Hershey Q1 Earnings Smashes Estimates; Sweetens FY22 Outlook

Hershey Co HSY reported first-quarter FY22 sales growth of 16.1% year-on-year, to $2.67 billion, beating the consensus of $2.48 billion. Organic, constant currency net sales grew 11.5%.
Hershey's North America Confectionery segment net sales rose 11.7% Y/Y to $2.22 billion. Sales for Hershey's International and other segments increased 17.9% to $223.1 million.
Gross margin expanded 100 basis points Y/Y to 46.7%, and gross profit rose 18.7% Y/Y to $1.24 billion.
Operating margin expanded 290 basis points to 27.0%, and operating income for the quarter rose 30.4% Y/Y to $721 million.
Adjusted EPS of $2.53 beat the analyst consensus of $2.10.
Hershey held $338.1 million in cash and equivalents as of April 3, 2022.
"Our fast start, sustained consumer relevancy, and increased visibility into our recently acquired businesses give us the confidence to increase our full-year net sales and earnings outlook despite an increasingly challenging and inflationary environment," said CEO Michele Buck.
Outlook: Hershey raised FY22 net sales growth guidance to 10% - 12%, from the previous view of 8% - 10%.
It sees an adjusted EPS of $7.91 - $8.05 (prior view $7.84 - $7.98) versus the consensus of $7.95.
Price Action: HSY shares traded higher by 2.25% at $227.23 on the last check Thursday.

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