Hershey income up 20% in quarter
April 23, 2009
by Bakingbusiness Staff
HERSHEY, PA. — Partly the result of pricing actions and a longer Easter season, income for The Hershey Co. was up 20% for the quarter ended April 5.
Income for the first quarter was $75,894,000, equal to 34c per share on the common stock, up 20% from $63,245,000, or 29c per share, during the same quarter of the previous year. Sales for the quarter were $1,236,031,000, up 7% from $1,160,342,000 during the same quarter of the previous year.
The quarter’s results included a net pre-tax charge of $19 million associated with the company’s Global Supply Chain Transformation program.
"First-quarter profitability benefited from net price realization, better volume trends than we had initially expected and supply chain efficiencies and productivity," said David J. West, president and chief executive officer. "A portion of these gains was offset by higher commodity and pension costs as well as increased levels of brand-building investment spending."
Mr. West said the company anticipates consumers beginning to see higher promoted retail price points on items. While full-year sales growth of 2% to 3% is expected, uncertainly related to volume declines through pricing elasticity is causing the company to believe earnings per share from operations for the full-year will increase at less than the previously announced 6% to 8%.