Hershey posts quarterly sales rise, but income is hit by cocoa prices and tariffs

The Hershey Company has posted improved third quarter sales for 2025, up 6.5$ to attaining $3,18 billion, yet net profits have been impacted notably by cocoa and tariff costs, reports Neill Barston.

Consequently, net income for the period was $276.3 million, down some 38%, as the business faced headwinds from a number of areas, though its recently appointed CEO Kirk Tanner, believed there was forward momentum for the business in terms of developing its portfolio.

This point was demonstrated earlier this summer at the Sweets & Snacks Expo in Indianapolis, where Confectionery Production reported the company had delivered a considerable pipeline of innovation across its brands.

However, market conditions have remained challenging in some territories for the business, its domestic market impacted from tariffs, gaining third quarter net income of $571 million, decreasing 21% year-on-year, with the company acknowledging that the additional taxes imposed by the present US government, which it estimated to be between $160-$170 million, as well as commodity prices had affected results. 

Sales for its North American operations were $2.6billion for the third quarter, up 5.2%, which it attributed to core brand performance, with its flagship Reece’s peanut butter cup series continuing to be a mainstay for the business, releasing a number of new iterations during the year to date.

As previously noted, the company had reportedly approached the White House seeking an exemption from tariffs due to the fact that cocoa cannot be grown commercially in the US, and is reliant on supplies from core locations including Ghana and Ivory Coast in West Africa.

There were encouraging signs in other areas of the business, including for its salty snacks, which registered net sales of $321 million for the quarter, and while international net sales were up 12% at $244million, it recorded a 13.6 million loss in net income due to higher manufacturing costs as, well as elevated cocoa costs

 Kirk Tanner, The Hershey Company President and Chief Executive Officer, commented on the results. He said: “Third quarter results surpassed expectations, as strong innovation, strategic brand investments, and market leading execution drove momentum across business segments,” sBased on our results year-to-date, we are raising our full year outlook for net sales and earnings per share.”

“I am excited to steer the next generation of growth at the Company, working closely with our talented team members, valued customers, and the Board. Together, we’ll focus on delighting consumers and delivering results as we unlock our full potential as a snacking industry leader.”