Apr. 23 at 6:06 PM
$HSY outlook for FY26, calling for +30% to +35% adj'd EPS growth w/ rev growth of +4% to +5%.
But Hershey notes that adjusted EPS growth will moderate to +15% to +20% in FY27, before achieving a run rate of +6% to +8% in FY28 & beyond
The company says it expects to benefit from cocoa cost deflation in 2026, as well as from balanced rev contribution, normalizing macro environment & stable raw material inflation in 2028
CEO: "Consumers are continuing to lean into health and wellness, GLP-1 adoption continues and is accelerating, & the conversation around food policy is continuing to evolve & change,"
To combat these challenges, Hershey will lean into growth opportunities, such as driving sales through premium products as well as better-for-you snacks
"We are focused on where consumers are moving toward, especially Gen-Z consumers"
Cacoa cash price down -69.55% from 52-week high
US-Iran war will keep the Strait of Hormuz closed & disrupt global cocoa supplies. The closure of the strait supports cocoa prices by reducing fertilizer supplies, boosting global shipping rates, insurance costs, & fuel prices, thereby raising cocoa importers' costs. Today's rally in the USD to a 1.5-week high is limiting gains in cocoa prices
North American & European 1Q26 cocoa grindings (less demand) fell -3.8% y/y (106,087 MT) & -7.8% y/y (325,895 MT), respectively but Asia grew (more demand) +5.2% (223,503 MT)
Cocoa supplies from the Ivory Coast are ample, a bearish factor for prices. Last month, Ghana cut the official price it pays its cocoa farmers by nearly 30%. Ivory Coast & Ghana produce more than half of the world's cocoa.
--- IMHO Mint chocolate chips s/b available year-round & not just the winter holiday season - I am mint demand!!!
