Q3 2024 Hershey Co Earnings Call(Pre-Recorded) Transcript
Key Points
- The Hershey Co (HSY) has a diversified portfolio of resilient brands in growing categories, which provides a strong foundation for success.
- The chocolate category has shown consistent growth, with a 4% CAGR since 2009, indicating its resilience and relevance to consumers.
- Reese's Caramel is the number one innovation in the category this year, and Reese's Lava is outperforming expectations, showcasing successful product innovation.
- The company has seen strong momentum in its sweets portfolio, with significant share gains in recent months.
- The Hershey Co (HSY) is taking strategic actions to improve market share and drive growth, including new leadership in the US confection business and targeted investments in international markets.
- The company faced historically high cocoa prices, impacting financial results and contributing to a challenging operating environment.
- There was increased competition in the confectionery segment, leading to market share losses to smaller players and private labels.
- Executional issues in promotional programming and supply chain changes led to underperformance in certain segments.
- Retailer inventory management efforts and seasonal shipment delays negatively impacted sales volumes.
- The company revised its sales growth outlook to be approximately flat for the year, down from a prior guidance of 2% growth, reflecting ongoing consumer and competitive pressures.
Good morning and welcome to the prerecorded discussion of the Hershey company's third quarter, 2024 earnings results. I'm Annoy Naughton, Senior Director of Industrial Relations. Joining me today are Hershey's Chairman and CEO Michelle Buck and Hershey's Senior Vice President and CFO Steve Bosco.
In addition to these remarks, we will host an analyst Q&A only session at 8:30 a.m. Eastern on the morning of November 7th, a replay of this webcast and our subsequent Q&A session will be available on the investor relations section of our website along with their corresponding transcripts.
During the course of today's discussion, management will make forward-looking statements that are subject to various risks uncertainties. These statements include expectations and assumptions regarding the company's future operations and financial performance. Actual results could differ materially from those projected.
The company undertakes no obligation to update these statements based on subsequent events. A detailed
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