Hershey records second quarter growth, despite supply chain and ingredients challenges
The Hershey stand at this year's Sweets & Snacks Expo. Pic: Neill Barston
Hershey has reported sales growth for the second quarter of its financial year, with net sales of $2.34 billion for the period, representing a 19.3% increase, despite a backdrop of challenging wider market conditions, reports Neill Barston.
As the company noted in its latest figures, as inflated costs of raw materials, packaging and logistics prices all impacted on its operations, along with the wider sector, with the business noting that broader global turbulence affecting a number of sectors could impact consumers’ spending power.
Despite this, the company reported net operating profit of $457.5 million for the second quarter, which was in-line with its previous year’s performance for the period.
Its core north American market produced net sales were $1,9 billion for the period, representing a year-on-year increase of 12.9%. This included an upturn in performance for its candy, mint and gum interests, which were up 5%, with progress also been noted in take-home chocolate and sweets, marked by growth in unit prices.
Consequently, Hershey’s take-home chocolate increased 6.6% in the latest period, as at-home consumption remained strong and above pre-pandemic levels.
According to the company, some of its strongest performing brands were its Jolly Rancher Gummies and Twizzlers summer series. Its North America Confectionery segment reported segment income of $618.9 million in the second quarter of 2022, reflecting an increase of 11.6% versus the prior-year period.Hershey’s North America Salty Snacks
Notably, within salty snacks, net sales were $256.3 million in the second quarter of 2022, an increase of 99.9% versus the same period last year.
As the business noted, there were also encouraging signs for its international interests, with second quarter sales for its global operations rising 21.3% versus the same period last year to $207.2 million.
“Our business momentum continued in the second quarter, with double-digit sales growth in each of our segments resulting in strong earnings per share performance,” said Michele Buck, The Hershey Company President and Chief Executive Officer.
“These results reflect the strength and resilience of our categories, consumers’ love for our brands, the investments we are making in our business, and the exceptional execution of our dedicated employees. We are raising our financial expectations for the year and investing more heavily in our brands, capabilities and people in the second half to continue this momentum into 2023.”