Hershey president and CEO Dave West today (2 February) insisted the US chocolate maker had made “excellent progress” in 2009 after ending the year with a fourth quarter of rising sales and earnings.
West said Hershey had made a “solid finish” to 2009 with a 2.2% rise in net sales to US$1.41bn. Hershey reported quarterly net income of $126.8m – compared to $82.2m a year ago.
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Excluding costs from Hershey’s ongoing programme to revamp its supply chain, adjusted net income reached $144.4m, against $133.8m in 2008.
West said pricing and “improvements” in Hershey’s international business had driven sales growth in the fourth quarter. Sales volumes, which have been under pressure, due to Hershey’s price hikes, were also improving, the Hershey boss said.
“Importantly, base business volume trends, while down due to volume elasticity associated with the US pricing action, sequentially improved in the fourth quarter, net of the previously-communicated decisions to close our on-line gifts business and discontinue certain premium chocolate products,” West said.
In 2009 as a whole, Hershey saw sales climb 3.2% to $5.3bn. Reported net income stood at $436m compared to $311.4m a year ago. Adjusted net income, excluding the supply-chain charges, reached $496.8m against $430.5m in 2008.
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