HERSHEY, Pa., USA – The Hershey Company has announced net sales and earnings for the second quarter ended July 3, 2022, and raised its full-year financial outlook. “Our business momentum continued in the second quarter, with double-digit sales growth in each of our segments resulting in strong earnings per share performance,” said Michele Buck, The Hershey Company President and Chief Executive Officer.
“These results reflect the strength and resilience of our categories, consumers’ love for our brands, the investments we are making in our business, and the exceptional execution of our dedicated employees. We are raising our financial expectations for the year and investing more heavily in our brands, capabilities and people in the second half to continue this momentum into 2023.”
The Hershey Company: Second-Quarter 2022 Financial Results Summary¹
- Consolidated net sales of $2,372.6 million, an increase of 19.3%.
- Organic, constant currency net sales increased 14.1%.
- The impact of acquisitions on net sales was a 5.3-point benefit² while foreign currency exchange was a 0.1-point headwind.
- Reported net income of $315.6 million and $1.53 earnings per share-diluted, an increase of 5.5%.
- Adjusted earnings per share-diluted of $1.80, an increase of 22.4%.
¹ All comparisons for the second quarter of 2022 are with respect to the second quarter ended July 4, 2021
² Reflects the impact from the 2021 acquisitions of Pretzels Inc. (Pretzels), Dot’s Pretzels, LLC (Dot’s) and Lily’s Sweets, LLC (Lily’s)
North America Confectionery
Hershey’s North America Confectionery segment net sales were $1,909.1 million in the second quarter of 2022, an increase of 12.9% versus the same period last year. Excluding the 0.8-point benefit from the acquisition of Lily’s and a 0.3-point headwind from foreign currency exchange, organic, constant currency net sales increased 12.4%.
Net price realization was a 9.8-point benefit driven by list price increases as well as a lower level of promotional activity in response to capacity constraints. Volume drove an additional 2.6-point benefit driven by the replenishment of distributor inventory levels, which contributed approximately 6.0 points to net sales growth and was partially offset by price elasticities.
North America Salty Snacks
Hershey’s North America Salty Snacks segment net sales were $256.3 million in the second quarter of 2022, an increase of 99.9% versus the same period last year. Sales from the acquisitions of Dot’s and Pretzels was a 71.6-point benefit. Net price realization was a 14.6-point benefit, while volume contributed 13.7 points driven by strong consumer demand and favorable price elasticities.
Hershey ‘s International segment
Second-quarter 2022 net sales for Hershey’s International segment increased 21.3% versus the same period last year to $207.2 million. Excluding a 0.7-point benefit from foreign currency exchange rates, constant currency net sales increased 20.6%. Volume gains contributed 17.6 points to net sales growth, driven by the strong consumer buying power and demand across markets. Price realization was a 3.0-point benefit.
The International segment reported a $30.7 million profit in the second quarter of 2022, reflecting an increase of $3.1 million versus the prior-year period. The profit increase was driven by volume gains and net price realization, which were partially offset by higher supply chain cost inflation and logistics costs, as well as increased advertising investment, salary and benefit inflation and increased travel expenses. The aforementioned costs outpaced sales growth in the second quarter, resulting in segment margin of 14.8%, a decrease of 130 basis points.