$HSY (-1.07%) - Hershey Q2 - Earnings highlights:
(pre-market -7%)
- Adjusted earnings per share: $1.27 (estimate $1.44)
- Revenue: $2.07 billion (estimated $2.30 billion), down -16.7% year over year
Lowered guidance:
- Adjusted EPS growth FY'24: Down slightly (Previous : ~0%)
- Sales growth FY'24: ~2% (Previous: 2%-3%)
Segment performance:
- Confectionery in North America: sales down -20.7% YoY; due to inventory reduction and timing of shipments
- Salty snacks in North America: sales increase of 6.4% compared to the previous year due to volume growth
- International: Decline in sales of -8.9% compared to the previous year
Comment from CEO Michele Buck:
- "The current business environment remains challenging as consumers cut back on spending on non-essential products. Despite this, our confectionery category and salty snacks portfolio continue to grow. We are optimistic about our innovation pipeline for the second half of the year and the development of strategies to drive long-term success."
Strategic insights:
- Challenges: Declining spend on non-essential goods, inventory reduction and competitive market conditions impacting earnings and sales
- Outlook: Adjusted earnings forecast lowered due to the economic situation; strategic focus on innovation and category expansion
Current business developments:
- Innovation and category expansion: the company is focused on driving innovation in its confectionery and snacks categories, particularly with upcoming product launches in the second half of the year. The Salty Snacks segment has been robust with notable growth in Dot's Homestyle Pretzels.
