The Hershey Company Reports 0.3% Increase in Net Sales and 19.3% Rise in Net Income for Fiscal Year 2024

The Hershey Company reported a slight increase in net sales for the fiscal year ending December 31, 2024, reaching $11.2 billion, up 0.3% from $11.165 billion in 2023. This growth was primarily driven by a favorable price realization of approximately 3%, which offset a volume decrease of about 2%. The company's net income also saw a significant rise, increasing by 19.3% to $2.221 billion, or $10.92 per diluted share, compared to $1.862 billion, or $9.06 per diluted share, in the previous year. The increase in profitability was attributed to higher gross profit and lower selling, marketing, and administrative expenses.

In terms of operational changes, Hershey completed two notable acquisitions in 2024. The company acquired the Sour Strips brand from Actual Candy, LLC for an undisclosed amount, which is expected to enhance its portfolio in the sour candy segment. Additionally, in May 2023, Hershey acquired manufacturing assets from Weaver Popcorn Manufacturing, Inc. for $165.8 million, aimed at bolstering its production capacity for salty snacks. These strategic moves align with Hershey's goal to expand its presence in the snacking category.

The company reported a total employee headcount of approximately 18,540 full-time and 1,490 part-time employees as of December 31, 2024. Hershey's North America Confectionery segment accounted for 81.4% of net sales, while the North America Salty Snacks segment contributed 10.1%. The International segment represented 8.5% of total sales. Despite a challenging macroeconomic environment, Hershey's total U.S. retail takeaway increased by 0.8% in 2024, although the company experienced a decline in market share in the candy, mint, and gum categories.

Looking ahead, Hershey's management expressed cautious optimism regarding future growth, emphasizing the importance of adapting to changing consumer preferences and market conditions. The company is focused on leveraging its strong brand portfolio and enhancing operational efficiencies through initiatives like the Advancing Agility & Automation Initiative, which aims to optimize supply chain and manufacturing processes. However, Hershey also acknowledged potential risks, including commodity price volatility and geopolitical uncertainties, which could impact its financial performance in the coming year.