Hershey Reports Third-Quarter 2026 Financial Results
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"Our third-quarter results show steady progress on our 2026 priorities," said
Third-Quarter 2026 Financial Results Summary1
- Consolidated net sales of
$3,275.5 million , an increase of 3.0%. - Organic, constant currency net sales increased 0.8%.
- Reported net income of
$580.8 million , or$2.88 per share-diluted, an increase of 111.8%. - Adjusted earnings per share-diluted of
$2.64 , an increase of 103.1%.
Nine Months Ended 2026 Financial Results Summary2
- Consolidated net sales of
$9,167.0 million , an increase of 6.6%. - Organic, constant currency net sales increased 4.0%.
- Reported net income of
$1,473.6 million , or$7.27 per share-diluted, an increase of 162.5%. - Adjusted earnings per share-diluted of
$6.89 , an increase of 49.1%.
|
1 All comparisons for the third quarter of 2026 are with respect to the third quarter ended September 28, 2025 |
2026 Full-Year Financial Outlook
The Company is updating its net sales growth, organic net sales growth, reported earnings per share and adjusted earnings per share outlook for the year. This outlook does not include potential future tariff refunds.
|
2026 Full-Year Outlook |
Prior Guidance |
Current Guidance |
|
Net sales growth* |
4.5% to 5% |
~5% |
|
Organic net sales growth |
3% to 3.5% |
~3% |
|
Reported earnings per share growth |
82% to 89% |
84% to 90% |
|
Adjusted earnings per share growth** |
32.5% to 35% |
36% to 38.5% |
|
*Reflects an approximately 200 basis point benefit from the 2025 acquisition of LesserEvil. Additionally, the impact of foreign currency exchange rates is anticipated to be a slight benefit to net sales growth for the full year 2026. |
The Company also expects:
- A reported and adjusted effective tax rate of approximately 25%;
- Other expense, which primarily reflects periodic benefit costs relating to pension and other post-retirement benefit plans, of approximately
$5 million to$10 million ; - Interest expense of approximately
$200 million ; - Capital expenditures of approximately
$450 million ; and - Advancing Agility & Automation Initiative savings of approximately
$100 million .
Below is a reconciliation of current projected 2026 and full-year 2025 earnings per share-diluted calculated in accordance with
|
|
2026 (Projected) |
|
2025 |
|
Reported EPS – Diluted |
|
|
|
|
Derivative Mark-to-Market Losses |
— |
|
|
|
Business Realignment Activities |
0.30 - 0.35 |
|
|
|
Acquisition and Integration-Related Activities |
0.35 - 0.40 |
|
|
|
Long-Lived Asset Impairment Charges |
— |
|
|
|
Tax Effect of All Adjustments Reflected Above |
|
|
|
|
Adjusted EPS – Diluted |
|
|
|
Adjusted 2026 projected earnings per share-diluted, as presented above, does not include the impact of mark-to-market gains and losses on our commodity derivative contracts that are reflected within corporate unallocated expense in segment results until the related inventory is sold since we are not able to forecast the impact of the market changes.
Third-Quarter 2026 Components of Net Sales Growth
A reconciliation between reported net sales growth rates and organic, constant currency net sales growth rates, along with the contribution from net price realization and volume, is provided below:
|
|
Three Months Ended |
||||||||||||
|
|
Percentage |
|
Impact of |
|
Percentage |
|
Impact of |
|
Percentage |
|
Organic |
|
Organic |
|
|
1.6 % |
|
— % |
|
1.6 % |
|
— % |
|
1.6 % |
|
13 % |
|
(11) % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America Salty |
22.3 % |
|
— % |
|
22.3 % |
|
20.0 % |
|
2.3 % |
|
1 % |
|
1 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International |
(7.5) % |
|
2.2 % |
|
(9.7) % |
|
— % |
|
(9.7) % |
|
4 % |
|
(14) % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Company |
3.0 % |
|
0.1 % |
|
2.9 % |
|
2.1 % |
|
0.8 % |
|
11 % |
|
(10) % |
|
*Percentage changes may not compute directly as shown due to rounding of amounts presented above. |
|
|
Nine Months Ended |
||||||||||||
|
|
Percentage |
|
Impact of |
|
Percentage |
|
Impact of |
|
Percentage |
|
Organic |
|
Organic |
|
|
4.6 % |
|
0.1 % |
|
4.5 % |
|
— % |
|
4.5 % |
|
13 % |
|
(8) % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America Salty |
23.7 % |
|
— % |
|
23.7 % |
|
21.0 % |
|
2.7 % |
|
(1) % |
|
3 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International |
4.4 % |
|
4.1 % |
|
0.3 % |
|
— % |
|
0.3 % |
|
8 % |
|
(8) % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Company |
6.6 % |
|
0.4 % |
|
6.2 % |
|
2.2 % |
|
4.0 % |
|
11 % |
|
(7) % |
|
*Percentage changes may not compute directly as shown due to rounding of amounts presented above. |
The Company presents certain percentage changes in net sales on a constant currency basis, which excludes the impact of foreign currency exchange. To present this information for historical periods, current period net sales for entities reporting in currencies other than the
Third-Quarter 2026 Consolidated Results
Consolidated net sales increased 3.0% to
Reported gross margin was 46.1% in the third quarter of 2026, compared to 32.6% in the third quarter of 2025, an increase of 1,350 basis points. The reported gross margin increase was driven by net price realization, derivative mark-to-market gains, productivity program savings, tariff refunds and lower net commodity costs, which more than offset lower volume and higher freight and logistics expenses. Adjusted gross margin was 42.7% in the third quarter of 2026, an increase of 1,090 basis points compared to the third quarter of 2025. The difference between reported and adjusted gross margin primarily reflects derivative mark-to-market gains.
Selling, marketing and administrative expenses increased 15.4% in the third quarter of 2026 versus the third quarter of 2025. Selling, marketing and administrative expenses, excluding advertising and related consumer marketing, increased 14.5% versus the third quarter of 2025, driven by higher capability and technology investments. Advertising and related consumer marketing expenses increased 17.1% in the third quarter of 2026 versus the same period last year, reflecting double-digit increases in North America Confectionery and North America Salty Snacks.
Third quarter 2026 reported operating profit was
The reported effective tax rate in the third quarter of 2026 was 24.4%, a decrease of 130 basis points versus the third quarter of 2025. The reported effective tax rate decrease was driven by the impact of commodity hedges on foreign rate differentials. The adjusted effective tax rate was 24.4%, a decrease of 230 basis points versus the third quarter of 2025. The reported and adjusted effective tax rate for the third quarter of 2026 reflects higher pretax income, which reduced the impact of certain fixed tax items as a percentage of earnings, as well as foreign rate differentials.
The Company's third-quarter 2026 results, as prepared in accordance with GAAP, included items negatively impacting comparability of
The following table presents a summary of items impacting comparability in each of the third quarter and nine-months ended 2026 and 2025 periods (see Appendix I for additional information):
|
|
Pre-Tax (millions) |
|
Earnings Per Share-Diluted |
||||
|
|
Three Months Ended |
|
Three Months Ended |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivative Mark-to-Market Gains |
$ (113.4) |
|
$ (24.3) |
|
$ (0.56) |
|
$ (0.12) |
|
Business Realignment Activities |
13.3 |
|
10.6 |
|
0.07 |
|
0.05 |
|
Acquisition and Integration-Related Activities |
36.4 |
|
1.6 |
|
0.18 |
|
0.01 |
|
Tax Effect of All Adjustments Reflected Above |
— |
|
— |
|
0.07 |
|
— |
|
|
$ (63.7) |
|
$ (12.1) |
|
$ (0.24) |
|
$ (0.06) |
|
Totals may not compute directly as shown due to rounding of amounts presented above. |
|
|
Pre-Tax (millions) |
|
Earnings Per Share-Diluted |
||||
|
|
Nine Months Ended |
|
Nine Months Ended |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivative Mark-to-Market (Gains) Losses |
$ (186.1) |
|
$ 387.9 |
|
$ (0.92) |
|
$ 1.92 |
|
Business Realignment Activities |
35.0 |
|
51.6 |
|
0.17 |
|
0.25 |
|
Acquisition and Integration-Related Activities |
54.1 |
|
5.0 |
|
0.27 |
|
0.03 |
|
Tax Effect of All Adjustments Reflected Above |
— |
|
— |
|
0.10 |
|
(0.35) |
|
|
$ (97.0) |
|
$ 444.5 |
|
$ (0.38) |
|
$ 1.85 |
|
Totals may not compute directly as shown due to rounding of amounts presented above. |
The following are comments about segment performance for the third quarter of 2026 versus the prior year period. See the schedule of supplementary information within this press release for additional information on segment net sales and profit.
