The Hershey Co

Latest Results (25.10.2025):

The Hershey Co reported strong net sales growth of 26.0% in the second quarter of 2025, driven by robust performance in both its U.S. confectionery and salty snacking segments. Despite the increase in sales, the company experienced a significant decline in reported net income and adjusted earnings per share, leading to an updated full-year earnings outlook.

Net Sales Growth

Consolidated net sales rose by 26.0% to $2.6147 billion in Q2 2025, with organic, constant currency net sales increasing by 26.3%. This growth was supported by strategic pricing, enhanced productivity, and effective execution across key business segments.

Profitability Decline

Reported net income decreased by 65.2% to $62.7 million, and adjusted earnings per share-diluted fell by 4.7% to $1.21. The decline was primarily due to higher commodity and manufacturing costs, derivative mark-to-market losses, and increased advertising expenses.

Full-Year Financial Outlook

The Hershey Co updated its 2025 earnings outlook, projecting reported earnings per share to decline by approximately 50% and adjusted earnings per share to decrease by mid-30%. These adjustments reflect estimated tariff expenses and the impact of ongoing commodity cost mitigation strategies.

Gross Margin and Operating Profit

Reported gross margin fell to 30.5% in Q2 2025 from 40.2% in the same period last year. Additionally, reported operating profit decreased by 33.0% to $192.8 million, driven by increased costs and higher marketing expenditures.

Strategic Initiatives and Cost Mitigation

The company is focused on mitigating cocoa inflation through strategic pricing, enhanced productivity, and technology-enabled efficiencies. Additionally, capital expenditures are expected to range between $425 million and $450 million, supporting the company's growth and transformation initiatives.