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Hershey Company Reports Second-Quarter Results for 2025

On July 30, 2025, The Hershey Company (NYSE: HSY) announced its financial performance for the second quarter, ending June 29, 2025. This release highlights a substantial increase in net sales and the challenges that the company faced, providing insights into the current state of the confectionery market.

Key Financial Highlights

Michele Buck, the company’s President and CEO, expressed satisfaction with the second quarter's outcomes, noting significant sales momentum fueled by brand investments and focused innovation. The results include:

• - Consolidated Net Sales: $2,614.7 million, representing a remarkable 26% increase compared to the prior year.
• - Organic, Constant Currency Net Sales: Increased by 26.3%, driven by recovering inventory levels following last year’s ERP implementation and a favorable holiday timing.
• - Net Income: Reported at $62.7 million, with a diluted earnings per share of $0.31, showing a 65.2% decline from the previous quarter due to various cost pressures.

Despite these challenges, adjusted earnings per share were reported at $1.21, reflecting a 4.7% decrease year-over-year, highlighting the impact of rising commodity costs and operational expenses.

Revised 2025 Financial Outlook

Hershey updated its complete year earnings forecast in light of recent economic pressures such as tariff increases and commodity pricing challenges. The outlook adjustments are as follows:

• - Net Sales Growth: Projected to increase by at least 2%.
• - Reported Earnings Per Share Growth: Revised down to a decrease of approximately 50%.
• - Adjusted Earnings Per Share Growth: Now anticipated to decrease between 36% to 38%.

This revision reflects both ongoing economic uncertainties and the strategic measures the company is undertaking to manage costs more effectively.

Segment Performance Overview

North America Confectionery

The North America Confectionery segment experienced a significant sales surge, reaching $2,085.5 million, an increase of 32%. This performance was bolstered by a 21.8% growth in retail takeaways in the candy segment, attributed to effective marketing strategies and a favorable holiday timeline.

North America Salty Snacks

Hershey's Salty Snacks division recorded net sales of $315.5 million, up 8.8% year-over-year. With effective promotions for products like SkinnyPop and Dot’s Pretzels, this segment highlighted substantial market share gains.

International Sales

The international segment saw a modest increase of 4.4% in net sales, totaling $213.7 million. Challenges remain, particularly in Mexico, where regulatory headwinds have led to unexpected declines in sales volumes.

Conclusion

Overall, despite facing challenges such as commodity cost inflation and increased competition, Hershey's commitment to brand enhancement and operational efficiency shines through its second-quarter results. As the company moves forward, it remains focused on balancing growth with strategic pricing and efficiency improvements to offset external pressures.

Hershey will continue engaging with investors and analysts, discussing its strategies and performance during a live Q&A session scheduled post-release.

For more details, visit Hershey Company Investors.