Hershey Announces Third Quarter Results And 2014 Outlook

The Hershey Company (NYSE: HSY):
  • Net sales increase 6.1% driven by volume
  • Earnings per share-diluted of $1.03 as reported and $1.04 adjusted
  • Full-year outlook for 2013 reaffirmed:
    • Full-year net sales growth expected to increase about 7%
    • Reported earnings per share-diluted expected to be $3.60 to $3.65
    • Adjusted earnings per share-diluted expected to increase around 14% and be in the $3.68 to $3.71 range
  • Long-term adjusted earnings per share-diluted target increased to +9-11%
  • 2014 net sales and adjusted earnings per share-diluted expected to be within the Company's long-term targets of +5-7% and +9-11%, respectively

The Hershey Company (NYSE: HSY) today announced sales and earnings for the third quarter ended September 29, 2013. Consolidated net sales were $1,853,886,000 compared with $1,746,709,000 for the third quarter of 2012. Reported net income for the third quarter of 2013 was $232,985,000 or $1.03 per share-diluted, compared with $176,716,000 or $0.77 per share-diluted for the comparable period of 2012.

“Organic sales growth of 6.6 percent this quarter, as has been the case all year, was driven by volume, resulting in solid gross margin expansion and earnings per share-diluted growth,” said John P. Bilbrey, President and Chief Executive Officer, The Hershey Company. “Our performance continues to reflect the strategy we outlined over the last year that focuses on investments in our core brands, innovation pipeline and international markets that provide us with the greatest opportunities for growth. Over the remainder of the year, we have many exciting products, promotions, programs and merchandising in place across all channels, and our major customers have indicated their expectations for a solid confectionery holiday season. The fourth quarter will also benefit from the shipments of some select 2014 new products to retailers that will occur in December. Therefore, we expect solid fourth quarter net sales growth that will result in a full-year 2013 net sales increase of about 7 percent, including the impact of foreign currency exchange rates.”

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