Hershey Reports Q2 Earnings and Provides Full-Year Guidance
The Hershey Company (HSY) reported second-quarter results, highlighting U.S. confection retail consumption growth of 3%, which management believes understates demand by two percentage points due to nonmeasured channels. Inventory replenishment added one percentage point to the quarter's performance following a price transition in April. Management also noted that over one percentage point of shipments were pulled forward into Q2 from Q3, expecting this impact to balance out with an extra shipping day in Q4. Hershey reaffirmed its full-year adjusted EPS guidance at 30% to 35% growth and projected net sales growth between 4% to 5%. The company plans increased marketing spend for the second half of the year, while gross margin improvement is expected to be slightly below previous projections. Capital expenditures are forecasted in a range of $425 million to $475 million, with automation initiatives on track to deliver around $100 million in savings this year.
Tickers: $HSY
Topics: confectionery industry consumer goods guidance update inventory management