Summary by Moomoo AI
Hershey reported Q3 2024 consolidated net sales of $2.99B, down 1.4% YoY, with organic constant currency sales declining 1.0%. Net income decreased 12.7% to $446.3M, while adjusted EPS fell 10.0% to $2.34. The performance was impacted by historically high cocoa prices and challenging consumer environment.North America Confectionery segment sales grew 0.8% to $2.48B, while North America Salty Snacks revenue declined 15.5% to $291.8M. International segment sales decreased 3.9% to $218.4M. Gross margin contracted 360 basis points to 41.3%, primarily due to higher commodity costs and unfavorable input cost timing.The company reduced its 2024 outlook, now expecting flat net sales growth compared to previous guidance of ~2%. Reported EPS growth is projected at -9% to -6%, down from earlier -3% to -1% forecast. Hershey plans to focus on driving top-line growth through in-store execution, portfolio expansion, and seasonal strength while implementing cost-saving initiatives.