North America Confectionery
The North America Confectionery segment reported segment income of
North America Salty Snacks
North America Salty Snacks segment income was
International
Third quarter 2026 net sales for
International segment loss was
Unallocated Corporate Expense
Live Webcast
At approximately
Note: In this release, for the third quarter of 2026,
|
Reconciliation of Certain Non-GAAP Financial Measures |
|||||||
|
Consolidated results |
Three Months Ended |
|
Nine Months Ended |
||||
|
In thousands except per share data |
|
|
|
|
|
|
|
|
Reported gross profit |
$ 1,511,027 |
|
$ 1,037,334 |
|
$ 3,997,066 |
|
$ 2,777,874 |
|
Derivative mark-to-market (gains) losses |
(113,352) |
|
(24,250) |
|
(186,075) |
|
387,932 |
|
Business realignment activities |
283 |
|
— |
|
283 |
|
— |
|
Non-GAAP gross profit |
$ 1,397,958 |
|
$ 1,013,084 |
|
$ 3,811,274 |
|
$ 3,165,806 |
|
|
|
|
|
|
|
|
|
|
Reported operating profit |
$ 817,653 |
|
$ 434,583 |
|
$ 2,100,987 |
|
$ 996,615 |
|
Derivative mark-to-market (gains) losses |
(113,352) |
|
(24,250) |
|
(186,075) |
|
387,932 |
|
Business realignment activities |
13,268 |
|
10,577 |
|
34,987 |
|
51,568 |
|
Acquisition and integration-related activities |
36,410 |
|
1,577 |
|
54,090 |
|
5,042 |
|
Non-GAAP operating profit |
$ 753,979 |
|
$ 422,487 |
|
$ 2,003,989 |
|
$ 1,441,157 |
|
|
|
|
|
|
|
|
|
|
Reported provision for income taxes |
$ 187,189 |
|
$ 95,590 |
|
$ 475,394 |
|
$ 281,434 |
|
Derivative mark-to-market (gains) losses* |
(20,262) |
|
(2,645) |
|
(35,308) |
|
58,241 |
|
Business realignment activities* |
2,265 |
|
2,788 |
|
7,708 |
|
12,774 |
|
Acquisition and integration-related activities* |
2,408 |
|
382 |
|
6,703 |
|
1,208 |
|
Non-GAAP provision for income taxes |
$ 171,600 |
|
$ 96,115 |
|
$ 454,497 |
|
$ 353,657 |
|
|
|
|
|
|
|
|
|
|
Reported net income |
$ 580,814 |
|
$ 276,320 |
|
$ 1,473,584 |
|
$ 563,242 |
|
Derivative mark-to-market (gains) losses |
(93,091) |
|
(21,605) |
|
(150,767) |
|
329,691 |
|
Business realignment activities |
11,003 |
|
7,789 |
|
27,279 |
|
38,794 |
|
Acquisition and integration-related activities |
34,002 |
|
1,195 |
|
47,387 |
|
3,834 |
|
Non-GAAP net income |
$ 532,728 |
|
$ 263,699 |
|
$ 1,397,483 |
|
$ 935,561 |
|
|
|
|
|
|
|
|
|
|
Reported EPS - Diluted |
$ 2.88 |
|
$ 1.36 |
|
$ 7.27 |
|
$ 2.77 |
|
Derivative mark-to-market (gains) losses |
(0.56) |
|
(0.12) |
|
(0.92) |
|
1.92 |
|
Business realignment activities |
0.07 |
|
0.05 |
|
0.17 |
|
0.25 |
|
Acquisition and integration-related activities |
0.18 |
|
0.01 |
|
0.27 |
|
0.03 |
|
Tax effect of all adjustments reflected above** |
0.07 |
|
— |
|
0.10 |
|
(0.35) |
|
Non-GAAP EPS - Diluted |
$ 2.64 |
|
$ 1.30 |
|
$ 6.89 |
|
$ 4.62 |
|
* The tax effect for each adjustment is determined by calculating the tax impact of the adjustment on the Company's quarterly effective tax rate, unless the nature of the item and/or the tax jurisdiction in which the item has been recorded requires application of a specific tax rate or tax treatment, in which case the tax effect of such item is estimated by applying such specific tax rate or tax treatment. |
