Hershey Presents at 2025 CAGNY Conference; Reaffirms Earnings Outlook for 2025
Hershey (NYSE: HSY) reaffirmed its 2025 financial outlook during its presentation at the 2025 Consumer Analyst Group of New York (CAGNY) conference. The company expects total net sales growth of at least 2%, with the Sour Strips acquisition contributing approximately 30 basis points to growth, while foreign currency exchange rates are anticipated to be a 30 basis point headwind.
The company's earnings projections indicate a significant decline, with reported earnings per share expected to decrease in the high-40% range and adjusted earnings per share projected to decline in the mid-30% range. During the conference, executives reviewed growth strategies and progress in enhancing commercial capabilities and optimizing their operating model to deliver long-term shareholder value.
Hershey (NYSE: HSY) ha confermato le sue prospettive finanziarie per il 2025 durante la presentazione al convegno del 2025 Consumer Analyst Group di New York (CAGNY). L'azienda prevede una crescita delle vendite nette totali di almeno il 2%, con l'acquisizione di Sour Strips che contribuirà per circa 30 punti base alla crescita, mentre i tassi di cambio delle valute estere sono attesi come un ostacolo di 30 punti base.
Le proiezioni sugli utili dell'azienda indicano un notevole calo, con gli utili per azione riportati che si prevede scendano nella fascia alta del 40% e gli utili per azione rettificati che si prevede diminuiscano nella fascia media del 30%. Durante la conferenza, i dirigenti hanno esaminato le strategie di crescita e i progressi nel potenziamento delle capacità commerciali e nell'ottimizzazione del loro modello operativo per garantire un valore a lungo termine per gli azionisti.
Hershey (NYSE: HSY) reafirmó su perspectiva financiera para 2025 durante su presentación en la conferencia del 2025 Consumer Analyst Group de Nueva York (CAGNY). La compañía espera un crecimiento de las ventas netas totales de al menos el 2%, con la adquisición de Sour Strips contribuyendo aproximadamente con 30 puntos básicos al crecimiento, mientras que las tasas de cambio de divisas se anticipan como un obstáculo de 30 puntos básicos.
Las proyecciones de ganancias de la compañía indican un declive significativo, con las ganancias por acción reportadas que se espera que disminuyan en el rango alto del 40% y las ganancias por acción ajustadas proyectadas para disminuir en el rango medio del 30%. Durante la conferencia, los ejecutivos revisaron las estrategias de crecimiento y el progreso en la mejora de las capacidades comerciales y la optimización de su modelo operativo para ofrecer valor a largo plazo a los accionistas.
허쉬 (NYSE: HSY)는 2025년 뉴욕 소비자 분석 그룹(CAGNY) 회의에서 2025년 재무 전망을 재확인했습니다. 회사는 총 순매출이 최소 2% 성장할 것으로 예상하며, Sour Strips 인수가 성장에 약 30베이시스 포인트 기여할 것으로 보이는 반면, 외환환율은 30베이시스 포인트의 부정적 영향을 미칠 것으로 예상됩니다.
회사의 수익 전망은 상당한 감소를 나타내며, 보고된 주당 순이익은 40%대 중반으로 감소할 것으로 예상되고, 조정된 주당 순이익은 30%대 중반으로 감소할 것으로 예상됩니다. 회의 중 경영진은 성장 전략과 상업적 역량 강화 및 운영 모델 최적화 진행 상황을 검토하여 장기적으로 주주 가치를 제공하는 방법에 대해 논의했습니다.
Hershey (NYSE: HSY) a réaffirmé ses prévisions financières pour 2025 lors de sa présentation à la conférence du 2025 Consumer Analyst Group de New York (CAGNY). L'entreprise s'attend à une croissance des ventes nettes totales d'au moins 2%, l'acquisition de Sour Strips contribuant à hauteur d'environ 30 points de base à cette croissance, tandis que les taux de change des devises étrangères devraient représenter un obstacle de 30 points de base.
Les prévisions de bénéfices de l'entreprise indiquent un déclin significatif, avec des bénéfices par action rapportés qui devraient diminuer dans la fourchette haute des 40% et des bénéfices par action ajustés projetés pour diminuer dans la fourchette médiane des 30%. Lors de la conférence, les dirigeants ont examiné les stratégies de croissance et les progrès réalisés pour améliorer les capacités commerciales et optimiser leur modèle opérationnel afin de garantir une valeur à long terme pour les actionnaires.
Hershey (NYSE: HSY) hat seine Finanzprognose für 2025 während seiner Präsentation auf der 2025 Consumer Analyst Group of New York (CAGNY) Konferenz bekräftigt. Das Unternehmen erwartet eine Gesamtwachstumsrate der Nettoumsätze von mindestens 2%, wobei die Übernahme von Sour Strips etwa 30 Basispunkte zum Wachstum beitragen wird, während die Wechselkurse einen negativen Einfluss von 30 Basispunkten haben werden.
