Friday October 26, 2012
Hershey's Q3 Profits Fall, Sales Increase
Hershey, PA — The Hershey Co. experienced a 7.5 percent net dollar sales increase in the third quarter, according to the company, though profit fell 10 percent to $176.7 million, or 77 cents per share. This is down from a year earlier when profit was $196.7 million, or 86 cents per share.
The company raised its full-year earnings outlook from 12 to 14 percent growth to 14 to 15 percent growth, which translates to $3.22 to $3.25 per share.
Hershey has been in the process of raising the prices of its products by 10 percent, and its sales volume was 2.1 percent higher in the last quarter when not taking into account the recent acquisition of Brookside Farms. Gross margin widened from 41.9 percent to 42.5 percent, as higher sales prices assisted in offsetting higher input costs.
John P. Bilbrey, CEO, president and directore of Hershey says: “I'm pleased with Hershey's third quarter results. As we anticipated, Hershey's U.S. marketplace performance accelerated in the third quarter.”