Hershey increases net sales

The Hershey Company announced sales and earnings for the fourth quarter and year ended December 31, 2011. Consolidated net sales were $1,567,145,000 compared with $1,482,809,000 for the fourth quarter of 2010. Reported net income for the fourth quarter of 2011 was $142,133,000, compared with $135,513,000 for the comparable period of 2010. For the full year 2011, consolidated net sales were $6,080,788,000 compared with $5,671,009,000 in 2010, an increase of 7.2 percent. Reported net income for 2011 was $628,962,000, compared with $509,799,000 for 2010. “In 2011, Hershey continued to make good progress against its business model and strategy of investing in core brands and capabilities in the U.S. and key international markets,” said John P. Bilbrey, President and Chief Executive Officer. “Hershey’s fourth quarter represents a solid finish to 2011 and we expect to carry our momentum into 2012. In the fourth quarter, net sales increased 5.7 percent. Net price realization, primarily in the U.S., was a 5.9 point benefit. As expected, volume improved from last quarter, slightly greater than our expectations, increasing 0.4 points.” On January 19, 2012, the acquisition of Brookside Foods Ltd. (Brookside), a privately held confectionery company based in Canada, was completed. In the full-year 2012 consolidated results, Brookside is expected to generate net sales of approximately $90 million at current exchange rates. In the second half of the year the Asia research and development center will open in Shanghai. This will enable the key international markets to quickly develop and test new products in the marketplace. “We’re confident of our plans and, excluding the Brookside acquisition, expect volume to be slightly up for the full year 2012, resulting in net sales growth of about 5 to 7 percent, including the impact of foreign currency exchange rates,” Bilbrey concluded.