Hershey Announces Second-Quarter Results; Reaffirms Outlook For 2014

The Hershey Company (NYSE: HSY):
  • Net sales increase 4.6%; excluding a 0.7 point negative impact from foreign currency exchange rates, organic net sales up 5.3%
  • Earnings per share-diluted of $0.75 as reported and $0.76 adjusted
  • Outlook for 2014 net sales and adjusted earnings per share-diluted reaffirmed:
    • Full-year net sales expected to increase around the low end of long-term target of 5% to 7%
    • Adjusted earnings per share-diluted expected to increase around the low end of long-term target of 9% to 11%
  • Quarterly dividend declared on Common Stock and increased 10%

The Hershey Company (NYSE: HSY) today announced sales and earnings for the second quarter ended June 29, 2014. Consolidated net sales were $1,578,350,000 compared with $1,508,514,000 for the second quarter of 2013. Reported net income for the second quarter of 2014 was $168,168,000 or $0.75 per share-diluted, compared with $159,504,000 or $0.70 per share-diluted for the comparable period of 2013.

“Second quarter net sales sequentially improved, as expected, versus the first quarter and we continued to make good progress against the initiatives that will drive strong results over the remainder of the year,” said John P. Bilbrey, President and Chief Executive Officer, The Hershey Company. “Our Easter sell through was very good and we gained 1.1 market share points in this important season. We expect our seasonal momentum to continue in the second half of the year as retail customer orders for Halloween and Holiday products are solid. In the second quarter, macroeconomic headwinds in the U.S. continued to be an issue for many retailers and consumers. We continue to do well, although our U.S. second quarter net sales growth of 4.4 percent was less than expectations. Additionally, as it relates to the instant consumable pack type, there were increased levels of in-store activity from other snack categories that had an impact on our sales mix and profitability. Across all channels we are working with retail customers this year and into 2015 to ensure that the implementation of the price increase we announced last week is supported with merchandising, programming and innovation that continues to grow the category. These initiatives, as well as normal productivity and cost savings programs, will enable us to continue to invest in brand building that we expect will drive category growth over the long term.”

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