Hershey lifts annual outlook as strong Q3 sales, pricing power fuel growth 

USA – Hershey has increased its full-year sales and earnings guidance after delivering stronger-than-forecast third-quarter results, supported by continued demand for higher-priced chocolates and snacks.  

The confectionery and snacks maker now expects 2025 net sales to grow about 3%, higher than its previous projection of at least 2%. 

The company has also raised the lower end of its adjusted annual profit forecast to US$5.90 per share from US$5.81 per share. Hershey cited solid year-to-date performance as the basis for revising its full-year targets.  

“Third quarter results surpassed expectations, as strong innovation, strategic brand investments, and market-leading execution drove momentum across business segments,” CEO Kirk Tanner said. 

For the quarter ended 28 September, Hershey reported consolidated net sales of US$3.18bn, up 6.5% year on year and above analysts’ estimates of US$3.11bn, according to LSEG data.  

Organic, constant-currency sales rose 6.2%. Growth was supported by demand across chocolate, sweets, and mints, as well as expanding zero-sugar and “better-for-you” product lines. 

The North America Salty Snacks unit posted an 11% volume increase driven by SkinnyPop and Dot’s Pretzels, though pricing in the segment declined 1%. In contrast, Hershey’s core North America Confectionery division experienced a 1% volume decline but implemented a 7% price increase. 

Tanner noted a slower-than-usual start to the Halloween selling period due to warmer weather and holiday timing, though retailers have rolled out promotions as consumers face higher candy prices following tariff- and cocoa-related cost inflation.  

Hershey expects annual tariff expenses of US$160m to US$170m, slightly below earlier estimates, reflecting reduced Canadian retaliatory tariffs. 

Adjusted earnings for the quarter reached US$1.30 per share, exceeding analysts’ projections of US$1.07. Hershey’s improved outlook stands in contrast to moves by major rivals.  

Earlier this week, Mondelēz cut its annual profit guidance amid softer consumer spending in North America and Europe and rising cocoa costs.  

Nestlé has likewise faced declining sales and has initiated restructuring efforts, including global workforce reductions, to support recovery. 

Hershey’s updated forecast suggests confidence in its pricing strategy, product innovation, and snacking portfolio resilience as the company prepares for year-end seasonal demand. 

Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates