Hershey said today (24 April) its first-quarter results had missed its expectations amid “pressure” on sales.
The Reese’s and Hershey’s Kisses manufacturer booked a 2.4% rise in net sales to US$1.87bn.
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The result came in below Hershey’s forecasts, with the company feeling the impact of shoppers in the US making fewer trips to “instant consumable channels” and “irregular purchasing patterns” at mass stores.
The confectionery giant also revealed there had been “softness” to its sales in Latin America. Sales in Mexico were hit by a new tax on products with a certain level of calories.
Shares in Hershey had fallen 2.06% at $98.09 at 09:52 ET.
To boost sales in the US, Hershey has new products lined up set to enter the market, including the “breakthrough” Ice Breakers Cool Blasts product it revealed in February.
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By GlobalDataMexico, a key Latin American market for Hershey, will see Reese’s Peanut Butter Cups roll out more broadly after its introduction in Oxxo stores last year. The presence of the product will also be extended in Brazil and in China in the second half of this year.
The company continues to expect its group-wide net sales to grow 5-7 this year.
Hershey’s first-quarter profits were up. EBIT grew 3% to $406.6m. Net income grew 4.4% to $252.5m.
