Hershey Co. Files 10-Q for Quarterly Period Ended March 31, 2024

TL;DR

<b>The Hershey Company has filed its quarterly report (10-Q) for the period ending March 31, 2024.</b>

AI Summary

HERSHEY CO (HSY) filed a Quarterly Report (10-Q) with the SEC on May 3, 2024. The Hershey Company filed its 10-Q for the quarterly period ended March 31, 2024. The filing covers the period from January 1, 2024, to March 31, 2024. The company's fiscal year ends on December 31. The filing was made on May 3, 2024. Hershey Co. is classified under Sugar & Confectionery Products.

Why It Matters

For investors and stakeholders tracking HERSHEY CO, this filing contains several important signals. This 10-Q filing provides investors with the latest financial performance and operational updates for The Hershey Company for the first quarter of 2024. Understanding the details within this report is crucial for assessing the company's current financial health, profitability, and any potential risks or opportunities in the confectionery market.

Risk Assessment

Risk Level: low — HERSHEY CO shows low risk based on this filing. The filing is a standard quarterly report (10-Q) and does not contain any immediate red flags or significant deviations from typical reporting.

Analyst Insight

Review the detailed financial statements and management discussion within the 10-Q to understand Q1 2024 performance and outlook.

Key Numbers

• 20240331 — Conformed Period of Report (Quarterly period ended)
• 20240503 — Filed As Of Date (Date of filing)
• 2024-01-01 — Quarter Start Date (Reporting period)
• 2024-03-31 — Quarter End Date (Reporting period)

Key Players & Entities

• HERSHEY CO (company) — FILER
• 19 EAST CHOCOLATE AVENUE (address) — BUSINESS ADDRESS
• PA (state) — BUSINESS ADDRESS STATE
• 17033 (zip_code) — BUSINESS ADDRESS ZIP
• 7175344200 (phone_number) — BUSINESS PHONE
• HERSHEY FOODS CORP (company) — FORMER COMPANY
• HERSHEY CHOCOLATE CORP (company) — FORMER COMPANY
• 20240331 (date) — CONFORMED PERIOD OF REPORT

FAQ

Industry Context

The Hershey Company operates in the Sugar & Confectionery Products industry, a sector known for its consumer staple characteristics but also subject to seasonal demand and commodity price fluctuations.

Regulatory Implications

This filing is made under the Securities Exchange Act of 1934, requiring public companies to submit regular financial disclosures to the SEC.

What Investors Should Do

1. Analyze the revenue and net income figures for Q1 2024.
2. Examine any disclosed changes in assets, liabilities, and equity.
3. Review management's discussion and analysis for insights into business performance and outlook.

Key Dates

• 2024-03-31: Quarterly Period End — End of the reporting period for the 10-Q filing.
• 2024-05-03: Filing Date — Date the 10-Q was officially filed with the SEC.

Year-Over-Year Comparison

This is the first 10-Q filing for the fiscal year 2024, following the 10-K annual report.

Filing Documents

• hsy-20240331.htm (10-Q) — 1480KB
• hsy_20240503exhibit311.htm (EX-31.1) — 10KB
• hsy_20240503exhibit312.htm (EX-31.2) — 10KB
• hsy_20240503exhibit321.htm (EX-32.1) — 7KB
• hsy-20240331_g1.jpg (GRAPHIC) — 217KB
• hsy-20240331_g2.jpg (GRAPHIC) — 1KB
• kiss_logo.jpg (GRAPHIC) — 1KB
• kisslogo1.jpg (GRAPHIC) — 1KB
• kisslogo2.jpg (GRAPHIC) — 1KB
• 0000047111-24-000023.txt (&nbsp;) — 9975KB
• hsy-20240331.xsd (EX-101.SCH) — 63KB
• hsy-20240331_cal.xml (EX-101.CAL) — 119KB
• hsy-20240331_def.xml (EX-101.DEF) — 377KB
• hsy-20240331_lab.xml (EX-101.LAB) — 793KB
• hsy-20240331_pre.xml (EX-101.PRE) — 618KB
• hsy-20240331_htm.xml (XML) — 1503KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION 2

