 2033) and repaid $750 million of maturing notes. Short-term debt rose to $819.9 million. Operating cash flow was $1.57 billion for the first nine months, roughly flat with the prior year, while capital additions increased to $548.6 million from $360.0 million, and management expects 2023 capital expenditures of $800 million to $850 million. The company repurchased 1,000,000 shares from the Milton Hershey School Trust for $239.9 million, and about $370 million remained under its May 2021 repurchase authorization. The filing also reports a Weaver Popcorn asset acquisition for $165.8 million in cash, an ERP implementation in progress, and an effective tax rate of 20.6% for the quarter versus 15.6% a year earlier. Management states it has sufficient liquidity and that disclosure controls were effective as of October 1, 2023.

    Oct 26, 2023
  13. 2023-Q3

    Hershey Quarterly Report for Q3 Ended Jul 2, 2023

    The Hershey Company's Form 10-Q for the quarter ended July 2, 2023 shows net sales of $2.49 billion for the second quarter, up from $2.37 billion a year earlier, with net sales up 5.0% per the MD&A. Growth was driven primarily by price realization of 7.7%, partly offset by a 2.7% volume decline, with the MD&A noting that consumers are buying less. Gross margin rose to 45.5% from 42.1%, and operating profit increased 22.8% to $560.7 million. Diluted EPS was $1.98, up from $1.53. Results were helped by a lower effective tax rate of 7.4% versus 21.8% a year earlier, and by a $77.4 million write-down of equity investments in tax-credit partnerships that was recorded in other (income) expense, net, which totaled $84.5 million in the quarter. For the first six months, net sales rose to $5.48 billion from $5.04 billion and net income reached $994.2 million versus $849.0 million. Operating cash flow was $1.05 billion, down from $1.11 billion, mainly because of working capital timing. Capital additions were $330.5 million, and the company expects 2023 capital expenditures of $800 million to $850 million. The company issued $750 million of notes in May 2023 and repaid $750 million of maturing notes. Total long-term debt was $4.09 billion at quarter end, and cash was $446.2 million. The company acquired Weaver Popcorn Manufacturing for $165.8 million in May 2023. The filing also notes that the Russia-Ukraine conflict and recession fears have affected consumer behavior, though management believes liquidity is sufficient.

    Jul 27, 2023
  14. 2023-Q2

    Hershey Quarterly Report for Q2 Ended Apr 2, 2023

    The Hershey Company's first quarter 2023 Form 10-Q (quarter ended April 2, 2023) reports net sales of $2.99 billion, up from $2.67 billion, and net income of $587.2 million, up from $533.5 million. Diluted EPS was $2.85 versus $2.57 a year earlier. The MD&A attributes the growth primarily to strong everyday performance of core U.S. confection and salty snack brands, partly offset by supply chain disruptions and gross margin pressure. Gross margin fell to 46.3% from 46.7%, with higher supply chain inflation, unfavorable year-over-year commodity derivative mark-to-market impact, and unfavorable product mix. Net sales growth was driven by a price realization of 8.9% and a volume increase of 3.3%. Segment performance was strongest in North America Salty Snacks, where segment income rose to $46.8 million from $21.3 million, and in North America Confectionery, where segment income rose to $887.8 million from $781.9 million. Operating cash flow was $755.4 million, up from $656.5 million. Capital expenditures were $176.1 million in the quarter, and management expects 2023 capital expenditures of $800 million to $900 million. The company repurchased 1,000,000 shares from the Milton Hershey School Trust for $239.9 million and paid $207.4 million in dividends. Balance sheet items include total debt and short-term borrowings of about $4.7 billion, cash of $460.3 million, and $758.1 million of current long-term debt, including $500 million of 3.375% Notes due May 1, 2023 and $250 million of 2.625% Notes due May 15, 2023. After quarter end, on April 26, 2023, the company replaced its $1.5 billion revolving credit facility with a new $1.35 billion facility expiring in 2028. It also agreed on April 14, 2023 to acquire assets from Weaver Popcorn Manufacturing for approximately $164 million, expected to close in the second quarter of 2023.

    Apr 27, 2023
  15. 2022-Q3

    Hershey Quarterly Report for Q3 Ended Oct 2, 2022

    The Hershey Company's Form 10-Q for the quarter ended October 2, 2022 reports third-quarter net sales of $2.73 billion, up 15.6% from $2.36 billion a year earlier, driven by a favorable price realization of 7.7%, a volume increase of 4.1%, and a 4.1% benefit from the 2021 Pretzels and Dot's acquisitions. Gross margin fell to 40.6% from 45.0% as supply chain inflation and unfavorable commodity derivative mark-to-market activity pressured costs. Operating profit declined 3.2% to $556.6 million, and diluted EPS fell to $1.94 from $2.14, a 9.3% decrease, as higher SM&A expenses and other expense (primarily write-downs on tax-credit equity investments) offset higher gross profit. For the first nine months, net sales rose 16.9% to $7.77 billion and diluted EPS rose 10.0% to $6.04, aided by lower share count from repurchases. Operating cash flow was $1.56 billion, up from $1.40 billion, while capital expenditures were $360.0 million and the company expects full-year 2022 capital spending of approximately $600 million. Short-term debt was reduced to $793.9 million, though the current portion of long-term debt rose to $752.2 million. Management states it believes it has sufficient liquidity, and that the Russia-Ukraine conflict has not had a material impact on commodity prices or supply availability to date. The filing also discloses the purchase of 1,000,000 shares from the Milton Hershey School Trust for $203.4 million, a $1.5 billion revolving credit facility, and ongoing International Optimization Program costs with total pre-tax charges of $48.3 million to date. The company reports no material legal contingencies and expects the Inflation Reduction Act's tax provisions to have no material impact.

    Nov 4, 2022
  16. 2022-Q3

    Hershey Quarterly Report for Q3 Ended Jul 3, 2022

    The Hershey Company's Form 10-Q for the quarter ended July 3, 2022 shows net sales of $2.37 billion for the three months, up from $1.99 billion a year earlier, and net income attributable to The Hershey Company of $315.6 million versus $301.2 million. Diluted EPS was $1.53 compared with $1.45. For the six months, net sales were $5.04 billion versus $4.29 billion, and net income attributable rose to $849.0 million from $697.0 million, with diluted EPS of $4.10 versus $3.35. The MD&A attributes sales growth to price realization, volume gains and 2021 acquisitions, while gross margin declined to 42.1% in the quarter from 46.5%, driven by freight and logistics costs, supply chain inflation and unfavorable commodity derivative mark-to-market impact. Cash flow from operations was $1.11 billion for the first six months, up from $1.02 billion. Cash dividends paid totaled $361.0 million, and share repurchases were $355.3 million, including a $203.35 million purchase of 1,000,000 shares from the Milton Hershey School Trust. Cash and cash equivalents were $339.7 million at July 3, 2022, and total short-term debt was $914.9 million, with current portion of long-term debt rising to $752.6 million. Management expects full-year 2022 capital expenditures of approximately $600 million. The filing also flags ongoing risks from COVID-19 related supply chain disruptions, inflation, labor shortages and the Russia-Ukraine conflict. The company reported a commodity derivative exposure, a $13.6 million loss on the sale of certain Hershey, Pennsylvania property to a related party trust, and a $27.4 million write-down of tax-credit equity investments in the first six months. The filing notes a CMG market share loss of approximately 61 basis points in the quarter, attributed to capacity constraints.

