Vending

Hershey boosts Q2 2022 results, beats expectations

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August 5, 2022

The Hershey Co. lifted its Q2 2022 sales and earnings over the prior year period, surpassing analyst expectations and increasing its shareholder dividend, according to an earnings release. Highlights include:

• Consolidated net sales increased 19.3% from $1.99 billion in Q2 2021 to $2.37 billion in the quarter ending July 3, 2022, including a 5.3-point benefit from the acquisitions of Pretzels, Dot's and Lily's, while foreign currency exchange was a 0.1-point headwind.
• Organic, constant currency net sales increased 14.1% driven by pricing and volume gains across segments.
• Net income rose 5.5% from $301.2 million to $315.5 million.
• Net income per share rose from $1.50 to $1.57 on a basic basis and from $1.45 to $1.53 on a diluted basis, while non-GAAP diluted EPS rose from $1.47 to $1.80.
• North America confectionery sales rose 11.6% from $1.69 billion to $1.9 billion.
• North America salty snacks sales rose 99.9% from $128.2 million to $256.3 million. Sales from the acquisitions of Dot's and Pretzels was a 71.6-point benefit.
• International sales increased 21.3% from $170.8 million to $207.2 million.

Shares traded today at $223.92 against a 52-week range of $167.80-$231.92.

The $2.37 billion in quarterly revenue beat analyst expectations by $130 million while the non-GAAP EPS of $1.80 beat expectations by 12 cents, according to Seeking Alpha.

The company declared a $1.03 per share quarterly dividend, a 15% increase from its prior dividend, payable on Sept. 15 for shareholders of record on Aug. 19.

"Our business momentum continued in the second quarter, with double-digit sales growth in each of our segments resulting in strong earnings per share performance," Michele Buck, president and CEO, said in the press release. "We are raising our financial expectations for the year and investing more heavily in our brands, capabilities and people in the second half to continue this momentum into 2023."

The company raised both its sales growth outlook and adjusted EPS outlook from 10%-12% to 12%-14%, and its reported EPS from 8%-11% to 9%-12%.