Total Revenue

Declined by ~14% (from $3.253B to $2.805B)

Q1 2025 total revenue dropped by about $447M due to a combination of lower net sales driven by a 13.8% decline in volume, timing challenges including fewer shipping days, and the lap of planned inventory increases preceding the ERP implementation. These factors undercut the benefits seen in previous periods where favorable pricing partially offset volume softening. " "

North America Confectionery

Declined by ~15% (from $2.707B to $2.300B)

NA Confectionery revenue fell sharply by roughly 15% in Q1 2025, primarily driven by significant volume declines (approximately 18-point decrease) due to the lap of planned inventory increases, timing differences with the Easter season, and fewer shipping days. Although a 3-point uplift from price realization partially mitigated the impact, the net effect remains a steep decline compared to the stable performance in previous periods. " "

North America Salty Snacks

Essentially flat (+~1% change: $275.1M to $277.8M)

NA Salty Snacks revenue remained largely unchanged as a 4-point volume increase was nearly offset by a 3-point net price decline (including costs associated with new SkinnyPop packaging). This outcome contrasts with more volatile segments in previous periods, reflecting operational stability amid price and volume pressures. " "

International

Declined by ~16% (from $270.3M to $227.5M)

International revenue dropped by about 16% as unfavorable foreign currency impacts (approximately an 8% headwind) and an 8% volume decline, related to lapping planned inventory increases and timing issues, overshadowed modest price improvements (about 1 point positive) seen in earlier periods. This represents a reversal from the previous period’s mixed regional performance where declines in Latin America were partially offset by gains elsewhere. " "

Operating Profit

Declined by ~65% (from $1,058.1M to $369.2M)

Operating profit plummeted by 65% YoY in Q1 2025, driven by substantial derivative mark-to-market losses on commodity derivatives (a dramatic shift from previous period gains), increased commodity and manufacturing costs, and an overall challenging operating environment. The volatility in derivative impacts and cost pressures completely offset prior period improvements from supply chain initiatives and lower SM&A expenses. " "

Net Income

Declined by ~72% (from $797.5M to $224.2M)

Net income fell sharply by 72% YoY, reflecting the compounded negative effects of a 13.8% drop in net sales, rising cost of sales leading to lower gross profit, and significant mark-to-market losses on commodity derivatives (contrasting with the previous quarter’s gains). The increased business realignment expenses and operational adjustments further exacerbated the decline seen compared to Q1 2024. " "

Net Sales Growth (%)

FY 2025

no prior guidance

At least 2% growth "

no prior guidance

Gross Margin (bps)

FY 2025

no prior guidance

Decline by 650 to 700 basis points "

no prior guidance

Adjusted EPS (%)

FY 2025

no prior guidance

Decline by mid-30% "

no prior guidance

Tariff Expenses ($)

FY 2025

no prior guidance

N/A "

no prior guidance

Tax Rate (%)

FY 2025

no prior guidance

Approximately 16% "

no prior guidance

Interest Expense ($)

FY 2025

no prior guidance

$185 million to $190 million "

no prior guidance

Capital Expenditures ($)

FY 2025

no prior guidance

$425 million to $450 million "

no prior guidance

Advertising Spend (%)

FY 2025

no prior guidance

Increase by mid-single digits "

no prior guidance

Cost Savings ($)

FY 2025

no prior guidance

Incremental $125 million from the AAA initiative " "

no prior guidance

Innovation and New Product Launches

Q4 2024: Focused on portfolio innovation across sweets and chocolate, with launches like JR Freeze Dried and teasers for big Reese’s innovations. " " " Q3 2024: Emphasized growth in sweets and instant consumable categories through new product introductions and a robust pipeline for 2025. " " " " Q2 2024: Highlighted incremental innovation in sweets, salty snacks, chocolate and non-chocolate with campaigns like the Shaq launch. " " " "

Q1 2025: Showcased a wide range of new launches including Reese’s Peanut Butter and Jelly in two flavors, Hershey’s with Caramel, media campaigns (Kit Kat’s Break Brothers) and strategic partnerships such as the Pokemon collaboration, suggesting an aggressive push into seasonal and category-specific initiatives. " "

Continued and enhanced focus on innovation across categories. The company is sustaining its pipeline with high-profile launches and partnerships, signaling an increased commitment to driving growth through new product introductions.

Pricing Strategy and Margin Management

Q4 2024: Discussed strategic pricing adjustments and hedging against cocoa inflation along with controlled pricing approaches including competitor pricing actions. " " " " Q3 2024: Emphasized consistent 2025 pricing outlook with moderate increases and challenges from sales mix and volume deleverage. " " " " " " Q2 2024: Detailed a surgical price increase approach combined with phased implementation to offset inflation and cost pressures. " " " " " " " "

Q1 2025: Reported a net price realization benefit of around 2% with differentiated performance across segments, reiterated preparedness for persistently high cocoa prices and rising tariffs, and highlighted cost savings from initiatives such as AAA, while acknowledging a decline in adjusted gross margins due to inflation and mix challenges. " " "

Active management amid margin pressures. While the strategic pricing framework remains similar, Q1 2025 shows sharper focus on margin protection via cost-saving initiatives and flexible pricing actions amid mounting commodity and tariff challenges.

