Hershey reports higher sales for Q3 financial results
The Hershey stand at this year's Sweets & Snacks Expo. Pic: Neill Barston
US confectionery giant Hershey has released its latest third quarter results that revealed consolidated net sales of $2,728.2 million, up 15.6%, reports Neill Barston.
The company confirmed that sales increased by 11.8%, with net income of $399.5 million, as the business was recently named as the country’s most favoured Halloween confectionery brand with its Reese’s peanut butter cups.
However, according to the business, third-quarter 2022 reported operating profit was $556.6 million, a decrease of 3.2%, resulting in an operating profit margin of 20.4%, a decrease of 400 basis points.
These declines were reportedly driven by the previously mentioned gross margin declines, including derivative mark-to-market losses, and higher corporate and operating expenses, including acquisition-related integration costs.
Adjusted operating profit of $615.3 million increased 9.3% versus the third quarter of 2021 as pricing, volume and cost leverage more than offset inflation, elevated supply chain costs, acquisition-related costs and brand, capabilities, and people investments.
“Third quarter results came in ahead of our expectations, as our increased brand investments and improved supply chain helped support resilient consumer demand and drove category growth across all business segments,” said Michele Buck,
The Hershey Company President and Chief Executive Officer. “Marketplace share and gross margin trends improved versus the second quarter, and we have strong momentum exiting the year. Given our performance to date and visibility into the fourth quarter, we are raising our net sales and earnings outlook for the year.”