Hershey Reports Fourth-Quarter and Full-Year 2024 Financial Results; Provides 2025 Outlook
Hershey (HSY) reported Q4 2024 results with consolidated net sales of $2,887.5 million, up 8.7% year-over-year. The company's organic constant currency net sales increased 9.0%. Q4 reported net income was $796.6 million, or $3.92 per share-diluted, up 130.6%.
For full-year 2024, consolidated net sales reached $11,202.3 million, a 0.3% increase, with reported net income of $2,221.2 million, or $10.92 per share-diluted, up 20.5%. Adjusted EPS declined 2.3% to $9.37.
Looking ahead to 2025, Hershey expects net sales growth of at least 2%, primarily driven by price realization. However, the company projects reported earnings per share to decline in the high-40% range and adjusted earnings per share to drop in the mid-30% range, mainly due to higher commodity costs, particularly cocoa prices, rebased incentive compensation, and a higher economic tax rate.
Hershey (HSY) ha riportato i risultati del Q4 2024 con vendite nette consolidate di 2.887,5 milioni di dollari, in aumento dell'8,7% rispetto all'anno precedente. Le vendite nette organiche in valuta costante dell'azienda sono aumentate del 9,0%. Il reddito netto riportato per il Q4 è stato di 796,6 milioni di dollari, ovvero 3,92 dollari per azione diluita, in aumento del 130,6%.
Per l'intero anno 2024, le vendite nette consolidate hanno raggiunto 11.202,3 milioni di dollari, con un aumento dello 0,3%, e il reddito netto riportato è stato di 2.221,2 milioni di dollari, ovvero 10,92 dollari per azione diluita, in aumento del 20,5%. L'EPS rettificato è diminuito del 2,3% a 9,37 dollari.
Guardando al 2025, Hershey prevede una crescita delle vendite nette di almeno il 2%, principalmente alimentata dalla realizzazione dei prezzi. Tuttavia, l'azienda prevede che gli utili per azione riportati caleranno nell'intervallo del 40% alto e che gli utili per azione rettificati diminuiranno nel range medio del 30%, principalmente a causa dell'aumento dei costi delle materie prime, in particolare i prezzi del cacao, del riassetto della compensazione incentivante e di un'aliquota fiscale economica più elevata.
Hershey (HSY) reportó resultados del cuarto trimestre de 2024 con ventas netas consolidadas de 2,887.5 millones de dólares, un aumento del 8.7% en comparación con el año anterior. Las ventas netas orgánicas en moneda constante de la compañía aumentaron un 9.0%. El ingreso neto reportado para el cuarto trimestre fue de 796.6 millones de dólares, o 3.92 dólares por acción diluida, un aumento del 130.6%.
Para el año completo 2024, las ventas netas consolidadas alcanzaron los 11,202.3 millones de dólares, un aumento del 0.3%, con un ingreso neto reportado de 2,221.2 millones de dólares, o 10.92 dólares por acción diluida, un aumento del 20.5%. El EPS ajustado disminuyó un 2.3% a 9.37 dólares.
De cara a 2025, Hershey espera un crecimiento de las ventas netas de al menos el 2%, impulsado principalmente por la realización de precios. Sin embargo, la compañía proyecta que las ganancias por acción reportadas disminuirán en un rango del 40% alto y que las ganancias por acción ajustadas bajarán en un rango medio del 30%, principalmente debido a mayores costos de los commodities, en particular los precios del cacao, la reestructuración de la compensación por incentivos y una tasa impositiva económica más alta.
허쉬(Hershey, HSY)는 2024년 4분기 결과로 28억 8,750만 달러의 매출을 보고했으며, 이는 전년 대비 8.7% 증가한 수치입니다. 회사의 유기적 상수통화 매출은 9.0% 증가했습니다. 4분기 보고된 순이익은 7억 9,660만 달러로, 희석 주당 3.92달러, 130.6% 증가했습니다.
2024년 전체 연도에 대해 총 매출은 112억 2,230만 달러에 이르렀으며, 이는 0.3% 증가한 수치로, 보고된 순이익은 22억 2,120만 달러로 희석 주당 10.92달러, 20.5% 증가했습니다. 조정된 EPS는 2.3% 감소하여 9.37달러로 줄었습니다.