    Jul 28, 2022
  17. 2022-Q2

    Hershey Quarterly Report for Q2 Ended Apr 3, 2022

    The Hershey Company's first quarter 2022 Form 10-Q (quarter ended April 3, 2022) reports net sales of $2.67 billion, up from $2.30 billion, and net income attributable to The Hershey Company of $533.5 million, up from $395.8 million. Diluted EPS was $2.57 versus $1.90. The MD&A attributes the growth primarily to price realization of 6.9% and volume growth of 4.6%, plus a 4.6% benefit from the 2021 acquisitions of Pretzels, Dot's and Lily's. Gross margin rose to 46.7% from 45.7%, although the company cites broad-based supply chain disruptions, inflation, higher freight and logistics costs and unfavorable product mix as ongoing pressures. Management also noted that the Company lost 156 basis points of U.S. candy, mint and gum market share, which it attributes to capacity constraints. Cash flow from operations was $656.5 million, up from $609.6 million, while capital additions were $141.1 million. The company paid $181.1 million in dividends and repurchased $203.4 million of stock, including 1,000,000 shares bought from the Milton Hershey School Trust at $203.35 per share. Total debt was $4.09 billion long-term and $873.8 million short-term at quarter-end, against cash of $338.1 million. Management expects full-year 2022 capital expenditures of about $600 million. The filing states that the Russia-Ukraine conflict had no material impact on commodity prices or supply availability in the quarter, but management will continue to monitor escalation risks. Management concluded that disclosure controls were effective as of April 3, 2022.

    Apr 28, 2022
  18. 2021-Q3

    Hershey Quarterly Report for Q3 Ended Oct 3, 2021

    The Hershey Company's Form 10-Q for the quarter ended October 3, 2021 shows net sales of $2.36 billion for the third quarter, up 6.3% from $2.22 billion a year earlier, driven by price realization of 3.1%, a 1.4% contribution from the Lily's acquisition, and a 1.3% volume increase. Net income attributable to The Hershey Company was $444.9 million, roughly flat versus $447.3 million, while diluted EPS was $2.14 in both periods. Gross margin fell to 45.0% from 48.7%, which the company attributes to higher freight and logistics costs, additional plant costs, and unfavorable mark-to-market commodity derivative activity, partly offset by price realization and supply chain productivity. For the first nine months, net sales rose 11.4% to $6.65 billion and diluted EPS rose 16.6% to $5.49. Cash flow was solid: operating cash flow reached $1.40 billion for the nine months, versus $1.10 billion a year earlier, though net working capital consumed $185.3 million. Investing outflows of $839.7 million included $419.5 million for the Lily's Sweets acquisition and $347.5 million of capital additions, and management lowered its full-year 2021 capital expenditure estimate to $500 million to $525 million from $550 million. Financing outflows of $1.04 billion reflected $458.0 million of share repurchases and $505.2 million of dividends. Cash fell to $675.5 million, and short-term debt rose to $410.4 million, largely from U.S. commercial paper. The company cited ongoing COVID-19 effects, including broad-based supply chain disruptions, inflation on consumer products, and labor shortages, and stated that it believes it has sufficient liquidity for at least the next twelve months. It also disclosed that a non-U.S. tax litigation matter resulted in incremental tax reserves, lifting the nine-month effective tax rate to 21.4% from 20.1%.

    Oct 28, 2021
  19. 2021-Q3

    Hershey Quarterly Report for Q3 Ended Jul 4, 2021

    The Hershey Company's second-quarter 2021 Form 10-Q (quarter ended July 4, 2021) shows net sales of $1.99 billion, up 16.5% from $1.71 billion in the prior-year quarter, with net income attributable to The Hershey Company of $301.2 million, or $1.45 diluted EPS, versus $1.29 a year earlier. For the six months, net sales were $4.29 billion, up 14.4%, and diluted EPS was $3.35 versus $2.58. Management attributes the growth primarily to volume gains in everyday core U.S. confection brands, with North America net sales up 12.3% in the quarter and International and Other net sales up 70.2%. The filing notes that gross margin benefited from favorable mark-to-market commodity derivative activity, while SM&A expenses rose 14.3% in the quarter on advertising and corporate spending. Cash flow and balance sheet activity were shaped by the June 2021 acquisition of Lily's Sweets for an initial cash price of $418.2 million. Cash and cash equivalents fell to $426.2 million at July 4, 2021 from $1.14 billion at year-end 2020, as operating cash flow of $1.02 billion was outweighed by $700.1 million of investing outflows, $434.3 million of share repurchases and $324.3 million of dividends. Total long-term debt stood at $4.10 billion. The company stated it believes it has sufficient liquidity and that all manufacturing plants are open, while COVID-19 continues to create uncertainty around consumer demand. The effective tax rate rose to 25.1% for the six months from 19.8%, reflecting incremental tax reserves from an adverse non-U.S. tax litigation ruling. The filing also discloses that the International Optimization Program, focused on the China operating model, is expected to be completed by mid-2022 with total pre-tax costs of $50 million to $75 million.

    Jul 29, 2021
  20. 2021-Q2

    Hershey Quarterly Report for Q2 Ended Apr 4, 2021

    The Hershey Company's first-quarter 2021 Form 10-Q (quarter ended April 4, 2021) reports net sales of $2.30 billion, up from $2.04 billion in the first quarter of 2020, with net sales increasing 12.7% driven primarily by a volume increase of 11.0% from everyday core U.S. confection brands. Operating profit rose to $553.0 million from $382.8 million, and net income attributable to The Hershey Company was $395.8 million, compared with $271.1 million a year earlier. Diluted EPS was $1.90 versus $1.29, with the company noting that lower weighted-average shares from share repurchases also contributed. Gross margin expanded to 45.7% from 42.5%, aided by favorable year-over-year mark-to-market impact from commodity derivatives, price realization and supply chain productivity, partly offset by higher freight, logistics and plant costs. Cash flow from operations was $609.6 million, compared with $246.1 million in the prior-year quarter, while cash and cash equivalents ended at $1.13 billion. The company repurchased $240.4 million of common stock, with approximately $260 million remaining under its $500 million authorization, and paid $162.7 million in dividends. Total long-term debt was $4.45 billion at April 4, 2021, and the company expects to use $350 million to repay its 3.100% Notes in May 2021. Management expects full-year 2021 capital expenditures of approximately $550 million, largely driven by the ongoing ERP system implementation and supply chain capacity projects. The filing states that the company believes it has sufficient liquidity and that the financial impacts of COVID-19 are temporary and do not significantly affect its business model. The company also disclosed that it completed the divestiture of Lotte Shanghai Foods Co., Ltd. in January 2021 with immaterial proceeds, and that it is a defendant in a February 2021 class action complaint alleging child labor and trafficking violations, which it believes is without merit.

    Apr 29, 2021
  21. 2020-Q3

    Hershey Quarterly Report for Q3 Ended Sep 27, 2020

    The Hershey Company's Form 10-Q for the quarter ended September 27, 2020 reports third-quarter net sales of $2,219,829 thousand, up from $2,134,422 thousand in the prior-year quarter, and diluted EPS of $2.14 versus $1.54. Operating profit rose to $611,410 thousand from $460,815 thousand, and net income attributable to the company was $447,283 thousand versus $325,307 thousand. For the nine months, net sales were $5,964,475 thousand (versus $5,918,127 thousand) and diluted EPS was $4.71 (versus $4.47). The filing attributes the quarter's improvement to higher gross profit from favorable price realization, volume gains in U.S. confection and snacks, a $83.3 million favorable mark-to-market swing on commodity derivatives, and lower SM&A expense. International and Other segment results declined sharply on COVID-19 disruptions in Mexico and China. The balance sheet strengthened over the period, with cash and cash equivalents rising to $1,205,889 thousand from $493,262 thousand at December 31, 2019, mainly reflecting the May 2020 issuance of $1 billion of notes due 2025, 2030 and 2050, partly offset by the repayment of $350,000 thousand of 2.900% notes at maturity. Long-term debt increased to $4,881,500 thousand in total carrying value. Nine-month operating cash flow was $1,095,266 thousand, and capital additions were $292,051 thousand, with full-year 2020 capital expenditures expected at approximately $400 million to $450 million. The company repurchased $211,196 thousand of common stock and paid $478,018 thousand in dividends during the nine months. Management states that COVID-19 impacts are temporary and that the company has sufficient liquidity. The filing notes that the ERP implementation is expected to be delayed by approximately one year and that the company agreed in October 2020 to divest its LSFC joint venture, with immaterial expected proceeds. No goodwill or long-lived asset impairment was triggered by COVID-19 according to the filing.

