Hershey Reports Third-Quarter 2024 Financial Results; Updates 2024 Net Sales and Earnings Outlook

Core Insights - The Hershey Company reported a consolidated net sales of $2,987.5 million for Q3 2024, reflecting a decrease of 1.4$446.3 million, or $2.20 per diluted share, down 12.7$2.34, a decrease of 10.0% compared to the same period last year [2][4] - The gross margin for Q3 2024 was reported at 41.3%, down from 44.9% in Q3 2023, primarily due to higher commodity costs [9][27] Segment Performance - North America Confectionery segment net sales increased by 0.8% to $2,477.3 million, while the North America Salty Snacks segment saw a significant decline of 15.5$291.8 million [14][17] - The International segment reported a net sales decrease of 3.9% to $218.4 million, with a slight organic growth of 0.2$724.8 million, while the International segment income decreased by 55.2% to $14.2 million [16][21] Cost Management - Selling, marketing, and administrative expenses decreased by 5.2$139.0 million, reflecting cost-saving measures [22] - The company anticipates capital expenditures of approximately $575 million to$600 million, focusing on capacity expansion and digital infrastructure investments [3][4] Tax and Interest Expenses - The reported effective tax rate for Q3 2024 was 14.0%, a decrease of 660 basis points from the previous year, driven by increased renewable energy tax credits [12][27] - Interest expense for the quarter was approximately $170 million, reflecting a higher interest rate environment [3][4]