Hershey Files 8-K on Financial Results, Potential Exit Costs

TL;DR

**Hershey just dropped an 8-K on financial results and potential exit costs, keep an eye out for details.**

AI Summary

The Hershey Company filed an 8-K on February 8, 2024, reporting on events from February 2, 2024, related to its financial results and potential costs from exit or disposal activities. This filing indicates that Hershey is providing updated information on its operations and financial condition, which could include details on restructuring or other significant business changes. For investors, this matters because these updates can impact future profitability and provide insight into the company's strategic direction, potentially affecting the stock's valuation.

Why It Matters

This filing signals that Hershey is disclosing important financial updates and potential costs, which could influence its earnings and future growth prospects. Investors should pay attention to the details of these disclosures as they can impact the company's financial health and stock performance.

Risk Assessment

Risk Level: medium — The mention of 'Cost Associated with Exit or Disposal Activities' introduces a moderate risk as these activities can incur significant expenses, potentially impacting short-term profitability.

Analyst Insight

A smart investor would closely monitor Hershey's upcoming earnings reports and press releases for specific details regarding the 'Results of Operations and Financial Condition' and the financial impact of 'Cost Associated with Exit or Disposal Activities' mentioned in this 8-K, as these will clarify the company's financial health and future outlook.

Key Numbers

• 0000047111-24-000004 — Accession Number (unique identifier for this specific SEC filing)
• 20240202 — Conformed Period of Report (the date of the earliest event reported in the filing)
• 18 — Public Document Count (number of public documents associated with this filing)
• 001-00183 — SEC File Number (The Hershey Company's SEC file number)

Key Players & Entities

• THE HERSHEY COMPANY (company) — the registrant filing the 8-K
• February 2, 2024 (date) — date of the earliest event reported in the 8-K
• February 8, 2024 (date) — date the 8-K was filed
• Delaware (company) — state of incorporation for The Hershey Company
• 1-183 (dollar_amount) — Commission File Number for The Hershey Company
• 23-0691590 (dollar_amount) — IRS Employer Identification No. for The Hershey Company
• 19 East Chocolate Avenue Hershey , PA 17033 (company) — address of principal executive offices for The Hershey Company
• 717-534-4200 (dollar_amount) — telephone number for The Hershey Company
• HSY (company) — trading symbol for The Hershey Company's Common Stock
• New York Stock Exchange (company) — exchange where The Hershey Company's Common Stock is registered

Forward-Looking Statements

• Hershey will provide more detailed financial results for the period ending February 2, 2024, in an upcoming filing or announcement. (THE HERSHEY COMPANY) — high confidence, target: Q1 2024 Earnings Call
• The 'Cost Associated with Exit or Disposal Activities' will be a material expense, potentially impacting Q1 2024 earnings. (THE HERSHEY COMPANY) — medium confidence, target: Q1 2024 Earnings Report

FAQ

Key Financial Figures

• $200 million — e will result in total pre-tax costs of $200 million to $250 million from inception through
• $250 million — total pre-tax costs of $200 million to $250 million from inception through 2026. This estim
• $100 million — of the new organizational structure of $100 million to $120 million, as well as implementat
• $120 m — nizational structure of $100 million to $120 million, as well as implementation and te
• $55 million — tion and technology capability costs of $55 million to $70 million. Additionally, we expect
• $70 million — logy capability costs of $55 million to $70 million. Additionally, we expect to incur emplo
• $45 million — ance and related separation benefits of $45 million to $60 million as we facilitate workfor
• $60 million — d separation benefits of $45 million to $60 million as we facilitate workforce reductions a
• $175 million — on of the total cost is estimated to be $175 million to $225 million. At the conclusion of t
• $225 million — cost is estimated to be $175 million to $225 million. At the conclusion of the program in 20
• $300 million — avings are expected to be approximately $300 million. Item 9.01. Financial Statements and

Filing Documents

• hsy-20240202.htm (8-K) — 30KB
• exhibit991-q42023.htm (EX-99.1) — 356KB
• hershey_companyxlogo.jpg (GRAPHIC) — 217KB
• hsy-20240202_g1.jpg (GRAPHIC) — 217KB
• 0000047111-24-000004.txt ( ) — 1298KB
• hsy-20240202.xsd (EX-101.SCH) — 2KB
• hsy-20240202_def.xml (EX-101.DEF) — 14KB
• hsy-20240202_lab.xml (EX-101.LAB) — 27KB
• hsy-20240202_pre.xml (EX-101.PRE) — 15KB
• hsy-20240202_htm.xml (XML) — 3KB

02. Results of Operations and Financial Condition

Item 2.02. Results of Operations and Financial Condition. On February 8, 2024, The Hershey Company (the "Company") announced sales and earnings information for the fourth quarter and full year ended December 31, 2023. A copy of the Company's press release is furnished hereto as Exhibit 99.1 and is incorporated herein by reference. The information in Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities under that Section, nor shall it be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

05. Costs Associated With Exit or Disposal Activities

Item 2.05. Costs Associated With Exit or Disposal Activities. On February 2, 2024, the Board of Directors of the Company approved a multi-year productivity initiative ("Advancing Agility & Automation" or "AAA") 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. The Company estimates that the AAA Initiative will result in total pre-tax costs of $200 million to $250 million from inception through 2026. This estimate primarily includes program office execution and third-party costs supporting the design and implementation of the new organizational structure of $100 million to $120 million, as well as implementation and technology capability costs of $55 million to $70 million. Additionally, we expect to incur employee severance and related separation benefits of $45 million to $60 million as we facilitate workforce reductions and reallocate resources to further drive the Company's strategic priorities. The cash portion of the total cost is estimated to be $175 million to $225 million. At the conclusion of the program in 2026, ongoing annual savings are expected to be approximately $300 million.

01. Financial Statements and Exhibits

Item 9.01. Financial Statements and Exhibits. (d) Exhibits. Exhibit Number Description 99.1 The Hershey Company Press Release dated February 8 , 202 4 104 Cover Page Interactive Data File (embedded within the Inline XBRL document) SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. THE HERSHEY COMPANY Date: February 8, 2024 By: /s/ Steven E. Voskuil Steven E. Voskuil Senior Vice President, Chief Financial Officer