This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

The Hershey Management Discusses Q2 2012 Results - Earnings Call Transcript

Stocks in this article: HSY

Total Hershey's CMG, that's candy, mint and gum, retail takeaway for the year-to-date period through June 16, 2012, in channels that account for about 90% of our U.S. retail business, was up 6.1%, resulting in a 0.3 point market share again.

As a reminder, this is xAOC+C-store data consisting of the food, drug, mass, x [ph] and C-store channels plus the inclusion of Walmart and partial Dollar, Club and Military channels.

Our result for the second quarter were solid as net sales increased 6.7% and adjusted EPS-diluted grew 17.9%. Bert will provide you with all of the financial details. But as it relates to net sales, growth was primarily driven by net price realization.

New product contributed about 2 points to our quarterly sales growth while everyday, core volume was off about 3 points. In terms of marketplace performance, the reported IRI and Nielsen second quarter, the 12-week period ended June 16, does not encompass the entire Easter season in both the year-ago and current periods. Therefore, my remarks today will refer to year-to-date marketplace performance for the 24 weeks ended June 16, 2012.

As it relates to Easter, we had good sell-through and gained Easter market share of 0.9 points in the xAOC universe. We won Easter for the fourth consecutive year, and our market share in this key season expanded to about 36%. Although, note that the shorter Easter season in 2012 versus 2011 is a headwind for our overall chocolate market share performance this year.

Now for some further details on our overall year-to-date marketplace performance. Hershey marketplace performance by segment is progressing as planned. Recall, the year-ago period benefited from our major product launches, primarily Reese's Minis and Hershey's Drops that occurred early in the year. Our more significant 2012 innovation builds in Q2 and beyond, and we expect this will have a favorable impact on our marketplace performance in the second half of the year.

3 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,387.21 -291.49 -1.65%
S&P 500 2,029.55 -27.54 -1.34%
NASDAQ 4,681.4970 -90.2660 -1.89%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs