Hershey, a global confectionery leader, reported a decrease in net sales for the second quarter of 2024, with a 16.7% drop compared to the same period in 2023. The company's net income also saw a significant decline of 55.6% year-on-year. Despite these challenges, Hershey's diluted earnings per share (EPS) decreased by 55.1% to $0.89. The company attributes the decline in net sales to a volume decrease in everyday core U.S. confection, accelerated by shipments in anticipation of an enterprise resource planning (ERP) system implementation. However, Hershey's salty snack brands experienced an increase in sales, partially offsetting the overall decline. In terms of business development, Hershey completed the acquisition of Weaver Popcorn Manufacturing in May 2023, enhancing its manufacturing capacity. The company...Show More

Hershey, a global confectionery leader, reported a decrease in net sales for the second quarter of 2024, with a 16.7% drop compared to the same period in 2023. The company's net income also saw a significant decline of 55.6% year-on-year. Despite these challenges, Hershey's diluted earnings per share (EPS) decreased by 55.1% to $0.89. The company attributes the decline in net sales to a volume decrease in everyday core U.S. confection, accelerated by shipments in anticipation of an enterprise resource planning (ERP) system implementation. However, Hershey's salty snack brands experienced an increase in sales, partially offsetting the overall decline. In terms of business development, Hershey completed the acquisition of Weaver Popcorn Manufacturing in May 2023, enhancing its manufacturing capacity. The company faced macroeconomic challenges, including price volatility in commodities like cocoa, which increased by approximately 75% since the beginning of the year. Hershey continues to monitor geopolitical events, such as the conflict between Russia and Ukraine, for potential impacts on commodity prices and supply chains. Looking ahead, Hershey believes it has sufficient liquidity to meet strategic initiatives and cash requirements, despite the fluctuating economic environment. The company plans to continue monitoring discretionary spending and evaluate the potential impacts of the macroeconomic environment on its business operations.