The Hershey Company ($HSY (-0,69Â %) ) Q1 2025
Financial results
- Net salesConsolidated net sales amounted to USD 2.805 billion, a decrease of 13.8% compared to the previous year.
- Organic salesAdjusted for exchange rate effects and acquisitions, organic sales fell by 13.2 %.
- Net profitReported net profit amounted to USD 224.2 million (USD 1.10 per share), a decrease of 71.7 %.
- Adjusted earnings per shareamounted to USD 2.09, a decrease of 31.9 %.
Business development
- Consumer behaviorStrong seasonal sales in the U.S. Candy, Mint, Gum and Salty Snacks segments (including Dot's and SkinnyPop).
- Cost structureDespite increased costs, the financial situation remains stable, which enables targeted investments and acquisitions.
Use of capital
- DividendPayment of a quarterly dividend of USD 1.37 per share.
- Share buybacks: In the first quarter, treasury shares worth 125 million USD were bought back as part of an ongoing buyback program to increase shareholder value.
Outlook 2025
- Sales growth: Expected growth of at least 2% for the year as a whole.
- Profit forecast:
- Reported earnings per share: decline in the high 40 % range.
- Adjusted earnings per share: decline in the mid 30% range.
- Further expectations:
- Effective tax rate: approx. 16 %
- Other expenses: USD 170-180 million
- Interest expenses: USD 185-190 million
- Capital expenditure: USD 425-450 million
- Savings from Agility & Automation initiative: approx. USD 125 million
Strategic initiatives
- AcquisitionsContribution of Sour Strips to sales development (around +30 basis points).
- Portfolio expansion: Planned acquisition of LesserEvil strengthens the "Better-for-You" segment.