Summary by Moomoo AI
Hershey reported Q3 2024 net sales of $2.99 billion, down 1.4% from $3.03 billion in Q3 2023, primarily due to a 3% volume decline across segments. Operating profit decreased 16.7% to $613.2 million, while net income fell 13.9% to $446.3 million. The company's gross margin contracted to 41.3% from 44.9% due to higher commodity and supply chain costs.North America Confectionery segment sales grew 0.8% to $2.48 billion, driven by 2% price increases but offset by 2% volume declines. North America Salty Snacks revenue dropped 15.5% to $291.8 million due to a 17% volume decline, while International segment sales fell 3.9% to $218.4 million impacted by unfavorable currency exchange rates.The company maintained its market leadership despite challenges, with U.S. retail takeaway declining 1.4% in expanded multi-outlet channels. Hershey initiated a multi-year productivity program expected to generate $300 million in annual savings by 2026. The company expects 2024 capital expenditures between $575-600 million, focusing on capacity expansion and innovation.
