Hershey reported second-quarter results on Thursday that topped Wall Street expectations for both sales and profit, and the company raised the upper end of its full-year guidance ranges.
The candy maker's net sales rose 6.6% to $2.79 billion, driven by a 12% jump in prices that offset an 8% decline in volumes
Cheng Xin / Getty Images
Hershey reported second-quarter results on Thursday that topped Wall Street expectations for both sales and profit, and the company raised the upper end of its full-year guidance ranges.
Net sales rose 6.6% to $2.79 billion in the quarter ended June 28. Adjusted earnings came in at $1.90 per share. Analysts had expected revenue of $2.63 billion and adjusted earnings of $1.42 per share, according to Reuters.
Price hikes of 12% were the primary engine behind the quarter's performance, outweighing an 8% contraction in overall volumes. Sales in North America Confectionery, the company's largest segment, grew 4.2% from a year earlier. North America Salty Snacks sales climbed 22.9%.
Hershey now expects net sales growth of 4.5% to 5.0% for the full year, the company said. It forecast adjusted earnings per share of $8.36 to $8.52 for the year.
"U.S. consumer sentiment remains soft, and shoppers continue to be value-oriented and selective in their spending," CEO Kirk Tanner said in a statement.
The company's sustained price increases over the past year, aimed at absorbing surging cocoa costs, have kept investors trained on whether shoppers will continue buying its products. Hershey has pointed to a lineup of new product introductions, seasonal campaigns, and promotional events in the back half of the year as catalysts for improved results.
Mondelez $MDLZ, which owns the Cadbury brand, also reported better-than-anticipated results in its most recent quarter.
Join 500,000+ readers who start their day with Quartz.
By subscribing, you agree to our Terms of Service and Privacy Policy.