(Reuters) -Hershey beat analysts’ sales and profit estimates for the second quarter on Wednesday, driven by demand during Easter for its confectionery goods and salty snacks. The company said it expects tariff expenses to be between $170 million and $180 million for the full year. It had projected tariff costs to be about $15 million […]
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Hershey beats quarterly estimates on strong Easter demand
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(Reuters) -Hershey beat analysts’ sales and profit estimates for the second quarter on Wednesday, driven by demand during Easter for its confectionery goods and salty snacks.
The company said it expects tariff expenses to be between $170 million and $180 million for the full year. It had projected tariff costs to be about $15 million to $20 million in the reported quarter.
Shares of the company were up about 3% in early trade.
The Reese’s peanut butter cups maker, which maintained its annual forecasts, said sales volume rose about 21%, due to planned changes in its inventory and supply chain in the North America Confectionery and International segments.
While Hershey gained from the timing of Easter, it fell on April 20 this year, and the company also benefited from earlier shipments of Halloween seasonal orders.
“Looking ahead, we remain committed to delivering balanced growth and have taken pivotal steps toward mitigating cocoa inflation through strategic pricing,” outgoing CEO Michele Buck said in a statement.
It raised prices by about 5% in the quarter ended June 29, compared with a 1% increase a year ago, helping it counter soaring prices of cocoa.
Earlier this month, Hershey’s said it had tapped Wendy’s Kirk Tanner as its new CEO, effective August 18.
It also saw steady growth in North America salty snacks business, helped by brands including SkinnyPop popcorn and Dot’s pretzels.
“Hershey’s sales tend to be more resilient than peers because its products are viewed as affordable luxuries during economic downturns,” said Brittany Quatrochi, analyst with Edward Jones.
Its net sales of $2.61 billion beat estimates of $2.52 billion, as per data compiled by LSEG.
Hershey, which has announced its decision to drop artificial colors from its snacks by 2027, reported an adjusted profit of $1.21 per share, topping estimates of 99 cents.
(Reporting by Anuja Bharat Mistry in Bengaluru; Editing by Vijay Kishore and Sriraj Kalluvila)