The Hershey Company has announced net sales and earnings for the second quarter ending June 30, 2024 and updated its 2024 net sales and earnings outlook.
"Today's operating environment remains dynamic with consumers pulling back on discretionary spending," said Michele Buck, The Hershey Company president and chief executive officer. "Our business has been impacted by these trends, but we are pleased to see continued growth in the confection category and momentum building in our Salty Snacks portfolio. Our second-half innovation is expected to bring energy to our categories, and we are confident our evolving strategies will meet consumers' changing needs and drive long-term success."
For the second quarter of 2024, the company brought in consolidated net sales of $2,074,500, a decrease of 16.7%. Organic, constant currency net sales decreased 16.8%.
Both consolidated and organic, constant currency net sales reflected an ~9 point decline from planned inventory reductions within North America Confectionery and International related to the second quarter enterprise resource planning (ERP) system implementation, as well as an ~7 point decline from lower levels of retailer inventory and seasonal shipment timing within North America Confectionery that is expected to shift to the second half of 2024.
The company brought in reported net income of $180.9 million, or $0.89 per share-diluted, a decrease of 55.1%.
The company also expects:
- A reported and adjusted effective tax rate of approximately 13%
- Other expense, which primarily reflects the write-down of equity investments that qualify for a tax credit, of approximately $220 million to $230 million
- Interest expense of approximately $165 million to $175 million, reflecting a higher interest rate environment
- Capital expenditures of approximately $600 million to $625 million, driven by core confection capacity expansion and continued investments in a digital infrastructure, including the build and upgrade of a new ERP system across the enterprise
- Advancing Agility & Automation Initiative savings of $100 million.
Read the full report here.
The Hershey Company is on the current Candy Industry “Global Top 100 Candy Companies” list. Click here to view the current “Global Top 100” rankings.
