Vending

Hershey reports strong Q1 2023 boosted by pricing, customer demand

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April 27, 2023

Hershey Co. boosted its Q1 2023 results driven by pricing and strong customer demand, according to an earnings report. Highlights include:

• Consolidated net sales increased 12.1% from $2.66 billion in Q1 2022 to $2.98 billion in the quarter ending April 2, 2023. List price increases and strong consumer demand drove balanced growth across segments.
• Net income rose from $533.5 million to $587.2 million in the comparative quarters.
• Basic common income per share rose from $2.66 to $2.94 in the comparative quarters, while diluted common income rose from $2.57 to $2.85.
• Adjusted diluted EPS rose 17% to $2.96 for Q1 2023.
• North America confectionery segment net sales rose 10.6% to $2.45 billion in the first quarter of 2023 as net price realization drove high single digit growth and consumer demand remained strong.
• U.S. candy, mint and gum retail takeaway for the 12-week period ended April 2, 2023 in the multi-outlet plus convenience store channels increased 12.3% as consumer demand sustained despite higher marketplace prices.
• North America salty snack sales rose 19.4% to $270 million driven by both price realization and volume gains. Gains during the period were led by SkinnyPop ready-to-eat popcorn and Dot's Homestyle Pretzels.
• International sales increased 19% to $265.5 million driven by volume growth across markets.

Shares traded today at $271.91 against a 52-week range of $263.71-$272.13.

The $2.96 adjusted EPS beat the Zacks Consensus Estimate of $2.67, according to Zacks.

"We had a great start to the year as our increased investments in the business and strong execution delivered resilient consumer demand and drove double digit sales and earnings growth in the quarter," Michele Buck, president and chief executive officer, said in the press release. "As we look to the balance of the year, we remain confident in our ability to deliver our financial goals and continue executing against our key commercial, supply chain and operational strategies to sustain our momentum into 2024 and beyond."