Q1 2024 Hershey Co Earnings Call Transcript
Key Points
- The Hershey Co (HSY) reported strong Q1 top line performance, aligning with expectations and exceeding market share predictions.
- Innovative product launches like Reese's Caramel have been successful, driving strong merchandising and consumer engagement.
- The Hershey Co (HSY) has seen improved display activity in the first half of the year compared to the second half of the previous year, indicating better retail execution.
- Diversification of supply chain and sourcing strategies has provided The Hershey Co (HSY) with flexibility in managing cocoa volatility.
- The Hershey Co (HSY) has full coverage for cocoa in 2024 and some coverage into 2025, showing preparedness for market fluctuations.
- The Hershey Co (HSY) faces challenges with the SNAP reductions impacting lower-income consumer spending, although stabilization is beginning.
- Despite strong performance in Q1, the overall confectionery category did not perform as well as expected due to competitor issues, particularly with innovation sustainability.
- The Salty Snacks segment, although improving, continues to face pressure, especially in the ready-to-eat popcorn category.
- Fixed cost leverage benefits seen in Q1 are expected to reverse in Q2, potentially impacting financial performance.
- The Hershey Co (HSY) is experiencing significant cocoa price volatility, which remains a concern despite strategic hedging and sourcing adjustments.
Greetings, and welcome to The Hershey Company First Quarter 2024 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, Ms. Melissa Poole, Vice President of Investor Relations for The Hershey Company. Thank you. You may begin.
Good morning, everyone. Thank you for joining us today for The Hershey Company's First Quarter 2024 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 include expectations and assumptions
| 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
