The Hershey Company has reported a further net sales rise in its second-quarter results, building upon the company’s strong showing in the first quarter of the year.
Hershey reported a 5.3% net sales increase in Q2, recording sales of $1.75 billion, with sales rising in both the US and internationally, building upon the 4.9% rise in net sales in the company’s first quarter.
US sales rose 5.6% to $1.56 billion, thanks in part to the strong performance of the product portfolio of its Amplify business, while international sales grew 3.1% to $192,000.
Hershey agreed a $1.6 billion deal to acquire Amplify Snacks in December 2017, and despite the cited strong performance of its Amplify business, Hershey opted to sell the Tyrrell’s snack brand to KP Snacks during the second quarter for an undisclosed sum.
Despite the sales rise, operating profit fell 1.5% to $316 million, though net income increased 11.5% to $226 million, up from the $204 million figure recorded in the same period last year.
During the quarter, Hershey announced that it would invest $60 million to increase the production capacity of its confectionery factory in Hazle Township, Pennsylvania, to add a new Kit-Kat production line at the factory.
Michele Buck, The Hershey Company president and CEO said: “We delivered our second quarter results and we remain on track to achieve the financial targets we shared in April.
“We continue to invest in the U.S. with our core brands and build capabilities for growth while taking measured steps to enhance long-term profitability.
“Amplify’s strong performance in the marketplace continues and the integration is proceeding as planned.
“I am very pleased with the ongoing transformation of our international business with solid organic growth, meaningful profit improvement, and the successful divestitures of Tyrrells and Golden Monkey.
“Hershey’s solid balance sheet and strong cash flow generation gives the company continued flexibility against its cash priorities, including returning cash to shareholders in the form of dividends and buy backs, while also being able to participate in strategic merger and acquisition activity.”
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