the republic logo

Hershey posts disappointing 1Q results, says growth in China sales is slowing; shares fall

bug
Share/Save/Bookmark

HERSHEY, Pennsylvania — Hershey's expansion into China hasn't been so sweet.

The maker of Reese's peanut butter cups, Twizzlers licorice and other candies and chocolates said sales in China during the country's New Year holiday were weaker than it expected. Sales in China fell 47 percent in its first quarter from the same period a year ago. That number excludes sales of Golden Monkey products, a Chinese food company that Hershey bought a controlling stake in late last year.

Hershey said a slowdown in China's economy is keeping people from buying its goods. It will expand into more Chinese cities and will increase taste tests in stores.

Shares of The Hershey Co. fell $3.61, or 3.7 percent, to $94.72 in morning trading Thursday.

The Hershey, Pennsylvania-based company also posted disappointing financial results for its first quarter Thursday, and cut its sales growth outlook for the year.

It reported first-quarter earnings of $244.7 million, or $1.10 per share. Earnings, adjusted for non-recurring gains, were $1.09 per share. The average estimate of seven analysts surveyed by Zacks Investment Research was for earnings of $1.15 per share.

Hershey posted revenue of $1.94 billion in the period, also missing Wall Street forecasts. Four analysts surveyed by Zacks expected $1.96 billion.

It now expects revenue to rise between 4.5 percent and 5.5 percent, down from its previous forecast of a 5.5 percent to 7.5 percent rise. Analysts expected revenue to rise 5.8 percent to $7.86 billion. The company kept its earnings outlook for the year unchanged from its previous forecast. It expects full-year earnings in the range of $4.30 per share to $4.38 per share. Analysts expected earnings of the year of $4.35 per share.

Hershey said it will be introducing new products this year, including Kit Kat White Minis and Hershey's Caramels. In March, Hershey bought jerky maker Krave in an effort to add protein to its product lineup.

_____

Elements of this story wrer generated by Automated Insights (http://automatedinsights.com/ap ) using data from Zacks Investment Research. Access a Zacks stock report on HSY at http://www.zacks.com/ap/HSY

_____

Keywords: Hershey, Earnings Report

Think your friends should see this? Share it with them!

Story copyright 2015 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Feedback, Corrections and Other Requests: AP welcomes feedback and comments from readers. Send an email to info@ap.org and it will be forwarded to the appropriate editor or reporter.


We also have more stories about:
(click the phrases to see a list)

Category:

Follow The Republic:

All content copyright ©2015 The Republic, a division of Home News Enterprises unless otherwise noted.
All rights reserved. Privacy policy.