The Hershey Company (HSY)

Hershey reported second-quarter 2026 net sales of $2,787.3 million, up 6.6 percent, and net income of $457.7 million on 30 July 2026 3. Organic, constant currency net sales rose 3.6 percent, driven by price increases of about 12 points, while volume fell about 8 points 3.

Reported gross margin, the share of sales left after production costs, rose to 45.3 percent from 30.5 percent 3. The company credits price increases, gains on commodity hedges, lower commodity costs and productivity savings 3.

Cocoa, its most significant raw material, has been cheaper this year 2. The company says cocoa futures averaged $1.80 a pound in the first six months of 2026, about 51 percent below the 2025 average of $3.65 2.

Volume fell because higher prices cut demand, the company says, in North America Confectionery and International 3. It also named Dave Hulays chief financial officer on 2 September 2026, succeeding Steve Voskuil, who plans to retire in early 2027 4.

The business began in 1894 under Milton Hershey and was incorporated in Delaware in 1927, the annual report says 1.

Over recent years it widened from chocolate into snacks by buying companies 1. On 31 May 2023 it bought assets from Weaver Popcorn Manufacturing for extra popcorn capacity 1. On 8 November 2024 it bought the Sour Strips candy brand 1.

On 2 February 2024 the board approved a multi-year productivity plan, the Advancing Agility & Automation Initiative, to trim supply chain and overhead costs 1. Sales that year were $11,202.3 million, up 0.3 percent from $11,165.0 million in 2023 1.

Price increases of about 3 percent were offset by a volume drop of about 2 percent in 2024 1. Gross margin, the share of sales left after production costs, rose to 47.3 percent from 44.8 percent, helped by gains on commodity hedges 1.

In 2025 sales rose 4.4 percent to $11,692.6 million, with price increases of about 6 percent and a volume decline of about 1 percent 1. The company bought LesserEvil, an organic popcorn maker, on 18 November 2025 1.

Costs of sales jumped 31.7 percent in 2025, including $736.6 million of higher commodity costs and $287.2 million of higher supply chain costs, tariffs among them 1. A further $491.0 million came from unfavorable accounting for commodity hedges 1.

Gross margin fell to 33.5 percent from 47.3 percent, and net income fell to $883.3 million from $2,221.2 million 1. Diluted earnings per share were $4.34, against $10.92 in 2024 1.

Kirk Tanner became president and chief executive in August 2025 1. The company says tariffs on imports had a material negative impact on its 2025 results 1.

North America Confectionery

This segment sells chocolate and non-chocolate candy, gum, mints and protein bars in the United States and Canada 1. Its brands include Hershey's, Reese's, Kisses, Jolly Rancher, Twizzlers and Kit Kat 1.

Its net sales were $2,173.6 million in the second quarter of 2026, up 4.2 percent, with price increases of about 14 points offset by volume down about 10 points 3. Segment income was $705.8 million, a margin of 32.5 percent 3.

The company says its US candy, mint and gum share declined in the 12 weeks ended 19 July 2026 because of increased competitive innovation 3.

North America Salty Snacks

This segment sells popcorn, pretzels and baked snacks in the United States, under brands such as SkinnyPop, LesserEvil, Pirates Booty and Dot's Homestyle Pretzels 1.

Its second-quarter 2026 net sales were $387.8 million, up 22.9 percent, with the LesserEvil purchase adding about 22 points and organic growth at 0.6 percent 3. Segment income was $62.6 million, down 5.9 percent, as logistics costs and marketing rose 3.

The company cites execution problems on multipacks and Dot's pretzels, and says supply limits held organic sales below retail takeaway 3.

International

International covers all other regions, with plants in Mexico, Brazil, India and Malaysia and exports to Asia, Latin America, the Middle East, Europe and Africa 1.

Its second-quarter 2026 net sales were $225.9 million, up 5.7 percent, but it posted a segment loss of $5.1 million 3. The company blames higher raw material, manufacturing and advertising costs 3.

Plants, people and customers

The largest plants are in Hershey, Lancaster and Hazleton in Pennsylvania, Monterrey and El Salto in Mexico, and Stuarts Draft in Virginia 1. At the end of 2025 it employed about 17,550 full-time and 2,045 part-time staff 1.

About 27 percent of 2025 net sales went to McLane, a wholesale distributor and the main supplier of its products to Walmart 1. Kirk Tanner leads as chief executive, and Dave Hulays became chief financial officer on 2 September 2026 4.

Rivals and problems

Cocoa is its biggest raw material, and West Africa grows about 70 percent of the world's cocoa beans 1. Weather or political unrest there has moved cocoa costs in the past 1.

The company says it is watching tariffs and tariff refunds 2. It also plans to remove all certified synthetic colors from its snacks by the end of 2027 after the FDA moved to phase out petroleum-based dyes 1.

The umbrella, in words

Hershey sells under more than 85 brand names in approximately 65 countries 1. Its protein brands include ONE Brands and Fulfil, and it also sells Ice Breakers mints and Bubble Yum gum 41.

The subsidiaries exhibit lists major subsidiaries including Hershey Canada, Hershey Mexico, LesserEvil, LLC and ONE Brands, LLC, each wholly owned unless noted 5. The company owns LesserEvil and the Weaver popcorn assets through those purchases 1.

It has also invested in partnerships that put money into projects eligible for federal historic and energy tax credits 1.

Class B shares carry 10 votes each against 1 for Common Stock, and Common Stock holders voting alone elect one-sixth of the board 1. As of 27 July 2026 there were 146,312,143 Common and 54,613,514 Class B shares 2.

In 2023 Hershey Trust Company, as trustee for the Milton Hershey School Trust, converted 3,500,000 Class B shares to Common Stock and sold 1,000,000 shares back to the company 1.

The company expects 2026 net sales growth of 4.5 percent to 5 percent and organic net sales growth of 3 percent to 3.5 percent, narrowed on 30 July 2026 3. It expects reported earnings per share growth of 82 percent to 89 percent 3.

It also expects capital spending of about $425 million to $475 million and interest expense of about $200 million to $210 million 3. Savings from its productivity program are expected to be about $100 million 3.

The outlook does not include potential future tariff rebates 3. The company says the scope and length of tariffs remain uncertain 2.

Voskuil plans to retire in early 2027 and will work on projects for the chief executive and board until then 4. The company plans to remove all certified synthetic colors from its snacks by the end of 2027 1.

Labor agreements for certain employees at six facilities are expected to be negotiated during 2026 1.