Hershey Co. posted increases in sales and adjusted profit for the third quarter, despite a decline in profit margins, with strong performances in all segments.
Hershey had consolidated net sales of $2.73 billion, a 16% increase from the same quarter last year. Reported profit was down 3.2% year-over-year, but when expenses for recent acquisitions and other one-time events are removed, adjusted operating profit was $615.3 million, an increase of 9.3%. The increases happened despite a drop in the adjusted profit margin of 130 basis points, to 22.6%, which the company attributed to inflation and capital investments.
North America Confectionery had sales of $2.24 billion, a 10% year-over-year increase, which was driven by “mid to high single digit price increase,” according to a company statement. North America Salty Snacks were up 87%, mostly due to the acquisition of Dot’s Pretzels LLC and Pretzels Inc. International sales were up 15%, to $217.6 million.
Hershey now expects sales for the year to increase up to 15%, a slight upward tick from its earlier guidance.
"Third quarter results came in ahead of our expectations, as our increased brand investments and improved supply chain helped support resilient consumer demand and drove category growth across all business segments," CEO Michele Buck said in the statement.