Price increases drive Hershey's Q4 consolidated net sales up 6.4%
Source Hershey Co.
Hershey Co. (NYSE: HSY) today announced net sales and earnings for the fourth quarter and full-year, ended Dec.r 31, 2021. Hershey's consolidated net sales were $2,326.1 million in the fourth quarter of 2021 versus $2,185.2 million in the prior-year period, an increase of 6.4%.
Net price realization was a 6.1-point benefit driven primarily by list price increases across all segments as well as slightly lower levels of promotional activity versus the prior year. Volume was a 2.1-point headwind driven by price elasticity and fewer shipping days in the quarter. Sales from the acquisitions of Pretzels, Dot's and Lily's were a 2.2-point benefit and foreign exchange was a 0.2-point benefit.
Fourth-quarter 2021 financial results summary
- Consolidated net sales of $2,326.1 million, an increase of 6.4%.
- Organic, constant currency net sales increased 4.0%.
- The impact of acquisitions on net sales was a 2.2-point benefit while foreign currency exchange was a 0.2-point benefit.
- Reported net income of $335.6 million, or $1.62 per share-diluted, an increase of 16.5%.
- Adjusted earnings per share-diluted of $1.69, an increase of 13.4%.
2021 full-year financial results summary
- Consolidated net sales of $8,971.3 million, an increase of 10.1%.
- Organic, constant currency net sales increased 8.7%.
- The net impact of acquisitions and divestitures on net sales was a 1.0-point benefit and foreign currency exchange was a 0.4-point benefit.
- Reported net income of $1,477.5 million, or $7.11 per share-diluted, an increase of 16.4%.
- Adjusted earnings per share-diluted of $7.19, an increase of 14.3%.
2022 full-year outlook
In the context of greater than usual volatility associated with the COVID-19 pandemic and industrywide supply chain disruption, Hershey expects net sales growth between 8% and 10%.
Hershey said growth will be driven primarily by list price increases across all segments. The increases are anticipated to partially offset investments in labor, along with higher logistics costs and raw material inflation.
Sales growth and increased media efficiencies are expected to more than offset gross margin pressures to drive adjusted earnings per share growth.
