Hershey Forecasts FY22 Sales, Profit Above Estimates On Higher Prices

Hershey Co HSY posted Q4 sales of $2.33 billion, +6.4% Y/Y, beating the consensus of $2.26 billion.

• Net price realization was a 6.1-point benefit-driven primarily by list price increases across all segments as well as slightly lower levels of promotional activity versus the prior year. 
• Volume was a 2.1-point headwind driven by price elasticity and fewer shipping days. 
• Sales from Pretzels, Dot's, and Lily's acquisitions were a 2.2-point benefit, and foreign exchange was a 0.2-point benefit.
• Adjusted gross margin decreased 40 basis points to 43.5% on higher logistics, labor & packaging costs, and unfavorable mix.
• Adjusted operating profit margin increased 90 basis points to 20.5%.
• Adjusted EPS reached $1.69, up from 1.49 posted a year ago, beating the consensus of $1.61.
• Guidance: Hershey forecasts FY22 sales to increase 8% - 10% Y/Y, equivalent to $9.69 billion - $9.87 billion, compared to the consensus of $9.37 billion.
• The Company expects an FY22 adjusted profit of $7.84 - $7.98 per share, compared with estimates of $7.57 per share.
• Price Action: HSY shares are down 1.07% at $196.41 premarket on the last check Thursday.