Hershey records annual revenue gains despite ongoing global challenges

Hershey, PA / USA - November 26, 2019: Merchandise, souvenirs, clothing, and candy are on sale at Hershey's Chocolate World.

Hershey’s CEO and president Michele Buck has welcomed the company’s improved annual results, which revealed net sales up 10% for the year, at $8.9 billion, against a backdrop of uncertain market conditions, writes Neill Barston.

The upturn in performance, which includes fourth quarter revenues increased by 6.4% to $2.3 billion, comes as the sector faces a number of challenges including pandemic logistics issues as well as challenging cocoa supply markets that have provided considerable tests.

Consequently, Hershey delivered $1.4 billion in net income for 2021, up by 16%, in spite of supply chain disruptions and inflation within raw materials costs that are impacting across the food and drinks industry.

In terms of its regional breakdown, the company’s core market remains the US, where net sale within the group were $1.9 billion in the fourth quarter of 2021, up 4.9% year-on-year, with pre-Christmas sales offering a key boost.

Its candy, mint and gum interests enjoyed strong seasonal demand for Halloween and the festive holidays – which recorded a 13% retail uplift during the period, as consumers continued to turn towards familiar treats amid the pandemic.

Conditions for its wider international sales were more challenging, though its fourth quarter overseas net sales were up 2% to $185 million for the period, though this was affected by challenging retail conditions amid lockdown conditions in many locations in Europe and the rest of the world.

Commenting on the results, Michele Buck said: “In 2021, we delivered a record year of production and double-digit sales and earnings growth, with a strong finish and momentum heading into 2022.¬† While the environment remains volatile, we are confident in our ability to continue to respond to the changes in the world around us and deliver another year of advantaged performance in 2022,” said Michele Buck, The Hershey Company President and Chief Executive Officer.

“I could not be prouder of the entire¬†Hershey organisation for the way they continue to unite to overcome obstacles, show courage and adaptability, and persevere to deliver for consumers, partners, shareholders and each other during unprecedented times.”

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