Hershey income more than doubles in quarter
July 26, 2011
HERSHEY, PA. — Driven by overall strength of the candy, mint and gum category as well as one-time costs during the previous-year comparable period, income for The Hershey Co. more than doubled and came close to tripling during the second quarter.
For the quarter ended July 3, the company posted net income of $130,019,000, equal to 59c per share on the common stock, up 178% from $46,723,000, or 21c per share, during the same quarter of the previous year. Sales for the quarter were $1,325,171,000, up 7% from $1,233,242,000.
“I’m pleased with Hershey’s second-quarter results as solid marketplace momentum continued, resulting in strong overall financial performance,” said John P. Bilbrey, president and chief executive officer. “Our business model and strategy to invest in core brands, disciplined innovation, insights driven performance and consumers capabilities remains effective and is sustainable. We will continue with this disciplined approach and build on these initiatives in both domestic and international markets as it will enable the company to consistently meet its net sales and earnings objectives in the future.
“In the second quarter Hershey’s net sales increased 7.5%, somewhat greater than our initial expectations driven by volume growth, primarily new products, in both U.S. and international markets, resulting in greater levels of in-store merchandising and programming versus our estimates and earlier-than-expected shipments to customers due to a change in the timing of their promotional calendars. Net price realization, primarily in the U.S., was a 3-point benefit while foreign currency exchange rates added about a half point.”
For the six months ended July 3 the company had income of $290,134,000, or $1.31 per share, up 49% from $194,117,000, or 87c per share, during the same period of the previous year. Sales for the period were $2,889,394,000, up 9% from $2,641,085,000.
Hershey also said it is raising its full-year guidance from a 6% to 8% expected increase in earnings per share to around a 10% expected increase.