Hershey: double-digit sales growth in the third quarter

 

According to the company, organic, constant currency sales increased 11.8%. List price increases along with strong consumer demand and favourable price elasticities drove balanced growth across segments.

Third-quarter 2022 reported operating profit was USD 556.6 m, a decrease of 3.2%, resulting in an operating profit margin of 20.4%, a decrease of 400 basis points. Adjusted operating profit of USD 615.3 m increased 9.3% versus the third quarter of 2021 as pricing, volume and cost leverage more than offset inflation, elevated supply chain costs, acquisition-related costs and brand, capabilities, and people investments. Despite higher adjusted operating profit, adjusted operating profit margin decreased by 130 basis points to 22.6%, as inflation and investment outpaced sales growth.

“Third quarter results came in ahead of our expectations, as our increased brand investments and improved supply chain helped support resilient consumer demand and drove category growth across all business segments,” said Michele Buck, The Hershey Company President and Chief Executive Officer. “Marketplace share and gross margin trends improved versus the second quarter, and we have strong momentum exiting the year. Given our performance to date and visibility into the fourth quarter, we are raising our net sales and earnings outlook for the year.”