BamBamInvest · 2024-08-01T11:08:29.799212Z

$HSY - 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. #earnings #hershey

$HSY (+0.71%) - 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.

#earnings
#hershey

Leon@leonurb

11Mon

Danke 👍🏼

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BamBamInvest@BamBamInvest

@leonurb with pleasure ! Could be a good long entry opportunity if the price drops a little ☺️. High cocoa price, high interest rate, they are holding up well anyway, if both turn around they should profit from it in my opinion due to the high margins. But let's see.

@BamBamInvest I think so too. Due to the rise in cocoa prices, cocoa was already considered a speculative commodity to a certain extent. As soon as prices stabilize in the medium term, we will see an upward trend again. In addition, the growth in salty snacks should not be underestimated in the long term.

Pascal@TheAmazingInc

8Mon

Would almost disregard the cocoa prices in relation to the product and the margin, the product contains so little cocoa that the chocolate is not even considered chocolate in the UK. However, as the product is known for "chocolate", it was to be expected that the price would fall due to investors.

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