Financial Statements

Item 1. Financial Statements 2 Consolidated Statements of Income for the Three Months Ended March 3 1, 202 4 and April 2, 202 3 2 Consolidated Statements of Comprehensive Income for the Three Months Ended March 3 1, 202 4 and April 2, 202 3 3 Consolidated Balance Sheets as of March 3 1, 202 4 and December 31, 202 3 4 Consolidated Statements of Cash Flows for the Three Months Ended March 3 1, 202 4 and April 2, 202 3 5 Consolidated Statements of Stockholders' Equity for the Three Months Ended March 3 1, 202 4 and April 2, 202 3 6 Notes to Unaudited Consolidated Financial Statements 7 Note 1 - Summary of Significant Accounting Policies 7 Note 2 - Business Acquisitions 8 Note 3 - Goodwill and Intangible Assets 8 Note 4 - Short and Long-Term Debt 9 Note 5 - Derivative Instruments 10 Note 6 - Fair Value Measurements 13 Note 7 - Leases 14 Note 8 - Investments in Unconsolidated Affiliates 16 Note 9 - Business Realignment Activities 16 Note 10 - Income Taxes 18 Note 11 - Pension and Other Post-Retirement Benefit Plans 19 Note 12 - Stock Compensation Plans 19 Note 13 - Segment Information 22 Note 14 - Treasury Stock Activity 25 Note 15 - Contingencies 26 Note 16 - Earnings Per Share 27 Note 17 - Other (Income) Expense, Net 28 Note 1 8 - Supplemental Balance Sheet Information 29

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

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 31

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 40

Controls and Procedures

Item 4. Controls and Procedures 42

OTHER INFORMATION

PART II. OTHER INFORMATION 43

Legal Proceedings

Item 1. Legal Proceedings 43

Risk Factors

Item 1A. Risk Factors 43

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 45

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 45

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 45

Other Information

Item 5. Other Information 45

Exhibits

Item 6. Exhibits 46

Signatures

Signatures 47 Table of Contents The Hershey Company | Q1 2024 Form 10-Q | Page 1

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements. THE HERSHEY COMPANY CONSOLIDATED STATEMENTS OF INCOME (in thousands, except per share amounts) (unaudited) Three Months Ended March 31, 2024 April 2, 2023 Net sales $ 3,252,749 $ 2,987,614 Cost of sales 1,576,668 1,605,292 Gross profit 1,676,081 1,382,322 Selling, marketing and administrative expense 617,981 581,587 Business realignment costs — 811 Operating profit 1,058,100 799,924 Interest expense, net 39,822 37,685 Other (income) expense, net 32,020 2,983 Income before income taxes 986,258 759,256 Provision for income taxes 188,805 172,071 Net income $ 797,453 $ 587,185 Net income per share—basic: Common stock $ 4.00 $ 2.94 Class B common stock $ 3.64 $ 2.67 Net income per share—diluted: Common stock $ 3.89 $ 2.85 Class B common stock $ 3.63 $ 2.66 Dividends paid per share: Common stock $ 1.370 $ 1.036 Class B common stock $ 1.245 $ 0.942 See Notes to Unaudited Consolidated Financial Statements. Table of Contents The Hershey Company | Q1 2024 Form 10-Q | Page 2 THE HERSHEY COMPANY CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in thousands) (unaudited) For the Three Months Ended March 31, 2024 April 2, 2023 Pre-Tax Amount Tax (Expense) Benefit After-Tax Amount Pre-Tax Amount Tax (Expense) Benefit After-Tax Amount Net income $ 797,453 $ 587,185 Other comprehensive income, net of tax: Foreign currency translation adjustments: Foreign currency translation gains (losses) during period $ ( 4,998 ) $ — ( 4,998 ) $ 8,940 $ — 8,940 Pension and post-retirement benefit plans: Net actuarial gain (loss) and service cost ( 48 ) 7 ( 41 ) 19 2 21 Reclassification to earnings 2,541 ( 609 ) 1,932 3,227 ( 774 ) 2,453 Cash flow hedges: Gains (losses) on cash flow hedging derivatives 1,335 ( 84 ) 1,251 1,448 541 1,989 Reclassification to earnings 1,854 ( 755 ) 1,099 2,007 ( 1,084 ) 923 Total other comprehensive income (loss), net of tax $ 684 $ ( 1,441 ) ( 757 ) $ 15,641 $ ( 1,315 ) 14,3