Vending

Hershey boosts Q3 2021 sales, sustains earnings

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October 29, 2021

The Hershey Co. sustained earnings and improved sales for the third quarter ending Oct. 3, 2021, according to a press release.

Hershey Co.'s net sales rose 6.3% from $2.22 billion in Q3, 2020 to $2.36 billion in the third quarter of 2021.

Net income dipped from $447.3 million in Q3, 2020 to $444.9 million in Q3, 2021.

Diluted earnings per share was $2.14, matching the prior year period, while adjusted EPS rose 12.9% from $1.86 to $2.10.

The company announced quarterly dividends of 90.1 cents on the common stock and 81.9 cents on the Class B common stock. The dividends are payable Dec. 15, 2021, to stockholders of record Nov. 19, 2021.

The quarterly growth lagged consumer demand as capacity constraints and industry-wide supply chain disruptions resulted in lower retailer and distributor inventory levels. Changes in year-over-year retailer and distributor inventory levels versus the prior year period resulted in an approximate 6-point headwind to net sales growth this quarter.

Sales from the acquisition of Lily's Sweets, LLC was a 1.4-point benefit and foreign exchange was a 0.5-point benefit.

Hershey's North America net sales were $2.125 billion in the third quarter of 2021, an increase of 5.5% versus the same period last year.

Third quarter 2021 net sales for Hershey's international and other segment increased 13.9% versus the same period last year to $234.2 million.

The $2.36 billion in quarterly revenue beat analyst expectations by $30 million while the non-GAAP EPS of $2.10 beat expectations by 10 cents and the $2.14 GAAP EPS beat expectations by 20 cents, according to Seeking Alpha.

Shares traded at $177.59 today against a 52-week range of $135.83-$182.71.

Full-year net sales growth is now expected to be in the range of 8% to 9%, an increase from the previously communicated range of 6% to 8%.

Full-year reported earnings per share are now expected to be in the range of $6.88 to $7.04, an increase of 13% to 15% from $6.11 in fiscal 2020, and an increase from the previously communicated range of 8% to 12%.

Full-year adjusted earnings per share are now expected to be in the range of $6.98 to $7.11, an increase of 11% to 13% from $6.29 in fiscal 2020, and an increase from the previously communicated range of 8% to 10%.