NYSE$HSY

Hershey Co · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Net sales and earnings increased due to robust recovery in away-from-home consumption and international markets and sustained elevated at-home consumption.

Hershey's Q2 2021 financial results showed strong growth with a 16.5% increase in consolidated net sales and a 12.4% increase in reported net income. The company updated its full-year financial outlook, reflecting the strength of its performance and the acquisition of Lily's Sweets, LLC.

  • Consolidated net sales increased by 16.5% to $1,989.4 million.
  • Organic, constant currency net sales increased by 15.5%.
  • Reported net income increased by 12.4% to $301.2 million, or $1.45 per share-diluted.
  • Adjusted earnings per share-diluted increased by 12.2% to $1.47.

Headline financials

Total Revenue

$1.99B

Previous: $1.71B+16.5%
EPS (adj)

$1.47

Previous: $1.31+12.2%
Organic Net Sales Growth

15.5%

Previous: -3.5%+542.9%
Capital Expenditures

-$228M

Previous: -$186M-22.5%
Free Cash Flow

$73.6M

Previous: $83.1M-11.4%
Net Income

$301M

Previous: $269M+12.0%
Operating Income

$457M

Previous: $383M+19.1%
Gross Profit

$925M

Previous: $793M+16.8%
Cash & Equivalents

$426M

Previous: $1.17B-63.4%
Total Assets

$8.88B

Previous: $8.91B-0.3%

Revenue & EPS history

Hershey · Revenue · Quarterly

$1.99B

Q2 2021+16.5%vs Q2 2020
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Hershey · $1.99B total across 2 segments · Q2 2021

  • North America
    $1.78B+12.3%
  • International
    $210M+70.1%

Forward guidance

The company is updating its 2021 net sales and earnings outlook to reflect the strength of its performance in the second quarter and the acquisition of Lily's Sweets, LLC.

Tailwinds

  • Full-year net sales growth is now expected to be in the range of 6% to 8%, an increase from the previously communicated range of 4% to 6%.
  • This increase is driven by stronger than anticipated recovery in the company's away-from-home business and international markets, as well as the acquisition of Lily's.
  • Full-year reported earnings per share are now expected to be in the range of $6.59 to $6.85, an increase of 8% to 12% from $6.11 in fiscal 2020.
  • Full-year adjusted earnings per share are still expected to be in the $6.79 to $6.92 range, unchanged from the previously communicated 8% to 10% increase from $6.29 in fiscal 2020.
  • Increased profit from higher sales is expected to be offset primarily by incremental tax reserves incurred in the second quarter in connection with an adverse ruling in a non-U.S. tax litigation matter, as well as higher supply chain costs associated with servicing higher volume.

Headwinds

  • The net impact of acquisitions and divestitures is anticipated to be a 0.7 point benefit.
  • This slight decrease versus the previously communicated range of 9% to 12% is due to incremental costs to execute and integrate the Lily's acquisition.
  • The company also expects A reported and adjusted effective tax rate in the range of 17 to 18%.
  • Other expense of approximately $120 to $130 million.
  • Interest expense of approximately $130 million.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2021

Historical avgQ2 2021

+0.3%

Avg return

Earnings day

+1.4%

Avg return

5 days after

+2.0%

Avg return

30 days after

54%

37 / 68 earnings

Positive

+9.0%

Q4 2025

Best reaction

-6.7%

Q4 2017

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-2.6%-2.2%+2.8%
Q4 2025+9.0%+11.3%+9.3%
Q3 2025-2.4%-5.3%+7.3%
Q2 2025+1.4%+2.2%-1.3%
Q1 2025-0.0%+1.7%-3.9%
Q4 2024+4.4%+8.5%+26.8%
Q3 2024-0.7%+2.6%-1.2%
Q1 2024+0.3%+2.1%+1.0%
Q3 2023-5.3%-3.7%-1.4%
Q2 2023-2.0%-4.1%-9.6%
Q1 2023+4.3%+4.8%-1.5%
Q4 2022+4.9%+5.2%+5.8%
Q3 2022-1.2%-0.6%+1.1%
Q2 2022+4.5%+5.0%+4.8%
Q1 2022+1.6%-1.0%-4.3%
Q4 2021+2.1%+4.3%+7.2%
Q3 2021-2.3%-2.2%-0.9%
Q2 2021+1.3%+1.9%-0.5%
Q1 2021+3.4%+5.1%+8.9%
Q4 2020+0.0%+2.1%+2.6%
Q3 2020+3.5%+6.3%+4.3%
Q2 2020+5.2%+5.3%+6.5%
Q1 2020-5.3%-6.3%-9.1%
Q4 2019+2.7%+0.9%-4.7%
Q3 2019-4.3%-4.0%-1.9%
Q2 2019+4.2%+3.7%+7.0%
Q1 2019+6.9%+6.6%+11.2%
Q4 2018-0.8%+0.5%+6.3%
Q3 2018-5.2%-0.1%-1.8%
Q2 2018+4.5%+5.8%+7.5%
Q1 2018-0.2%-2.4%-1.6%
Q4 2017-6.7%-8.2%-10.4%
Q3 2017-4.2%-2.2%-1.1%
Q2 2017-0.9%-2.0%-2.1%
Q1 2017-1.0%-1.3%+6.9%
Q4 2016+1.7%+1.3%+2.9%
Q3 2016+7.3%+6.6%+2.3%
Q2 2016+2.4%+3.7%+2.5%
Q1 2016-0.5%
Q4 2015+4.4%
Q3 2015-5.7%
Q2 2015-0.4%
Q1 2015-3.8%
Q4 2014-5.1%
Q3 2014-0.7%
Q2 2014-1.6%
Q1 2014-3.8%
Q4 2013+2.8%
Q3 2013+0.3%
Q2 2013+1.7%
Q1 2013-2.0%
Q4 2012+0.4%
Q3 2012+0.6%
Q2 2012+0.2%
Q1 2012+1.4%
Q4 2011+0.3%
Q3 2011-1.5%
Q2 2011-0.8%
Q1 2011+1.6%
Q4 2010+2.7%
Q3 2010-0.4%
Q2 2010-0.6%
Q1 2009-0.6%
Q1 2010+0.4%
Q2 2008+0.3%
Q3 2009+0.3%
Q3 2008+0.3%
Q2 2009+1.5%

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