2025년을 바라보며, 허시는 최소 2%의 매출 성장률을 예상하고 있으며, 주로 가격 실현에 의해 driven됩니다. 그러나 이 회사는 보고된 주당 수익이 40%대 중반으로 감소하고, 조정된 주당 수익이 중간 30%대 하락할 것으로 전망하고 있으며, 이는 주로 원자재 비용 증가, 특히 코코아 가격, 재설정된 인센티브 보상, 그리고 높은 경제 세율과 관련이 있습니다.
Hershey (HSY) a annoncé ses résultats pour le quatrième trimestre 2024 avec des ventes nettes consolidées de 2 887,5 millions de dollars, en hausse de 8,7 % par rapport à l'année précédente. Les ventes nettes organiques en monnaie constante de l'entreprise ont augmenté de 9,0 %. Le revenu net déclaré pour le quatrième trimestre était de 796,6 millions de dollars, soit 3,92 dollars par action diluée, en hausse de 130,6 %.
Pour l'année 2024, les ventes nettes consolidées ont atteint 11 202,3 millions de dollars, soit une augmentation de 0,3 %, avec un revenu net déclaré de 2 221,2 millions de dollars, soit 10,92 dollars par action diluée, en hausse de 20,5 %. Le BPA ajusté a diminué de 2,3 % pour s'établir à 9,37 dollars.
En regardant vers 2025, Hershey s'attend à une croissance des ventes nettes d'au moins 2 %, principalement soutenue par la réalisation des prix. Cependant, la société prévoit que les bénéfices par action déclarés diminueront dans une fourchette élevée de 40 % et que les bénéfices par action ajustés diminueront dans une fourchette moyenne de 30 %, principalement en raison de la hausse des coûts des matières premières, notamment des prix du cacao, des compensations incitatives réajustées et d'un taux d'imposition économique plus élevé.
Hershey (HSY) hat die Ergebnisse für das vierte Quartal 2024 mit konsolidierten Nettoumsätzen von 2.887,5 Millionen Dollar veröffentlicht, was einem Anstieg von 8,7 % im Vergleich zum Vorjahr entspricht. Die organischen Nettoumsätze des Unternehmens in konstanten Währungen stiegen um 9,0 %. Der gemeldete Nettogewinn für das vierte Quartal betrug 796,6 Millionen Dollar oder 3,92 Dollar pro verwässerter Aktie, was einem Anstieg von 130,6 % entspricht.
Für das gesamte Jahr 2024 erreichten die konsolidierten Nettoumsätze 11.202,3 Millionen Dollar, was einem Anstieg von 0,3 % entspricht, bei einem gemeldeten Nettogewinn von 2.221,2 Millionen Dollar oder 10,92 Dollar pro verwässerter Aktie, was einem Anstieg von 20,5 % entspricht. Der bereinigte Gewinn je Aktie ging um 2,3 % auf 9,37 Dollar zurück.
Für 2025 erwartet Hershey ein Umsatzwachstum von mindestens 2 %, das hauptsächlich durch Preisverwirklichung gestützt wird. Das Unternehmen prognostiziert jedoch, dass die gemeldeten Gewinne je Aktie um einen hohen 40-% Bereich zurückgehen werden und die bereinigten Gewinne je Aktie im mittleren 30-% Bereich sinken, was hauptsächlich auf steigende Rohstoffkosten, insbesondere Kakao-Preise, umgestellte Anreizvergütungen und einen höheren wirtschaftlichen Steuersatz zurückzuführen ist.
- Q4 net sales increased 8.7% to $2,887.5 million
- Q4 reported net income up 130.6% to $796.6 million
- Q4 adjusted operating profit increased 28.0% to $696.8 million
- North America Salty Snacks segment sales grew 35.9%
- Dot's Homestyle Pretzels retail sales increased 20.9%
- Full-year 2024 adjusted EPS decreased 2.3% to $9.37
- Projected 2025 adjusted EPS decline in mid-30% range
- Expected 2025 reported EPS decline in high-40% range
- Higher commodity costs, particularly cocoa, pressuring 2025 earnings
- North America Confectionery segment lost 18 basis points market share
Insights
Hershey's Q4 2024 results demonstrate strong execution but mask significant challenges ahead. The
Three critical factors warrant attention:
- Commodity Cost Pressure: The unprecedented surge in cocoa prices poses an existential challenge to margins. The company's pricing power will be tested as it attempts to balance volume preservation with profitability.
