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Hershey Q3: Net Sales Increase 2.2%

by Hershey Press Release
Posted On: 11/3/2016

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TAGS: Hershey third-quarter report, vending, candy news, John P. Bilbrey

PRESS RELEASE

Source: Hershey Co. | Released Oct. 28, 2016

Hershey third-quarter highlights:

Third-quarter net sales increased 2.2%, including the impact of acquisitions and foreign currency exchange rates:
» Acquisitions a 0.7 point benefit
» Unfavorable foreign currency exchange rates a 0.2 point headwind
» Third-quarter earnings per share-diluted of $1.06 as reported and $1.29 adjusted

Outlook for 2016 net sales and earnings per share-diluted updated:
» Full-year net sales expected to increase around 1%, including a net benefit from acquisitions and divestitures of about 0.5 points and unfavorable foreign currency exchange rates of about 0.75 points
» Reported earnings per share-diluted expected to be in the $3.82 to $3.90 range
» Adjusted earnings per share-diluted expected to increase 4% to 5%, including dilution from acquisitions of $0.05 to $0.06 per share, and be in the $4.28 to $4.32 range

HERSHEY, PA -- Oct. 28, 2016 -- Hershey Co. (NYSE: HSY) today announced sales and earnings for the third quarter ended October 2, 2016. Consolidated net sales were $2,003.5 million compared with $1,960.8 million for the third quarter of 2015. Reported net income for the third quarter of 2016 was $227.4 million or $1.06 per share-diluted, compared with $154.8 million or $0.70 per share-diluted for the comparable period of 2015.

"I'm pleased with Hershey's third-quarter operating results, which were relatively in line with our estimates across all markets," said Hershey Co. president and chief executive John P. Bilbrey. "Our U.S. business benefited from performance within key retail channels and Halloween programming and merchandising in the marketplace. Throughout 2016, our top priority has been to restore consistency across the business. Against a backdrop of continued snacks competition, we experienced improvements in key aspects of our business. Our brands responded positively to the marketplace investments we discussed last quarter, which is why we continue to believe that candy, mint and gum (CMG) is an attractive category capable of solid growth over the long term when supported with the right mix of customer and consumer marketing. Therefore, we intend to make the necessary investments in our business to drive growth and market share over the strategic planning cycle. Initiatives such as the demand landscape work we discussed last quarter and platform innovation, similar to Hershey's Cookie Layer Crunch bar that we announced earlier this month, should enable us to improve net sales and operating income performance in 2017. Additionally, analysis of our cost structure continues. This is a comprehensive global review across all businesses and functions with a goal of ensuring that we operate more effectively and efficiently. I continue to work closely with my management team on this important endeavor and look forward to discussing the value enhancing outcomes in the near future."

Click here to see consolidated statements of income.


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