Hershey's third-quarter sales grow 3 percent as volume falls

What happened

The Hershey Company reported on Thursday 29 October that net sales for the quarter ended Sunday 27 September were $3,275.5 million, 3.0 percent more than a year earlier. ^[1]

Leaving out currency moves and LesserEvil, the snack maker Hershey bought in 2025, sales grew 0.8 percent, the company said. Higher prices added about 11 points and lower volume took away about 10. Reuters reported organic volume down about 7 percent, the figure the release gives for the first nine months. ^{[1, 3]}

Net income was $580.8 million, against $276.3 million a year earlier, the company reported. Gross margin, the share of sales left after the cost of making the goods, was 46.1 percent, up from 32.6 percent. Hershey credited higher prices, gains on its commodity hedges, savings, tariff refunds and lower net commodity costs. ^[1]

Why it matters

Price is carrying the sales while shoppers buy less: in North American candy, prices added about 13 points and volume fell about 11, Hershey said. The company lowered its 2026 organic sales growth outlook to about 3 percent, from 3 to 3.5 percent. Reuters reported that Hershey cited weakness in channels such as convenience stores. ^{[1, 3]}

The three businesses

North America Confectionery sales were $2,656.5 million, up 1.6 percent, and its segment income was $949.7 million, up 66.2 percent, the company reported. North America Salty Snacks sales grew 22.3 percent to $392.7 million, with about 20 points from LesserEvil. Its segment income was down 17.9 percent to $47.4 million, on higher freight, manufacturing and commodity costs. ^[1]

International sales were down 7.5 percent to $226.4 million, and 9.7 percent without currency moves, Hershey said. The segment lost $30.0 million. Hershey put total 2026 net sales growth at about 5 percent, including about 2 points from LesserEvil, an outlook that 'does not include potential future tariff refunds.' ^[1]

Cocoa, in Hershey's words

In its quarterly report, Hershey said cocoa futures on the Intercontinental Exchange averaged $2.08 per pound in the first nine months of 2026. That was about 43 percent below the 2025 average of $3.65, the company wrote. It added that its own costs 'will not necessarily reflect market price fluctuations' because it hedges for 3 to 24 months. ^[2]

'We don't expect cocoa to remain at current levels long term,' finance chief Dave Hulays told analysts on the call, according to the transcript. NPR reported that candy on shelves this Halloween was made with cocoa bought in 2025, citing David Branch of the Wells Fargo Agri-Food Institute. ^{[4, 5]}

What settles it next

Halloween falls on Saturday 31 October, and chief executive Kirk Tanner said the biggest selling days of the season were still ahead. Hulays said Hershey would say more about volume in its full-year outlook in February, according to the call transcript. ^[4]

Who it reaches

The Hershey Company (HSY) is direct: the results are its own, filed in its 8-K and its quarterly report on Thursday 29 October. ^{[1, 2]}