    Nov 6, 2020
  22. 2020-Q2

    Hershey Quarterly Report for Q2 Ended Jun 28, 2020

    The Hershey Company's second-quarter 2020 Form 10-Q, covering the period ended June 28, 2020, shows net sales of $1.71 billion, down 3.4% from $1.77 billion a year earlier, and net income attributable to The Hershey Company of $268.9 million, down 14.0% from $312.8 million. Diluted EPS was $1.29 versus $1.48. For the six months, net sales were $3.74 billion (down 1.0%) and diluted EPS was $2.58 versus $2.93. The company attributes the decline to COVID-19, which reduced volume in international markets and in its owned retail and travel retail businesses, partly offset by price realization of 3.5% in North America for the quarter. Gross margin fell 310 basis points in the quarter, driven by unfavorable commodity derivative mark-to-market activity, higher freight and logistics costs, and added plant costs such as PPE. Selling, marketing and administrative expense fell 9.9%, mainly from lower advertising and travel costs. The International and Other segment swung to a loss of $4.0 million in the quarter from income of $21.9 million, with net sales down 38.0%, including a 54.5% decline in Mexico. North America segment income rose 5.7% to $497.6 million on net sales that grew 1.0%. On the balance sheet, cash rose to $1.17 billion from $493.3 million at year-end 2019, mainly because the company issued $1.0 billion of notes in May 2020 (0.900% due 2025, 1.700% due 2030, and 2.650% due 2050) and repaid $350 million of 2.900% notes at maturity. Total long-term debt was $4.88 billion, and commercial paper outstanding was $149.9 million. The company says it has sufficient liquidity and expects full-year 2020 capital expenditures of $400 million to $450 million. It also completed the Margin for Growth Program in the second quarter.

    Jul 23, 2020
  23. 2020-Q1

    Hershey Quarterly Report for Q1 Ended Mar 29, 2020

    The Hershey Company's first-quarter 2020 Form 10-Q, covering the three months ended March 29, 2020, shows net sales of $2.04 billion, up from $2.02 billion, with net sales increasing 1.0% as favorable price realization of 2.8% and a 0.8% benefit from the ONE Brands acquisition were partly offset by a 2.3% volume decrease and a 0.3% unfavorable foreign currency impact. Profitability declined: operating profit fell 12.8% to $382.8 million, driven by a $50.4 million increase in mark-to-market losses on commodity derivatives, higher freight and logistics costs, higher SM&A expense (up 4.8%), and $7.5 million of long-lived asset impairment charges. Diluted EPS was $1.29 versus $1.45, a decrease of 11.0%, and net income attributable to the company was $271.1 million. The filing states that COVID-19 had a not-material impact on consolidated results for the quarter, primarily affecting the International and Other segment, where net sales declined 8.1% and segment income fell to $16.0 million from $20.2 million. The company expects decreases in its food service and world travel retail businesses, and it has reduced its 2020 capital expenditure outlook to $400 million to $450 million from $475 million to $525 million. It also expects its ERP implementation to be delayed by approximately one year. Liquidity strengthened during the quarter: cash and cash equivalents rose to $1.09 billion from $493.3 million at year-end 2019, primarily through $807.3 million of net short-term borrowings, mainly commercial paper. Operating cash flow was $246.1 million, down from $329.9 million. The company repurchased $169.2 million of common stock and paid $157.8 million in dividends, and it had $260 million remaining under its $500 million repurchase authorization.

    Apr 23, 2020
  24. 2019-Q3

    Hershey Quarterly Report for Q3 Ended Sep 29, 2019

    The Hershey Company's third-quarter 2019 Form 10-Q, covering the period ended September 29, 2019, shows net sales of $2.13 billion, up 2.6% from $2.08 billion a year earlier, driven by favorable price realization of 1.1%, a 1.2% benefit from net acquisitions and divestitures, and a 0.5% volume increase. Operating profit rose 13.4% to $460.8 million, supported by a gross margin of 44.2% versus 41.5% in the prior-year quarter, which was helped by a $62.0 million favorable mark-to-market impact from commodity derivatives. Net income attributable to The Hershey Company increased 23.4% to $325.3 million, and diluted EPS rose to $1.54 from $1.25. For the first nine months of 2019, net sales were $5.92 billion, up 2.0%, and net income attributable to the company was $942.5 million, up 12.1%. Net cash provided by operating activities was $993.3 million, while capital expenditures were $236.6 million and business acquisitions totaled $401.5 million, primarily the September 2019 purchase of ONE Brands, LLC. Cash and cash equivalents declined to $302.6 million from $588.0 million at year-end 2018, and total share repurchases were $445.9 million for the nine months. Long-term debt, including the current portion, was $3.25 billion at quarter-end, and the company had $410 million remaining under its share repurchase authorization. The filing reports that management concluded disclosure controls were effective as of September 29, 2019, and that there were no material changes to risk factors since the 2018 Form 10-K. The company also states it expects 2019 capital expenditures of approximately $350 million, and it has completed the Margin for Growth Program's major initiatives, expecting only minimal remaining spending in 2019.

    Oct 25, 2019
  25. 2019-Q2

    Hershey Quarterly Report for Q2 Ended Jun 30, 2019

    The Hershey Company's Form 10-Q for the quarter ended June 30, 2019 shows second-quarter net sales of $1.77 billion, up 0.9% from $1.75 billion a year earlier, with the company citing a 1.2% price realization and a 0.6% volume increase, partly offset by acquisitions and divestitures and currency. Operating profit rose to $410.1 million from $315.7 million, and diluted EPS was $1.48 versus $1.08. The company attributes much of the improvement to a $53.6 million unallocated mark-to-market gain on commodity derivatives and lower impairment charges, which the filing notes are excluded from non-GAAP results. On a non-GAAP basis, diluted EPS was $1.31 compared with $1.14 in the prior-year quarter. For the first six months, net sales were $3.78 billion, up 1.6%, and net income attributable to The Hershey Company was $617.2 million, up 7.0% from $577.1 million. Operating cash flow was $679.3 million, compared with $602.9 million a year earlier. Cash and cash equivalents fell to $366.0 million from $588.0 million at year-end 2018, largely reflecting $295.5 million of dividend payments and $254.4 million of share repurchases. On the balance sheet, long-term debt was $2.89 billion (non-current portion) and short-term debt was $886.8 million at June 30, 2019. On July 2, 2019, the company replaced its $1.4 billion revolving credit facility with a new unsecured facility allowing borrowings of up to $1.5 billion. The company also reported that about $410 million remained available under its share repurchase authorization, and it expects full-year 2019 capital expenditures of approximately $330 million to $350 million.

    Jul 25, 2019
  26. 2019-Q1

    Hershey Quarterly Report for Q1 Ended Mar 31, 2019

    The Hershey Company's first quarter 2019 results show net sales of $2,016.5 million, up 2.3% from $1,972.0 million in the first quarter of 2018, driven by a 1.7% volume increase, a 0.9% benefit from the Amplify and Pirate Brands acquisitions, and 0.2% favorable price realization, partially offset by a 0.5% unfavorable foreign currency impact. Reported gross margin fell to 44.3% from 49.4%, largely due to an unfavorable year-over-year mark-to-market swing on commodity derivatives, with reported operating profit down 8.7% to $438.9 million. Reported net income attributable to the company declined 13.1% to $304.4 million and diluted EPS fell to $1.45 from $1.65. The company reports non-GAAP adjusted diluted EPS of $1.59, up from $1.41, and North America segment income rose 5.7% while U.S. candy, mint and gum consumer takeaway decreased 9.7% due to the timing of Easter. Balance sheet and cash flow highlights include cash and cash equivalents of $466.0 million at March 31, 2019, long-term debt of $3.24 billion, and operating cash flow of $329.9 million. The company repurchased $198.5 million of common stock and paid $146.5 million in dividends during the quarter, and its remaining share repurchase authorization was $410 million. Capital expenditures rose to $92.8 million, with full-year 2019 capital spending expected at $330 million to $350 million. Management reports no material changes to risk factors and states that disclosure controls were effective as of March 31, 2019.

