The Hershey group has unveiled its half-year results, which have shown improved fortunes driven, with second quarter net sales at $2.78 billion, up 6.6% driven by salty snacks segments and price rises, reports Neill Barston.

Notably, the upturn in results comes at a period of notable restructuring within the business, as it has taken on a number of senior hires within a short space of time, including a new president of its US operations, Heather Hoytink, in the wake of Kirk Tanner joining the business from PepsiCo last August.

As Confectionery Production has reported, the business has re-aligned its overall strategy under the banner of “One Hershey” and has also responded to adjust moves that saw a limited number of its SKUs for some of its ranges including Reese’s move away from cocoa, to cheaper chocolate compounds, following significant consumer concern.

Moreover, the company has continued on a track of major marketing campaigns and consumer engagement, including a fresh engagement with Mean Girls actress Lindsay Lohan, and fellow US stars Amy Sedaris and Patricia Arquette, in a nostalgia-themed advertising drive marking a year since the introduction of the Reese’s Oreo combination. 

In its latest results filed this week, net income for its second quarter stood at $457.7 million, or $2.26 per share-diluted, an increase of 629.0% compared year-on-year, while its six-month figures showed $892.8 million in net profit, an increase of 211.3%. 

While such top-line figures appeared considerably encouraging for the business, its results revealed underlying issues remained, as its sales volumes dipped by 8 points. This meant its improved position was delivered through pricing increases of over double digits this year, and key acquisitions including the LesserEvil organic snacking series.

Hershey at the recent Sweets & Snacks Expo in Indianapolis Pic: Neill Barston

The company’s recent showing at Sweets & Snacks Expo in Las Vegas revealed it had placed a renewed focus on driving momentum across its categories, which it asserted would be backed by at 25% increase in investment for product research and development.

As the business noted at the time, it has now adopted a greater level of integration across its portfolio, targeting clearer interactions with shoppers both online and in-person at stores around the US and beyond.

This was evidenced through some strong presence with new offerings across its Reese’s, Jolly Rancher and Hershey series. This included a new zero sugar Cookies n’ Creme pouch, fresh launches for its Dot’s Homestyle Pretzels, which vied for honours at this year’s event awards, with its original snack mix gaining a new Powerhouse accolade at the Nevada show back in May.

US performance 
Within its North American confectionery division alone, net sales stood at $2,17 billion for the quarter, up 4.2%, with product pricing rising 14 points, though actual sales volumes declined by 10 points – highlighting economic challenges in US markets that have seen more premium ranges see reduced results amid shopper household budget constraints.

For its candy, mint and gum segments, the company reported a 3.7% uplift in results, though its actual market share was down, amid heightened competition within the category.

As regards its international operations outside of the US, it reported second quarter gains of 5.7%, though sales volumes also reduced by 8% for the business, sounding another note of caution.

Significantly, the company cited its $705 million second quarter income (up 40% year-on-year) being down to pricing increases, supply chain productivity improvements (including cocoa prices reducing within the past year), and transformation of its own operations.

Kirk Tanner, The Hershey Company President and Chief Executive Officer welcomed the results. He said: “We delivered a strong first half, with reported net sales up 8.7%, organic net sales up 5.8% and meaningful earnings recovery. We enter the second half with momentum, compelling growth plans, and increased investment behind our brands, merchandising, and innovation. With cost visibility and operating flexibility, we are well positioned to navigate dynamic markets and deliver on our full-year financial commitments,” he said of the business, which maintained its complete 2026 annual outlook as maintaining net sales growth of up to 5%, as it continues with its programme of internal restructuring. 

Star power backing
As the company released its latest performance results were released, the company also gained backing fro  Lindsay Lohan, Amy Sedaris and Patricia Arquette for its latest Reese’s celebration, targeting further expansion of the category.

“I love that I’m able to be a part of such a moment with Reese’s Oreo,” said Lindsay Lohan. “Working on this campaign has been such a fun experience, and it’s been amazing to see fans embrace this collaboration. Getting to share this moment and work with Amy and Patricia makes it even more special.”

“I’ve had some wonderfully strange jobs in my life, but helping bring a decades-old snack legend to life with Lindsay and Patricia is definitely up there,” said Amy Sedaris.

“Somehow Reese’s Oreo managed to turn nostalgia, friendship and peanut butter into a real job, and for that I’m grateful.”