Hershey Co. (NYSE: HSY) reported consolidated net sales of $2,359.8 million in the third quarter of 2021, ended Oct. 3, compared with $2,219.8 million in the prior year period, an increase of 6.3%. The chocolate giant raised its full-year financial outlook in the range of 8% to 9%.
Hershey reported its gross margin at 45% in the recent third quarter, compared with 48.7% in the third quarter of 2020, a decrease of 370 basis points.
Hershey's Q3 financial results summary
- Consolidated net sales of $2,359.8 million, an increase of 6.3%.
- Organic, constant currency net sales increased 4.4%.
- The impact of acquisitions on net sales was a 1.4-point benefit2, and foreign currency exchange was a 0.5-point benefit.
- Reported net income of $444.9 million, or $2.14 per share-diluted, in line with the prior period.
- Adjusted earnings per share-diluted of $2.10, an increase of 12.9%.
Sales from the acquisition of Lily's Sweets LLC was a 1.4-point benefit and foreign exchange was a 0.5-point benefit.
"Consumer demand for our brands has remained robust on both a one- and two-year basis," said Hershey president and chief executive Michele Buck. "Our continued focus on operating with speed and agility has enabled us to respond quickly to changes in the marketplace and develop plans to maintain sales momentum, increase production and sustain our advantaged margin structure over the long term.
"We are raising both sales and earnings guidance for 2021 to reflect elevated consumer demand across markets, an improved tax outlook and optimized brand investment, which, collectively, are expected to more than offset higher supply chain costs and inflation," Buck added.
