| Segment / Quarter                        | Q4 2022  **[0000047111-23-000003_exhibit991-q42022.htm:3]** **[0000047111-23-000003_exhibit991-q42022.htm:3]** **[0000047111-23-000003_exhibit991-q42022.htm:4]**  | Q1 2023  **[0000047111-23-000033_hsy-20230402.htm:36]** **[0000047111-23-000033_hsy-20230402.htm:37]** **[0000047111-23-000033_hsy-20230402.htm:37]**  | Q2 2023  **[0000047111-23-000057_hsy-20230702.htm:42]** **[0000047111-23-000057_hsy-20230702.htm:43]** **[0000047111-23-000057_hsy-20230702.htm:44]**  | Q3 2023  **[0000047111-23-000065_hsy-20231001.htm:43]** **[0000047111-23-000065_hsy-20231001.htm:43]** **[0000047111-23-000065_hsy-20231001.htm:43]**  | Q4 2023  **[0000047111-24-000004_exhibit991-q42023.htm:3]** **[0000047111-24-000004_exhibit991-q42023.htm:3]** **[0000047111-24-000004_exhibit991-q42023.htm:4]**  | Q1 2024  **[0000047111-24-000023_hsy-20240331.htm:36]** **[0000047111-24-000023_hsy-20240331.htm:37]** **[0000047111-24-000023_hsy-20240331.htm:37]**  | Q2 2024  **[0000047111-24-000045_hsy-20240630.htm:40]** **[0000047111-24-000045_hsy-20240630.htm:40]** **[0000047111-24-000045_hsy-20240630.htm:42]**  | Q3 2024  **[0000047111-24-000053_exhibit991_2024xq3.htm:2]** **[0000047111-24-000053_exhibit991_2024xq3.htm:3]** **[0000047111-24-000053_exhibit991_2024xq3.htm:3]**  |
|------------------------------------------|-------------------------|-------------------------|-------------------------|-------------------------|-------------------------|-------------------------|-------------------------|-------------------------|
| **North America Confectionery (USD million)** | **2,174.8**             | **2,452.2**             | **1,993.1**             | **2,457.6**             | **2,220.2**             | **2,707.3**             | **1,579.8**             | **2,477.3**             |
| **North America Salty Snacks (USD million)** | **272.0**               | **270.0**               | **272.4**               | **345.2**               | **205.2**               | **275.1**               | **289.9**               | **291.8**               |
| **International (USD million)**          | **205.6**               | **265.4**               | **224.8**               | **227.2**               | **231.7**               | **270.3**               | **204.8**               | **218.4**               |

f7119d00658c2a0affd15b9f3d361e85eade8ffbe7e3bc27e07c74b95252c464

| Metric (Unit) | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|---------------|---------|---------|---------|---------|---------|---------|---------|---------|
| CMG Market Share Change (basis points) | **-54**  **[0000047111-23-000003_exhibit991-q42022.htm:3]**  | **-70**  **[0000047111-23-000033_hsy-20230402.htm:34]** **[0000047111-23-000030_exhibit991_2023xq1.htm:2]**  | **-83**  **[0000047111-23-000057_hsy-20230702.htm:38]**  | **-120**  **[0000047111-23-000065_hsy-20231001.htm:39]**  | **-38**  **[0000047111-24-000004_exhibit991-q42023.htm:3]**  | **+6**  **[0000047111-24-000023_hsy-20240331.htm:33]**  | **-138**  **[0000047111-24-000045_hsy-20240630.htm:35]**  | **-97**  **[0000047111-24-000055_hsy-20240929.htm:38]** **[0000047111-24-000053_exhibit991_2024xq3.htm:2]**  |
| Salty Market Share Change - Popcorn (basis points) | N/A | N/A | **+40**  **[0000047111-23-000055_exhibit991_2023xq2.htm:2]** **[HSY_3382587_1]** **[0000047111-23-000055_exhibit991_2023xq2.htm:2]**  | N/A | **-135**  **[0000047111-24-000004_exhibit991-q42023.htm:3]**  | N/A | N/A | N/A |
| Salty Market Share Change - Pretzel (basis points) | N/A | **+10**  **[0000047111-23-000030_exhibit991_2023xq1.htm:2]**  | **+120**  **[0000047111-23-000055_exhibit991_2023xq2.htm:2]** **[HSY_3382587_1]** **[0000047111-23-000055_exhibit991_2023xq2.htm:2]**  | **-16**  **[0000047111-23-000065_hsy-20231001.htm:39]**  | **+44**  **[0000047111-24-000004_exhibit991-q42023.htm:3]**  | **-16**  **[0000047111-24-000023_hsy-20240331.htm:33]**  | **+22**  **[0000047111-24-000045_hsy-20240630.htm:35]**  | **+11**  **[0000047111-24-000055_hsy-20240929.htm:38]**  |
| CMG Consumer Takeaway (%) | **+10.7%**  **[0000047111-23-000003_exhibit991-q42022.htm:3]**  | **+12.3%**  **[0000047111-23-000033_hsy-20230402.htm:34]** **[0000047111-23-000030_exhibit991_2023xq1.htm:2]**  | **+1.3%**  **[0000047111-23-000057_hsy-20230702.htm:38]**  | **+2.5%**  **[0000047111-23-000065_hsy-20231001.htm:39]**  | **+3.6%**  **[0000047111-24-000004_exhibit991-q42023.htm:3]**  | **+8.1%**  **[0000047111-24-000023_hsy-20240331.htm:33]**  | **-5.0%**  **[0000047111-24-000045_hsy-20240630.htm:35]**  | **-2.6%**  **[0000047111-24-000055_hsy-20240929.htm:38]** **[0000047111-24-000053_exhibit991_2024xq3.htm:2]**  |
| Salty Consumer Takeaway (%) | **+19.2%**  **[0000047111-23-000003_exhibit991-q42022.htm:4]**  | **+18.4%**  **[0000047111-23-000030_exhibit991_2023xq1.htm:2]**  | **+9.6%**  **[0000047111-23-000055_exhibit991_2023xq2.htm:2]**  | **0%**  **[0000047111-23-000065_hsy-20231001.htm:39]**  | **-7.0%**  **[0000047111-24-000004_exhibit991-q42023.htm:3]**  | **-4.1%**  **[0000047111-24-000023_hsy-20240331.htm:33]**  | **+8.0%**  **[0000047111-24-000045_hsy-20240630.htm:35]**  | **+2.8%**  **[0000047111-24-000055_hsy-20240929.htm:38]** **[0000047111-24-000055_hsy-20240929.htm:38]** **[0000047111-24-000053_exhibit991_2024xq3.htm:3]**  |

c811764273aa416feb8eca73931f0475402201f9209185e4fb58bfcd18c1a25b

CMG Market Share Change (basis points)

Salty Market Share Change - Popcorn (basis points)

Salty Market Share Change - Pretzel (basis points)

CMG Consumer Takeaway (%)

Salty Consumer Takeaway (%)

aa3c9e00da7d5357efdbedd93cefa966f05b99acd910f45b16a8a8657807086f

The Hershey Company is a global leader in the confectionery industry, renowned for its production of chocolate, sweets, mints, and other snacks. The company operates through three main segments: North America Confectionery, North America Salty Snacks, and International, with its products marketed under more than 90 brand names in approximately 80 countries worldwide **[0000047111-24-000009_hsy-20231231.htm:3]** **[0000047111-24-000009_hsy-20231231.htm:34]**. Hershey is the largest producer of quality chocolate in North America and has expanded its portfolio through strategic acquisitions to enhance its product offerings **[0000047111-24-000009_hsy-20231231.htm:3]** **[0000047111-24-000009_hsy-20231231.htm:36]** **[0000047111-24-000009_hsy-20231231.htm:85]**.

1. **North America Confectionery** - Dominates the company's portfolio with iconic brands like Hershey's, Reese's, and Kisses, and includes non-chocolate confectionery brands such as Jolly Rancher and Twizzlers, as well as pantry items like baking ingredients and toppings **[0000047111-24-000009_hsy-20231231.htm:3]** **[0000047111-24-000009_hsy-20231231.htm:34]** **[0000047111-24-000009_hsy-20231231.htm:4]**.
2. **North America Salty Snacks** - Features products like SkinnyPop popcorn and Dot's Homestyle Pretzels, contributing significantly to the company's growth **[HSY_3374110_0]**.
3. **International** - Encompasses operations outside North America with products tailored to regional markets, including Pelon Pelo Rico in Mexico and Sofit in India **[0000047111-24-000009_hsy-20231231.htm:4]**.

4e79a2edad5299c00dd27e7d07173fb239020c6f9764a5d9b6e77bb17f29262e

ecdf4a13371d499da78910fe160ba0eca6f2e9e7373daba17c7215167825329c

Adjustments for Non-Cash Items

Stock-Based Compensation

Changes in Working Capital

Capital Expenditures (CapEx)

Proceeds from / Repayments of Debt

Share Repurchases

Dividend Payments

Net Change in Cash

69226d835164f4e5ec93831a5f5769121885891485a15f6b31acdd514dcf1083

1. Given the significant increase in pricing competition in international markets such as Mexico and Brazil, where you've seen higher levels of competition and are a smaller player, how do you plan to protect or grow your market share in these regions while maintaining profitability?  **[HSY_3406453_6]** 

2. With increased competition domestically from private labels and smaller players impacting your take-home segment, especially as barriers to entry have lowered due to digital media, what specific strategies are you implementing to strengthen your position and revitalize your offerings in this segment?  **[HSY_3406453_18]** 

3. Your gross margins in the recent quarter came in below expectations, partly due to negative sales mix and volume deleverage; how do you plan to address these issues and improve gross margin performance moving forward?  **[HSY_3406453_4]** 

4. With the expected significant step-up in cocoa and sugar costs next year, leading to higher inflation rates than this year, how do you plan to manage these headwinds? Will you consider further pricing actions, and how might this impact volume and elasticity?  **[HSY_3406453_3]** **[HSY_3406453_11]** 

5. You mentioned seeing only a mild impact from GLP-1 drugs on your categories, but given that multiple data sources indicate consumers on these medications are consuming disproportionately less of your products, how are you proactively adjusting your product portfolio and marketing strategies to mitigate potential long-term risks?  **[HSY_3406453_5]** **[HSY_3406453_13]** 

ae5ca76c324e25aeef2ebeabf8c8ab1b2ba225e27d97e169cf1d668ab1f93ebf

9fcfc0f44ee151af7bcd4f257a94f938e635a6a6bb0a4cd4b995cf3c2a7c13a5

United States

Other

- International

North America

International and Other

Total Revenue

cb83897fbb1d2fe566e9f0b26a56a8fb47b66a423751747a945d4121bb0f8398

2c2c72a0d792aeb9567e60fedbdd111aac8e54fbbe4c4849212415957dba7a36

79bea6d0fe972c5f9a234530ade8f3504d65c20ee1f1fd265b44fb0de3363bb8

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: Q4 2024 and FY 2025
- **Guidance**:
  - **Inflation and Costs**: Significant step-up in cocoa prices expected for 2025. Cost savings of **$180 million** from productivity programs.
  - **Pricing and Revenue**: Pricing for 2025 expected to be similar to 2024. Long-term top-line growth algorithm is 2% to 4%.
  - **Earnings and Financial Impact**: Potential double-digit earnings decrease due to cocoa cost inflation.
  - **Market Share and Competition**: Improvement in market share, especially in chocolate.
  - **Headwinds and Tailwinds**: Fewer headwinds in 2025 compared to 2024.
  - **Productivity and Incentive Compensation**: Reset of incentive compensation to target levels in 2025.
  - **Cocoa Inflation Timing**: Significant cocoa inflation expected throughout 2025  **[HSY_3406453_3]** **[HSY_3406453_12]** **[HSY_3406453_0]** **[HSY_3406453_14]** **[HSY_3406453_1]** **[HSY_3406453_10]** **[HSY_3406453_11]** **[HSY_3406453_16]** .

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: FY 2024
- **Guidance**:
  - **Net Sales Growth**: Approximately **2%**.
  - **Adjusted EPS**: Expected to be down slightly.
  - **Adjusted Gross Margin**: Decline of approximately **200 basis points**.
  - **Adjusted Tax Rate**: Approximately **13%**.
  - **Interest Expense**: Between **$165 million to $175 million**.
  - **Capital Investments**: Between **$600 million to $625 million**.
  - **North America Salty Snacks Segment Sales Growth**: Mid-single digits.
  - **North American Confectionery Sales Growth**: Low single-digit growth.
  - **Savings from AAA Initiative**: Incremental **$100 million**.
  - **Second Half Net Sales Growth**: Approximately **4 points** related to shipment timing and extra shipping days  **[HSY_3395777_4]** **[HSY_3395777_5]** **[HSY_3395777_2]** **[HSY_3395777_1]** .

### Q1 2024 Earnings Call
- **Issued Period**: Q1 2024
- **Guided Period**: FY 2024
- **Guidance**:
  - **Net Sales Growth**: **2% to 3%**.
  - **Gross Margin**: Decline of approximately **200 basis points**.
  - **Tax Rate**: Approximately **13%**.
  - **Interest Expense**: Between **$165 million and $175 million**.
  - **EPS**: Expected to be in line with the prior year.
  - **Capital Investments**: Between **$600 million and $650 million**.
  - **Cost Savings**: Incremental **$100 million**.
  - **Advertising and Marketing**: Increased by **12%** in Q1.
  - **Second Quarter Expectations**: High single-digit sales declines expected  **[HSY_3382638_3]** **[HSY_3382638_4]** .

### Q4 2023 Earnings Call
- **Issued Period**: Q4 2023
- **Guided Period**: FY 2024
- **Guidance**:
  - **Net Sales Growth**: **2% to 3%**.
  - **Adjusted Effective Tax Rate**: Approximately **13%**.
  - **Interest Expense**: Between **$165 million and $175 million**.
  - **Capital Investment**: Between **$600 million and $650 million**.
  - **Dividend Increase**: **15%**.
  - **Share Buybacks**: Shares outstanding projected to be approximately **1% lower**.
  - **Gross Profit and Margin**: Gross profit dollars expected to decline low-single-digits; gross margin contraction of approximately **200 basis points**.
  - **Cost Savings**: Targeting **$100 million**.
  - **Adjusted EPS**: Expected to be flat for the year.
  - **Elasticities**: Similar to historic levels.
  - **Seasonal Growth**: More muted in the second half.
  - **ERP Implementation**: **3 to 4 point benefit** to net sales growth in Q1  **[HSY_3382584_3]** **[HSY_3382584_5]** **[HSY_3382584_4]** **[HSY_3382584_7]** **[HSY_3382584_6]** **[HSY_3372430_2]** **[HSY_3372430_16]** .

