Hershey Co. Files 2023 Annual Report on Form 10-K

TL;DR

<b>The Hershey Company has submitted its 2023 annual report detailing its financial performance and operations.</b>

AI Summary

HERSHEY CO (HSY) filed a Annual Report (10-K) with the SEC on February 20, 2024. The Hershey Company filed its annual report for the fiscal year ended December 31, 2023. The filing covers the period from January 1, 2023, to December 31, 2023. The company's principal executive offices are located at 19 East Chocolate Avenue, Hershey, PA 17033. Hershey Co. was incorporated in Delaware. The Standard Industrial Classification code for the company is 2060 (Sugar & Confectionery Products).

Why It Matters

For investors and stakeholders tracking HERSHEY CO, this filing contains several important signals. This 10-K filing provides a comprehensive overview of Hershey's financial health, operational strategies, and risk factors for the fiscal year 2023, crucial for investors assessing the company's stability and future prospects. The detailed financial statements and disclosures within this report are essential for stakeholders to understand the company's performance in the confectionery market and its compliance with SEC regulations.

Risk Assessment

Risk Level: medium — HERSHEY CO shows moderate risk based on this filing. The company operates in the highly competitive confectionery market, facing risks related to consumer preferences, raw material costs, and supply chain disruptions, as detailed in its risk factors.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to assess Hershey's performance and potential challenges in the upcoming fiscal year.

Key Numbers

• 2023-12-31 — Fiscal Year End (Period of Report)
• 2024-02-20 — Filing Date (Date Filed)
• 1992-07-03 — Date of Name Change (Former Company Name Change)
• 1968-04-01 — Date of Name Change (Former Company Name Change)

Key Players & Entities

• HERSHEY CO (company) — Filer name
• 19 EAST CHOCOLATE AVENUE (location) — Business and Mail Address
• HERSHEY (location) — Business and Mail City
• PA (location) — Business and Mail State
• 17033 (location) — Business and Mail ZIP
• DE (location) — State of Incorporation
• SUGAR & CONFECTIONERY PRODUCTS (industry) — Standard Industrial Classification
• 2060 (industry) — Standard Industrial Classification Code

FAQ

Risk Factors

• Competition [high — market]: The company faces intense competition in the confectionery and snack categories from other manufacturers, private label products, and alternative snack options.
• Raw Material Costs [medium — financial]: Fluctuations in the cost and availability of key raw materials such as sugar, cocoa, and dairy products can significantly impact profitability.
• Supply Chain Disruptions [medium — operational]: Disruptions in the global supply chain, including transportation and logistics, can affect the company's ability to produce and distribute its products.
• Consumer Preferences [medium — market]: Changes in consumer preferences, health trends, and dietary habits could adversely affect demand for the company's products.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K filing.
• 2024-02-20: Filing Date — Date the 10-K report was officially submitted to the SEC.

Filing Documents

• hsy-20231231.htm (10-K) — 3036KB
• hsy_20231231exhibit1018b.htm (EX-10.18(B)) — 11KB
• hsy_20231231exhibit19.htm (EX-19) — 83KB
• hsy_20231231exhibit211.htm (EX-21.1) — 21KB
• hsy_20231231exhibit231.htm (EX-23.1) — 6KB
• hsy_20231231exhibit311.htm (EX-31.1) — 10KB
• hsy_20231231exhibit312.htm (EX-31.2) — 9KB
• hsy_20231231exhibit321.htm (EX-32.1) — 7KB
• hsy_20231231exhibit97.htm (EX-97) — 22KB
• hsy-20231231_g1.jpg (GRAPHIC) — 15KB
• hsy-20231231_g2.jpg (GRAPHIC) — 1KB
• hsy-20231231_g3.jpg (GRAPHIC) — 84KB
• image_0a.jpg (GRAPHIC) — 117KB
• kiss_logo.jpg (GRAPHIC) — 1KB
• kiss_logo1.jpg (GRAPHIC) — 1KB
• kiss_logo1a.jpg (GRAPHIC) — 1KB
• kiss_logoa.jpg (GRAPHIC) — 1KB
• 0000047111-24-000009.txt (&nbsp;) — 17314KB
• hsy-20231231.xsd (EX-101.SCH) — 95KB
• hsy-20231231_cal.xml (EX-101.CAL) — 175KB
• hsy-20231231_def.xml (EX-101.DEF) — 613KB
• hsy-20231231_lab.xml (EX-101.LAB) — 1330KB
• hsy-20231231_pre.xml (EX-101.PRE) — 969KB
• hsy-20231231_htm.xml (XML) — 2985KB

Business

Business 2 Item 1A.

