April 26 Hershey Co, the maker of
Hershey's Kisses and Reese's Peanut Butter Cups, reported its
eighth straight quarterly profit beat, helped by cost cutting
and demand for its newly launched products.
The company also said on Wednesday it expected full-year
adjusted profit to be at the high end of its forecast of
$4.72-$4.81 per share.
The company's shares were slightly up in premarket trading.
Hershey's has been introducing new versions of its old
favorites such as Reese's Pieces Peanut Butter Cups, while
keeping a tight lid on costs.
As part of a cost-cutting plan announced last year, the
company decided to shut some plants in North America and China.
The company is also reducing its advertising spending.
Hershey's North America sales, which account for about 85
percent of total sales, rose 2.7 percent to $1.68 billion in the
first quarter ended April 2.
Net income fell to $125 million, or 58 cents per share, in
the quarter, from $229.8 million, or $1.06 per share, a year
Excluding certain items, Hershey earned $1.31 per share,
beating the analysts' average estimate of $1.25, according to
Thomson Reuters I/B/E/S.
Net sales rose 2.8 percent to $1.88 billion, but missed
estimate of $1.90 billion.
(Reporting by Karina Dsouza and Sruthi Ramakrishnan in
Bengaluru; Editing by Sriraj Kalluvila and Shounak Dasgupta)