fa882caa0760cac103f69cd5ad2497fdb6a8966e9eb34326a69cf3a8c4d68756

North America Confectionery

North America Salty Snacks

International

- Confectionery and Confectionery-Based

- Snacks Portfolio

4924382a476770ad620122b4496e54d9a501465a651efea8c3aeb71d5a2bef14

| Name                  | Position                                      | Start Date          | Short Bio                                                                                                                                                                                                 |
|-----------------------|-----------------------------------------------|---------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Deepak Bhatia         | Senior Vice President, Chief Technology Officer | October 23, 2023    | Deepak Bhatia joined Hershey as the Senior Vice President, Chief Technology Officer. He previously held roles at Amazon.com, Inc., including Vice President of Supply Chain Optimization Technologies  **[0000047111-24-000009_hsy-20231231.htm:29]** . |
| Michele G. Buck       | Chairman of the Board, President, and CEO     | October 2019        | Michele G. Buck has been with Hershey for over 19 years, serving as Chairman, President, and CEO since October 2019. She has extensive experience in marketing, consumer products, and strategy  **[0000047111-24-000014_hsy-20240326.htm:38]** **[0000047111-24-000009_hsy-20231231.htm:29]** **[0000047111-23-000021_hsy-20230404.htm:37]** .  |
| Rohit Grover          | President, International                      | April 2019          | Rohit Grover has been President, International since April 2019. He was previously Vice President, General Manager, General China starting in January 2017  **[0000047111-24-000009_hsy-20231231.htm:29]** .                                           |
| Jennifer L. McCalman  | Vice President, Chief Accounting Officer      | February 23, 2021   | Jennifer L. McCalman joined Hershey as Vice President, Chief Accounting Officer in February 2021. She was previously Senior Director and Assistant Controller at Keurig Dr. Pepper  **[0000047111-24-000009_hsy-20231231.htm:29]** **[0000047111-23-000012_hsy-20221231.htm:26]** .                |
| Charles R. Raup       | President, U.S. Confection                    | November 2022       | Charles R. Raup served as President, U.S. Confection until his retirement in September 2024. He was succeeded by Michael Del Pozzo  **[0000047111-24-000009_hsy-20231231.htm:29]** **[0000047111-23-000012_hsy-20221231.htm:26]** **[0000047111-24-000049_exhibit991_08292024uspresi.htm:0]** .                                                             |
| Jason R. Reiman       | Senior Vice President, Chief Supply Chain Officer | June 2019           | Jason R. Reiman has been Senior Vice President, Chief Supply Chain Officer since June 2019. He previously served as Vice President, Supply Chain Operations  **[0000047111-24-000009_hsy-20231231.htm:29]** **[0000047111-23-000012_hsy-20221231.htm:26]** .                                       |
| Kristen J. Riggs      | President, Salty Snacks                       | November 2022       | Kristen J. Riggs has been President of Salty Snacks since November 2022. She previously held roles such as Senior Vice President, Chief Growth Officer  **[0000047111-24-000009_hsy-20231231.htm:29]** **[0000047111-23-000012_hsy-20221231.htm:26]** .                                           |
| Christopher M. Scalia | Senior Vice President, Chief Human Resources Officer | January 2020        | Christopher M. Scalia has been Senior Vice President, Chief Human Resources Officer since January 2020. He was previously Vice President, Global Human Resources  **[0000047111-24-000009_hsy-20231231.htm:29]** .                                     |
| James Turoff          | Senior Vice President, General Counsel and Secretary | May 2021            | James Turoff has been Senior Vice President, General Counsel and Secretary since May 2021. He previously served as Acting General Counsel  **[0000047111-24-000009_hsy-20231231.htm:29]** **[0000047111-23-000012_hsy-20221231.htm:26]** .                                                         |
| Steven E. Voskuil     | Senior Vice President, Chief Financial Officer | May 13, 2019        | Steven E. Voskuil has been Senior Vice President, Chief Financial Officer since May 2019. He was previously CFO at Avanos Medical, Inc.  **[0000047111-24-000009_hsy-20231231.htm:29]** **[0000047111-23-000012_hsy-20221231.htm:26]** .                                                          |
| Michael Del Pozzo     | President, U.S. Confection                    | September 16, 2024  | Michael Del Pozzo was appointed President, U.S. Confection effective September 16, 2024. He previously had a 23-year career at PepsiCo  **[0001127602-24-024280_xslF345X02/form3.xml:0]** **[0000047111-24-000049_exhibit991_08292024uspresi.htm:0]** .                                                            |

9e154f26b44b23133eaef8b61aa85df61a7542733d62dd4529ec967a13508c04

| Program Details          | Program 1       |
|--------------------------|-----------------|
| Approval Date            | December 2023  **[0000047111-24-000055_hsy-20240929.htm:49]** **[0000047111-24-000055_hsy-20240929.htm:59]** **[0000047111-24-000055_hsy-20240929.htm:28]**  |
| End Date/Duration        | No expiration date  **[0000047111-24-000055_hsy-20240929.htm:49]** **[0000047111-24-000055_hsy-20240929.htm:59]** **[0000047111-24-000055_hsy-20240929.htm:28]**  |
| Total additional amount  | **$500 million**  **[0000047111-24-000055_hsy-20240929.htm:49]** **[0000047111-24-000055_hsy-20240929.htm:59]** **[0000047111-24-000055_hsy-20240929.htm:28]**  |
| Remaining authorization amount | **$470 million**  **[0000047111-24-000055_hsy-20240929.htm:49]** **[0000047111-24-000055_hsy-20240929.htm:59]** **[0000047111-24-000055_hsy-20240929.htm:28]**  |
| Details                  | Commenced after May 2021 authorization completion; shares purchased will be held as treasury shares  **[0000047111-24-000055_hsy-20240929.htm:49]** **[0000047111-24-000055_hsy-20240929.htm:59]** **[0000047111-24-000055_hsy-20240929.htm:28]**  |