- Market Share Dynamics: The
18 basis point share decline in U.S. CMG indicates vulnerability in the core chocolate business, though gains in seasonal and refreshment categories provide some offset. - Operational Efficiency: The
$125 million in projected savings from the Agility & Automation Initiative may prove insufficient to counter commodity headwinds, necessitating additional cost management measures.The transformation program and productivity initiatives, while promising, may struggle to offset the magnitude of cost pressures. Investors should monitor the company's ability to maintain volume as it implements necessary pricing actions, particularly given existing elasticity impacts in the confectionery segment.
"I am pleased to see the consumer response to our agile innovation, marketing and in-store execution as we end the year with momentum across our segments," said Michele Buck, The Hershey Company President and Chief Executive Officer. "While we continue to expect the surge in cocoa prices to put significant pressure on 2025 earnings, we will focus on driving top-line and share momentum, executing our transformation and productivity programs, and positioning ourselves to deliver peer-leading performance over the long-term."
Fourth-Quarter 2024 Financial Results Summary1
- Consolidated net sales of
$2,887.5 million 8.7% . - Organic, constant currency net sales increased
9.0% . - The impact of acquisitions on net sales was a 0.2 point benefit2 while currency exchange was a 0.5 point headwind.
- Reported net income of
$796.6 million $3.92 130.6% . - Adjusted earnings per share-diluted of
$2.69 33.2% .
1 All comparisons for the fourth quarter of 2024 are with respect to the fourth quarter ended December 31, 2023. |
2 Reflects the impact from the 2024 acquisition of Sour Strips. |
2024 Full-Year Financial Results Summary3
- Consolidated net sales of
$11,202.3 million 0.3% . - Organic, constant currency net sales increased
0.4% . - Reported net income of
$2,221.2 million $10.92 20.5% . - Adjusted earnings per share-diluted of
$9.37 2.3% .
3 All comparisons for full-year 2024 are with respect to the full-year ended December 31, 2023. |
2025 Full-Year Financial Outlook Summary
The company expects net sales growth of at least
2025 Full-Year Outlook | Total Company | |
Net sales growth4 | At least | |
Reported earnings per share growth | Down high | |
Adjusted earnings per share growth | Down mid |
4 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 also expects:
- A reported and adjusted effective tax rate in the range of approximately
14% to15% ; - Other expense, which primarily reflects the write-down of equity investments that qualify for a tax credit, of approximately
$170 million $180 million - Interest expense of approximately
$190 million $195 million - Capital expenditures of approximately
$425 million $450 million - Advancing Agility & Automation Initiative savings of approximately
$125 million
Below is a reconciliation of projected 2025 and full-year 2024 and 2023 earnings per share-diluted calculated in accordance with
2025 (Projected) | 2024 | 2023 | |||
Reported EPS – Diluted | |||||
Derivative Mark-to-Market (Gains) Losses | — | (2.26) | 0.29 | ||
Business Realignment Activities | 0.40 - 0.50 | 0.58 | 0.01 | ||
Acquisition and Integration-Related Activities | 0.03 - 0.07 | 0.22 | 0.37 | ||
Other Miscellaneous (Benefits) Losses | — | (0.03) | — | ||
Tax Effect of All Adjustments Reflected Above | (0.11) | (0.06) | (0.14) | ||
Adjusted EPS – Diluted |
2025 projected earnings per share-diluted, as presented above, does not include the impact of mark-to-market gains and losses on our commodity derivative contracts that are reflected within corporate unallocated expense in segment results until the related inventory is sold since we are not able to forecast the impact of the market changes.
Fourth Quarter 2024 Components of Net Sales Growth
A reconciliation between reported net sales growth rates and organic constant currency net sales growth rates, along with the contribution from net price realization and volume, is provided below:
Three Months Ended December 31, 2024 | |||||||||||||
Percentage | Impact of | Percentage | Impact of | Percentage Constant Currency | Organic (Rounded)* | Organic (Rounded)* | |||||||
North America Confectionery | 6.0 % | (0.1) % | 6.1 % | 0.2 % | 5.9 % | 4 % | 2 % | ||||||
North America Salty Snacks | 35.9 % | — % | 35.9 % | — % | 35.9 % | (5) % | 41 % | ||||||
International | 9.8 % | (5.2) % | 15.0 % | — % | 15.0 % | — % | 15 % | ||||||
Total Company | 8.7 % | (0.5) % | 9.2 % | 0.2 % | 9.0 % | 3 % | 6 % | ||||||
*Percentage changes may not compute directly as shown due to rounding of amounts presented above. |
Twelve Months Ended December 31, 2024 | |||||||||||||
Percentage | Impact of | Percentage | Impact of | Percentage | Organic Price (Rounded)* | Organic (Rounded)* | |||||||
North America Confectionery | — % | — % | — % | 0.1 % | (0.1) % | 4 % | (4) % | ||||||
North America Salty Snacks | 3.9 % | — % | 3.9 % | — % | 3.9 % | (1) % | 5 % | ||||||
International | (0.1) % | (1.0) % | 0.9 % | — % | 0.9 % | 2 % | (1) % | ||||||
Total Company | 0.3 % | (0.1) % | 0.4 % | — % | 0.4 % | 3 % | (2) % | ||||||
*Percentage changes may not compute directly as shown due to rounding of amounts presented above. |
The company presents certain percentage changes in net sales on a constant currency basis, which excludes the impact of foreign currency exchange. To present this information for historical periods, current period net sales for entities reporting in currencies other than the
Fourth-Quarter 2024 Results
Consolidated net sales increased
Reported gross margin increased 1170 basis points to
Selling, marketing and administrative expenses decreased
Fourth-quarter 2024 reported operating profit was
The reported effective tax rate in the fourth quarter of 2024 was (10.2)% compared to (9.2)% in the fourth quarter of 2023, a decrease of 100 basis points. The adjusted effective tax rate in the fourth quarter of 2024 was (13.7)% compared to (3.8)% in the fourth quarter of 2023, a decrease of 990 basis points. The adjusted effective tax rate decrease was driven by higher renewable energy tax credits versus the prior year period.
The company's fourth-quarter 2024 results, as prepared in accordance with GAAP, included items negatively impacting comparability of
The following table presents a summary of items impacting comparability in each period (see Appendix I for additional information):
Pre-Tax (millions) | Earnings Per Share-Diluted | ||||||
Three Months Ended | Three Months Ended | ||||||
December 31, 2024 | December 31, 2023 | December 31, 2024 | December 31, 2023 | ||||
Derivative Mark-to-Market (Gains) Losses | $ (264.7) | $ 53.7 | $ (1.30) | $ 0.26 | |||
Business Realignment Activities | 12.7 | — | 0.06 | — | |||
Acquisition and Integration-Related Activities | 14.9 | 26.2 | 0.07 | 0.13 | |||
Other Miscellaneous Benefits | (5.3) | — | (0.03) | — | |||
Tax Effect of All Adjustments Reflected Above | — | — | (0.03) | (0.07) | |||
$ (242.4) | $ 79.9 | $ (1.23) | $ 0.32 | ||||
Pre-Tax (millions) | Earnings Per Share-Diluted | ||||||
Twelve Months Ended | Twelve Months Ended | ||||||
December 31, 2024 | December 31, 2023 | December 31, 2024 | December 31, 2023 | ||||
Derivative Mark-to-Market (Gains) Losses | $ (460.4) | $ 58.9 | $ (2.26) | $ 0.29 | |||
Business Realignment Activities | 117.5 | 3.4 | 0.58 | 0.01 | |||
Acquisition and Integration-Related Activities | 45.2 | 75.9 | 0.22 | 0.37 | |||
Other Miscellaneous Benefits | (5.3) | — | (0.03) | — | |||
Tax Effect of All Adjustments Reflected Above | — | — | (0.06) | (0.14) | |||
$ (303.0) | $ 138.2 | $ (1.55) | $ 0.53 | ||||
The following are comments about segment performance for the fourth quarter of 2024 versus the prior year period. See the schedule of supplementary information within this press release for additional information on segment net sales and profit.
