Hershey Stock Rises as Higher Prices Help Firm Offset Soaring Cocoa Costs | Global News Avenue

Shares of Hershey Company (HSY) On Thursday, chocolate manufacturers reported results that exceeded expectations, as prices helped offset the cost increase in cocoa.

The company’s brand includes Earnings per share (EPS) Revenue of $2.69 rose nearly 9% year-on-year to $2.89 billion. Both beat the visible alpha estimate.

Hershey notes that its “net price realization, higher sales volume, supply chain productivity, and timing benefits associated with inventory assessment methods far outweigh higher commodity costs and negative sales combinations”.

The company also reduced sales, marketing and administrative expenses by 5.5%, compensation and benefits costs, and reduced capacity and technology investments.

Higher commodity costs will affect annual profits

However, the company warned that it expects full-year earnings per share to fall by 40% higher due to “higher commodity costs, reincentive compensation and higher economic tax rates” and adjusted its EPS to mid-term. % scope. It has seen net sales increase at least 2%.

Cocoa prices soared, and the chocolate race took a huge hit, with cocoa prices doubled in the past year at their all-time high in December. Even with today’s earnings, Hershey’s stock has lost more than 20% of its value in the past 12 months.