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The Hershey Company (HSY+0.20%) has submitted its 10-Q filing for the quarterly period ended September 29, 2024.
The filing shows net sales of $2,987.5 million, a decrease of 1.4% from $3,030.0 million in the same period of the previous year. This decline was primarily due to a volume decrease of approximately 3%, partially offset by a favorable price realization of approximately 2%.
Cost of sales increased to $1,754.8 million from $1,669.7 million, driven by higher commodity and supply chain costs. Gross profit decreased to $1,232.7 million, with a gross margin of 41.3%, down from 44.9% in the prior year.
Selling, marketing, and administrative expenses were reduced by 5.2% to $591.9 million, primarily due to lower compensation costs and advertising expenses.
Business realignment costs of $27.6 million were recorded, related to the Advancing Agility & Automation Initiative, which aims to improve supply chain and administrative efficiencies.
Operating profit decreased by 16.7% to $613.2 million, with an operating profit margin of 20.5%, down from 24.3% in the previous year.
Net interest expense increased by 11.5% to $44.3 million, primarily due to higher short-term debt balances.
Other expenses, net, increased to $50.1 million, driven by higher write-downs on equity investments qualifying for tax credits.
The effective income tax rate was 14.0%, down from 20.6% in the prior year, influenced by investment tax credits.
Net income decreased by 13.9% to $446.3 million, with diluted earnings per share of $2.20, down from $2.52 in the previous year.
The Hershey Company reports that its liquidity remains sufficient to meet strategic initiatives and other material cash requirements in both the short-term and long-term.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the The Hershey Company quarterly 10-Q report dated November 7, 2024. To report an error, please email earnings@qz.com.