Hershey reaffirms 2019 net sales and earnings outlook

"Our year has gotten off to a strong start and we are on track to deliver our financial commitments," said Michele Buck, The Hershey Company President and Chief Executive Officer. "We remain committed to delivering balanced growth today, while making key investments in our brands, capabilities and people to take the business to the next level in the future."

Consolidated net sales were USD 2.017 bn in the first quarter of 2019 versus USD 1.972 bn in the year ago period, an increase of 2.3%. Volume was a 1.7 point benefit, the net impact of acquisitions and divestitures was a 0.9 point benefit, and net price realization was a 0.2 point benefit. Foreign currency translation was a 0.5 point headwind. Reported gross margin of 44.3% represented a decrease of 510 basis points versus the first quarter of 2018. Adjusted gross margin was 45.7% in the first quarter of 2019, compared to 44.9% in the first quarter of 2018, an increase of 80 basis points.

First-quarter 2019 reported operating profit was USD 438.9 m, resulting in an operating margin of 21.8%. Adjusted operating profit of USD 470.5 m increased 9.9% versus the first quarter of 2018. This resulted in an adjusted operating margin of 23.3%, an increase of 160 basis points.