Hershey Co. (HSY.N) reported second-quarter earnings on July 30 that surpassed Wall Street expectations, fueled by sturdy Easter demand for its confectionery and salty snack merchandise.
Hershey mentioned gross sales quantity jumped 21% throughout the quarter ended June 29, helped by the timing of Easter (April 20 this yr) and early shipments of Halloween orders. The firm additionally raised costs by about 5% in comparison with a 1% enhance a yr in the past, offsetting hovering cocoa prices.
The Pennsylvania-based firm maintained its annual forecast however warned that full-year tariff bills may attain $170 million-$180 million, far larger than the $15 million-$20 million incurred throughout the quarter.
Outgoing CEO Michele Buck mentioned Hershey is taking “pivotal steps” to mitigate cocoa inflation via strategic pricing. The firm just lately introduced that Kirk Tanner, previously of Wendy’s, will succeed Buck as CEO on August 18.
Hershey’s shares edged as much as $186.65 in premarket buying and selling following the outcomes. The firm has additionally pledged to take away synthetic colours from its snacks inside the subsequent two years.
