The Hershey Company records second quarter financial growth
The US-based Hershey Company has delivered an increase in net sales for the second quarter of 2019, recording figures of $1,767 million, up 0.9% year-on-year.
Its results come amid plans to raise the price of its core chocolate bar brands by around 9%, at a time when it faces increased competition and changing consumer tastes, with a marked trend towards healthier product offerings.
According to the company’s latest results, its North America net sales were $1,568 million in the second quarter of 2019, an increase of 0.5%, with net sales up 3.9% year-on-year to a figure of $199.2 million for its markets in the rest of the world.
The company updated its net sales outlook to the mid-point of the previously guided range, with full-year sales for 2019 projected to be around 2% up on the previous year’s results. In addition, the net impact of acquisitions and divestitures is estimated to be approximately a 0.5 point benefit and the foreign currency exchange rate impact is expected to be minimal based on current exchange rates.
This year has proved a particularly momentous one for the business, which is celebrating its 125th anniversary year, which it marked recently at the Sweets and Snacks Expo in Chicago, US, with a number of new product launches across its portfolio.
“We are pleased with our second quarter results and the momentum we are seeing behind our key initiatives for this year,” said Michele Buck, The Hershey Company President and Chief Executive Officer. “We continue to deliver differentiated results by growing both top and bottom line while investing in our brands and capabilities. We are on track to deliver our financial commitments for the year driven by accelerated U.S. performance, a strengthened international business and continued operational excellence.”