Published on 9 Apr 2024 on Zacks via Yahoo Finance

Hershey (HSY) Benefits From Effective Pricing & Buyouts

The Hershey Company HSY is reaping benefits from a favorable pricing environment. The leading snacks company undertakes strategic buyouts to enhance its portfolio. The company regularly brings innovation to its core brands. However, Hershey is not immune to a rising cost environment.Let’s delve deeper.

What’s Working in Hershey’s Favor?

Hershey is undertaking strategic pricing initiatives to improve its performance. The trend continued in the fourth quarter of 2023, with net sales rising 0.2% and a 6.5-point increase in net prices. Robust pricing strategies protect the company’s margin performance. The adjusted gross margin came in at 44.2%, up 50 basis points (bps), on the back of net price realization and improvements in supply-chain productivity. Management expects year-over-year net sales growth of 2-3% for 2024, primarily driven by net price realization.