Hershey income decreases 24% in Q1
April 19, 2007
by FoodBusinessNews.net Staff
HERSHEY, PA. — Net income for The Hershey Co. during the period ended April 1 was $93,473,000, equal to 42c per share on the common stock, down 24% from $122,471,000, or 52c per share, during the same quarter of the previous year.
Consolidated net sales were $1,153,109,000, up 1% compared with $1,139,507,000 during the same quarter of the previous year. Increased sales were attributed to growth in new products and dark chocolate as well as seasons and a rebound in Canada.
"Growth was adversely affected by slower single-serve sales," said Richard H. Lenny, chairman, president and chief executive officer. "This is being driven in part by marketplace performance that has not yet achieved desired levels. While we did experience an improvement in core brand takeaway, the residual impact of last year’s limited editions and discontinued items resulted in only a 1.5% increase in measured takeaway. The price increase announced on April 4 had no impact during the quarter."
Mr. Lenny said the company expects a net sales growth of 3% to 4% for the full year. New product platforms also are expected to contribute during 2007. These platforms include refreshment, premium and dark chocolate.