Vending

Hershey boosts Q4, FY 2022 results, surpasses analyst expectations

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February 2, 2023

Hershey Co. lifted its Q4 and FY sales and earnings for 2022, according to an earnings release, and surpassed analyst estimates.

Highlights include:

Consolidated net sales increased 14%, from $2.33 billion in Q4 2021 to $2.65 billion in the quarter ending Dec. 31, 2022, including a 3.6-point benefit from the acquisition of Dot's and Pretzels.
Organic, constant currency net sales increased 10.7%, driven primarily by net price realization of 8.5 points. Consumer demand continued to grow across segments driving an additional 2.2 points of volume gains.
Net income rose 18.5%, from $355.5 million to $396.3 million in the comparative quarters.
Basic EPS rose from $1.67 to $1.98, while diluted EPS rose from $1.62 to $1.92.
Adjusted diluted EPS rose 19.5% to $2.02.
The North America confectionery segment net sales rose 9.7% to $2.17 billion.
The North America salty snacks segment net sales rose 71.4% to $272 million.
Net sales for the international segment increased 11.1% to $205.6 million.
Full year net sales rose from $8.97 billion in 2021 to $10.42 billion in 2022.
Full year net income rose from $1.47 billion to $1.64 billion.
Full year basic EPS rose from $7.34 to $8.22 while diluted EPS rose from $7.11 to $7.96.

Shares traded today at $231.79 against a 52-week range of $193.09-$242.64.

The $2.65 billion in quarterly net sales beat the Zacks Consensus Estimate of $2.58 billion, and the $2.02 in adjusted EPS surpassed the Zacks Consensus estimate of $1.78.

"In 2022, the Hershey Co. delivered one of its strongest years in history despite record inflation, continued supply chain disruptions and macroeconomic uncertainty for many consumers," Michele Buck, chairman and CEO, said in the press release. "We expect to deliver another year of strong sales and earnings growth in 2023 as we invest in our amazing portfolio of brands, additional capacity and capabilities."

The company expects net sales growth of 6% to 8% driven primarily by net price realization as consumer demand remains steady behind higher advertising levels and increased capacity. Sales growth and gross margin expansion are expected to more than offset increased brand, capability and technology investments, as well as higher pension and interest expenses, to drive projected reported earnings per share growth of 11% to 15% and adjusted earnings per share growth of 9% to 11%.