North America Confectionery
5 MULO+ w/Convenience expanded in the second quarter of 2024 to include club, drug, and e-commerce customers previously classified as unmeasured |
North America Confectionery segment income was
North America Salty Snacks
5 MULO+ w/Convenience expanded in the second quarter of 2024 to include club, drug, and e-commerce customers previously classified as unmeasured |
North America Salty Snacks segment income was
International
Fourth-quarter 2024 net sales for
International segment income was
Unallocated Corporate Expense
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Note: In this release, for the fourth-quarter of and full-year 2024,
Reconciliation of Certain Non-GAAP Financial Measures | |||||||
Consolidated results | Three Months Ended | Twelve Months Ended | |||||
In thousands except per share data | December 31, 2024 | December 31, 2023 | December 31, 2024 | December 31, 2023 | |||
Reported gross profit | $ 1,558,343 | $ 1,123,142 | $ 5,300,888 | $ 4,997,816 | |||
Derivative mark-to-market (gains) losses | (264,710) | 53,723 | (460,437) | 58,937 | |||
Business realignment activities | — | — | 12,168 | 527 | |||
Acquisition and integration-related activities | 676 | (2,256) | 2,397 | (1,702) | |||
Non-GAAP gross profit | $ 1,294,309 | $ 1,174,609 | $ 4,855,016 | $ 5,055,578 | |||
Reported operating profit | $ 939,147 | $ 464,329 | $ 2,898,232 | $ 2,560,867 | |||
Derivative mark-to-market (gains) losses | (264,710) | 53,723 | (460,437) | 58,937 | |||
Business realignment activities | 12,741 | — | 117,536 | 3,440 | |||
Acquisition and integration-related activities | 14,912 | 26,163 | 45,192 | 75,853 | |||
Other miscellaneous benefits | (5,270) | — | (5,270) | — | |||
Non-GAAP operating profit | $ 696,820 | $ 544,215 | $ 2,595,253 | $ 2,699,097 | |||
Reported (benefit) provision for income taxes | $ (73,534) | $ (29,367) | $ 252,697 | $ 310,077 | |||
Derivative mark-to-market (gains) losses* | (39,279) | 7,931 | (68,552) | 10,190 | |||
Business realignment activities* | 2,996 | — | 28,284 | 777 | |||
Acquisition and integration-related activities* | 3,552 | 6,328 | 10,872 | 18,256 | |||
Other miscellaneous benefits* | (2,341) | — | (2,341) | — | |||
Tax Reserve Adjustment | 42,979 | — | 42,979 | — | |||
Non-GAAP (benefit) provision for income taxes | $ (65,627) | $ (15,108) | $ 263,939 | $ 339,300 | |||
Reported net income | $ 796,591 | $ 349,042 | $ 2,221,239 | $ 1,861,787 | |||
Derivative mark-to-market (gains) losses | (225,431) | 45,790 | (391,885) | 48,747 | |||
Business realignment activities | 9,745 | — | 89,252 | 2,663 | |||
Acquisition and integration-related activities | 11,360 | 19,835 | 34,320 | 57,597 | |||
Other miscellaneous benefits | (2,929) | — | (2,929) | — | |||
Tax Reserve Adjustment | (42,979) | — | (42,979) | — | |||
Non-GAAP net income | $ 546,357 | $ 414,667 | $ 1,907,018 | $ 1,970,794 | |||
Reconciliation of Certain Non-GAAP Financial Measures | |||||||
Consolidated results | Three Months Ended | Twelve Months Ended | |||||
December 31, 2024 | December 31, 2023 | December 31, 2024 | December 31, 2023 | ||||
Reported EPS - Diluted | $ 3.92 | $ 1.70 | $ 10.92 | $ 9.06 | |||
Derivative mark-to-market (gains) losses | (1.30) | 0.26 | (2.26) | 0.29 | |||
Business realignment activities | 0.06 | — | 0.58 | 0.01 | |||
Acquisition and integration-related activities | 0.07 | 0.13 | 0.22 | 0.37 | |||
Other miscellaneous benefits | (0.03) | — | (0.03) | — | |||
Tax effect of all adjustments reflected above** | (0.03) | (0.07) | (0.06) | (0.14) | |||
Non-GAAP EPS - Diluted | $ 2.69 | $ 2.02 | $ 9.37 | $ 9.59 | |||
* The tax effect for each adjustment is determined by calculating the tax impact of the adjustment on the company's quarterly effective tax rate, unless the nature of the item and/or the tax jurisdiction in which the item has been recorded requires application of a specific tax rate or tax treatment, in which case the tax effect of such item is estimated by applying such specific tax rate or tax treatment. |
