Hershey beats quarterly estimates on strong Easter demand
The company said it expects tariff expenses to be between US$170 million and $180 million for the full year. It had projected tariff costs to be about $15 million to $20 million in the reported quarter.
The Dot's pretzels maker, which maintained its annual forecasts, said sales volume rose about 21 per cent during the quarter, due to planned changes in its inventory and supply chain in the North America Confectionery and International segments.
While Hershey gained from the timing of Easter season, it fell on April 20 this year, the company also benefited from earlier shipments of Halloween seasonal orders.
'Looking ahead, we remain committed to delivering balanced growth and have taken pivotal steps toward mitigating cocoa inflation through strategic pricing,' outgoing CEO Michele Buck said in a statement.
The company raised prices by about five per cent in the quarter ended June 29, compared with a one per cent increase a year ago, helping it counter soaring prices of cocoa.
Earlier this month, Hershey's said it had tapped Wendy's Kirk Tanner as its new CEO, effective Aug. 18.
Shares of the company, which has also announced its decision to drop artificial colors from its snacks in the next two years, were marginally up at $186.65 in premarket trading.
The company's net sales of $2.61 billion beat estimates of $2.52 billion, as per data compiled by LSEG.
On adjusted basis, Hershey reported a profit of $1.21 per share, also topping estimates of 99 cents.
(Reporting by Anuja Bharat Mistry in Bengaluru; Editing by Vijay Kishore and Sriraj Kalluvila)
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