North America Confectionery, Hershey's largest segment, posted net sales of $2.49 billion, up 8.3%, with organic price realization of about 12 points. Volume fell about 4 points, reflecting price elasticity and one fewer shipping day. U.S. candy, mint, and gum retail takeaway rose 8.1% for the 12-week period ended March 29, the company said.
The North America Salty Snacks segment saw net sales climb 26.0% to $350.1 million. About 20 percentage points of that segment growth came from LesserEvil, a brand Hershey acquired last year that markets popcorn and snacks positioned as free of seed oils, Reuters reported. Organic volume in the segment rose more than 5 points. Segment income, however, fell 18.1% to $34.3 million, hurt by higher supply chain costs related in part to a voluntary temporary product withdrawal and increased consumer marketing spending.
Adjusted gross margin fell 80 basis points from a year ago to 40.4%, as higher commodity and tariff-related costs weighed on results. Reported gross margin improved to 39.4% from 33.7%, driven by price realization and lower derivative mark-to-market losses versus the prior-year period.
Hershey reaffirmed its full-year 2026 outlook, calling for net sales growth of 4% to 5% and adjusted earnings per share growth of 30% to 35%. CEO Steve Voskuil said the guidance reflects cautious assumptions around several risks, among them possible cuts to food assistance programs, a continued shift toward healthier eating, and the toll that Middle East hostilities could take on consumer spending.
Mondelez $MDLZ International, the maker of Toblerone, similarly beat estimates in its most recent quarterly report, with price increases providing a lift, Reuters noted.