** Adjustments reported above are reported on a pre-tax basis before the tax effect described in the reconciliation above for Non-GAAP provision for income taxes. |
In the assessment of our results, we review and discuss the following financial metrics that are derived from the reported and non-GAAP financial measures presented above:
Three Months Ended | Twelve Months Ended | ||||||
December 31, 2024 | December 31, 2023 | December 31, 2024 | December 31, 2023 | ||||
As reported gross margin | 54.0 % | 42.3 % | 47.3 % | 44.8 % | |||
Non-GAAP gross margin (1) | 44.8 % | 44.2 % | 43.3 % | 45.3 % | |||
As reported operating profit margin | 32.5 % | 17.5 % | 25.9 % | 22.9 % | |||
Non-GAAP operating profit margin (2) | 24.1 % | 20.5 % | 23.2 % | 24.2 % | |||
As reported effective tax rate | (10.2) % | (9.2) % | 10.2 % | 14.3 % | |||
Non-GAAP effective tax rate (3) | (13.7) % | (3.8) % | 12.2 % | 14.7 % | |||
(1) | Calculated as non-GAAP gross profit as a percentage of net sales for each period presented. |
(2) | Calculated as non-GAAP operating profit as a percentage of net sales for each period presented. |
(3) | Calculated as non-GAAP provision for income taxes as a percentage of non-GAAP income before taxes (calculated as non-GAAP operating profit minus non-GAAP interest expense, net plus or minus non-GAAP other (income) expense, net). |
Appendix I
Details of the charges included in GAAP results, as summarized in the press release (above), are as follows:
Derivative Mark-to-Market Losses (Gains): The mark-to-market losses (gains) on commodity derivatives are recorded as unallocated and excluded from adjusted results until such time as the related inventory is sold, at which time the corresponding losses (gains) are reclassified from unallocated to segment income. Since we often purchase commodity contracts to price inventory requirements in future years, we make this adjustment to facilitate the year-over-year comparison of cost of sales on a basis that matches the derivative gains and losses with the underlying economic exposure being hedged for the period.
Business Realignment Activities: We periodically undertake restructuring and cost reduction activities as part of ongoing efforts to enhance long-term profitability. During the first quarter of 2024, we commenced the Advancing Agility & Automation Initiative to improve supply chain and manufacturing-related spend, optimize selling, general and administrative expenses, leverage new technology and business models to further simplify and automate processes, and generate long-term savings. During the three- and 12-months ended December 2024, business realignment charges related primarily to third-party costs supporting the design and implementation of the new organizational structure, as well as severance and employee benefit costs. During the fourth quarter of 2020, we commenced the International Optimization Program to streamline resources and investments in select international markets, including the optimization of our
Acquisition and Integration-Related Activities: During the three- and 12-months ended December 2024, we incurred integration-related costs for the acquisition of the Sour Strips brand from Actual Candy, LLC into our North America Confectionery segment, the acquisitions of two manufacturing plants from Weaver Popcorn Manufacturing, Inc. ("Weaver") and the integration of the 2021 acquisitions of Dot's Pretzels, LLC ("Dot's") and Pretzels Inc. ("Pretzels") into our North America Salty Snacks segment. During the three- and 12-months ended December 2023, we incurred costs related to the acquisition of two manufacturing plants from Weaver, the integration of the 2021 acquisitions of Dot's and Pretzels into our North America Salty Snacks segment and costs related to building and upgrading our new ERP system for implementation across our North America Salty Snacks segment in the fourth quarter of 2023.
Other Miscellaneous Benefits: In 2024, we recorded a gain on the sale of non-operating assets located in the International segment.
