Financial results

Early Halloween impact raises Hershey’s annual net sales

29-Oct-2021 - Last updated on 29-Oct-2021 at 10:17 GMT

Michele Buck, Hershey Company President and Chief Executive Officer. Pic: Hershey Company

The confectionery industry received a boost as it heads into the important Halloween weekend when the Hershey Co raised its annual net sales and adjusted earnings forecast.

In a statement, the company forecast 2021 net sales to grow 8% to 9%, higher than its previous range of growth between 6% and 8%.

The news comes on the back of strong demand for its products, including KitKat and Reese’s Peanut Butter Cups, due to early Halloween spend by consumers.

Hershey also expects adjusted earnings per share to range between $6.98 and $7.11, a rise of 8% to 10% from the previous outlook.

In a earnings call to media and analysts, Michele Buck, Hershey Chairman and CEO, said consumer demand for its brands has remained robust on both a one- and two-year basis.

“It is a very strong Halloween season, the biggest that we've ever had, with very strong double-digit growth on top of the strengths that we had last year. We have done our very best to get as much product out there as possible.

“Certainly, I would say supply pressures hit every aspect of the business, so tallying season would be a piece of that. But we're really excited about the growths that we've seen year-to-date, both in the category, as well as our own business.”

'Bullish'

Buck told analysts that Hershey remains "bullish" on the future although it is still a balancing act and the company has tried to be “prudent" with its investments.

“We do also see some of that continued strength as people are out and about, and mobility increases and that we're seeing a pretty good balance there," she said.

“The other thing we've heard from consumers repeatedly that we've seen over the years is the emotional aspect of the category and how it fits with good and happy moment.

“And as those happy moments have continue to increase, as people, I think, are starting to believe they see somewhat of a light at the end of the tunnel in us working through the pandemic, those moments of happiness that we're really associated with, we see continuing.

“So that's really our perspective … a lot of those routines, we think some of which will just continue into the future.”