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Despite Pandemic Hershey's Expects Growth In Sales For Rest Of 2020


07/23/2020


Despite Pandemic Hershey's Expects Growth In Sales For Rest Of 2020
Despite the novel coronavirus pandemic, Hershey Co announced its expectation of accelerating sales in the months ahead as it reported profits that beat expectations of the market.
 
The company said that its expectations beating performance was driven by strong demand for its cooking chocolate products during the quarter as people were forced in their homes because of the stay at home and lockdown orders issued during the pandemic to stop it from spreading.
 
The emergence of a new wave of amateur bakers has been prompted by more people being forced to stay back home because of the lockdowns and thus having more time on their hands to try out new things. The company also noted an increase in demand for Hershey's chocolate chips and cocoa powder that are put to use in baking cakes, cookies and other desserts.
 
The trends of demand sale of its products in recent weeks have led the company to predict an acceleration of growth in the second half of the year, Hershey said.
 
However the uncertainty that could be caused in the market by the resurgence of a second wave of increase Cvodi-19 infections was also acknowledged by the company, and added that under such circumstances, there could be an impact in demand during Halloween, one of the most important periods in the year for demand and sale of the company’s candy in the United States.
 
During the second quarter ended June 28, there was a 3.4 per cent year on year drop in net sales at $1.71 billion, the company said, as demand and sale was hit in its overseas markets. According to IBES data from Refinitiv data, analysts were expecting sales of $1.74 billion.
 
The company also reported a drop in its net income attributable to the company at $268.9 million, or $1.29 per share compared to $312.8 million, or US$1.48 per share, reported in the same period a year ago.
 
The company earned $1.31 per share which beat the average analyst estimate of $1.13 per share, excluding one-time items.
 
(Source:www.channelnewsasia.com)