Tax Reserve Adjustment: In 2024, we recognized a
Tax Effect of All Adjustments: This line item reflects the aggregate tax effect of all pre-tax adjustments reflected in the preceding line items of the applicable table. The tax effect for each adjustment is determined by calculating the tax impact of the adjustment on the company's quarterly effective tax rate, unless the nature of the item and/or the tax jurisdiction in which the item has been recorded requires application of a specific tax rate or tax treatment, in which case the tax effect of such item is estimated by applying such specific tax rate or tax treatment.
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 2024 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
The Hershey Company | ||||||||||
Consolidated Statements of Income | ||||||||||
for the periods ended December 31, 2024 and December 31, 2023 | ||||||||||
(unaudited) (in thousands except percentages and per share amounts) | ||||||||||
Three Months Ended | Twelve Months Ended | |||||||||
December 31, 2024 | December 31, 2023 | December 31, 2024 | December 31, 2023 | |||||||
Net sales | $ 2,887,540 | $ 2,657,111 | $ 11,202,263 | $ 11,164,992 | ||||||
Cost of sales | 1,329,197 | 1,533,969 | 5,901,375 | 6,167,176 | ||||||
Gross profit | 1,558,343 | 1,123,142 | 5,300,888 | 4,997,816 | ||||||
Selling, marketing and administrative expense | 622,733 | 658,813 | 2,373,621 | 2,436,508 | ||||||
Business realignment (benefits) costs | (3,537) | — | 29,035 | 441 | ||||||
Operating profit | 939,147 | 464,329 | 2,898,232 | 2,560,867 | ||||||
Interest expense, net | 40,144 | 37,684 | 165,655 | 151,785 | ||||||
Other (income) expense, net | 175,946 | 106,970 | 258,641 | 237,218 | ||||||
Income before income taxes | 723,057 | 319,675 | 2,473,936 | 2,171,864 | ||||||
(Benefit) provision for income taxes | (73,534) | (29,367) | 252,697 | 310,077 | ||||||
Net income attributable to The Hershey Company | $ 796,591 | $ 349,042 | $ 2,221,239 | $ 1,861,787 | ||||||
Net income per share | - Basic | - Common | $ 4.03 | $ 1.75 | $ 11.22 | $ 9.31 | ||||
- Diluted | - Common | $ 3.92 | $ 1.70 | $ 10.92 | $ 9.06 | |||||
- Basic | - Class B | $ 3.66 | $ 1.59 | $ 10.20 | $ 8.52 | |||||
Shares outstanding | - Basic | - Common | 148,349 | 150,083 | 148,349 | 149,499 | ||||
- Diluted | - Common | 203,487 | 205,357 | 203,487 | 205,547 | |||||
- Basic | - Class B | 54,614 | 54,614 | 54,614 | 55,239 | |||||
Key margins: | ||||||||||
Gross margin | 54.0 % | 42.3 % | 47.3 % | 44.8 % | ||||||
Operating profit margin | 32.5 % | 17.5 % | 25.9 % | 22.9 % | ||||||
Net margin | 27.6 % | 13.1 % | 19.8 % | 16.7 % | ||||||
The Hershey Company | |||||||||||||
Supplementary Information – Segment Results | |||||||||||||
for the periods ended December 31, 2024 and December 31, 2023 | |||||||||||||
(unaudited) (in thousands except percentages) | |||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||
December 31, 2024 | December 31, 2023 | % Change | December 31, 2024 | December 31, 2023 | % Change | ||||||||
Net sales: | |||||||||||||
North America Confectionery | $ 2,354,151 | $ 2,220,248 | 6.0 % | $ 9,118,590 | $ 9,123,139 | — % | |||||||
North America Salty Snacks | 278,885 | 205,157 | 35.9 % | 1,135,720 | 1,092,689 | 3.9 % | |||||||
International | 254,504 | 231,706 | 9.8 % | 947,953 | 949,164 | (0.1) % | |||||||
Total | $ 2,887,540 | $ 2,657,111 | 8.7 % | $ 11,202,263 | $ 11,164,992 | 0.3 % | |||||||
Segment income: | |||||||||||||
North America Confectionery | $ 808,174 | $ 724,647 | 11.5 % | $ 2,945,688 | $ 3,117,044 | (5.5) % | |||||||
North America Salty Snacks | 54,503 | 10,399 | 424.1 % | 199,390 | 158,333 | 25.9 % | |||||||
