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Hershey 8-K Report, Financial Results (Jul 30, 2025)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed July 30, 2025
Period End
July 30, 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 July 30, 2025. Cited figures are marked; the original filing is the authoritative source.

The Hershey Company (NYSE: HSY) reported second-quarter 2025 results for the period ended June 29, 2025, with consolidated net sales of $2,614.7 milliona, an increase of 26.0%, and organic, constant currency net sales up 26.3%.

The increase reflected the lap of planned inventory reductions tied to the 2024 ERP system implementation, the timing of Easter, and earlier shipment of Halloween orders. Reported net income fell to $62.7 millionb, or $0.31 per diluted share, a decrease of 65.2%, while adjusted diluted EPS was $1.21, a decrease of 4.7%. Reported gross margin fell to 30.5% from 40.2%, driven largely by $200.7 million in derivative mark-to-market losses, higher commodity and manufacturing costs, and unfavorable mix.

Reported effective tax rate rose to 57.9%c. The company updated its 2025 outlook. Reported EPS growth is now expected to be down approximately 50%, versus a prior guidance of down in the high-40% range, and adjusted EPS growth is now expected to be down 36% to 38%, versus a prior guidance of down in the mid-30% range.

Net sales growth guidance remains up at least 2%. The update reflects estimated full-year tariff expenses of approximately $170 to $180 milliond, and the outlook excludes the proposed acquisition of LesserEvil. Management cited commodity cost mitigation strategies, including strategic pricing, productivity, and technology-enabled efficiency, as steps toward offsetting cocoa inflation.

Segment results were mixed. North America Confectionery net sales rose 32.0% to $2,085.5 million, but segment margin declined to 24.2%. North America Salty Snacks net sales increased 8.8% and segment margin improved to 21.1%.

International net sales rose 4.4%, but segment income fell 20.8% to $19.8 million, with volume weakness in Mexico cited. The balance sheet showed total debt increasing, with long-term debt rising to $5.18 billion from $3.19 billion at December 31, 2024, and inventories increasing to $1.84 billion from $1.25 billion.

02—Key points

Key Highlights

  1. Consolidated net sales of $2,614.7 million, up 26.0%; organic, constant currency net sales up 26.3%, with volume up approximately 21 points and price realization approximately 5 points.
  2. Reported net income of $62.7 million, or $0.31 per diluted share, down 65.2%; adjusted diluted EPS of $1.21, down 4.7%.
  3. Reported gross margin of 30.5%, down 970 basis points, driven by $200.7 million in derivative mark-to-market losses and higher commodity and manufacturing costs; adjusted gross margin of 38.1%, down 510 basis points.
  4. Full-year 2025 adjusted EPS growth guidance updated to down 36% to 38% (from down mid-30% range); reported EPS growth now down approximately 50% (from down high-40% range).
  5. Estimated 2025 tariff expense of approximately $170 to $180 million, with the outlook excluding the proposed LesserEvil acquisition.
  6. North America Confectionery net sales up 32.0% to $2,085.5 million, but segment margin declined 520 basis points to 24.2%; International segment income down 20.8% to $19.8 million.
  7. Long-term debt increased to $5,176.4 million at June 29, 2025 from $3,190.2 million at December 31, 2024; inventories rose to $1,842.3 million from $1,254.1 million.

03—Questions

Frequently Asked Questions

  1. Why did reported earnings fall so sharply while adjusted results held up better?

    Reported diluted EPS of $0.31 includes $0.98 per share of derivative mark-to-market losses on commodity contracts, $0.07 of business realignment costs, and $0.01 of acquisition and integration costs, partly offset by a $0.16 tax effect. Adjusted diluted EPS of $1.21 excludes these items, and the company states that mark-to-market gains and losses are recognized in unallocated corporate results until the related inventory is sold.

  2. What drove the large increase in net sales?

    The company attributed the 26.0% increase primarily to volume, which grew approximately 21 points. This reflected the lap of planned inventory reductions tied to the second-quarter 2024 ERP system implementation in North America Confectionery and International, the timing of the Easter season in 2025, and earlier shipment of Halloween seasonal orders. Price realization contributed approximately 5 points.

  3. What changed in the 2025 outlook, and what is driving it?

    Reported EPS growth guidance moved to down approximately 50% from down in the high-40% range, and adjusted EPS growth guidance moved to down 36% to 38% from down in the mid-30% range. The company said the update reflects estimated full-year tariff expenses, which now extend beyond the second quarter, and recently announced commodity cost mitigation strategies. Net sales growth guidance of up at least 2% was unchanged.

  4. How did the company's margins and tax rate change?

    Reported operating profit margin fell to 7.4% from 13.9%, and adjusted operating profit margin fell to 15.7% from 18.5%. The reported effective tax rate rose to 57.9% from 26.4%, driven by foreign rate differentials and incremental non-U.S. tax reserves, while the adjusted effective tax rate rose to 32.8% from 24.4%.

  5. What does the filing say about the proposed LesserEvil acquisition?

    The company stated that its updated 2025 earnings outlook does not include the effects of its proposed acquisition of LesserEvil. The filing provides no further detail on that transaction.

04—Continue

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