# Hershey Company (HSY) Q2 2025 Financial Results Summary
HERSHEY, Pa., July 30, 2025 – The Hershey Company (NYSE: HSY) today announced its Q2 2025 financial results for the period ended June 29, 2025. Here’s a summary of the key metrics and insights from the report.
## Financial Highlights
– **Consolidated net sales:**
– **$2,614.7 million**, a **26.0%** increase compared to Q2 2024.
– **Organic, constant currency net sales:**
– Increased by **26.3%**.
– **Planned inventory reductions** in North America and at international segments impacted sales growth.
– **Reported net income:**
– **$62.7 million** or **$0.31** per share-diluted, a **65.2%** decrease vs. Q2 2024.
– **Adjusted earnings per share (EPS):**
– **$1.21**, a **4.7%** decrease compared to Q2 2024.
## 2025 Full-Year Financial Outlook
– **Net sales growth** expectation: at least **2%**.
– **Reported earnings per share growth**: projected to decline in the **high-40% range**, now expected to be down **~50%**.
– **Adjusted earnings per share growth**: previously forecasted down mid-30%, now down **36% to 38%**.
### Additional Financial Metrics
– **Gross margin:**
– **30.5%**, down **970 basis points** from Q2 2024 (40.2%).
– **Adjusted gross margin:**
– **38.1%**, a decrease of **510 basis points** year-over-year.
– **Effective tax rate:**
– **57.9%**, an increase of **3,150 basis points** from Q2 2024.
– **Adjusted effective tax rate:**
– **32.8%**, an increase of **840 basis points** compared to the same quarter last year.
– **Operating profit:**
– **$192.8 million**, a **33.0%** decrease year-over-year, with an operating profit margin of **7.4%**.
– **Adjusted operating profit:**
– **$410.6 million**, an increase of **7.1%** versus Q2 2024, with an adjusted operating margin of **15.7%**.
## Segment Performance
– **North America Confectionery:**
– Net sales of **$2,085.5 million**, a **32.0%** increase.
– Segment income was **$503.9 million**, up **8.5%**, but with a margin decrease of **520 basis points**.
– **North America Salty Snacks:**
– Net sales of **$315.5 million**, an **8.8%** increase.
– Segment income was **$66.5 million**, a growth of **27.4%** with a segment margin increase of **310 basis points**.
– **International segment:**
– Net sales of **$213.7 million**, an increase of **4.4%**.
– Segment income decreased by **20.8%**, leading to a margin decline of **290 basis points**.
## Share Repurchase and Dividends
– The company did not announce a quarterly dividend or any share repurchase program during this report.
## Summary of Notable Changes
– The increase in net sales was affected by timing differences and the aftermath of planned inventory reductions. The reported net income was significantly impacted by higher commodity costs and costs related to derivatives.
## Conclusion
Hershey’s Q2 2025 results demonstrate a robust growth in net sales but reflect significant challenges impacting net income and margins, which require strategic adjustments moving forward. The ongoing implementation of cost mitigation strategies and investments may help stabilize performance in the future.
| Three Months Ended | Six Months Ended | |||
|---|---|---|---|---|
| June 29, 2025 | June 30, 2024 | June 29, 2025 | June 30, 2024 | |
| Net sales | $2,614,718 | $2,074,480 | $5,420,137 | $5,327,229 |
| Cost of sales | $1,818,445 | $1,240,735 | $3,679,597 | $2,817,403 |
| Gross profit | $796,273 | $833,745 | $1,740,540 | $2,509,826 |
| Selling, marketing and administrative expense | $603,207 | $540,987 | $1,161,879 | $1,158,968 |
| Business realignment costs | $255 | $4,937 | $16,629 | $4,937 |
| Operating profit | $192,811 | $287,821 | $562,032 | $1,345,921 |
| Interest expense, net | $46,035 | $41,373 | $90,657 | $81,195 |
| Other (income) expense, net | -$2,336 | $574 | -$1,391 | $32,594 |
| Income before income taxes | $149,112 | $245,874 | $472,766 | $1,232,132 |
| Provision for income taxes | $86,393 | $64,980 | $185,844 | $253,785 |
| Net income | $62,719 | $180,894 | $286,922 | $978,347 |
| Net income per share – Basic – Common | $0.32 | $0.92 | $1.45 | $4.93 |
| Net income per share – Diluted – Common | $0.31 | $0.89 | $1.41 | $4.80 |
| Net income per share – Basic – Class B | $0.29 | $0.83 | $1.31 | $4.48 |
| Shares outstanding – Basic – Common | 148,247 | 147,893 | 148,175 | 203,942 |
| Shares outstanding – Diluted – Common | 203,188 | 203,006 | 203,168 | 203,367 |
| Shares outstanding – Basic – Class B | 54,614 | 54,614 | 54,614 | 54,614 |
| Key margins: | ||||
| Gross margin | 30.5% | 40.2% | 32.1% | 47.1% |
| Operating profit margin | 7.4% | 13.9% | 10.4% | 25.3% |
| Net margin | 2.4% | 8.7% | 5.3% | 18.4% |
| Assets | June 29, 2025 | December 31, 2024 |
|---|---|---|
| Cash and cash equivalents | $912,345 | $730,746 |
| Accounts receivable – trade, net | $820,220 | $800,402 |
| Inventories | $1,842,295 | $1,254,094 |
| Prepaid expenses and other | $850,693 | $974,215 |
| Total current assets | $4,425,553 | $3,759,457 |
| Property, plant and equipment, net | $3,442,194 | $3,458,853 |
| Goodwill | $2,713,018 | $2,705,753 |
| Other intangibles | $1,912,610 | $1,873,866 |
| Other non-current assets | $1,111,333 | $1,111,867 |
| Deferred income taxes | $41,029 | $37,065 |
| Total assets | $13,645,737 | $12,946,861 |
| Liabilities and Stockholders’ Equity | ||
| Accounts payable | $1,450,549 | $1,159,177 |
| Accrued liabilities | $875,974 | $807,341 |
| Accrued income taxes | $98,795 | $51,036 |
| Short-term debt | $164,968 | $1,306,976 |
| Current portion of long-term debt | $303,021 | $604,965 |
| Total current liabilities | $2,893,307 | $3,929,495 |
| Long-term debt | $5,176,436 | $3,190,210 |
| Other long-term liabilities | $652,155 | $688,259 |
| Deferred income taxes | $409,221 | $424,243 |
| Total liabilities | $9,131,119 | $8,232,207 |
| Total stockholders’ equity | $4,514,618 | $4,714,654 |
| Total liabilities and stockholders’ equity | $13,645,737 | $12,946,861 |
