Aug. 1 at 2:08 AM
Hershey reported better-than-expected Q2 results as higher pricing continued to offset elevated cocoa costs, although the stock slipped as investors focused on softer underlying demand. Revenue rose to
$2.79 billion, topping analysts' estimates of
$2.64 billion, while adjusted EPS also exceeded expectations. The company credited roughly 12% price increases for protecting profitability despite weaker consumer purchasing volumes.
Investors looked past the earnings beat, however, as North American confectionery volumes posted double-digit declines due to higher prices, while the salty snacks business delivered weaker-than-expected profitability. Bloomberg Intelligence noted that concerns over slowing organic growth, competitive pressures, and the pace of volume recovery weighed on sentiment despite improving margins.
Management said demand trends should improve as commodity inflation moderates and consumers adjust to higher prices.
$HSY