Risk Factors

Risk Factors 9 Item 1B. Unresolved Staff Comments 16 Item 1C. Cybersecurity 16 Item 2.

Properties

Properties 18 Item 3.

Legal Proceedings

Legal Proceedings 18 Item 4. Mine Safety Disclosures 18 Supplemental Item Information About Our Executive Officers 19 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 20 Item 6. [Reserved] 21 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 22 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 43 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 47 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 99 Item 9A.

Controls and Procedures

Controls and Procedures 99 Item 9B. Other Information 100 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 100 PART III Item 10. Directors, Executive Officers and Corporate Governance 101 Item 11.

Executive Compensation

Executive Compensation 101 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 101 Item 13. Certain Relationships and Related Transactions, and Director Independence 102 Item 14. Principal Accountant Fees and Services 102 PART IV Item 15. Exhibits and Financial Statement Schedules 103 Item 16. Form 10-K Summary 106

Signatures

Signatures 107 Schedule II—Valuation and Qualifying Accounts 108 Cautionary Note Regarding Forward-Looking Statements This Annual Report on Form 10-K, including the exhibits hereto and the information incorporated by reference herein, contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. 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. Forward-looking statements are predictions only and actual results could differ materially from management's expectations due to a variety of factors, including those described below in Item 1A. "Risk Factors" and in Item 7. "Management's Discussion and Analysis of Financial Condition and Results of Operations." All forward-looking statements attributable to us or persons working on our behalf are expressly qualified in their entirety by such risk factors. Given these risks and uncertainties, you should not rely on forward-looking statements as a prediction of actual results. The forward-looking statements that we make in this Annual Report on Form 10-K are based on management's current views and assumptions regarding future events and speak only as of their dates. We assume no obligation to update developments of these risk factors or to announce publicly any revisions to any of the forward-looking statements that we make, or to make corrections to reflect future events or developments, except as required by the federal securities laws. Table of Contents The Hershey Company | 2023 Form 10-K | Page 1 PART I

BUSINESS

Item 1. BUSINESS The Hershey Company was incorporated under the laws of the State of Delaware on October 24, 1927 as a successor to a business founded in 1894 by Milton S. Hershey. In this report, the terms "Hershey," "Company," "we," "us" or "our" mean The Hershey Company and its wholly-owned subsidiaries and entities in which it has a controlling financial interest, unless the context indicates otherwise. Hershey is a global confectionery leader known for making more moments of goodness through chocolate, sweets, mints and other great tasting snacks. We are the largest producer of quality chocolate in North America, a leading snack maker in the United States and a global leader in chocolate and non-chocolate confectionery. We market, sell and distribute our products under more than 90 brand names in approximately 80 countries worldwide. Reportable Segments The Company reports its operations through three segments: (i) North America Confectionery, (ii) North America Salty Snacks and (iii) International. This organizational structure aligns with how our Chief Operating Decision Maker ("CODM") manages our business, including resource allocation and performance assessment, and further aligns with our product categories and the key markets we serve. North America Confectionery – This segment is responsible for our traditional chocolate and non-chocolate confectionery market position in the United States and Canada. This includes our business in chocolate and non-chocolate confectionery, gum and refreshment products, protein bars, spreads, snack bites and mixes, as well as pantry and food service lines. This segment also includes our retail operations, including Hershey's Chocolate World stores in Hershey, Pennsylvania; New York, New York; Las Vegas, Nevada; Niagara Falls (Ontario) and Singapore, as well as operations associated with licensing the use of certain of the Company's trademarks and products to third parties around the world. North America Salty Snacks