Major US confectioner Hershey Foods Corp has posted net sales of US$823.46m for its Q2 ended 30 June, up from US$817.33m year on year.
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Net income was US$63.15m, or US$0.46 per share-diluted, up 21.1% from US$52.44m, or US$0.38 per share-diluted.
Excluding net charges of US$2.54m associated with the business realignment initiatives previously announced, and adjusting 2001 net income for the elimination of goodwill amortisation, Q2 net income was US$64.75m, up 17.5% from US$55.44m in the Q2 2001.
For the H1 2002, consolidated net sales were US$1.81bn compared with US$1,8bn year on year. Net income for the H1 2002 was US$150.19m, compared with US$131.35m for the H1 2001, an increase of 14.7%.
Excluding net charges of US$11.54m and adjusting 2001 net income for the elimination of goodwill amortisation, net income for the H1 2002 was US$157.49m, up 14% year on year.
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By GlobalDataComparing the Q2 2002 to the prior year Q2, consolidated net sales increased almost 1%, and domestic sales increased by 2%, reflecting improved performance in core brands and more profitable pack types, as well as gains in higher growth channels, offset somewhat by continued rationalisation of under-performing brands. Gross margin improved 140 basis points as a result of the better product and channel mix and reduced ingredient and packaging costs. Selling, marketing and administrative costs were relatively flat.
“We’re making significant progress against our value-enhancing strategy,” said Richard H. Lenny, chairman, president and CEO: “Core brand growth and ongoing supply chain improvement produced strong earnings and returns. This performance positions Hershey well for the upcoming seasonal period. FY earnings per share-diluted growth may be slightly above the long-term guidance of 9% to 11%.”
