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Hershey 8-K Report, Financial Results (May 1, 2025)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed May 1, 2025
Period End
May 1, 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 May 1, 2025. Cited figures are marked; the original filing is the authoritative source.

The Hershey Company (NYSE: HSY) reported first-quarter 2025 results for the quarter ended March 30, 2025, with consolidated net sales of $2,805.4 milliona, a decrease of 13.8%, and organic, constant currency net sales down 13.2%.

Volume declined approximately 15 points, driven by the lap of planned inventory increases ahead of the ERP implementation in the second quarter of 2024, the timing of Easter, and two fewer shipping days, partially offset by roughly 2 points of price realization. Reported net income was $224.2 millionb, or $1.10 per diluted share, a decrease of 71.7%, while adjusted diluted EPS was $2.09, a decrease of 31.9%. Reported gross margin fell to 33.7% from 51.5%, largely due to $211.5 million of derivative mark-to-market losses, and adjusted gross margin was 41.2%, down 370 basis points.

The company reiterated its 2025 full-year outlook: net sales growth of at least 2%, reported EPS growth in the down high-40% range, and adjusted EPS growth in the down mid-30% range. Projected 2025 adjusted EPS is $6.00 to $6.18c, and the guidance includes only tariff expense, as understood today, expected in the second quarter of approximately $15 million to $20 million. It does not reflect the ultimate impact of new tariff actions or the proposed acquisition of LesserEvil.

Management cited strong consumption in U.S. Candy, Mint, and Gum and Salty Snacks, and said the balance sheet supports investment and recent strategic acquisitions. By segment, North America Confectionery net sales were $2,300.1 milliond, down 15.0%, with segment income of $696.4 million, down 26.6%. North America Salty Snacks net sales rose 1.0% to $277.8 million and segment income rose 8.1% to $41.9 million.

International net sales fell 15.9% to $227.5 million. Balance sheet changes included cash and cash equivalents rising to $1,515.3 million from $730.7 million and long-term debt rising to $5,177.3 million from $3,190.2 million at December 31, 2024.

02—Key points

Key Highlights

  1. Consolidated net sales of $2,805.4 million, down 13.8%; organic, constant currency net sales down 13.2%, with volume down about 15 points and price realization about 2 points.
  2. Reported net income of $224.2 million, or $1.10 per diluted share, down 71.7%; adjusted diluted EPS of $2.09, down 31.9%.
  3. Reported gross margin of 33.7% versus 51.5% a year earlier, driven by $211.5 million of derivative mark-to-market losses; adjusted gross margin of 41.2%, down 370 basis points.
  4. 2025 full-year outlook reiterated: net sales growth of at least 2%, reported EPS growth down high-40% range, and adjusted EPS growth down mid-30% range (projected adjusted EPS $6.00 to $6.18).
  5. North America Confectionery net sales fell 15.0% to $2,300.1 million, while North America Salty Snacks net sales rose 1.0% to $277.8 million with segment income up 8.1%.
  6. Second-quarter tariff expense expected at approximately $15 million to $20 million; guidance excludes effects of new tariff actions and the proposed LesserEvil acquisition.
  7. Cash and cash equivalents rose to $1,515.3 million from $730.7 million at year-end 2024, while long-term debt increased to $5,177.3 million from $3,190.2 million.

03—Questions

Frequently Asked Questions

  1. Why did Hershey's reported earnings fall so sharply in the first quarter of 2025?

    Reported net income fell to $224.2 million from $797.5 million, largely because of $211.5 million in derivative mark-to-market losses, compared with gains of $218.0 million in the prior-year quarter. Lower sales volume, higher commodity and manufacturing costs, and unfavorable mix also reduced profit. Adjusted EPS, which excludes these items, was $2.09, down 31.9%.

  2. Did Hershey change its full-year 2025 outlook?

    No. The company reiterated its outlook for at least 2% net sales growth, reported EPS growth in the down high-40% range, and adjusted EPS growth in the down mid-30% range. The guidance includes only tariff expense, as understood today, expected in the second quarter and does not assume the ultimate impact of new tariff actions or the proposed LesserEvil acquisition.

  3. What drove the decline in net sales?

    Volume declined approximately 15 points, reflecting the lap of planned inventory increases ahead of the ERP implementation in the second quarter of 2024, the timing of Easter in 2025 versus 2024, and two fewer shipping days. Price realization of about 2 points partially offset this, and foreign exchange was a 0.9 point headwind. The Sour Strips acquisition added 0.3 points.

  4. How did Hershey's segments perform?

    North America Confectionery net sales fell 15.0% to $2,300.1 million, with segment income down 26.6% to $696.4 million. North America Salty Snacks net sales rose 1.0% to $277.8 million, and segment income rose 8.1% to $41.9 million. International net sales fell 15.9% to $227.5 million, with segment income down 32.9% to $28.7 million.

  5. How did the balance sheet change during the quarter?

    Cash and cash equivalents increased to $1,515.3 million from $730.7 million at December 31, 2024. Long-term debt rose to $5,177.3 million from $3,190.2 million, while short-term debt fell to $144.6 million from $1,307.0 million. Total stockholders' equity was $4,684.9 million, compared with $4,714.7 million at year-end 2024.

04—Continue

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