    Apr 25, 2019
  27. 2018-Q3

    Hershey Quarterly Report for Q3 Ended Sep 30, 2018

    The Hershey Company's third-quarter 2018 Form 10-Q reports net sales of $2,079.6 million, up 2.3% from $2,033.1 million a year earlier, with growth driven primarily by the Amplify Snack Brands acquisition. Reported gross margin fell to 41.5% from 46.4%, largely due to unfavorable commodity derivative mark-to-market effects, higher freight and logistics costs, and incremental trade promotional and packaging costs. Reported operating profit declined 12.0% to $406.3 million, while net income attributable to The Hershey Company was $263.7 million, or $1.25 diluted EPS, versus $273.3 million and $1.28 a year earlier. Management reported adjusted (non-GAAP) diluted EPS of $1.55, up 20.2% from $1.29, mainly from lower advertising expense and a lower tax rate under U.S. tax reform. For the first nine months of 2018, net sales rose 4.1% to $5,803.2 million and diluted EPS increased to $3.99 from $2.81, aided by lower impairment and business realignment charges. Cash from operations was $892.8 million, up from $625.9 million. Total debt increased substantially: short-term debt reached $1,449.2 million and long-term debt $3,253.9 million at September 30, 2018, following the Amplify acquisition for $915.5 million net of cash acquired, $1.19 billion of notes issued in May 2018, and commercial paper. Goodwill rose to $1,677.1 million and other intangibles to $1,008.1 million. Subsequent to quarter end, Hershey completed the acquisition of Pirate Brands from B&G Foods, Inc. on October 17, 2018 for approximately $420 million, funded by short-term borrowings and cash on hand. Management said its outlook for the remainder of the year is unchanged.

    Oct 26, 2018
  28. 2018-Q3

    Hershey Quarterly Report for Q3 Ended Jul 1, 2018

    The Hershey Company's second-quarter 2018 Form 10-Q, covering the period ended July 1, 2018, shows net sales of $1,751.6 million, up 5.3% from $1,663.0 million a year earlier, with the filing stating that growth was driven primarily by the Amplify Snack Brands acquisition, completed January 31, 2018. Reported diluted EPS was $1.08 versus $0.95, and net income attributable to The Hershey Company was $226.9 million versus $203.5 million. Reported gross margin declined 80 basis points to 45.3%, and the company cites higher trade promotional spending, freight and logistics costs, and unfavorable mix. Non-GAAP diluted EPS was $1.14 versus $1.08, with the company attributing the improvement mainly to the lower tax rate under U.S. tax reform, partially offset by lower gross margin and higher interest expense. For the first six months, net sales rose 5.1% to $3.72 billion and operating profit rose 53.8% to $796.2 million, helped by lower long-lived asset impairment charges ($27.2 million in 2018 versus $208.7 million in 2017) and lower business realignment costs ($9.2 million versus $46.0 million). Operating cash flow was $602.9 million versus $335.7 million. The company spent $915.5 million net of cash acquired on Amplify and issued $1.2 billion of senior notes in May 2018, while total long-term debt rose to $3.55 billion and short-term debt to $1.05 billion. Total assets increased to $7.41 billion from $5.55 billion at year-end 2017, largely reflecting goodwill and intangibles from the acquisition. Management expects North America performance to improve in the second half of 2018 and expects strong international sales and profit trends to continue. The company also authorized an additional $500 million share repurchase program in July 2018, and it reported that the Tyrrells business was sold on July 5, 2018 and the Shanghai Golden Monkey business on July 24, 2018.

    Jul 27, 2018
  29. 2018-Q2

    Hershey Quarterly Report for Q2 Ended Apr 1, 2018

    The Hershey Company's first-quarter 2018 Form 10-Q, covering the three months ended April 1, 2018, shows net sales of $1.97 billion, up 4.9% from $1.88 billion a year earlier. The filing states that growth was driven primarily by the Amplify Snack Brands acquisition, which contributed a 3.4% benefit, alongside a 2.4% volume increase and a 0.5% favorable foreign exchange impact, partially offset by 1.4% unfavorable price realization. Reported operating profit rose to $480.5 million from $197.2 million, largely because the prior-year period included $208.7 million of long-lived asset impairment charges and higher business realignment costs. Reported net income attributable to The Hershey Company was $350.2 million, or $1.65 per diluted share, compared with $125.0 million, or $0.58, a year earlier. The company reports non-GAAP adjusted EPS-diluted of $1.41 versus $1.30, while non-GAAP gross margin fell to 44.9% from 47.5%. The balance sheet changed materially with the Amplify acquisition, completed January 31, 2018 for total consideration of $968.8 million. Goodwill rose to $1.65 billion from $821.1 million and other intangibles rose to $1.03 billion from $369.2 million. Short-term debt increased to $2.25 billion from $559.4 million, reflecting commercial paper issued to fund the deal, and the company repaid $607.9 million of long-term debt assumed from Amplify. Operating cash flow was $352.1 million, against $234.5 million a year earlier. The company repurchased $178.1 million of common stock and had about $60 million remaining under its current repurchase authorization. The filing notes that the purchase price allocation for Amplify is preliminary and expected to be finalized by the end of 2018. The company also reports that its 2018 capital expenditure outlook is $355 million to $375 million, and that the Margin for Growth program is ongoing. The filing states that disclosure controls were effective as of April 1, 2018, and that the company is in a multi-year ERP implementation with initial effects on consolidated reporting expected in the second quarter of 2018.

    Apr 26, 2018
  30. 2017-Q3

    Hershey Quarterly Report for Q3 Ended Oct 1, 2017

    The Hershey Company's Form 10-Q for the quarter ended October 1, 2017 reports third-quarter net sales of $2,033.1 million, up 1.5% from $2,003.5 million, with volume increases of 0.7% and favorable price realization of 0.4%. Reported net income attributable to The Hershey Company rose 20.2% to $273.3 million, and reported diluted EPS was $1.28 versus $1.06. Reported gross margin improved to 46.2% from 42.5%, driven largely by a $21,954 thousand favorable unallocated mark-to-market swing on commodity derivatives and lower business realignment costs. Non-GAAP diluted EPS was $1.33 versus $1.29, and non-GAAP net income was $283.6 million, up 2.3%. For the first nine months, net sales rose 1.9% to $5,575.8 million, while reported operating profit fell 3.1% to $946.3 million due to $208.7 million of long-lived asset impairment charges tied to the Margin for Growth Program and China optimization. Reported net income attributable to the company was essentially flat at $601.8 million, and reported diluted EPS rose to $2.81 from $2.80. Operating cash flow increased to $625.9 million from $450.8 million, while share repurchases totaled $300.3 million, including a 1.5 million share purchase from the Milton Hershey School Trust at $106.01 per share. Management left its full-year 2017 outlook largely unchanged, projecting net sales growth of approximately 1.25%, reported diluted EPS of $3.54 to $3.68, and adjusted diluted EPS of $4.72 to $4.81. The Margin for Growth Program is expected to bring total pre-tax charges of $375 million to $425 million over three years, with ongoing annual savings of $150 million to $175 million at the program's conclusion in 2019. Cash and cash equivalents stood at $275.1 million at quarter end, with short-term debt of $815.6 million and total long-term debt of $2,354.2 million.

    Oct 27, 2017
  31. 2017-Q3

    Hershey Quarterly Report for Q3 Ended Jul 2, 2017

    The Hershey Company's second-quarter 2017 Form 10-Q (quarter ended July 2, 2017) shows net sales of $1,662,991 thousand, up from $1,637,671 thousand a year earlier, with reported net income attributable to The Hershey Company of $203,501 thousand and diluted EPS of $0.95, compared with $145,956 thousand and $0.68 in the second quarter of 2016. Management attributes sales growth mainly to the North America segment, driven by innovation, the barkTHINS acquisition, and timing of new stand-up packaging and retailer distributor changes. Reported gross margin was 45.9%, and operating profit rose to $315,341 thousand from $262,762 thousand, while the company also reported non-GAAP adjusted diluted EPS of $1.09 versus $0.85. For the first six months, net income attributable to the company declined to $328,545 thousand from $375,788 thousand, reflecting a $208,712 thousand long-lived asset impairment charge recorded in the first quarter 2017 tied to the China business and the Margin for Growth Program, along with higher business realignment costs of $61,442 thousand. Cash from operating activities was $335,734 thousand versus $368,710 thousand a year earlier, and cash and cash equivalents ended the period at $214,062 thousand. Total long-term debt was $2,349,845 thousand at July 2, 2017. Management's 2017 outlook calls for full-year net sales growth of approximately 1%, reported diluted EPS of $3.41 to $3.60, and non-GAAP adjusted diluted EPS toward the high end of $4.72 to $4.81. The Margin for Growth Program is expected to bring total pre-tax charges of $375,000 to $425,000 thousand over three years, and the filing notes a new risk factor related to a multi-year enterprise resource planning system implementation.