International | 29,552 | 20,421 | 44.7 % | 111,519 | 148,259 | (24.8) % | |||||||
Total segment income | 892,229 | 755,467 | 18.1 % | 3,256,597 | 3,423,636 | (4.9) % | |||||||
Unallocated corporate expense (1) | 195,409 | 211,253 | (7.5) % | 661,344 | 724,537 | (8.7) % | |||||||
Mark-to-market adjustment for commodity derivatives (2) | (264,710) | 53,722 | NM | (460,437) | 58,939 | NM | |||||||
Costs associated with business realignment initiatives | 12,741 | — | NM | 117,536 | 3,440 | NM | |||||||
Acquisition and integration-related activities | 14,912 | 26,163 | (43.0) % | 45,192 | 75,853 | (40.4) % | |||||||
Other miscellaneous benefits | (5,270) | — | NM | (5,270) | — | NM | |||||||
Operating profit | 939,147 | 464,329 | 102.3 % | 2,898,232 | 2,560,867 | 13.2 % | |||||||
Interest expense, net | 40,144 | 37,684 | 6.5 % | 165,655 | 151,785 | 9.1 % | |||||||
Other (income) expense, net | 175,946 | 106,970 | 64.5 % | 258,641 | 237,218 | 9.0 % | |||||||
Income before income taxes | $ 723,057 | $ 319,675 | 126.2 % | $ 2,473,936 | $ 2,171,864 | 13.9 % | |||||||
(1) Includes centrally-managed (a) corporate functional costs relating to legal, treasury, finance, and human resources, (b) expenses associated with the oversight and administration of our global operations, including warehousing, distribution and manufacturing, information systems and global shared services, (c) non-cash stock-based compensation expense, and (d) other gains or losses that are not integral to segment performance. |
(2) Net (gains) losses on mark-to-market valuation of commodity derivative positions recognized in unallocated derivative losses (gains). |
NM - not meaningful |
Three Months Ended | Twelve Months Ended | ||||||||
December 31, 2024 | December 31, 2023 | December 31, 2024 | December 31, 2023 | ||||||
Segment income (loss) as a percent of net sales: | |||||||||
North America Confectionery | 34.3 % | 32.6 % | 32.3 % | 34.2 % | |||||
North America Salty Snacks | 19.5 % | 5.1 % | 17.6 % | 14.5 % | |||||
International | 11.6 % | 8.8 % | 11.8 % | 15.6 % | |||||
The Hershey Company | |||
Consolidated Balance Sheets | |||
as of December 31, 2024 and December 31, 2023 | |||
(in thousands of dollars) | |||
Assets | December 31, 2024 | December 31, 2023 | |
(unaudited) | |||
Cash and cash equivalents | $ 730,746 | $ 401,902 | |
Accounts receivable - trade, net | 800,402 | 823,617 | |
Inventories | 1,254,094 | 1,340,996 | |
Prepaid expenses and other | 974,215 | 345,588 | |
Total current assets | 3,759,457 | 2,912,103 | |
Property, plant and equipment, net | 3,458,853 | 3,309,678 | |
Goodwill | 2,705,753 | 2,696,050 | |
Other intangibles | 1,873,866 | 1,879,229 | |
Other non-current assets | 1,111,867 | 1,061,427 | |
Deferred income taxes | 37,065 | 44,454 | |
Total assets | $ 12,946,861 | $ 11,902,941 | |
Liabilities and Stockholders' Equity | |||
Accounts payable | $ 1,159,177 | $ 1,086,183 | |
Accrued liabilities | 807,341 | 867,815 | |
Accrued income taxes | 51,036 | 29,457 | |
Short-term debt | 1,306,976 | 719,839 | |
Current portion of long-term debt | 604,965 | 305,058 | |
Total current liabilities | 3,929,495 | 3,008,352 | |
Long-term debt | 3,190,210 | 3,789,132 | |
Other long-term liabilities | 688,259 | 660,673 | |
Deferred income taxes | 424,243 | 345,698 | |
Total liabilities | 8,232,207 | 7,803,855 | |
Total stockholders' equity | 4,714,654 | 4,099,086 | |
Total liabilities and stockholders' equity | $ 12,946,861 | $ 11,902,941 | |
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SOURCE The Hershey Company
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