Confectionery giant Hershey today (27 October) raised its sales growth forecast following a “solid” third quarter.
The company is now anticipating 2011 net sales growth of around 7%, greater than the previous estimate of 6%.
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Hershey’s consolidated net sales for the third quarter ended October 2 were US$1.6bn, compared with $1.5bn a year ago.
Meanwhile, reported net income for the three months was $196.6m, a rise on $180.1m for last year’s comparable period.
Adjusted net income, which excludes charges from Hershey’s Project Next Century restructuring programme and a gain from the sale of a trademark licence, stood at $193.8m, compared to $182.9m a year earlier.
For the first nine months of 2011, consolidated net sales were $4.5bn compared with $4.1bn for the first nine months of 2010. Net income was $486.8m, compared with $374.2m in 2010. Adjusted net income stood at $489.1m, against $447.4m a year earlier.
The company said the results were bolstered by better than expected seasonal volume and a good performance from new products, primarily Reese’s Minis and Hershey’s Drops.
“Hershey’s third-quarter financial and US marketplace results were solid as our core brands continue to perform well in all retail channels,” president and CEO John Bilbrey said.
“Results were slightly better than our expectations as both US chocolate and non-chocolate candy categories continue to grow greater than the historical average despite macroeconomic challenges.”
Bilbrey added that the company aims to “leverage” its scale in the US, work closely with retail partners and invest in key international markets to ensure further growth, despite anticipated higher input costs in 2012
“We’re positioned to carry our marketplace momentum into the fourth quarter and gain market share for the third consecutive year”, he said.
“As we look to 2012, we expect the economic environment to remain challenging – however, we are well positioned to succeed in the marketplace.”
