Hershey Profit Jumps as Price Hikes Boost Sales

Hershey HSY 0.66%increase; green up pointing triangle reported higher first-quarter profit as price increases announced last year provided a boost to revenue, even as its sales volume declined. The company posted net income of $435.1 million, or $2.13 a share, up from $224.2 million, or $1.10 a share, the year prior. Adjusted earnings were $2.35 a share. Analysts polled by FactSet had expected $2.04 a share. Net sales rose 11% to $3.1 billion. Wall Street had expected $3.03 billion. The company's North America salty snacks business saw 26% growth, largely driven by the acquisition of the LesserEvil snack brand. Its North America confectionery segment reported an 8.3% sales increase, while international sales rose 16%. Organic, constant currency net sales increased 7.9% as net pricing rose 10%, while volume declined 2% as a result of consumers' response to the higher prices. Hershey said in the middle of last year that it would impose a double-digit percentage price increase as a result of higher cocoa costs. The company reiterated its full-year outlook for net sales growth of 4% to 5% and adjusted earnings growth of 30% to 35%. "We are laser-focused on fueling core growth and making bold moves in brand investment, innovation, R&D, technology and talent to drive our business to new heights," said Chief Executive Kirk Tanner.