The Hershey Company Reports 4.4% Net Sales Increase to $11.69 Billion for Fiscal Year 2025

The Hershey Company reported a net sales increase of 4.4% for the fiscal year ending December 31, 2025, reaching $11.69 billion, compared to $11.20 billion in 2024. This growth was primarily driven by a favorable price realization of approximately 6% across all segments, alongside contributions from recent acquisitions, including Sour Strips and LesserEvil. However, the company experienced a volume decrease of about 1%, attributed to price elasticity impacts, particularly in the North America Confectionery and International segments. The cost of sales surged by 31.7% to $7.77 billion, leading to a significant decline in gross profit, which fell to $3.92 billion from $5.30 billion in the previous year, resulting in a gross margin decrease from 47.3% to 33.5%.

In terms of profitability, Hershey's operating profit dropped by 50.3% to $1.44 billion, with an operating profit margin of 12.3%, down from 25.9% in 2024. The decline in profitability was largely due to increased commodity costs, higher supply chain expenses, and elevated selling, marketing, and administrative (SM&A) costs, which rose by 3.7% to $2.46 billion. Net income also saw a substantial decrease of 60.2%, totaling $883.3 million, with diluted earnings per share falling to $4.34 from $10.92 in the prior year.

Strategically, Hershey has been active in expanding its product portfolio through acquisitions. In November 2025, the company acquired LesserEvil, a producer of organic popcorn, for $769.1 million, which is expected to enhance its manufacturing capacity and complement its existing snack offerings. Additionally, the acquisition of Sour Strips in November 2024 has further diversified Hershey's product range in the confectionery market. The company also completed an asset acquisition from Weaver Popcorn in May 2023, aimed at strengthening its supply chain capabilities.

Operationally, Hershey employed approximately 17,550 full-time and 2,045 part-time employees as of December 31, 2025. The company reported a 5.4% increase in total U.S. retail takeaway in the multi-outlet combined plus convenience store channels, although it faced a slight decline in market share in the candy, mint, and gum categories. The North America Salty Snacks segment, however, saw a notable 11.3% increase in consumer takeaway, contributing to a market share gain of 40 basis points. Hershey's international operations accounted for 12.3% of total net sales, with ongoing investments in emerging markets like Mexico, Brazil, India, and Malaysia.

Looking ahead, Hershey anticipates continued challenges from inflationary pressures and commodity price volatility, which may impact profitability. The company is focused on leveraging its acquisitions and enhancing operational efficiencies through its Advancing Agility & Automation Initiative, aimed at optimizing supply chain and manufacturing costs. Despite the current economic uncertainties, Hershey remains committed to its strategic growth objectives and maintaining its position as a leader in the global confectionery market.