In the assessment of our results, we review and discuss the following financial metrics that are derived from the reported and non-GAAP financial measures presented above:
|
|
Three Months Ended |
|
Nine Months Ended |
||||
|
|
|
|
|
|
|
|
|
|
As reported gross margin |
46.1 % |
|
32.6 % |
|
43.6 % |
|
32.3 % |
|
Non-GAAP gross margin (1) |
42.7 % |
|
31.8 % |
|
41.6 % |
|
36.8 % |
|
|
|
|
|
|
|
|
|
|
As reported operating profit margin |
25.0 % |
|
13.7 % |
|
22.9 % |
|
11.6 % |
|
Non-GAAP operating profit margin (2) |
23.0 % |
|
13.3 % |
|
21.9 % |
|
16.8 % |
|
|
|
|
|
|
|
|
|
|
As reported effective tax rate |
24.4 % |
|
25.7 % |
|
24.4 % |
|
33.3 % |
|
Non-GAAP effective tax rate (3) |
24.4 % |
|
26.7 % |
|
24.5 % |
|
27.4 % |
|
(1) |
Calculated as non-GAAP gross profit as a percentage of net sales for each period presented. |
|
(2) |
Calculated as non-GAAP operating profit as a percentage of net sales for each period presented. |
|
(3) |
Calculated as non-GAAP provision for income taxes as a percentage of non-GAAP income before taxes (calculated as non-GAAP operating profit minus non-GAAP interest expense, net plus or minus non-GAAP other (income) expense, net). |
Appendix I
Details of the charges included in GAAP results, as summarized in the press release (above), are as follows:
Derivative mark-to-market (gains) losses: The mark-to-market (gains) losses on commodity derivatives are recorded as unallocated and excluded from adjusted results until such time as the related inventory is sold, at which time the corresponding (gains) losses are reclassified from unallocated to segment income. Since we often purchase commodity contracts to price inventory requirements in future years, we make this adjustment to facilitate the year-over-year comparison of cost of sales on a basis that matches the derivative gains and losses with the underlying economic exposure being hedged for the period.
Business realignment activities: We periodically undertake restructuring and cost reduction activities as part of ongoing efforts to enhance long-term profitability. During the first quarter of 2024, we commenced the Advancing Agility & Automation Initiative to improve supply chain and manufacturing-related spend, optimize selling, general and administrative expenses, leverage new technology and business models to further simplify and automate processes, and generate long-term savings. During the three- and nine-months ended 2026 and 2025, business realignment charges related primarily to severance and employee benefit costs, as well as other third-party costs related to this program.
Acquisition and integration-related activities: During the three- and nine-months ended 2026, we incurred costs related to the integration of the acquisition of LesserEvil, LLC into our North America Salty Snacks segment, as well as costs related to the integration of the Sour Strips brand from Actual Candy, LLC into our North America Confectionery segment, including contingent consideration remeasurement adjustments. During the three- and nine-months ended 2025, we incurred costs related to the acquisition of the Sour Strips brand from Actual Candy, LLC into our North America Confectionery segment.
