The Hershey Co. has continued to benefit from the pandemic, posting strong numbers in the fourth quarter.
Hershey reported a 42% year-over-year gain in operating profit, but most of that resulted from a writedown last year of the assets of Krave Pure Foods, a processor of jerky and other meat-based snacks that Hershey sold to a private equity fund last spring. But even when the Krave-related numbers are discounted, operating profit still went up 16%.
Net sales went up 5.7% year-over-year in the quarter. For the full year, net sales reached $8.14 billion, a 2% increase, and net income reached $1.28 billion, a 12% increase.
"2020 was a year of unexpected challenges and hardship, but also one that brought opportunity, resilience and compassion. We are proud to be an important part of comfort and connection in people's lives,” Hershey CEO Michele Buck said in a statement. “Our portfolio of beloved brands remains extremely relevant with consumers, and our dedicated team, advantaged capabilities and operational excellence allowed us to help create many moments of goodness for them during these unprecedented times.”
Buck talked with analysts about the positive aspects of the pandemic for Hershey, in terms of affecting consumption habits. She mentioned families making S’mores (with Hershey chocolate) or having movie nights (with Twizzlers licorice). Such things “turned out to be incredibly important for consumers during this very difficult time where they wanted to cling to as much normalcy as possible, and the seasons are really about traditions and rituals and connections with family and close friends,” she said.
