Hershey results miss despite strong sales in US market

The US concern Hershey Co. has reported that its net income for the third quarter of 2014 declined to USD 223.7 m, from USD 233 m for the comparable period of 2013. Consolidated net sales rose to USD 1.96 bn, from USD 1.85 bn last year. Third-quarter net sales increased 5.8% driven primarily by volume. North America net sales increased 4.2% driven by strong Halloween seasonal growth and new products. International net sales increased 18.%, slightly less than estimates.

Looking ahead for fiscal 2014, the company anticipates adjusted earnings per share-diluted growth for the full year to increase around 8%. Hershey‘s chocolate business in ­China continues to be strong with organic revenue expected to be about USD 200 m in 2014. However, net sales growth in select inter­national export markets is mixed due to macro­economic challenges. Therefore, including the impact of foreign currency exchange rates, full-year international organic net sales are expected to be up low double digits on a percentage basis versus last year, less than the com­pany’s previous estimate of about a 15% increase.

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