US chocolate maker Hershey reported net income of $533.5 million in the first quarter of this year, the equivalent of $2.57 per share.
The result represents an increase of 35% compared to the same period in 2021, when net income of US$ 395.8 million (US$ 1.90 per share) was reported. Adjusted earnings were $2.53 per share.
Net revenue increased 16% year-on-year, from $2.295 billion in the first quarter of 2021 to $2.666 billion in the first quarter of 2022.
According to a statement released this Thursday (28), the company attributes the advance in profit and revenue to sustained consumer demand and favorable price elasticities in all segments.
The results beat analysts polled by FactSet, who had expected revenue of $2.477 billion and adjusted earnings of $2.10 per share.
In the first quarter of this year, North American sales revenue grew 11.7% year-on-year to $2.217 billion.
“Demand for sweets remained strong and take-home chocolate sales drove growth. Net price realization and reduced advertising levels, combined with a time benefit related to the inventory valuation method and fixed cost leverage, drove profit gains, which were partially offset by inflation and incremental costs to meet increased demand and higher operating expenses,” said Hershey.
In the company’s International segment, sales advanced 17.9% over the same period to $223.1 million, having reported a profit of $42 million in the first quarter of the year, up 53.1% from last year. .
“The increase was driven by volume gains, net price realization and favorable operating expenses related to optimizing the operating model in China, which more than offset inflation and higher logistics costs,” the company added in the statement.
For the 2022 fiscal year, the company expects net sales to increase between 10% and 12%, up from a previous forecast that sales would grow between 8% and 10%.
Regarding adjusted earnings, it is projected to be between US$7.91 to US$8.05 per share. The FactSet consensus is for sales of $9.774 billion, implying growth of 8.9% and adjusted earnings of $7.94.
Source: CNN Brasil
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