In a solid 2019, Hershey notes “accelerated business performance.”
Financial performance at the Hershey Co. in fiscal 2019 was enhanced by consistent, strong retail takeout across its main candy brands in the United States and another year of incrementally profitable development in its international business.
Hershey’s net income for the fiscal year that concluded on December 31, 2019, was $1,149,692,000, or $5.64 per share on the common stock. This represents a 2% decrease from the previous year’s $1,177,562,000, or $5.76 per share. From $1,130,072,000, or $5.36 per share, to $1,218,353,000, or $5.78 per share, was the increase in adjusted net income.The fiscal year’s net sales increased 2.5% to $7,986,252,000 from $7,791,069,000. In constant currency, organic net sales growth was 1.8% after acquisition benefits were taken out.
During a Jan. 30 conference call with investors, President and CEO Michele G. Buck stated, “We had a strong 2019, with accelerated business performance and differentiated financial results.” “Our core U.S. confection portfolio saw momentum in both retail takeaway and margin expansion, along with incremental and profitable international growth and further portfolio expansion in snacking.” We also keep spending money on our people, skills, and brandsReported income for the fourth quarter was $207,187,000, or $1.02 per share, which was 39% less than the quarter before, when it was $336,791,000, or $1.65 per share. Net adjusted income for the quarter was $269,320,000, or $1.28 per share, up from $265,219,000, or $1.26 per share.
Net sales in the fourth quarter of fiscal 2019 increased to $2,068,125,000, up 4% from $1,987,902,000. On a constant currency basis, net sales excluding acquisitions increased 1.9%.Considering the upcoming fiscal year 2020, Hershey has “another great year” of activations planned for its confectionery sector, according to Ms. Buck. According to Ms. Buck, a new commercial scheduled to air before the 2020 Super Bowl is anticipated to provide a boost to Take 5, which was reintroduced under the Reese’s name last year.2020 will be a good year for innovation as well, she predicted.
“We are thrilled to announce the expansion of our Thins platform in 2020, in addition to our innovation in Kit Kat Duos,” the spokesperson stated. “York Thins and Reese’s White Thins, which are available in both take-home and peg varieties, will debut in March. This offers fans of York a special opportunity to savor one of their favorites. Additionally, it permits
Over the past few years, Hershey has also made investments in additional capacity and planning skills; Ms. Buck stated that this is a strategy that is anticipated to continue.
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“We will build agile fulfillment and late-stage customization capabilities, add additional capacity for our largest and fastest-growing brands, and invest in new data and technology within our supply chain that increases visibility, automation, and digitalization as part of a multiyear capital project,” the spokesperson stated. “We think that by making these investments,
we will be able to maintain our advantageous margin profile while adapting to our customers’ changing needs.”In 2020, capital expenditure investment is expected to range from $475 million to $525 million, according to Chief Financial Officer and Chief Accounting Officer Steven E. Voskull. Mr. Voskullclaimed that more information about Hershey’s capital expenditure intentions will be released in March at its investor day conference.