Hershey reported second-quarter results that topped Wall Street expectations for both sales and profit. The company also raised its annual outlook.
Net sales rose 6.6% to $2.79 billion in the quarter ended June 28. Adjusted earnings came in at $1.90 per share. Analysts had expected revenue of $2.63 billion and adjusted earnings of $1.42 per share, according to Reuters.
Price hikes of 12% were the primary engine behind the quarter's performance, outweighing an 8% contraction in overall volumes. Hershey's sustained price increases over the past year aimed at absorbing surging cocoa costs. These sustained price increases have kept investors trained on whether shoppers will continue buying its products.
Sales in North America Confectionery, the company's largest segment, grew 4.2% from a year earlier. North America Salty Snacks sales climbed 22.9%.
Full-Year Guidance Raised
Hershey now expects net sales growth of 4.5% to 5.0% for the full year. The company forecast adjusted earnings per share of $8.36 to $8.52 for the year. Hershey pointed to a lineup of new product introductions, seasonal campaigns, and promotional events in the back half of the year as catalysts for improved results.
Mondelez, which owns the Cadbury brand, also reported better-than-anticipated results in its most recent quarter.