Hershey records second quarter sales dip amid challenging markets
Hershey at the recent Sweets & Snacks Expo in Indianapolis Pic: Neill Barston
Hershey has released its latest second quarter results, that reveal net sales of $2.07 billion for the period, with sales down 16.7% year-on-year, attributed to higher key ingredients costs and a shopper caution amid challenging economies, reports Neill Barston.
The business, which had enjoyed a strong performance at the recent Sweets & Snacks Expo in Indianapolis, US, which Confectionery Production was on hand to report on, noted that while candy sales were impacted, its snacking interests were proving more resilient.
As previously reported, the company delivered a full range of products for its key event appearance earlier this summer, including within its better-for-you, One brand, as well as extensions to existing Reese’s lines, with the company having just released its latest early Halloween offering.
Furthermore, the second quarter figures were also attributed to retailers reducing the volume of ranges being promoted in-store, with North American sales down 20% year-on-year, to $1.57 billion, with the disappointing performance also being attributed to seasonal shipment timings also reducing potential income.
However, the region saw a 6% growth in salty snacks for the second quarter, reportedly driven by volume growth, as well as price adjustment during the past few months.
The company’s candy, mint and gum segments also experienced trading challenges in North America, with sales down 2.7%, with international sales in the rest of the world also reportedly down 8.9% to $204.8 million for the past quarter.
Michele Buck, The Hershey Company President and Chief Executive Officer, commented on the results, and acknowledged the challenging conditions.
She said: “Today’s operating environment remains dynamic with consumers pulling back on discretionary spending,” “Our business has been impacted by these trends, but we are pleased to see continued growth in the confection category and momentum building in our Salty Snacks portfolio.
“Our second-half innovation is expected to bring energy to our categories, and we are confident our evolving strategies will meet consumers’ changing needs and drive long-term success.”
