US confectioner Hershey has booked an increase in first-quarter earnings and raised its full-year profit forecast.

In the three months to the end of March, earnings climbed 21.8% to US$241.9m as lower commodity prices and cost-cutting boosted margins. The Reese’s maker’s gross margin rose 2.4 percentage points to 46.5% in the quarter.

EBIT amounted to $391.8m compared to $334.5m a year earlier. Sales were up 5.5% to $1.83bn.

“Hershey’s first quarter results, driven by solid volume growth across core brands, represent a good start to the year,” said president and CEO J. P. Bilbrey. “We maintained our retail momentum in the U.S. and key international markets. Specifically, first quarter US marketplace performance was strong, driven by solid volume and unit trends across most major pack types resulting in market share gains in every channel where we compete.”

Hershey also raised its outlook for the year and now expects EPS of $3.61 to $3.65, up from $3.56 to $3.63. It maintained its sales forecast of 5% to 7%.

Yesterday, Hershey announced it had shaken up its management team – including switching CFO Bert Alfonso to a role of president of its international business.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.