The Hershey Company remains on track to achieve financial targets

According to the company, acquisitions were a 5.9 point benefit, volume was a 1.0 point benefit and net price realization was a 1.6 point headwind. Foreign currency translation impact was negligible. Reported gross margin of 45.3% represented a decline of 80 basis points versus the second quarter of 2017. Adjusted gross margin was 44.5% in the second quarter of 2018, compared to 47.1% in the second quarter of 2017, a decline of 260 basis points. Second quarter 2018 reported operating profit was USD 315.7 m, resulting in an operating margin of 18.0%. Adjusted operating profit of USD 339.5 m declined 2.0% versus the second quarter of 2017 and resulted in an adjusted operating margin of 19.4% driven by gross margin declines.

"We delivered our second quarter results and we remain on track to achieve the financial targets we shared in April," said Michele Buck, The Hershey Company President and Chief Executive Officer. "We continue to invest in the U.S. with our core brands and build capabilities for growth while taking measured steps to enhance long-term profitability. Amplify's strong performance in the marketplace continues and the integration is proceeding as planned. I am very pleased with the ongoing transformation of our international business with solid organic growth, meaningful profit improvement, and the successful divestitures of Tyrrells and Golden Monkey.”