The Hershey Company Reports Third-Quarter 2024 Financial Results
Hershey, Pa., Nov. 7, 2024 — The Hershey Company (NYSE: HSY) has released its financial results for the third quarter ending September 29, 2024.
Financial Overview
The financial performance of the third quarter was marked by some declines compared to the previous year and consensus estimates. Below is a detailed breakdown:
| Metric | Q3 2024 | YoY Change | Consensus Estimate |
|---|---|---|---|
| Revenue | $2.99B | -1.4% | $3.08B |
| EPS (Reported, diluted) | $2.20 | -12.7% | $2.56 |
| EPS (Adjusted, diluted) | $2.34 | -10.0% | - |
Despite the reported revenue and earnings per share missing consensus estimates, and experiencing a decline from the previous year, Hershey remains committed to focusing on strategies that can control external variables and deliver value across its stakeholder spectrum.
Segment Revenue Performance
Hershey's revenue by segment is as follows:
| Segment | Q3 2024 Revenue | YoY Change |
|---|---|---|
| North America Confectionery | $2.48B | +0.8% |
| North America Salty Snacks | $291.8M | -15.5% |
| International | $218.4M | -3.9% |
The North America Confectionery segment showed slight growth, attributed to strategic pricing realization despite volume challenges. However, the North America Salty Snacks and International segments faced declines due to various factors, including execution disruptions and competitive pressures.
Key Developments and Operational Highlights
- The company focused on price realization and productivity initiatives to counterbalance commodity cost pressures.
- A decrease in selling, marketing, and administrative expenses by 5.2% due to reduced consumer marketing and technology investments.
- Hershey continued advancing its 'Agility & Automation Initiative,' anticipated to save approximately $100 million.
Executive Commentary
According to Michele Buck, President and CEO, Hershey continues to navigate the complexities of high commodity prices and challenging market conditions by emphasizing its beloved brands' strength and consumer loyalty. The company aims to expand its chocolate portfolio and maximize seasonal advantages, all while driving top-line growth effectively.
Forward Guidance
Hershey has adjusted its 2024 outlook, reducing net sales growth expectations and reported earnings per share while maintaining a stable economic tax outlook. This adjustment reflects the higher investments in tax credits and shifting economic conditions.
Stock Price Movement
Following the earnings report, Hershey's stock experienced a decrease of approximately 1.83%.
Through this challenging quarter, Hershey is focusing on its strategic initiatives to mitigate external pressures and continue delivering value to its stakeholders.
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