    Jul 28, 2017
  32. 2017-Q2

    Hershey Quarterly Report for Q2 Ended Apr 2, 2017

    The Hershey Company's first quarter 2017 Form 10-Q, covering the three months ended April 2, 2017, shows net sales of $1.88 billion, up 2.8% from $1.83 billion a year earlier, with favorable net price realization of 2.0% and a 0.9% benefit from acquisitions, partially offset by volume decreases of 0.2%. Reported net income attributable to The Hershey Company fell 45.6% to $125.0 million, and diluted EPS fell to $0.58 from $1.06, driven by a $208.7 million long-lived asset impairment charge tied to the China business and $47.0 million of business realignment costs. Excluding these and other items, adjusted net income rose 18.1% to $282.1 million and adjusted diluted EPS rose to $1.31 from $1.10. The company launched the Margin for Growth Program in February 2017, which it estimates will generate total pre-tax charges of $375 million to $425 million over three years, with ongoing annual savings of approximately $150 million to $175 million at the program's conclusion in 2019. Reported gross margin improved to 48.2% from 44.7%, supported by lower commodity costs and lower trade promotional spending. For full-year 2017, the company expects net sales growth towards the low end of its 2% to 3% outlook and reported diluted EPS of $3.31 to $3.55. Liquidity remained adequate, with cash and cash equivalents of $235.0 million at quarter-end, operating cash flow of $234.5 million, and $100 million remaining under the $500 million share repurchase authorization. No shares were repurchased in the quarter. Approximately 70% of cash was held by subsidiaries outside the United States, which management intends to permanently reinvest.

    Apr 28, 2017
  33. 2016-Q3

    Hershey Quarterly Report for Q3 Ended Oct 2, 2016

    The Hershey Company's third-quarter 2016 Form 10-Q, filed October 28, 2016, reports net sales of $2.00 billion, up 2.2% from $1.96 billion a year earlier, with volume up 1.0% and favorable net price realization of 0.7%. Reported operating profit rose to $374.0 million from $303.0 million, and reported net income was $227.4 million, or $1.06 diluted EPS, versus $154.8 million and $0.70 a year earlier. The prior-year period included a $31.0 million goodwill impairment and larger business realignment charges. Management estimates reported 2016 diluted EPS of $3.82 to $3.90 and adjusted diluted EPS of $4.28 to $4.32, and expects full-year net sales growth of approximately 1.0%. For the first nine months, net sales were $5.47 billion, essentially flat (down 0.1%), while net income rose to $603.2 million from $299.6 million, largely because of the non-recurring 2015 goodwill impairment of $280.8 million. Operating cash flow fell to $422.5 million from $595.1 million, mainly due to higher working capital investment and an $87 million payment to settle an interest rate swap. The company spent $285.4 million on the Ripple Brand Collective (barkTHINS) acquisition, issued $800 million of notes in August 2016, and repurchased $452.6 million of stock. Its $500 million repurchase authorization had $100 million remaining as of October 2, 2016. The filing also discloses a new Operational Optimization Program, expected to cost approximately $120 million pre-tax over three years and to yield annual savings of about $45 million by 2018. Cash of $333.3 million and short-term debt of $612.4 million were reported at quarter end, and total long-term debt rose to $2.61 billion.

    Oct 28, 2016
  34. 2016-Q3

    Hershey Quarterly Report for Q3 Ended Jul 3, 2016

    The Hershey Company's Form 10-Q for the quarter ended July 3, 2016 reports second-quarter net sales of $1,637.7 million, up 3.7% from $1,578.8 million a year earlier, with a 0.8% unfavorable foreign currency impact (4.5% increase excluding currency). Reported operating profit rose to $262.8 million from $7.5 million, but the prior-year period included a $249.8 million non-cash goodwill impairment. Second-quarter net income was $146.0 million, or $0.68 per diluted share, compared with a net loss of $99.9 million, or $(0.47) per share, in the prior-year quarter. Gross margin declined 100 basis points to 45.6%, driven by higher commodity costs, higher net supply chain costs and unfavorable sales mix. Business realignment charges were $62.1 million for the quarter, including costs tied to the new Operational Optimization Program, which the company expects to cost approximately $120 million over three years. For the first six months, net sales were $3,466.5 million, down 1.4%, and net income was $375.8 million, or $1.74 per diluted share. Non-GAAP diluted EPS was $1.95 for the six months and $0.85 for the quarter, versus $0.78 in the prior-year quarter. Management estimates full-year 2016 net sales growth of approximately 1.0% and expects adjusted diluted EPS of $4.24 to $4.28. The company's balance sheet shows short-term debt rising to $997.1 million from $363.5 million at year-end 2015, cash declining to $250.2 million, and $452.6 million spent on share repurchases in the first half. U.S. CMG retail takeaway decreased 1.1% over the 12 weeks ended July 9, 2016, while U.S. market share was 30.8%, down 0.7 share points. The quarter included the acquisition of Ripple Brand Collective, LLC (barkTHINS) for $285.4 million, which is expected to generate 2016 net sales of approximately $65 million to $75 million. The company also settled the remaining 20% of Shanghai Golden Monkey for $35.8 million, recording a $26.7 million gain. Operating cash flow for the first six months was $347.1 million, down from $486.3 million a year earlier.

    Jul 28, 2016
  35. 2016-Q2

    Hershey Quarterly Report for Q2 Ended Apr 3, 2016

    The Hershey Company's first-quarter 2016 Form 10-Q, covering the period ended April 3, 2016, shows net sales of $1.83 billion, down 5.6% from $1.94 billion a year earlier. The filing attributes the decline mainly to lower North America volumes, which it ties to a shorter Easter season and lower non-seasonal activity, along with lower net sales in China. Net income fell to $229.8 million from $244.7 million, and diluted EPS was $1.06 versus $1.10. Gross margin fell 180 basis points to 44.7%, driven by commodity mark-to-market losses after the company stopped designating commodity derivatives for hedge accounting. On a non-GAAP basis, gross margin rose 20 basis points. Other income included a $26.7 million gain from settling the Shanghai Golden Monkey liability, which lifted net income and EPS in the quarter. Cash flow from operations was $257.1 million, roughly flat with the prior year. Cash and equivalents declined to $286.0 million, and the company repurchased $303.95 million of common stock in the quarter, completing a $250 million program. A new $500 million authorization had $216 million remaining at quarter end. The company acquired barkTHINS (Ripple Brand Collective, LLC) on April 26, 2016, after the quarter closed. For 2016, management estimates constant currency net sales growth of approximately 2.5%, a 1.0% unfavorable currency impact, and adjusted diluted EPS of $4.24 to $4.28, which it says represents growth of 3.0% to 4.0%. The company also disclosed that it expects net sales growth to accelerate over the rest of the year, and that a previously reported material weakness related to cocoa hedge accounting no longer requires remediation because those hedges are no longer designated.