Tax effect of all adjustments: This line item reflects the aggregate tax effect of all pre-tax adjustments reflected in the preceding line items of the applicable table. The tax effect for each adjustment is determined by calculating the tax impact of the adjustment on the Company's effective tax rate for the period presented, unless the nature of the item and/or the tax jurisdiction in which the item has been recorded requires application of a specific tax rate or tax treatment, in which case the tax effect of such item is estimated by applying such specific tax rate or tax treatment.
Safe Harbor Statement
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including but not limited to our 2026 Full-year Financial Outlook and other statements regarding our business outlook and financial performance. Many of these forward-looking statements can be identified by the use of words such as "anticipate," "assume," "believe," "continue," "estimate," "expect," "forecast," "future," "intend," "plan," "potential," "predict," "project," "strategy," "target" and similar terms, and future or conditional tense verbs like "could," "may," "might," "should," "will" and "would," among others. These statements are made based upon current expectations that are subject to risk and uncertainty. Because actual results may differ materially from those contained in the forward-looking statements, you should not place undue reliance on the forward-looking statements when deciding whether to buy, sell or hold the Company's securities. Factors that could cause results to differ materially include, but are not limited to: disruptions or inefficiencies in our supply chain due to the loss or disruption of essential manufacturing or supply elements or other factors; issues, concerns or regulatory changes related to the quality and safety of our products, ingredients or packaging, human and workplace rights, and other environmental, social or governance matters; changes in raw material and other costs, along with the availability of adequate supplies of raw materials and the Company's ability to successfully hedge against volatility in raw material pricing; the Company's ability to successfully execute business continuity plans to address changes in consumer preferences and the broader economic and operating environment; selling price increases, including volume declines associated with pricing elasticity; market demand for our new and existing products; increased marketplace competition; failure to successfully execute and integrate acquisitions, divestitures and joint ventures; changes in governmental laws, regulations and policies, including taxes and tariffs; political, economic, and/or financial market conditions, including with respect to inflation, rising interest rates, slower growth or recession, evolving priorities of the U.S. administration, and other events beyond our control such as the impacts on the business arising from international conflicts and geopolitical tensions; risks and uncertainties related to our international operations; disruptions, failures or security breaches of our information technology infrastructure and that of our customers and partners (including our suppliers); our ability to hire, engage and retain a talented global workforce, our ability to realize expected cost savings and operating efficiencies associated with strategic initiatives or restructuring programs; complications with the design, implementation or usage of our new enterprise resource planning system, including the ability to support post-implementation efforts and maintain enhancements, new features or modifications; and such other matters as discussed in our Annual Report on Form 10-K for the year ended December 31, 2025 and in our other filings with the U.S. Securities and Exchange Commission from time to time. The Company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the Company's expectations.
