- Hershey Co (NYSE: HSY) reported first-quarter FY22 sales growth of 16.1% year-on-year, to $2.67 billion, beating the consensus of $2.48 billion. Organic, constant currency net sales grew 11.5%.
- Hershey's North America Confectionery segment net sales rose 11.7% Y/Y to $2.22 billion. Sales for Hershey's International and other segments increased 17.9% to $223.1 million.
- Gross margin expanded 100 basis points Y/Y to 46.7%, and gross profit rose 18.7% Y/Y to $1.24 billion.
- Operating margin expanded 290 basis points to 27.0%, and operating income for the quarter rose 30.4% Y/Y to $721 million.
- Adjusted EPS of $2.53 beat the analyst consensus of $2.10.
- Hershey held $338.1 million in cash and equivalents as of April 3, 2022.
- "Our fast start, sustained consumer relevancy, and increased visibility into our recently acquired businesses give us the confidence to increase our full-year net sales and earnings outlook despite an increasingly challenging and inflationary environment," said CEO Michele Buck.
- Outlook: Hershey raised FY22 net sales growth guidance to 10% - 12%, from the previous view of 8% - 10%.
- It sees an adjusted EPS of $7.91 - $8.05 (prior view $7.84 - $7.98) versus the consensus of $7.95.
- Price Action: HSY shares traded higher by 2.25% at $227.23 on the last check Thursday.
Read at Benzinga