The Hershey Company posted fourth-quarter results, with both earnings and revenue beating the Zacks Consensus Estimate.
The chocolate maker’s adjusted earnings for the quarter grew +13.4% from the year-ago quarter to $2.10 a share, surpassing Zacks Consensus Estimate of $1.69.
Consolidated net sales climbed +6.4% year-over-year to $2,326.1 million, compared to the Zacks Consensus Estimate of $2,265 million. Organic net sales on constant-currency basis rose +4%.
North America Confectionery segment net sales rose +4.9% year over year to $1,982.4 million. Price realization contributed to 4.3 points of growth. Volume led to a 1.1-point headwind due to price elasticity and reduced shipping days. Acquisition of Lily's and foreign exchange added to net sales by 1.5 points and 0.2 points, respectively.
The North America Salty Snacks segment’s net sales increased +38.9% year-over-year to $158.7 million. Price realization contributed 15.9 points, and volume contributed 3.9 points. The acquisitions of Dot's and Pretzels contributed 19.1 points to sales.
International segment’s net sales rose +1.7% year-over-year to $185 million. On constant currency basis, net sales increased +2%. Price realization contributed 19.7 points to sales while volume lent a 17.7-point headwind.
The company projects net sales growth in the band of 8-10% for 2022. It expects adjusted earnings per share to increase 9-11%, and predicts reported earnings per share growth in the 7-10% range. For 2022, adjusted earnings per share are expected to be in the range of $7.84-$7.98.