|
The Hershey Company |
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Consolidated Statements of Income |
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|
for the periods ended September 27, 2026 and September 28, 2025 |
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|
(unaudited) (in thousands except percentages and per share amounts) |
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|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales |
|
|
$ 3,275,510 |
|
$ 3,181,418 |
|
$ 9,166,983 |
|
$ 8,601,555 |
|
|
Cost of sales |
|
1,764,483 |
|
2,144,084 |
|
5,169,917 |
|
5,823,681 |
||
|
Gross profit |
|
|
1,511,027 |
|
1,037,334 |
|
3,997,066 |
|
2,777,874 |
|
|
|
|
|
|
|
|
|
|
|||
|
Selling, marketing and administrative expense |
692,869 |
|
600,540 |
|
1,889,461 |
|
1,762,419 |
|||
|
Business realignment costs |
505 |
|
2,211 |
|
6,618 |
|
18,840 |
|||
|
|
|
|
|
|
|
|
|
|
||
|
Operating profit |
817,653 |
|
434,583 |
|
2,100,987 |
|
996,615 |
|||
|
Interest expense, net |
|
48,675 |
|
51,474 |
|
148,456 |
|
142,131 |
||
|
Other (income) expense, net |
|
975 |
|
11,199 |
|
3,553 |
|
9,808 |
||
|
|
|
|
|
|
|
|
|
|
||
|
Income before income taxes |
|
768,003 |
|
371,910 |
|
1,948,978 |
|
844,676 |
||
|
Provision for income taxes |
|
187,189 |
|
95,590 |
|
475,394 |
|
281,434 |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ 580,814 |
|
$ 276,320 |
|
$ 1,473,584 |
|
$ 563,242 |
|||
|
|
|
|
|
|
|
|
|
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|
|
|
Net income per share |
- Basic |
- Common |
$ 2.96 |
|
$ 1.40 |
|
$ 7.48 |
|
$ 2.85 |
|
|
|
- Diluted |
- Common |
$ 2.88 |
|
$ 1.36 |
|
$ 7.27 |
|
$ 2.77 |
|
|
|
- Basic |
- Class B |
$ 2.69 |
|
$ 1.27 |
|
$ 6.79 |
|
$ 2.58 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares outstanding |
- Basic |
- Common |
146,541 |
|
148,363 |
|
147,495 |
|
148,234 |
|
|
|
- Diluted |
- Common |
201,692 |
|
203,494 |
|
202,711 |
|
203,273 |
|
|
|
- Basic |
- Class B |
54,614 |
|
54,614 |
|
54,614 |
|
54,614 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Key margins: |
|
|
|
|
|
|
|
|
|
|
|
Gross margin |
|
46.1 % |
|
32.6 % |
|
43.6 % |
|
32.3 % |
||
|
Operating profit margin |
|
25.0 % |
|
13.7 % |
|
22.9 % |
|
11.6 % |
||
|
Net margin |
|
17.7 % |
|
8.7 % |
|
16.1 % |
|
6.5 % |
||
|
The Hershey Company |
|||||||||||||
|
Supplementary Information – Segment Results |
|||||||||||||
|
for the periods ended September 27, 2026 and September 28, 2025 |
|||||||||||||
|
(unaudited) (in thousands except percentages) |
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||
|
|
|
|
September |
|
September |
|
% Change |
|
September |
|
September |
|
% Change |
|
Net sales: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America Confectionery |
|
$ 2,656,461 |
|
$ 2,615,600 |
|
1.6 % |
|
$ 7,319,949 |
|
$ 7,001,208 |
|
4.6 % |
|
|
North America Salty Snacks |
|
392,683 |
|
321,020 |
|
22.3 % |
|
1,130,598 |
|
914,337 |
|
23.7 % |
|
|
International |
|
226,366 |
|
244,798 |
|
(7.5) % |
|
716,436 |
|
686,010 |
|
4.4 % |
|
|
Total |
|
$ 3,275,510 |
|
$ 3,181,418 |
|
3.0 % |
|
$ 9,166,983 |
|
$ 8,601,555 |
|
6.6 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment income (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America Confectionery |
|
$ 949,687 |
|
$ 571,475 |
|
66.2 % |
|
$ 2,447,851 |
|
$ 1,771,780 |
|
38.2 % |
|
|
North America Salty Snacks |
|
47,388 |
|
57,747 |
|
(17.9) % |
|
144,268 |
|
166,080 |
|
(13.1) % |
|
|
International |
|
(30,008) |
|
(13,607) |
|
120.5 % |
