HERSHEY CO SEC 10-Q Report
The Hershey Company, a leading global confectionery and snack manufacturer, has released its Form 10-Q report for the second quarter of 2025. The report highlights significant financial and operational metrics, reflecting the company's performance and strategic initiatives in the confectionery and snack industry.
Financial Highlights
Net Sales: Hershey reported net sales of $2,614.7 million, a notable increase from $2,074.5 million in the same period last year. This growth was driven by strong performance in the North America Confectionery and Salty Snacks segments.
Gross Profit: The company's gross profit stood at $796.3 million, down from $833.7 million in the prior year, indicating increased cost of sales impacting profitability.
Operating Profit: Operating profit was $192.8 million, a decrease from $287.8 million, primarily due to higher unallocated corporate expenses and increased business realignment costs.
Net Income: Net income for the quarter was $62.7 million, a substantial decline from $180.9 million, influenced by higher interest expenses and a significant increase in the provision for income taxes.
Net Income Per Share—Basic: Basic net income per share was $0.32 for Common Stock and $0.29 for Class B Common Stock, compared to $0.92 and $0.83 respectively, reflecting the overall decrease in net income.
Net Income Per Share—Diluted: Diluted net income per share was $0.31 for Common Stock and $0.29 for Class B Common Stock, compared to $0.89 and $0.83 respectively, highlighting the impact of reduced earnings.
Business Highlights
Revenue Segments: The North America Confectionery segment reported net sales of $2,085.5 million for the three months ended June 29, 2025, driven by traditional chocolate and non-chocolate confectionery products. The North America Salty Snacks segment achieved net sales of $315.5 million, reflecting strong performance in ready-to-eat popcorn and other salty snacks. The International segment contributed $213.7 million in net sales, indicating a stable presence in markets outside North America.
Geographical Performance: The United States remains the primary market, with net sales of $2,285.2 million for the three months ended June 29, 2025. International markets, including operations in Mexico, Brazil, India, and Malaysia, accounted for $329.5 million in net sales, highlighting the company's global reach and market penetration.
New Product Launches: The acquisition of the Sour Strips brand in November 2024 has been integrated into the North America Confectionery segment, expanding the company's product portfolio with an emerging sour candy brand available across various distribution channels in the United States.
Business Realignment Activities: The Advancing Agility & Automation Initiative, launched in February 2024, aims to enhance supply chain efficiency and optimize administrative expenses. The initiative is expected to result in significant long-term savings, with ongoing annual savings projected to be approximately $350,000 to $400,000 by 2026.
Future Outlook: The company anticipates the completion of the LesserEvil, LLC acquisition by the end of 2025, which will further complement Hershey's existing product portfolio with organic popcorn and puffed snack products. This strategic acquisition is expected to be financed with cash on hand and short-term borrowings.
SEC Filing: HERSHEY CO [ HSY ] - 10-Q - Jul. 30, 2025