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Hershey 8-K Report, Financial Results (Feb 6, 2025)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed February 6, 2025
Period End
February 6, 2025
Security
HSY
In the record · 2016–202610-K1110-Q358-K142

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

  1. Deal closed8-K · Jan ’18Jan ’18
  2. Leadership change8-K · Dec ’19Dec ’19
  3. Material agreement8-K · Feb ’22Feb ’22
  4. Leadership change8-K · Sep ’26Sep ’26

01—Abstract

Summary

Summary of the 8-K filed February 6, 2025. Cited figures are marked; the original filing is the authoritative source.

The Hershey Company (NYSE: HSY) reported fourth-quarter 2024 consolidated net sales of $2,887.5 milliona, an increase of 8.7%, with organic, constant currency net sales up 9.0%.

Reported net income was $796.6 millionb, or $3.92 per share-diluted, an increase of 130.6%, while adjusted earnings per share-diluted were $2.69, an increase of 33.2%. For full-year 2024, net sales were $11,202.3 million, up 0.3%, reported net income was $2,221.2 million, or $10.92 per share-diluted (up 20.5%), and adjusted earnings per share-diluted were $9.37, down 2.3%. The filing notes that a large derivative mark-to-market gain drove much of the reported earnings increase, which the company excludes from its adjusted results.

For 2025, the company expects net sales growth of at least 2%c, driven primarily by net price realization. Reported earnings per share is expected to decline in the high-40% range, and adjusted earnings per share is expected to decline in the mid-30% range. CEO Michele Buck stated that the surge in cocoa prices is expected to put significant pressure on 2025 earnings.

Higher commodity costs, rebased incentive compensation and a higher economic tax rate are expected to more than offset price realization, productivity and cost savings. The company also projects a reported and adjusted effective tax rate of approximately 14% to 15%, interest expense of $190 million to $195 milliond, and capital expenditures of $425 million to $450 million. By segment, North America Confectionery net sales rose 6.0% in the fourth quarter to $2,354.2 million, and North America Salty Snacks net sales rose 35.9% to $278.9 million, helped by lapping planned inventory declines from the prior-year ERP implementation.

International net sales rose 9.8% to $254.5 million. This report is furnished under Item 2.02 and attached as Exhibit 99.1, and is not deemed filed for Section 18 purposes.

02—Key points

Key Highlights

  1. Q4 2024 net sales of $2,887.5 million, up 8.7%; organic, constant currency net sales up 9.0%
  2. Q4 2024 reported EPS of $3.92 diluted (up 130.6%) versus adjusted EPS of $2.69 (up 33.2%), with the gap driven by derivative mark-to-market gains
  3. Full-year 2024 reported net income of $2,221.2 million ($10.92 per diluted share) and adjusted EPS of $9.37, down 2.3%
  4. 2025 outlook: net sales growth of at least 2%, reported EPS down in the high-40% range, adjusted EPS down in the mid-30% range
  5. Management cites a surge in cocoa prices as a significant pressure on 2025 earnings, alongside higher commodity costs and rebased incentive compensation
  6. North America Salty Snacks Q4 net sales up 35.9%, largely from lapping prior-year ERP-related inventory declines; North America Confectionery up 6.0%
  7. Balance sheet at December 31, 2024 shows total assets of $12,946.9 million and long-term debt of $3,190.2 million, with short-term debt of $1,307.0 million

03—Questions

Frequently Asked Questions

  1. How did Hershey perform in the fourth quarter of 2024?

    Consolidated net sales rose 8.7% to $2,887.5 million, and organic, constant currency net sales increased 9.0%. Reported net income was $796.6 million, or $3.92 per diluted share, while adjusted EPS was $2.69, up 33.2%.

  2. Why is reported EPS so much higher than adjusted EPS in Q4 2024?

    The filing attributes the gap mainly to derivative mark-to-market gains of $264.7 million pre-tax recorded in the quarter, which the company excludes from adjusted results. Reported operating profit rose 102.3% to $939.1 million, driven primarily by these gains.

  3. What is Hershey's 2025 outlook?

    The company expects net sales growth of at least 2%, driven primarily by net price realization. Reported EPS is expected to fall in the high-40% range and adjusted EPS in the mid-30% range, as higher commodity costs, including cocoa, rebased incentive compensation and a higher tax rate are expected to outweigh price realization and cost savings.

  4. How did the business segments perform?

    North America Confectionery net sales rose 6.0% to $2,354.2 million in Q4, with segment margin of 34.3%. North America Salty Snacks net sales rose 35.9% to $278.9 million, helped by lapping prior-year inventory declines. International net sales rose 9.8% to $254.5 million.

  5. What did the full-year 2024 results show?

    Full-year net sales were $11,202.3 million, up 0.3%. Reported net income was $2,221.2 million, or $10.92 per diluted share, up 20.5%, while adjusted EPS was $9.37, down 2.3%.

04—Continue

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