|
(19,894) |
|
34,914 |
|
(157.0) % |
|
|
Total segment income |
|
967,067 |
|
615,615 |
|
57.1 % |
|
2,572,225 |
|
1,972,774 |
|
30.4 % |
|
|
Unallocated corporate expense (1) |
|
213,088 |
|
193,128 |
|
10.3 % |
|
568,236 |
|
531,617 |
|
6.9 % |
|
|
Unallocated mark-to-market (gains) |
|
(113,352) |
|
(24,250) |
|
367.4 % |
|
(186,075) |
|
387,932 |
|
(148.0) % |
|
|
Costs associated with business |
|
13,268 |
|
10,577 |
|
25.4 % |
|
34,987 |
|
51,568 |
|
(32.2) % |
|
|
Acquisition and integration-related |
|
36,410 |
|
1,577 |
|
NM |
|
54,090 |
|
5,042 |
|
NM |
|
|
Operating profit |
|
817,653 |
|
434,583 |
|
88.1 % |
|
2,100,987 |
|
996,615 |
|
110.8 % |
|
|
Interest expense, net |
|
48,675 |
|
51,474 |
|
(5.4) % |
|
148,456 |
|
142,131 |
|
4.5 % |
|
|
Other (income) expense, net |
|
975 |
|
11,199 |
|
(91.3) % |
|
3,553 |
|
9,808 |
|
(63.8) % |
|
|
Income before income taxes |
|
$ 768,003 |
|
$ 371,910 |
|
106.5 % |
|
$ 1,948,978 |
|
$ 844,676 |
|
130.7 % |
|
|
(1) Includes centrally-managed (a) corporate functional costs relating to legal, treasury, finance and human resources, (b) expenses associated with the oversight and administration of our global operations, including warehousing, distribution and manufacturing, information systems and global shared services, (c) non-cash stock-based compensation expense and (d) other gains or losses that are not integral to segment performance. |
|
(2) Net (gains) losses on mark-to-market valuation of commodity derivative positions recognized in unallocated derivative losses (gains). |
|
NM - not meaningful |
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
||||
|
|
|
|
|
|
|
|
|
|
|
|
Segment income (loss) as a percent of net sales: |
|
|
|
|
|
|
|
|
|
|
North America Confectionery |
|
35.8 % |
|
21.8 % |
|
33.4 % |
|
25.3 % |
|
|
North America Salty Snacks |
|
12.1 % |
|
18.0 % |
|
12.8 % |
|
18.2 % |
|
|
International |
|
(13.3) % |
|
(5.6) % |
|
(2.8) % |
|
5.1 % |
|
|
The Hershey Company |
|||
|
Consolidated Balance Sheets |
|||
|
as of September 27, 2026 and December 31, 2025 |
|||
|
(in thousands of dollars) |
|||
|
|
|
|
|
|
Assets |
|
|
|
|
|
(unaudited) |
|
|
|
Cash and cash equivalents |
$ 676,688 |
|
$ 925,859 |
|
Accounts receivable - trade, net |
1,113,419 |
|
729,547 |
|
Inventories |
1,608,756 |
|
1,429,254 |
|
Prepaid expenses and other |
463,592 |
|
504,239 |
|
|
|
|
|
|
Total current assets |
3,862,455 |
|
3,588,899 |
|
|
|
|
|
|
Property, plant and equipment, net |
3,496,716 |
|
3,529,608 |
|
Goodwill |
2,985,813 |
|
2,996,005 |
|
Other intangibles |
2,422,394 |
|
2,475,698 |
|
Other non-current assets |
1,098,092 |
|
1,123,285 |
|
Deferred income taxes |
27,357 |
|
27,802 |
|
|
|
|
|
|
Total assets |
$ 13,892,827 |
|
$ 13,741,297 |
|
|
|
|
|
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
|
|
|
Accounts payable |
$ 1,414,863 |
|
$ 1,255,701 |
|
Accrued liabilities |
1,049,633 |
|
970,597 |
|
Accrued income taxes |
20,469 |
|
63,725 |
|
Short-term debt |
436,012 |
|
218,546 |
|
Current portion of long-term debt |
197,843 |
|
503,327 |
|
|
|
|
|
|
Total current liabilities |
3,118,820 |
|
3,011,896 |
|
|
|
|
|
|
Long-term debt |
4,492,634 |
|
4,681,194 |
|
Other long-term liabilities |
626,345 |
|
731,917 |
|
Deferred income taxes |
779,312 |
|
679,540 |
|
|
|
|
|
|
Total liabilities |
9,017,111 |
|
9,104,547 |
|
|
|
|
|
|
Total stockholders' equity |
4,875,716 |
|
4,636,750 |
|
|
|
|
|
|
Total liabilities and stockholders' equity |
$ 13,892,827 |
|
$ 13,741,297 |
View original content to download multimedia:https://www.prnewswire.com/news-releases/hershey-reports-third-quarter-2026-financial-results-302922691.html
SOURCE The Hershey Company
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