Q1 2025 Hershey Co Earnings Call Transcript
Key Points
- The Hershey Co (HSY) has seen improvements in trips in convenience stores, with incremental merchandising placements showing positive impacts.
- The company anticipates strong innovation in the back half of the year, particularly with a major Reese's brand innovation expected to be the biggest ever.
- International markets have shown strong growth, particularly in Brazil and India, with successful media activation and distribution wins.
- The Hershey Co (HSY) has a robust innovation pipeline and expects continued outperformance in the sweets category, with a 10% increase in business and a 100 basis point share gain.
- The company has been proactive in addressing potential regulatory changes, such as natural coloring, and feels confident in its ability to comply with upcoming regulations.
- The Hershey Co (HSY) faces significant tariff impacts, with potential unmitigated impacts up to $100 million per quarter in Q3 and Q4.
- Gross margin is expected to decline by about 700 basis points in Q2, partly due to tariff components and increased SG&A expenses.
- The company anticipates a 30% decline in EPS for the first half of the year, with the back half potentially down about 40%.
- There is uncertainty around the impact of tariffs and the company's ability to mitigate these through government action or other measures.
- The competitive landscape in the U.S. chocolate market remains intense, with increased competition from both large and small players.
Greetings, and welcome to The Hershey Company first quarter 2025 question-and-answer session. (Operator Instructions) As a reminder, this conference is being recorded.
I'd now like to turn the call over to your host, Anoori Naughton, Senior Director of Investor Relations for The Hershey Company. Thank you. You may begin.
Thank you, and good morning, everyone. Thank you for joining us today for The Hershey Company's first quarter 2025 earnings Q&A session.
I hope everyone has had the chance to read our press release and listen to our prerecorded management remarks, both of which are available on our website. In addition, we have posted a transcript of the prerecorded remarks. At the conclusion of today's live Q&A session, we will also post a transcript and audio replay of this call.
Please note that during today's Q&A session, we may make forward-looking statements that are subject to various risks and uncertainties. These statements, including
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