    Apr 29, 2016
  36. 2015-Q3

    Hershey Quarterly Report for Q3 Ended Oct 4, 2015

    The Hershey Company's third-quarter 2015 Form 10-Q (quarter ended October 4, 2015) shows flat net sales of $1.96 billion versus $1.96 billion a year earlier, while reported profitability fell sharply. Operating profit declined to $303.0 million from $358.7 million, and net income fell to $154.8 million from $223.7 million, or $0.70 diluted EPS versus $1.00. The decline was driven principally by goodwill impairment charges of $31.0 million in the quarter and $280.8 million year-to-date, tied to the Shanghai Golden Monkey (SGM) acquisition and the China chocolate reporting unit, along with $64.3 million of charges for a new 2015 productivity initiative and a $28.3 million loss on early extinguishment of debt. Year-to-date, net sales rose 1.2% to $5.48 billion, with price realization of 4.5% partly offset by volume declines. The International and Other segment swung to a loss of $79.8 million for the nine months, while North America segment income rose 8.9% to $1.56 billion. Operating cash flow improved to $587.9 million from $387.4 million. Cash and cash equivalents were $343.9 million at quarter-end, and long-term debt carrying value was $2.08 billion, with commercial paper of $345.9 million outstanding. Management expects full-year 2015 net sales roughly in line with 2014, reported diluted EPS of $2.22 to $2.34, and adjusted diluted EPS at the low end of its previously provided 3% to 5% growth range, approximately $4.10 per share. The filing notes that the remaining 20% SGM stake acquisition terms are still under negotiation and that China macroeconomic conditions remain a key uncertainty.

    Oct 30, 2015
  37. 2015-Q3

    Hershey Quarterly Report for Q3 Ended Jul 5, 2015

    The Hershey Company's second-quarter 2015 results were hit by a $249.8 million non-cash goodwill impairment tied to its Shanghai Golden Monkey (SGM) reporting unit, which drove a net loss of $99.9 million, or $0.47 per share-diluted, versus net income of $168.2 million, or $0.75 per share-diluted, a year earlier. Net sales were $1,578.8 million, flat compared with the second quarter of 2014. Excluding foreign currency, net sales increased 1.3%, reflecting positive price realization and acquisitions, offset by lower U.S. volumes after the mid-2014 price increase and weaker China chocolate sales. Operating profit fell to $7.5 million from $277.3 million, and the operating profit margin was 0.5%, compared with 17.6% a year earlier. For the first six months of 2015, net sales rose 1.9% to $3,516.6 million, and net income fell to $144.8 million from $420.7 million. Net cash provided by operating activities increased to $480.9 million from $171.9 million, and the company repurchased $315.7 million of common stock. The company also began a 2015 productivity initiative expected to cut about 300 positions, with pre-tax charges and costs of $100 million to $120 million. Management's full-year 2015 outlook calls for reported diluted EPS of $2.49 to $2.66 and adjusted diluted EPS of $4.10 to $4.18, and it notes that further SGM charges may be required. The filing also discloses a pending purchase of the remaining 20% of SGM, expected in the fourth quarter of 2015, and the acquisition of KRAVE Pure Foods in March 2015 for $220.0 million in cash paid to date. Redeemable noncontrolling interest in Hershey do Brasil was reclassified to the balance sheet at $37.4 million, with its purchase expected in the third quarter of 2015.

    Aug 7, 2015
  38. 2015-Q2

    Hershey Quarterly Report for Q2 Ended Apr 5, 2015

    The Hershey Company's first-quarter 2015 Form 10-Q, covering the three months ended April 5, 2015, shows net sales rising 3.5% to $1.94 billion from $1.87 billion, while net income fell 3.1% to $244.7 million and diluted EPS declined to $1.10 from $1.11. Net sales growth was driven by favorable net price realization of 3.8% and a 1.6% benefit from net acquisitions and divestitures, partially offset by a 1.1% unfavorable currency impact and volume declines of approximately 0.8%. Gross margin was roughly flat at 46.5% versus 46.6%, and EBIT declined 2.4% to $394.0 million as selling, marketing and administrative expense rose 8.4% to $504.2 million, with advertising up 7.7%. The weakest area was China, where net sales excluding Shanghai Golden Monkey declined 47% and the International and Other segment posted a segment loss of $21.8 million versus segment income of $6.6 million a year earlier. North America net sales rose 2.9% to $1.71 billion, and segment income rose 2.9% to $554.3 million. Management lowered its full-year 2015 net sales growth estimate to 4.5% to 5.5% (3.5% to 4.5% excluding acquisitions, divestitures and currency), citing lower-than-expected growth in China, while raising its expected gross margin expansion to 155 to 165 basis points and projecting diluted EPS growth of 10% to 13%. Balance-sheet and cash-flow activity was dominated by the Krave acquisition, for which the company paid cash consideration of $220.3 million, and by $306.7 million of share repurchases. Operating cash flow rose to $256.4 million from $203.8 million, while cash and cash equivalents fell to $305.7 million. Short-term debt increased to $649.1 million, and the company completed its $250 million 2014 repurchase program and authorized another $250 million.

    May 1, 2015
  39. 2014-Q3

    Hershey Quarterly Report for Q3 Ended Sep 28, 2014

    The Hershey Company's third-quarter 2014 Form 10-Q shows net sales of $1.96 billion for the three months ended September 28, 2014, up from $1.85 billion a year earlier, and net sales of $5.41 billion for the nine months, up from $5.19 billion. Net income for the quarter was $223.7 million versus $233.0 million a year earlier, and diluted EPS was $1.00 versus $1.03. The decline was driven by cost of sales rising 10.3% to $1.10 billion, with gross margin down 230 basis points to 43.8%, reflecting input cost inflation, primarily dairy, and higher supply chain costs. A $13.3 million non-cash trademark impairment on a non-chocolate brand and total business realignment and impairment charges of $16.4 million also weighed on results. The company closed the acquisition of 80% of Shanghai Golden Monkey Food Joint Stock Co., Ltd. for cash consideration of $393.2 million, with a liability of $100.1 million recorded for the remaining 20%, payable at the one-year anniversary. Management expects SGM to make China its second largest market by the end of 2015, with annual net sales of approximately $500 million. Management lowered its full-year 2014 net sales growth estimate to around 4.75%, expects gross margin to decline around 60 basis points, and projects diluted EPS growth of 8% to 9%. For 2015, it projects net sales growth of 7% to 9% and reported diluted EPS growth of 10% to 12%. Liquidity declined during the period: cash and cash equivalents were $477.1 million at September 28, 2014, versus $1.12 billion at year-end 2013, and short-term debt rose to $649.2 million, including $330.0 million of commercial paper. Net cash from operating activities was $387.4 million for the nine months, and the company repurchased $542.6 million of common stock. The company also agreed in October 2014 to acquire The Allan Candy Company Limited for approximately $28 million in cash.

    Oct 31, 2014
  40. 2014-Q2

    Hershey Quarterly Report for Q2 Ended Jun 29, 2014

    The Hershey Company's Form 10-Q for the quarter ended June 29, 2014 shows second-quarter net sales of $1.58 billion, up 4.6% from $1.51 billion a year earlier, with net income of $168.2 million (up 5.4%) and diluted EPS of $0.75 (up 7.1%). Gross margin fell 210 basis points to 45.5%, as input cost inflation, mainly higher dairy costs, and unfavorable sales mix more than offset supply chain productivity and lower pension costs. EBIT rose 3.2% to $277.5 million, helped by lower business realignment charges and lower advertising and consumer marketing costs. For the first six months, net sales were $3.45 billion (up 3.4%) and net income was $420.7 million (up 4.8%). Cash generation weakened in the first half. Operating cash flow was $171.9 million, $177.5 million less than in the prior-year period, driven by a $89.3 million reduction in accrued liabilities tied to advertising programs and higher income tax payments. The company used $436.3 million for share repurchases and $209.9 million for dividends. Cash and cash equivalents fell to $562.6 million, and the company also held $97.2 million of short-term investments. Inventories rose to $855.2 million from $659.5 million at year-end 2013. The company consolidated Lotte Shanghai Food Company after acquiring an additional 5.9% interest in March 2014, and it is pending the Shanghai Golden Monkey acquisition, which management expects to close in the second half of 2014. Management expects 2014 net sales growth near the low end of its 5% to 7% long-range target and GAAP diluted EPS growth of 10% to 13%. It announced an approximately 8% weighted average wholesale price increase effective July 15, 2014, which it expects to mainly benefit 2015 earnings because of promotional timing.

