Hershey reports first quarter results for 2025
The Hershey Company announced its net sales and earnings for the first quarter ended March 30, 2025, showing smaller-than-anticipated drop in sales for the first quarter driven by a strong performance of salty snacks in North America
According to the company’s financial release yesterday, the Hershey Company reported consolidated net sales of US$2,805.4 million, a decrease of 13.8%. Organic, constant currency net sales decreased 13.2%. Reported net income of $224.2 million, or $1.10 per share-diluted, a decrease of 71.7%. Adjusted earnings per share-diluted of $2.09, a decrease of 31.9%.
The Hershey Company said that the decreases in consolidated net sales and in organic sales and were in line with expectations, as volume declined some 15 points driven by “the lap of planned inventory increases within the North America Confectionery and International segments ahead of the ERP system implementation in the second quarter of 2024, the timing of the Easter season in 2025 versus 2024, and two fewer shipping days versus the prior year period. This volume impact was only partially offset by price realization of approximately two points. The impact of the Sour Strips acquisition was a benefit of 0.3 points while foreign exchange was a 0.9 point headwind.”
Hershey's U.S. candy, mint and gum (CMG) retail takeaway in the multi-outlet plus convenience store channels decreased 4.2% for the 12-week period ended March 23, 2025, reflecting the later Easter in 2025. For this period, Hershey's CMG share declined 44 basis points compared to the prior year. These results were slightly ahead of expectations driven by strong seasonal consumption, the company said.
Hershey's North America Salty Snacks segment showed strong net sales coming in at US$277.8 million in the first quarter of 2025, an increase of 1.0% versus the same period last year. The company said that the volume increased by some four points, partially offset by a three point net price decline, reflecting costs related to selling in new SkinnyPop packaging.
Hershey's U.S. salty snack retail takeaway for the 12-week period ended March 30, 2025 in MULO+ w/ Convenience segment increased 9.6% versus the prior year period.
“SkinnyPop ready-to-eat popcorn takeaway increased 6.4%, driven by velocity, innovation, and a refreshed media campaign,” Hershey Company said. “SkinnyPop ready-to-eat share increased 190 basis points during this period. Dot's Homestyle Pretzels retail sales increased 20.7% for this period, resulting in a 337-basis point pretzel category share gain, driven by innovation, programming and velocity.”
"I am pleased with the progress we are making on our key strategic initiatives for the year," said Michele Buck, The Hershey Company president and chief executive officer. "Consumption in the quarter exceeded our expectations in both U.S. Candy, Mint, and Gum and Salty Snacks, driven by the strength of seasons, sweets, Dot's and SkinnyPop. Despite heightened cost pressure, our strong balance sheet gives us flexibility to invest in the business and participate in recent strategic acquisitions that further expand our better-for-you portfolio and drive long-term value creation."
The Hershey Company did warn that of uncertainty ahead for the year driven by concerns over “the duration, scale, and scope of U.S. import and retaliatory tariffs by other countries this guidance only includes tariff expense, as understood today, expected for the second quarter of 2025.”
As a result of this uncertainty, Hershey Company has begun talks with the U.S. government to find ways to reduce the effect of tariffs on already high cocoa prices — a key ingredient in many confections that can only be sourced from overseas —even as it works to reduced costs and find efficiencies in production.
