Description
The Hershey Company managed to exceed analyst expectations in terms of revenue as well as earnings. One area of focus for Hershey is gummies, which presents untapped potential in the Sweet segment. The company expects to leverage new capacity to capitalize on this growth opportunity. Additionally, increased capacity, particularly for Reese’s, and a higher level of innovation, including products like Reese’s Caramel, are expected to drive overall business growth. On the margin front, Hershey acknowledges inflationary pressures, especially with elevated commodity costs in cocoa. However, the company is well-prepared to counter these challenges through pricing strategies, productivity improvements, and managing the transition to S/4. Regarding cocoa pricing, Hershey mentioned its consistent approach to hedging and contracting while closely monitoring market dynamics. Pricing remains a valuable tool to mitigate inflationary pressures.
Our Report Structure:
⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
⦁ Disclosures
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