Vending

Hershey lifts Q1 2022 sales, earnings on pricing, acquisitions

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April 28, 2022

Hershey Co. improved its sales and earnings for Q1 2022 boosted by pricing and acquisitions, according to an earnings release. Highlights include:

• Consolidated net sales rose 16.1% from $2.29 billion in Q1 2021 to $2.67 billion for the quarter ending April 3, 2022. Net price realization was a 6.9-point benefit driven primarily by list price increases across segments. Sales from the acquisition of Pretzels, Dot's and Lily's were a 4.6-point benefit.
• The North America confectionery segment net sales rose 11.7% from $1.98 billion to $2.22 billion in the comparative quarters.
• The North America salty snacks segment rose 86.2% from $121.42 million to $226.1 million. Sales from the acquisitions of Dot's and Pretzels was a 69.0-point benefit.
• Net income rose from $396.8 million to $533.5 million in the comparative quarters.
• Net income per share rose from $1.96 to $2.66 on a basic basis and from $1.90 to $2.57 on a diluted basis.
• Adjusted EPS rose 31.8% to $2.53 for Q1 2022.

Shares traded today at $224.30 against a 52-week range of $159.51-$231.60.

The company declared a $0.901/share quarterly dividend payable June 15 for shareholders of record May 20.

The $2.67 billion in quarterly revenue beat analyst expectations by $180 million and the non-GAAP EPS of $2.53 beat expectations by 43 cents, according to Seeking Alpha.

"We delivered strong double-digit sales and earnings growth with ongoing momentum across business units," Michele Buck, president and CEO, said in the press release. "Our fast start, sustained consumer relevancy and increased visibility into our recently acquired businesses give us the confidence to increase our full-year net sales and earnings outlook despite an increasingly challenging and inflationary environment."

The company expects 2022 sales growth to be 10%-12% with reported EPS growth of 8%-11% and adjusted EPS growth of 10%-12%.

The primary drivers of the increased outlook are sustained consumer demand and favorable price elasticities across all segments along with increased visibility into customer orders and programs of the recently acquired Dot's and Pretzels businesses.