Hershey reported Q2 2024 net sales of $2.07 billion, down 16.7% from $2.49 billion in Q2 2023, primarily due to an 18% volume decline in core U.S. confectionery products following accelerated Q1 shipments ahead of ERP implementation. Operating profit decreased 48.7% to $287.9 million, while net income fell 55.6% to $180.9 million. Gross margin contracted to 40.2% from 45.5% due to higher commodity costs and unfavorable mix.The North America Confectionery segment saw sales decline 20.7% to $1.58 billion, while North America Salty Snacks grew 6.4% to $289.9 million driven by strong performance in Dot's Pretzels and Pirate's Booty brands. International segment revenue decreased 8.9% to $204.8 million due to volume declines across regions except India and Europe.Looking ahead, the company expects 2024 capital expenditures of $600-625 million, slightly below previous guidance, as key strategic initiatives including ERP implementation wind down. Management continues to monitor cocoa prices, which averaged $3.34 per pound in H1 2024, up 124% year-over-year, while maintaining sufficient liquidity to support operations and strategic growth initiatives.

Hershey reported Q2 2024 net sales of $2.07 billion, down 16.7% from $2.49 billion in Q2 2023, primarily due to an 18% volume decline in core U.S. confectionery products following accelerated Q1 shipments ahead of ERP implementation. Operating profit decreased 48.7% to $287.9 million, while net income fell 55.6% to $180.9 million. Gross margin contracted to 40.2% from 45.5% due to higher commodity costs and unfavorable mix.The North America Confectionery segment saw sales decline 20.7% to $1.58 billion, while North America Salty Snacks grew 6.4% to $289.9 million driven by strong performance in Dot's Pretzels and Pirate's Booty brands. International segment revenue decreased 8.9% to $204.8 million due to volume declines across regions except India and Europe.Looking ahead, the company expects 2024 capital expenditures of $600-625 million, slightly below previous guidance, as key strategic initiatives including ERP implementation wind down. Management continues to monitor cocoa prices, which averaged $3.34 per pound in H1 2024, up 124% year-over-year, while maintaining sufficient liquidity to support operations and strategic growth initiatives.