HSY
The Hershey Company188.15
+0.04+0.02%
Dec 16, 4:00:02 PM EST
Earnings Call Transcripts
This Quarter (Q1 '26)
No earnings call transcript available yet
Last Quarter (Q4 '25)
FY Q4 '25
Elasticities beat; cocoa eases pressure.
Q&A reinforced Hershey's 2026 guidance of 4-5% sales growth and 30-35% EPS recovery, with elasticities tracking better than expected post-pricing yet conservatively planned at 0.8 amid ongoing shelf adjustments. Cocoa deflation eases future pricing pressure—no deflation now, as '25 pricing doesn't fully offset '26 inflation despite hedges above spot. Salty snacks surged 18% in Q4 on double-digit volumes, dismissing rival price cuts via velocity gains. International profits rebound with share wins in Canada, Mexico, Brazil, UK. Q4 margins beat via tariff surprises. Buybacks revive as cash normalizes. Management stayed crisp on macros like SNAP; Investor Day will unpack '27 tailwinds.
Key Stats
Market Cap
38.15BP/E (TTM)
28.08Basic EPS (TTM)
6.70Dividend Yield
0.03%Recent Filings
8-K
10-K
FY2025 results
Hershey's FY2025 net sales rose 4.4% y/y to $11.7B, driven by 6% price realization across segments and acquisitions like LesserEvil, yet volumes dipped 1% from elasticity. Q4 momentum faltered as gross margin cratered to 33.5% from 47.3%, slammed by $737M higher commodities, $287M supply chain/tariffs, and $491M unfavorable derivatives—despite productivity gains. North America Salty Snacks surged 11.9% on 8% volume from Dot's and SkinnyPop, while Confectionery grew 4% on pricing but lost 2% volume; International flatlined. Operating cash flowed $2.3B; debt hit $5.4B after $2B issuance, revolver fully drawn. No 2026 guidance disclosed. Cocoa volatility threatens Q4 momentum.
8-K
Hershey Q4 sales up, EPS down
Hershey reported Q4 net sales up 7.0% to $3,091.0 million, but adjusted EPS fell 36.4% to $1.71 amid higher commodity costs and tariffs that crushed gross margins. Full-year sales rose 4.4% to $11,692.6 million, adjusted EPS down 32.7% to $6.31. Salty Snacks soared 28%, yet confectionery volumes dipped on elasticity. 2026 guides 4-5% sales growth, adjusted EPS $8.20-$8.52.
8-K
Hershey amends Bylaws for governance
Hershey amended its Bylaws on December 5, 2025, effective immediately, to bolster governance. Changes strip references to Michele Buck as Chairman, eliminate Lead Independent Director mentions, and clarify meeting protocols: Governance Committee Chair presides if Chairman and Vice Chairman are absent. Emergency powers now extend to Vice Chairman. Routine housekeeping sharpens board operations.
10-Q
Q3 FY2025 results
Hershey's Q3 net sales climbed 6.5% year-over-year to $3.18B, fueled by 6% price hikes in North America Confectionery and International, though volume dipped slightly amid elasticity pressures; salty snacks surged 10% on strong SkinnyPop and pretzel demand. Gross margin shrank to 32.6% from 41.3%, hammered by soaring cocoa costs and tariffs, yet offset somewhat by productivity gains from the AAA Initiative. Operating profit fell 29.1% to $435M, with diluted EPS dropping 38.2% to $1.36, while YTD figures show 3.4% sales growth to $8.60B but a steeper 49.1% profit decline to $997M and EPS to $2.77. Cash swelled to $1.16B, free cash flow hit $1.03B (derived), buoyed by $1.35B operating cash minus $316M capex, alongside $5.4B debt after $2B issuance; the Sour Strips buyout added minor goodwill. Still, cocoa volatility looms large.
IPO
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