Hershey on track to end year with momentum
The Hershey Company has said the launch of its Cookie Layer Crunch bar should enable the US confectionery giant to “end the year with momentum” after posting net profit and sales growth for the third quarter.
Net income reached $227.4m for the three months to 2 October, up from $154.8m in the same period of the previous year. Net sales rose 2.2% to $2bn from $1.96bn last year.
Hershey’s North America net sales increased 1.8% to $1.76bn, and the company’s international and other segment grew 5.3% to $238.9m despite China chocolate retail sales declining 4%.
Lifting its outlook, Hershey now expects full-year adjusted earnings to range from $4.28-4.32 per share, compared to its previous estimate of $4.24-4.28 per share.
“Throughout 2016, our top priority has been to restore consistency across the business,” said chairman, president and CEO John Bilbrey. “Against a backdrop of continued snacks competition, we experienced improvements in key aspects of our business. Our brands responded positively to the marketplace investments we discussed last quarter, which is why we continue to believe that candy, mint and gum (CMG) is an attractive category capable of solid growth over the long term when supported with the right mix of customer and consumer marketing.”
He added that the group will make the necessary investments to drive growth and market share over the strategic planning cycle. Initiatives such as the demand landscape work and platform innovation, similar to the Cookie Layer Crunch bar, he believes, should enable Hershey to improve net sales and operating income performance in 2017.
Commenting on the rest of this year, Bilbrey noted, “Our priorities for the year remain unchanged and we’re focused on delivering on the objectives we outlined earlier this year… Our seasonal business and programmes are on track and the launch of Hershey’s Cookie Layer Crunch bar should enable us to end the year with momentum.”
