Hershey: Reports First-Quarter 2021 Financial Results

Hershey / PA. (thc) The Hershey Company announced net sales and earnings for the first quarter ended April 4, 2021, and raised its full-year financial outlook.

«We are off to an outstanding start in 2021, with broad-based growth across the portfolio leading to double digit sales and earnings growth in the first quarter and an increased outlook for the full year,» said Michele Buck, The Hershey Company President and Chief Executive Officer. «As Covid-19 vaccines roll out across the globe, consumers are optimistic about the future and looking forward to spending more time with their family, friends and community. As we have seen over our 127- year history, our portfolio of beloved brands plays an important role in these special moments of connection, comfort and happiness. We expect continued investments in our brands, capabilities and people along with our agility to respond to and capitalize on marketplace opportunities, to drive sustainable, advantaged performance not only in 2021, but in years to come as well.»

First-Quarter 2021 Financial Results Summary compared to Q1-2020

  • Consolidated net sales of USD 2,295.9 million, an increase of 12.7 percent.
  • Organic, constant currency net sales increased 12.9 percent.
  • Divestitures and foreign currency exchange each had a 0.1 point negative impact on net sales.
  • Reported net income of USD 395.8 million, or USD 1.90 per share-diluted, an increase of 47.3 percent.
  • Adjusted earnings per share-diluted of USD 1.92, an increase of 17.8 percent.

2021 Full-Year Financial Outlook

The company is updating its 2021 net sales and earnings per share outlook to reflect the strength of its performance in the first quarter and expectations for the balance of the year:

  • Full-year net sales growth is now expected to be in the range of 4 percent to 6 percent, an increase from the previously communicated range of 2 percent to 4 percent.
  • Full-year reported earnings per share are now expected to be in the range of USD 6.64 to USD 6.86, an increase of approximately 9 percent to 12 percent from USD 6.11 in fiscal 2020.
  • Full-year adjusted earnings per share are now expected to be in the range of USD 6.79 to USD 6.92, an increase of 8 percent to 10 percent from USD 6.29 in fiscal 2020, and an increase from the previously communicated range of 6 percent to 8 percent.

The primary drivers of the increased outlook are stronger than anticipated consumer mobility and incremental distribution and merchandising opportunities in North America confection. Volume gains, partially offset by higher input costs and incentive compensation, are expected to result in higher earnings per share growth for full-year 2021.

For additional information please refer to the company’s news release (PDF | 117 KB):

20210430-HERSHEY-Q1-2021
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