Hershey Q2 Sales, Income Increase
July 26, 2013
Hershey, PA — The Hershey Co. saw a 6.7 percent increase in sales in the second quarter of 2013 compared to the same quarter in the year prior, the firm announced today. Net income also rose 18 percent and the company increased its expected sales growth for the year from six to seven percent.
With the exception of gum, in the U.S., chocolate, non-chocolate, and mint sales increased “at the high end of historical category growth rates,” President and CEO John P. Bilbrey said in an earnings call with investors this morning. In addition, the company gained market share in every channel and segment in which it competes, Bilbrey noted.
“This is driven by the rational investments we continue to see by most major manufacturers in the form of advertising, innovation and brand building initiatives,” he added. “The U.S. is a growth market for the confectionery category and we believe consumers will continue to value it moving forward.”
New products Brookside and Kit Kat Minis are performing ahead of initial estimates, Bilbrey claimed. He also said he expects positive performance for the remainder of the year: “In the U.S. marketplace we have many exciting products, promotions and merchandising programs in place including high-value coupons, a promotion with the pop band Gym Class Heroes and a Reese’s promotional tie-in with NCAA football.”
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