Q2 2024 Hershey Co Earnings Call (Pre Recorded) Transcript
Key Points
- Continued growth in the confection category with everyday candy, mint, and gum retail sales up 2% year to date.
- Strong performance in the North America salty snacks segment, with Q2 net sales growth delivering above expectations.
- Successful ERP implementation with little to no disruption across the network or in the marketplace.
- High retailer receptivity to new store formats and programs, resulting in mid-teen annualized sales growth in the dollar channel over the past three years.
- Robust innovation pipelines and exciting new product launches expected to drive growth in the second half of 2024 and into 2025.
- Reported net sales declined 16.7% in Q2, impacted by inventory reductions and seasonal shipment shifts.
- North America confectionery segment net sales declined 20.7%, driven by a significant decline in volume.
- International segment net sales declined high-single digits, driven by the exit of the Mexico beverage business and ERP-related inventory depletion.
- Adjusted gross margin expected to decline approximately 200 basis points for the full year due to cocoa and sugar inflation.
- Full-year EPS expected to be down slightly, driven by a reduction in the top-line outlook.
Good morning, and welcome to the prerecorded discussion of The Hershey Company second-quarter 2024 earnings results. I'm Anoori Naughton, Senior Director of Investor Relations.
Joining me today are Hershey's Chairman and CEO, Michele Buck; and Hershey's Senior Vice President and CFO, Steve Voskuil. In addition, today's remarks, we will host an analyst Q&A-only session at 8:30 AM Eastern on the morning of August 1. 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 transcript.
During the course of todayâs discussion, management will make forward-looking statements that are subject to various risks and uncertainties. These statements include expectations and assumptions regarding the companyâs 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 listing
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