Hershey records upward growth across US and global sales with annual results
pic: Hershey at Sweets & Snacks Expo 2024, in Indianapolis, Indiana, US. Pic: Neill Barston
US confectionery giant, Hershey, has released its latest annual financial results revealing an upturn in performance, producing net sales of $11.2 billion, representing a modest increase of 0.3%, writes Neill Barston.
As the company, which includes its core Reese’s brand, reported, its figures for the year were given a fourth quarter boost, with the business posting net sales of $2,887.5 million, representing an increase of 8.7%, despite supply chain challenges continuing to impact the wider confectionery sector.
The results come amid a transitional period for the business, which was recently the subject of a renewed reported mega merger takeover bid from Mondelez International, which the board of trustees at Hershey are said to have rejected.
Last month, Andrew Archambault was named as President of US. Confection for the group, and furthermore, Veronica Villasenor was appointed as president of salty snacks.
Consequently, the improved annual performance was welcomed by CEO Michele Buck, who recently announced her intention to step down from her post in 2026, which also came shortly after the decision of the company’s president, Michael Del Pozzo to leave his role, which she assumed on an interim basis as additional duties.
“I am pleased to see the consumer response to our agile innovation, marketing and in-store execution as we end the year with momentum across our segments.
“While we continue to expect the surge in cocoa prices to put significant pressure on 2025 earnings, we will focus on driving top-line and share momentum, executing our transformation and productivity programs, and positioning ourselves to deliver peer-leading performance over the long-term,” noted Michele Buck, pictured below.
The upturn in performance within the fourth quarter for the business was attributed to several key factors, including a rationalisation of its salty snack portfolio. According to the company, other elements included favourable net price adjustment within its confectionery offerings, and improved timing conditions for its product shipping.
In addition, the company reported that selling, marketing and administrative expenses decreased 5.5% in the fourth quarter of 2024 versus the prior-year period, primarily driven by lower compensation and benefit costs and reduced capability and technology investments, partially offset by increased investments in advertising and related consumer marketing expenses – which rose by 2.4%.
Underlining the strong end of year performance, fourth-quarter 2024 reported operating profit was $939.1 million, an increase of 102.3% versus the same period in 2023.
Hershey’s North America Confectionery segment net sales were $2,354.2 million in the fourth quarter of 2024, an increase of 6.0% versus the same period last year. Its candy, mint and gum (CMG) retail takeaway for the twelve-week period ended December 29, 2024 in the multi-outlet plus convenience store channels also increased 2.2%.
There was also positive news for its salty snacks division, with net sales of $278.9 million in the fourth quarter of 2024, an increase of 35.9% versus the same period last year. This segment gained $54.5 million in the fourth quarter of 2024, which was a major increase of 424.1% versus the prior-year period, backed by higher sales and investment.
In addition, the company’s international business also gained market traction in the latter quarter of last year, with business increasing 9.8% versus the same period last year, to $254.5 million. Sales increased 15.0% driven by double-digit volume growth across Mexico and Europe, Middle East, and Africa (EMEA), and high-single digit growth in India.
Notably, segment income for its international sales stood at $29.6 million in the fourth quarter of 2024, a 44.7% year-on-year increase, driven by improve sales figures.