    Aug 1, 2014
  41. 2014-Q1

    Hershey Quarterly Report for Q1 Ended Mar 30, 2014

    The Hershey Company's first quarter 2014 Form 10-Q, covering the period ended March 30, 2014, reports net sales of $1.87 billion, up 2.4% from $1.83 billion in the first quarter of 2013. Net income rose 4.4% to $252.5 million, and diluted earnings per share increased 4.7% to $1.11. Operating income (income before interest and income taxes) was $403.6 million, up 3.0%, and EBIT margin improved 20 basis points to 21.6%. Management attributed the moderated growth to a tough prior-year comparison with U.S. Brookside distribution gains, timing of innovation later in the year, softness in Latin America, and unfavorable foreign currency impacts. Net sales growth outside the United States and Canada decreased 2.4%. Cash flow from operations fell to $203.8 million from $293.2 million, driven by higher accounts receivable tied to later Easter timing and a reduction in other assets and liabilities. Cash and cash equivalents ended the quarter at $1.01 billion, down from $1.12 billion at year-end 2013. The company repurchased $271.5 million of common stock and paid $105.3 million in dividends during the quarter. Management continues to expect 2014 net sales growth of 5% to 7%, and reported diluted EPS growth of 12% to 13%, pending the expected second-quarter 2014 completion of the Shanghai Golden Monkey acquisition. The company also consolidated its Lotte Shanghai Food Company joint venture in March 2014 after acquiring an additional 5.9% interest, recognizing a gain of approximately $4.0 million. Separately, the U.S. antitrust class action against the company received summary judgment in its favor in February 2014, and the direct purchaser plaintiffs have until May 19, 2014 to file any appeal.

    May 2, 2014
  42. 2013-Q3

    Hershey Quarterly Report for Q3 Ended Sep 29, 2013

    The Hershey Company's third-quarter 2013 Form 10-Q, covering the period ended September 29, 2013, reports net sales of $1.85 billion, up 6.1% from $1.75 billion a year earlier, driven primarily by sales volume increases. Net income rose to $232.99 million from $176.72 million, and diluted EPS increased to $1.03 from $0.77, or 33.8%. Gross margin improved to 46.1% from 42.5%, reflecting lower input costs, supply chain productivity, and a favorable sales mix, while selling, marketing and administrative expenses rose 14.5% on higher advertising and marketing spend. For the first nine months, net sales were $5.19 billion (up 6.1%), net income was $634.4 million, and diluted EPS was $2.79 versus $2.23. The balance sheet shows total assets of $5.08 billion and long-term debt of $1.80 billion, with cash of $701.3 million. During the nine months, the company repaid $250.0 million of 5.0% notes due 2013 and issued $250 million of 2.625% notes due 2023. Share repurchases totaled $305.6 million for the nine months, and $125.1 million remained available under the April 2011 $250 million repurchase program. Operating cash flow was $623.7 million. Management expects 2013 net sales growth of about 7% and reported diluted EPS growth of 24% to 26%, and raised its long-term annual diluted EPS growth target to 9% to 11%. It also expects advertising to rise about 22% to 23% in 2013, reflecting continued investment in brands and international expansion.

    Nov 1, 2013
  43. 2013-Q2

    Hershey Quarterly Report for Q2 Ended Jun 30, 2013

    The Hershey Company's second-quarter 2013 results showed net sales of $1,508.5 million, up 6.7% from $1,414.4 million in the second quarter of 2012, driven primarily by sales volume increases of 6.6%. Gross margin rose to 47.6% from 43.7%, and EBIT increased 21.0% to $268.9 million, with net income of $159.5 million (diluted EPS of $0.70 versus $0.59). Selling, marketing and administrative expenses rose 14.0%, reflecting higher marketing, employee-related and legal costs, and advertising grew 22.4%. Business realignment and impairment charges fell to $3.6 million from $4.8 million, mostly tied to the Next Century program. For the first six months of 2013, net sales rose 6.0% to $3.34 billion and net income was $401.4 million, or $1.77 diluted EPS versus $1.46 a year earlier. Cash and cash equivalents declined $159.9 million to $568.4 million, while net cash from operating activities increased to $349.4 million from $314.2 million. Hershey repaid $250.0 million of 5.0% Notes due 2013 and issued $250 million of 2.625% Notes due 2023. Share repurchases totaled $305.6 million in the six-month period, with $125.1 million remaining under the authorization. Management raised its 2013 outlook, now expecting net sales growth of about 7%, reported gross margin expansion of 300 to 310 basis points, and GAAP diluted EPS growth of 24% to 26%. Advertising is expected to increase about 20% versus 2012. The company also disclosed a guilty plea by Hershey Canada to one count of price fixing, with a fine of approximately $4.0 million.

    Aug 7, 2013
  44. 2013-Q1-A

    Hershey Quarterly Report (Amendment) for Q1 Ended Mar 31, 2013

    The Hershey Company (Delaware; Commission file number 1-183) filed Amendment No. 1 to its Form 10-Q for the quarterly period ended March 31, 2013. The amendment amends the Form 10-Q filed with the SEC on May 8, 2013, and contains only Part I, Item 4 (Controls and Procedures). The Company states that it is not amending or supplementing any other information in the previously filed Form 10-Q. As of the shares count date of April 19, 2013, the filing reports 163,101,614 shares of Common Stock ($1 par value) and 60,628,572 shares of Class B Common Stock ($1 par value) outstanding. The amendment was filed to add information and conclusions about the effectiveness of the Company's disclosure controls and procedures as of the end of the period covered by the original Form 10-Q. Based on an evaluation carried out with the participation of management, including the Chief Executive Officer and Chief Financial Officer, those officers concluded that the Company's disclosure controls and procedures are effective. The filing also states that there was no change during the most recent fiscal quarter in internal control over financial reporting that materially affected, or is reasonably likely to materially affect, that control. Because the amendment contains no financial statements and does not amend any financial information, it provides no new financial results. It includes Section 302 certifications from John P. Bilbrey, Chief Executive Officer (Exhibit 31.1), and David W. Tacka, Chief Financial Officer (Exhibit 31.2), with paragraph 3 of the certifications omitted.

    May 13, 2013
  45. 2013-Q1

    Hershey Quarterly Report for Q1 Ended Mar 31, 2013

    The Hershey Company's first-quarter 2013 Form 10-Q reports net sales of $1.83 billion, up from $1.73 billion in the first quarter of 2012, with the filing attributing the 5.5% increase primarily to sales volume growth of 5.3% and net price realization of 0.5%. Higher sales of Brookside products and incremental sales from new products drove volume. Gross profit rose to $849.3 million from $743.4 million, with gross margin of 46.5% compared with 42.9%. Income before interest and income taxes (EBIT) was $391.8 million versus $334.5 million, and net income increased to $241.9 million from $198.7 million. Diluted earnings per share were $1.06 versus $0.87, an increase of 21.8%. Operating cash flow was $293.2 million, compared with $275.8 million a year earlier. Cash and cash equivalents ended the quarter at $730.1 million, and the company repurchased $204.0 million of Common Stock during the period, with $125.1 million remaining under its authorization. Total assets were $4.85 billion and total stockholders' equity was $1.11 billion as of March 31, 2013. Management stated that results for the quarter were strong and reaffirmed its 2013 outlook, expecting net sales growth of 5% to 7%, GAAP diluted EPS growth of 22% to 24% (projected at $3.52 to $3.58), and gross margin expansion of 260 to 280 basis points on a reported basis. The company also plans to increase advertising by approximately 20% in 2013.