Die Gewinnprognosen des Unternehmens zeigen einen signifikanten Rückgang, wobei die berichteten Gewinne pro Aktie voraussichtlich im hohen 40%-Bereich sinken werden und die bereinigten Gewinne pro Aktie im mittleren 30%-Bereich zurückgehen werden. Während der Konferenz überprüften die Führungskräfte Wachstumsstrategien und den Fortschritt bei der Verbesserung der kommerziellen Fähigkeiten sowie der Optimierung ihres Betriebsmodells, um einen langfristigen Wert für die Aktionäre zu schaffen.
- Sour Strips acquisition expected to contribute 30 basis points to net sales growth
- Net sales growth projected at minimum 2% for 2025
- Reported EPS expected to decline in high-40% range
- Adjusted EPS projected to decline in mid-30% range
- Foreign currency exchange rates creating 30 basis point headwind to net sales growth
Insights
The reaffirmed guidance from Hershey presents a concerning outlook that deserves careful scrutiny. While the company projects modest top-line growth of at least 2%, the projected decline in earnings per share is particularly alarming - with reported EPS expected to drop in the high-40% range and adjusted EPS declining in the mid-30% range.
This dramatic earnings compression while maintaining positive sales growth signals severe operational challenges. The projected performance suggests Hershey is facing substantial margin pressure from multiple fronts: rising input costs, particularly in cocoa where prices have recently hit record highs, increased labor expenses, and ability to pass through additional price increases to consumers who are already showing sensitivity to previous pricing actions.
The minimal impact of the Sour Strips acquisition (30 basis points) on sales growth, completely offset by foreign currency headwinds, indicates that Hershey's inorganic growth strategy isn't providing meaningful near-term benefits to counterbalance these operational headwinds. This raises questions about the company's capital allocation strategy and return on invested capital.
The magnitude of the projected earnings decline is particularly noteworthy for a consumer staples company, which typically demonstrates more stable earnings patterns. This suggests that Hershey's traditional pricing power and brand strength may be facing unprecedented challenges in the current inflationary environment, where consumers are increasingly price-sensitive and trading down to private label alternatives.
The Company reaffirms its full-year 2025 financial expectations for net sales and earnings per share-diluted previously provided in its February 6, 2025, earnings release.
2025 Full-Year Outlook | Total Company | |
Net sales growth1 | At least | |
Reported earnings per share growth | Down high | |
Adjusted earnings per share growth | Down mid |
1 The impact of the Sour Strips acquisition is anticipated to be an approximate 30 basis point benefit to net sales growth for the full-year 2025. Additionally, the impact of foreign currency exchange rates is anticipated to be an approximate 30 basis point headwind to net sales growth for the full-year 2025.
The company's CAGNY presentation and accompanying slides can be accessed in the "CALENDAR OF EVENTS" section of the corporate website. (https://www.thehersheycompany.com/en_us/investors/events-reports-releases/calendar-of-events.html).
Safe Harbor Statement
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including but not limited to our 2025 Full-year Financial Outlook and other statements regarding our business outlook and financial performance. Many of these forward-looking statements can be identified by the use of words such as "anticipate," "assume," "believe," "continue," "estimate," "expect," "forecast," "future," "intend," "plan," "potential," "predict," "project," "strategy," "target" and similar terms, and future or conditional tense verbs like "could," "may," "might," "should," "will" and "would," among others. These statements are made based upon current expectations that are subject to risk and uncertainty. Because actual results may differ materially from those contained in the forward-looking statements, you should not place undue reliance on the forward-looking statements when deciding whether to buy, sell or hold the Company's securities. Factors that could cause results to differ materially include, but are not limited to: disruptions or inefficiencies in our supply chain due to the loss or disruption of essential manufacturing or supply elements or other factors; issues or concerns related to the quality and safety of our products, ingredients or packaging, human and workplace rights, and other environmental, social or governance matters; changes in raw material and other costs, along with the availability of adequate supplies of raw materials and the Company's ability to successfully hedge against volatility in raw material pricing; the Company's ability to successfully execute business continuity plans to address changes in consumer preferences and the broader economic and operating environment; selling price increases, including volume declines associated with pricing elasticity; market demand for our new and existing products; increased marketplace competition; failure to successfully execute and integrate acquisitions, divestitures and joint ventures; changes in governmental laws, regulations and policies, including taxes and tariffs; political, economic, and/or financial market conditions, including with respect to inflation, rising interest rates, slower growth or recession, changes in the
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SOURCE The Hershey Company
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