The Hershey Company reported significant financial results for the second quarter of 2025, with net sales reaching $2.615 billion, a 26% increase from $2.074 billion in the same period last year. This growth was attributed to a 21% volume increase in core U.S. confectionery products and favorable pricing, which contributed approximately 5% to sales. However, the company faced challenges with rising costs, particularly in commodity prices, leading to a gross profit of $796.3 million, down from $833.7 million a year earlier, resulting in a gross margin decline from 40.2% to 30.5%.
In terms of profitability, Hershey's operating profit fell to $192.8 million, a 33% decrease compared to $287.9 million in Q2 2024. The operating profit margin also decreased from 13.9% to 7.4%. The decline in profitability was primarily driven by increased selling, marketing, and administrative expenses, which rose to $603.2 million, up 11.5% from the previous year. Net income for the quarter was $62.7 million, a 65.3% drop from $180.9 million in Q2 2024, translating to diluted earnings per share of $0.31, down from $0.89.
Hershey's operational developments included the ongoing integration of its recent acquisitions, such as the Sour Strips brand and the planned acquisition of LesserEvil, LLC, which is expected to close by the end of 2025. The company also reported a 18.5% increase in total U.S. retail takeaway in the expanded multi-outlet combined plus convenience store channels, indicating strong consumer engagement. However, the company noted that foreign currency exchange rates had a slight negative impact on sales.
The company's balance sheet showed total assets of $13.646 billion as of June 29, 2025, up from $12.947 billion at the end of 2024. Cash and cash equivalents increased to $912.3 million, while total liabilities rose to $9.131 billion, primarily due to increased long-term debt. Hershey's outlook remains cautious as it navigates a dynamic macroeconomic environment characterized by commodity price volatility and geopolitical uncertainties. The company continues to focus on strategic initiatives to enhance operational efficiency and maintain liquidity amid these challenges.
About HERSHEY CO
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