Commodity Cost Pressures (Cocoa & Sugar)

Q4 2024: Focused primarily on managing cocoa costs through hedging, supply diversification, and reformulation efforts, with sugar not being a primary discussion point. " " " " " " Q3 2024: Highlighted cocoa as a major inflation driver with sugar also expected to contribute significantly to cost pressure. " " Q2 2024: Discussed historic cocoa prices and a measured pass-through strategy; sugar was not mentioned. " " " "

Q1 2025: Emphasized robust cocoa management with clear visibility into 2025 costs, flexible hedging strategies, and an outlook that anticipates inflation; noted that there was no specific mention of sugar cost pressures. " "

Focus remains on cocoa with evolving mitigation strategies. The discussion in Q1 2025 is consistent with prior periods for cocoa although sugar is no longer discussed, suggesting a narrowing of attention toward cocoa cost management with a clearer outlook and hedging strategy as supply trends shift.

Tariff Impact and Mitigation Strategies

Q4, Q3, Q2 2024: There was no mention of tariff-related issues or specific mitigation strategies in the available excerpts [—].

Q1 2025: Introduced a detailed discussion on tariffs, particularly the impact of the U.S. cocoa import levy with incremental expenses of approximately $15–20 million in Q2 2025, alongside active engagement with the government and mitigation actions such as inventory management and pricing adjustments. " "

New emphasis. Tariff impacts have emerged as a significant additional cost factor in Q1 2025, marking a departure from previous periods where tariffs were not discussed. This indicates an evolving external pressure that is now being actively managed.

Competitive Dynamics (Domestic & International)

Q4 2024: Addressed domestic pricing pressures from competitors (including private labels) and highlighted intense competitive activity particularly in Brazil and Mexico, with market leadership challenges internationally. " " " " Q3 2024: Discussed competitive pressures from private labels and smaller players domestically and deep discounting in international markets (especially in Mexico and Brazil). " " Q2 2024: No explicit discussion [—].

Q1 2025: Highlighted mixed results with domestic challenges (declines in candy, mint, and gum leading to share losses) counterbalanced by strong seasonal performance and gains in salty snacks; internationally, steady growth in key markets (Brazil and Mexico) was noted, although foreign currency headwinds persist. " " "

Mixed domestic headwinds with positive international performance. While competitive pressures continue to be significant, especially domestically, there is clear progress in seasonal and salty snack segments as well as consistent gains internationally, reflecting an adaptive strategy to evolving competitive dynamics.

Consumer Trends and Shifting Preferences

Q4 2024: Detailed discussion on health and wellness trends, growth in low-sugar/protein products and specific analysis on GLP-1 drugs showing no material impact overall, supported by multiple data sources. " " Q3 2024: Noted a mild impact from GLP-1 drugs with broader consumer financial pressures driving snacking preferences and a shift toward value offerings, alongside evolving tastes within chocolate and non-chocolate categories. " " " " " Q2 2024: Focused on shifts in discretionary spending and channel migration without mentioning GLP-1. " " "

Q1 2025: Did not mention GLP-1 drugs; instead, the discussion centered on softening consumer sentiment, value-seeking behavior, steady everyday chocolate growth, and robust performance in salty snacks along with strong seasonal performance. " "

Reduced emphasis on GLP-1 effects. While previous periods contained focused commentary on GLP-1 and health trends, Q1 2025 omits this, suggesting that GLP-1 impact is either considered minimal or overshadowed by broader consumer trends in value and category performance. Overall, consumer behavior remains a priority with an emphasis on seasonality and value.

Operational Efficiency and Cost Management

Q3 2024: Discussed productivity programs with specific cost savings expectations (~$180 million for 2025) and marketing efficiencies, alongside ongoing enhancements to automation and supply chain improvements. " " " Q2 2024: Emphasized a broad transformation program with targeted gross savings of $700 million through 2026 and operational efficiency via ERP implementations and technology investments. " " " " Q4 2024: No specific discussion available [—].

Q1 2025: Continued focus on efficiency with the Advancing Agility & Automation (AAA) initiative delivering $125 million in incremental cost savings, improvements in advertising and operating expenses, and clear mention of reversing previous ERP-related impacts; overall, a robust message on managing margin pressures through operational efficiency. " "

Sustained and detailed focus on cost management. The narrative in Q1 2025 is consistent with earlier initiatives but is more granular with specific savings targets and clear strategic plans, underscoring a long-term emphasis on operational efficiency despite ongoing external cost pressures.

Market Diversification and Category Expansion

Q4 2024: Focused on diversifying cocoa supply sources (with more production outside West Africa) and expanding into underdeveloped categories like sweets and health & wellness lines. " " " " Q3 2024: Addressed category resiliency with solid growth in chocolate, alongside efforts in non-chocolate and salty snack segments; stressed channel opportunities and innovation to capture market share. " " " " Q2 2024: Highlighted portfolio optimization and strategic expansion into snacking, especially salty snacks, to leverage core capabilities. " "

Q1 2025: Emphasized strategic acquisitions (e.g., LesserEvil, Fulfil), new product launches and partnerships, and expansion of the salty snacks portfolio (e.g., SkinnyPop, Dot's Pretzels), coupled with international growth initiatives in key markets. " "

Accelerated diversification and expansion. The company is increasingly leveraging acquisitions and innovative partnerships to broaden its portfolio, indicating a robust strategy to diversify market presence and drive growth into new categories and regions.