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Hershey Beats Profit Estimates Despite Sales Dip, Driven by Strong Snack Demand

Price cuts in salty snacks and cost discipline help bolster margins amid tariff headwinds.

By Donna Joseph
May 2, 2025 12:58 AM
Hershey Beats Profit Estimates Despite Sales Dip, Driven by Strong Snack Demand Photo by SBR

HERSHEY, Pa., May 1, 2025The Hershey Co. reported a smaller-than-anticipated drop in first-quarter sales and topped profit forecasts on Thursday, thanks to sustained consumer demand for its salty snack products and reduced marketing expenditures. The company also reaffirmed its full-year outlook, despite projecting up to $20 million in tariff-related expenses in the second quarter.

Hershey’s North America salty snacks unit—home to Dot’s Pretzels and SkinnyPop popcorn—saw a 4% rise in organic volumes during the quarter. The growth came as the company reversed some earlier price hikes, trimming prices by 3% year-over-year in the category.

Total net sales fell 13.8% to $2.81 billion, narrowly beating analysts’ expectations of a 14.1% decline to $2.79 billion, according to data from LSEG. On an adjusted basis, earnings reached $2.09 per share, surpassing the consensus estimate of $1.95.

Across the business, Hershey implemented a modest 2% price increase and reduced advertising and marketing spend, measures that helped protect margins against rising input costs, particularly for cocoa and manufacturing.

“We’re seeing steady engagement with our snack portfolio, even in a cautious consumer environment,” a Hershey spokesperson said. “Our focus on pricing agility and operational efficiency is delivering results.”

The company maintained its annual forecast for net sales and adjusted earnings, signaling confidence despite ongoing economic uncertainty and trade challenges. Tariff-related costs are expected to range from $15 million to $20 million in the current quarter, part of broader pressures facing U.S. firms under past trade policies.

Peer Mondelez International also warned of potential headwinds from tariffs earlier this week, even as it posted stronger-than-expected quarterly results.

Hershey shares edged up 0.3% to $167.80 in premarket trading Thursday.

We’re seeing steady engagement with our snack portfolio, even in a cautious consumer environment.


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