Hershey: Reports Q4 and Full-Year 2021 Financial Results

Hershey / PA. (thc) The Hershey Company announced net sales and earnings for the fourth quarter and full-year ended December 31, 2021. «In 2021, we delivered a record year of production and double-digit sales and earnings growth, with a strong finish and momentum heading into 2022. While the environment remains volatile, we are confident in our ability to continue to respond to the changes in the world around us and deliver another year of advantaged performance in 2022,» said Michele Buck, The Hershey Company President and Chief Executive Officer. «I could not be prouder of the entire Hershey organization for the way they continue to unite to overcome obstacles, show courage and adaptability, and persevere to deliver for consumers, partners, shareholders and each other during unprecedented times.»

Fourth-Quarter 2021 Financial Results Summary(1)

  • Consolidated net sales of USD 2,326.1 million, an increase of 6.4 percent.
  • Organic, constant currency net sales increased 4.0 percent.
  • The impact of acquisitions on net sales was a 2.2-point benefit(2) while foreign currency exchange was a 0.2-point benefit.
  • Reported net income of USD 335.6 million, or USD 1.62 per share-diluted, an increase of 16.5 percent.
  • Adjusted earnings per share-diluted of USD 1.69, an increase of 13.4 percent.

(1) All comparisons for the fourth quarter of 2021 are with respect to the fourth quarter ended December 31, 2020
(2) Reflects the impact from the 2021 acquisitions of Pretzels Inc. (Pretzels), Dot’s Pretzels, LLC (Dot’s) and Lily’s Sweets, LLC (Lily’s)

2021 Full-Year Financial Results Summary(3)

  • Consolidated net sales of USD 8,971.3 million, an increase of 10.1 percent.
  • Organic, constant currency net sales increased 8.7 percent.
  • The net impact of acquisitions and divestitures on net sales was a 1.0-point benefit(4) and foreign currency exchange was a 0.4-point benefit.
  • Reported net income of USD 1,477.5 million, or USD 7.11 per share-diluted, an increase of 16.4 percent.
  • Adjusted earnings per share-diluted of USD 7.19, an increase of 14.3 percent.

(3) All comparisons for full-year 2021 are with respect to the full-year ended December 31, 2020
(4) Reflects the impact from the 2021 acquisitions of Pretzels, Dot’s and Lily’s, partially offset by the 2020 divestitures of KRAVE Pure Foods, Inc. (Krave) and the Scharffen Berger and Dagoba brands

2022 Full-Year Financial Outlook Summary
The company’s 2022 outlook is provided in the context of greater than usual volatility associated with the COVID-19 pandemic and industry-wide supply chain disruption.

2022 Full-Year Outlook Total Company
Net sales growth(5) 8 percent – 10 percent
Reported earnings per share growth 7 percent – 10 percent
Adjusted earnings per share growth 9 percent – 11 percent

(5) The impact of the Pretzels, Dot’s and Lily’s acquisitions is anticipated to be a 3- to 4-point benefit to net sales growth for the full-year 2022.

The company expects net sales growth to be driven primarily by list price increases across all segments. Pricing is anticipated to partially offset investments in labor, along with higher logistics costs and raw material inflation. Sales growth and increased media efficiencies are expected to more than offset gross margin pressures to drive adjusted earnings per share growth.

The company also expects:

  • A reported and adjusted effective tax rate in the range of 16 percent to 17 percent;
  • Other expense of approximately USD 105 million to USD 115 million;
  • Interest expense of approximately USD 125 million; and
  • Capital expenditures of approximately USD 550 million to USD 600 million, driven by key strategic initiatives including expanding the agility and capacity of the company’s supply chain and building digital infrastructure across the enterprise.

For additional information please read the Company’s PDF file below (145 KB):

20220205-HERSHEY-Q4-2021
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