US confectionery company Hershey has reported that net sales increased by 1.5% to $1,663 million during the second quarter of 2017.
This gives the company a 2.2% increase in consolidated net sales for the first six months of the year, with figures totalling $3,542.7 million.
"Second-quarter results were solid and we're making progress against our strategic initiatives in a rapidly changing marketplace," said Michele Buck, president and CEO of the Hershey Company.
Performance
Hershey's North America operations achieved net sales of $1,477 million in the second quarter of 2017, which represents an increase of 2.2% compared to the same period last year. Income in this area grew by 8.1%, driven by a gross profit increase, and partially offset by higher levels of selling expense and investments.
However, second quarter net sales for Hersey's international segment declined by 3.6% to $80 million.
Outlook
The company is forecasting growth in US retail takeaway and market share in the second half of the year, and expects full-year net sales to increase by around 1%, while adjusted earnings per share diluted growth is expected to remain at the high-end of the range.
"The company continues to generate steady free cash flow and has a strong balance sheet," added Buck. "This dividend increase reflects our confidence in Hershey's marketplace position and long-term growth potential."
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Sarah Harford. Click subscribe to sign up to ESM: The European Supermarket Magazine.
