Candy company Hershey Co. HSY 1.44% said its sales and profit rose in the holiday quarter, as higher prices helped offset a jump in costs.
The Hershey, Pa.-based maker of snacks and candy said Thursday that higher supply-chain costs as well as an increase in logistics, labor and packaging costs all contributed to a decrease in profit margins.
Still, the company was able to post adjusted earnings that came in 13% higher than a year earlier and topped analyst expectations for the quarter.
Hershey has struggled to keep up with demand for its products in recent quarters. Supply-chain constraints have made it hard for the company to keep up with shifting consumer trends and the jump in demand for sugary treats.
In the year ahead, the company said it plans to invest between $550 million and $600 million, including in expanding the agility and capacity of the company’s supply chain.
For the full year, Chief Executive Michele Buck said the company saw a record year of production. She noted, though, that the environment remains volatile.
For the fourth quarter, Hershey posted net income attributable to the company of $335.6 million, compared with $291.4 million a year earlier. Earnings were $1.62 a share, up from $1.39 a year earlier.
Adjusted earnings were $1.69 a share, compared with $1.61 expected by analysts, according to FactSet.
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The company posted sales of $2.33 billion for the quarter, up from $2.19 billion a year ago. Analysts surveyed by FactSet were looking for sales of $2.27 billion.
The company also forecast full-year 2022 sales growth of between 8% and 10%. The company expected full-year adjusted earnings to come in between 9% and 11% higher.
Write to Will Feuer at [email protected]
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