    May 8, 2013
  46. 2012-Q3

    Hershey Quarterly Report for Q3 Ended Sep 30, 2012

    The Hershey Company's third-quarter 2012 results show net sales of $1,746.7 million, up 7.5% from $1,624.2 million in the third quarter of 2011, driven by net price realization of 3.9% and sales volume increases of 2.1%, with Brookside contributing 2.3%. Net income fell to $176.7 million from $196.7 million, and diluted EPS declined to $0.77 from $0.86, reflected in the filing as a $0.09 decrease. The decline was driven by higher selling, marketing and administrative expenses (up 18.0%), a $20.1 million business realignment and impairment charge tied to the Next Century program (including a $13.1 million non-cash pension settlement loss), and a higher effective tax rate of 36.2% versus 34.0%. For the first nine months of 2012, net sales rose 8.4% to $4,893.2 million and net income rose 5.0% to $511.1 million, with diluted EPS of $2.23 versus $2.12. Operating cash flow improved to $605.9 million from $257.2 million, supported by changes in other assets and liabilities that the filing attributes largely to hedging transactions. The company repurchased $497.6 million of Common Stock and paid $249.8 million in dividends during the period, while cash and cash equivalents fell to $466.2 million. Management raised its full-year 2012 net sales growth outlook to about 8% to 9% and its adjusted diluted EPS outlook to $3.22 to $3.25, and expects 2013 net sales growth within its 5% to 7% long-term target. On the balance sheet, total assets were $4,737.8 million and total debt (short-term debt of $208.4 million plus current and long-term debt) rose from year-end 2011, while Brookside, acquired in January 2012 for approximately $172.9 million, added goodwill and other intangibles. The Next Century program charge outlook was increased to $190 million to $200 million in total pre-tax charges and implementation costs.

    Nov 7, 2012
  47. 2012-Q3

    Hershey Quarterly Report for Q3 Ended Jul 1, 2012

    The Hershey Company's second-quarter 2012 Form 10-Q, filed August 8, 2012, reports net sales of $1.41 billion for the three months ended July 1, 2012, up from $1.33 billion a year earlier, and net income of $135.7 million, compared with $130.0 million. Diluted earnings per share were $0.59 versus $0.56. For the six months, net sales were $3.15 billion and net income was $334.3 million, or $1.46 diluted EPS. The filing attributes the sales increase primarily to net price realization, partly offset by volume declines, unfavorable foreign currency and a contribution from the Brookside acquisition. Income before interest and taxes fell slightly in the quarter to $222.3 million, reflecting higher selling, marketing and administrative expenses and business realignment charges of $19.0 million under the Next Century program. The balance sheet shows cash and cash equivalents of $589.8 million at July 1, 2012, down from $693.7 million at December 31, 2011. Total debt rose, with short-term debt at $139.4 million and current portion of long-term debt at $347.3 million. Inventories increased to $791.8 million from $649.0 million. During the first six months the company repurchased $218.3 million of common stock, acquired Brookside Foods for approximately $172.9 million, and paid $167.1 million in dividends. Management's outlook expects 2012 reported diluted EPS of $2.88 to $2.98 and net sales growth of about 7% to 9%, including Brookside. The company also disclosed that John P. Bilbrey, President and Chief Executive Officer, entered into an at-will Executive Employment Agreement effective August 7, 2012, providing for two times base salary and annual incentive target as severance upon termination without cause or resignation for good reason.

    Aug 8, 2012
  48. 2012-Q2

    Hershey Quarterly Report for Q2 Ended Apr 1, 2012

    The Hershey Company's first quarter 2012 Form 10-Q, filed May 9, 2012, reports net sales of $1.73 billion for the three months ended April 1, 2012, up 10.7% from $1.56 billion a year earlier. The company attributes the increase primarily to net price realization of 10.9%, partly offset by sales volume declines of 0.5% and unfavorable foreign currency of 0.4%. Income before interest and taxes rose to $334.5 million from $276.5 million, and net income increased to $198.7 million, or $0.87 per diluted Common Stock share, compared with $0.70 a year earlier. Cost of sales rose 8.9%, with input costs and supply chain costs partly offset by productivity gains, and business realignment charges tied to the Next Century program totaled $23.6 million pre-tax. Cash flow and balance sheet items were shaped by acquisitions and share repurchases. Net cash from operating activities was $275.8 million, versus $159.4 million a year earlier. The company spent $172.9 million to acquire Brookside Foods Ltd., which has annual net sales of approximately $90 million, and repurchased $218.3 million of Common Stock. Cash and cash equivalents fell to $567.3 million from $693.7 million at year-end 2011, and short-term debt rose to $146.7 million. Management raised its full-year 2012 outlook, now expecting net sales growth of about 7% to 9% and reported diluted EPS of $2.82 to $2.92, with adjusted diluted EPS expected to rise 10% to 12%. The Next Century program, which moves production from the 19 East Chocolate Avenue plant to the West Hershey facility, is expected to bring total pre-tax charges and implementation costs of $150 million to $160 million, with 2012 program charges of $55 million to $65 million. When fully implemented, the company expects annual cost savings of $65 million to $80 million. Management described the economic environment as challenging for the remainder of 2012 and expects advertising spending to rise low double digits for the full year.

    May 9, 2012
  49. 2011-Q3

    Hershey Quarterly Report for Q3 Ended Oct 2, 2011

    The Hershey Company's third-quarter 2011 Form 10-Q, filed for the period ended October 2, 2011, shows net sales of $1.62 billion for the quarter, up 5.0% from $1.55 billion a year earlier, and net income of $196.7 million, or $0.86 per share-diluted, versus $0.78 in the prior-year quarter. For the first nine months, net sales were $4.51 billion, up 7.8%, and net income was $486.8 million, or $2.12 per share-diluted, up 30.1% from $1.63. The filing attributes the sales growth mainly to net price realization, with sales volume down about 1% in the quarter, and notes that Q3 results included a $17.0 million pre-tax gain on the sale of trademark licensing rights and business realignment charges tied to Project Next Century. Cash flow and liquidity were under pressure in the first nine months. Net cash from operating activities fell to $257.2 million from $388.2 million, driven by higher working capital, including inventories and receivables. Cash and cash equivalents declined to $292.3 million from $884.6 million at year-end 2010, reflecting $357.7 million of share repurchases, $254.8 million of long-term debt repayment, $265.6 million of capital additions and capitalized software, and $228.4 million of dividends. The company also received $47.6 million in net proceeds from a sale and leasing agreement for its 19 East Chocolate Avenue facility and entered into a new $1.1 billion five-year revolving credit facility in October 2011. Management raised its full-year 2011 outlook, now expecting net sales growth of about 7%, GAAP diluted EPS growth of about 25%, and adjusted diluted EPS growth of about 10%. The company also said it expects significantly higher input costs in 2012, with 2012 sales and adjusted EPS growth targeted within its long-term objectives of 3% to 5% and 6% to 8%, respectively.

    Nov 4, 2011
  50. 2011-Q3

    Hershey Quarterly Report for Q3 Ended Jul 3, 2011

    The Hershey Company's second-quarter 2011 results, reported in this Form 10-Q filed August 10, 2011, show net sales of $1,325.2 million for the three months ended July 3, 2011, up 7.5% from $1,233.2 million a year earlier, driven by sales volume increases of approximately 4% and net price realization of about 3%. Net income rose to $130.0 million, or $0.56 diluted EPS for common stock, compared with $46.7 million, or $0.20, in the second quarter of 2010. The improvement was largely due to significantly lower business realignment and impairment charges: the company recorded net credits of $10.0 million in the 2011 quarter versus charges of $85.1 million in 2010, which included a $44.7 million goodwill impairment at Godrej Hershey Ltd. For the first six months of 2011, net sales were $2,889.4 million, up 9.4%, and net income was $290.1 million, or $1.26 diluted EPS for common stock, versus $0.84 a year earlier. Gross margin declined to 42.2% from 43.2% for the six months, reflecting higher input costs, and advertising expense rose $31.8 million, or 19.3%. Cash and cash equivalents fell to $790.3 million from $884.6 million at year-end 2010, as share repurchases of $192.9 million, capital additions of $171.0 million, and dividends of $152.7 million exceeded operating cash flow of $286.7 million and stock option proceeds of $135.0 million. Management now expects full-year 2011 net sales growth of around 6%, above its 3% to 5% long-term objective, and adjusted diluted EPS growth of around 10%. It also expects a full-year effective tax rate of approximately 35.0% excluding business realignment effects, and expects Project Next Century GAAP charges of $38 million to $43 million in 2011. Management described the economic environment as challenging and said commodity cost volatility is expected to persist.

    Aug 10, 2011