The Hershey Company Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended Dec. 31, 2014; Updates Earnings Outlook for the Year 2015
January 29, 2015 at 07:00 am EST
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The Hershey Company reported unaudited consolidated earnings results for the fourth quarter and full year ended Dec. 31, 2014. Consolidated net sales were $2,010,027,000 compared with $1,956,253,000 for the fourth quarter of 2013. Reported net income for the fourth quarter of 2014 was $202,508,000 or $0.91 per share-diluted, compared with $186,075,000 or $0.82 per share-diluted for the comparable period of 2013. Income before interest and income taxes (EBIT) was $342,309,000 against $308,305,000 reported last year. Income before income taxes was $321,569,000 against $286,435,000 reported last year. Adjusted net income, which excludes these net items, was $231,751,000 or $1.04 per share-diluted in the fourth quarter of 2014, compared with $195,627,000 or $0.86 per share-diluted in the fourth quarter of 2013, an increase of 20.9% in adjusted earnings per share-diluted.
For the full year 2014, consolidated net sales were $7,421,768,000 compared with $7,146,079,000 in 2013, an increase of 3.9%. Reported net income for 2014 was $846,912,000 or $3.77 per share-diluted, compared with $820,470,000 or $3.61 per share-diluted for 2013. Income before interest and income taxes (EBIT) was $1,389,575,000 against $1,339,675,000 reported last year. Income before income taxes was $1,306,043,000 against $1,251,319,000 reported last year. Adjusted net income, which excludes these items, was $895,903,000 or $3.98 per share-diluted in 2014, compared with $844,320,000 or $3.72 per share-diluted in 2013, an increase of 7% in adjusted earnings per share-diluted.
In 2015, the company expects reported gross margin to increase 135 to 145 basis points versus last year and reported earnings per share-diluted of $4.14 to $4.25, including net pre-tax GAAP charges of approximately $45 million to $55 million, or $0.13 to $0.16 per share-diluted. The company estimates full-year 2015 net sales to increase 5.5 to 7.5%, including a net benefit from acquisitions and divestitures of about 2.5 points and unfavorable foreign currency exchange. Excluding the net benefit of acquisitions and divestitures, full-year net sales are expected to increase 3 to 5%, including unfavorable foreign currency exchange. Adjusted earnings per share-diluted expected to increase 8% to 10%, including dilution from acquisitions and divestitures of $0.03 to $0.05 per share, and be in the $4.30 to $4.38 range.
The Hershey Company specializes in producing and selling chocolate-based products and candies. The group is involved in producing and selling snacks, beverages, garnishing and cooking products, chewing gum, etc. Net sales break down by family of products as follows:
- chocolate-based products and confectionery (93.6%): Jolly Rancher, Almond Joy, Brookside, barkTHINS, Cadbury, Good & Plenty, Heath, Kit Kat, Lancaster, Payday, Rolo, Twizzlers, Whoppers, Scharffen Berger, Dagoba, etc. brands;
- snacks (6.4%): Hershey, Reese, Heath, Krave, Popwell, SkinnyPop, Pirate's Booty, Oatmega, Paqui, etc. brands.
At the end of 2020, the group has 9 production sites in the United States (6), Mexico (2) and Malaysia.
Net sales break down geographically as follows: the United States (86.4%), North America (4.6%) and other (9%).
The Hershey Company Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended Dec. 31, 2014; Updates Earnings Outlook for the Year 2015