a41289a1eec083fb54220aecd82384832b72a273dd2b24c8c447220e3b32cfd7

**Quarterly guidance for Q4 2024:**
No quarterly metrics were provided in the most recent guidance.

**Annual guidance for FY 2025:**
- **Cost savings from productivity programs**: $180 million  **[HSY_3406453_3]** **[HSY_3406453_12]** **[HSY_3406453_0]** **[HSY_3406453_14]** **[HSY_3406453_1]** **[HSY_3406453_10]** **[HSY_3406453_11]** **[HSY_3406453_16]**  (no prior guidance)  
- **Potential double-digit earnings decrease**: double-digit  **[HSY_3406453_3]** **[HSY_3406453_12]** **[HSY_3406453_0]** **[HSY_3406453_14]** **[HSY_3406453_1]** **[HSY_3406453_10]** **[HSY_3406453_11]** **[HSY_3406453_16]**  (no prior guidance)  
- **Long-term top-line growth algorithm**: 2% to 4%  **[HSY_3406453_3]** **[HSY_3406453_12]** **[HSY_3406453_0]** **[HSY_3406453_14]** **[HSY_3406453_1]** **[HSY_3406453_10]** **[HSY_3406453_11]** **[HSY_3406453_16]**  (no prior guidance)  

b9b86d896252ee7356c5210007d5ec49f8f43baa93ef8fbb42c77fc14fc3a00f

| Name            | Start Date   | End Date       | Reason for Change                                                                 |
|-----------------|-------------|----------------|----------------------------------------------------------------------------------|
| Ernst & Young LLP (EY) | June 15, 2016  **[0000047111-16-000117_a8-k_06172016ey.htm:3]**  | Present       | Current auditor.                                                             |
| KPMG LLP        | N/A         | December 31, 2016  **[0000047111-16-000100_a8-k_04272016.htm:1] [0000047111-16-000117_a8-k_06172016ey.htm:3]**  | Dismissed as part of a competitive bidding process.  **[0000047111-16-000100_a8-k_04272016.htm:1] [0000047111-16-000117_a8-k_06172016ey.htm:3]**                    |

ba148658cab91d415e82bd38c15036293f2c7c1d8028aa3363e26443e2057f12

a1eb042ba5ac0be7149d93cb2db49302c6f037afb184cc73c069e55e2e1e6bc1

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

- Total Revenue (Q3 2024): $2,987.49 million (-1% YoY)  **[0000047111-23-000065_hsy-20231001.htm:2]** **[0000047111-24-000055_hsy-20240929.htm:2]**   
- North America Salty Snacks: $291.8 million (**-15% YoY**)  **[0000047111-23-000065_hsy-20231001.htm:43]** **[0000047111-24-000055_hsy-20240929.htm:42]**   
- Cost of Goods Sold: $1,754.78 million (+5% YoY)  **[0000047111-23-000065_hsy-20231001.htm:2]** **[0000047111-24-000055_hsy-20240929.htm:2]**   
- Operating Income: $613.17 million (**-17% YoY**)  **[0000047111-23-000065_hsy-20231001.htm:2]** **[0000047111-24-000055_hsy-20240929.htm:2]**   
- Net Income: $446.3 million (**-14% YoY**)  **[0000047111-23-000065_hsy-20231001.htm:2]** **[0000047111-24-000055_hsy-20240929.htm:2]**   
- EPS (Diluted): $2.20 (**-13% YoY**)  **[0000047111-23-000065_hsy-20231001.htm:2]** **[0000047111-24-000055_hsy-20240929.htm:2]**   

3234aa755f5c1d73ab9ae92cabeaf3dae78b308af52745c3b90f84e38689b5f7

Volume Growth for North America Salty Snacks (percentage)

Price Decline for North America Salty Snacks (percentage)

Volume Decline for International (percentage)

Price Increase for International (percentage)

Total Consolidated Volume Decline (percentage)

Total Consolidated Price Increase (percentage)

Market Price Increase for Cocoa (percentage)

Volume Decline for Consolidated Business (percentage)

Price Realization for Consolidated Business (percentage)

Total U.S. Retail Takeaway (percentage)

U.S. CMG Consumer Takeaway (percentage)

Salty Consumer Takeaway (percentage)

Salty Market Share Change (basis points)

U.S. Candy, Mint and Gum Consumer Takeaway (percentage)

aaeb53c8de6eef8a2c7a8f2dfeaebf259c03091622aa777ba2fac824e35961cd

- **Hershey has strong brands in growing categories, a highly efficient and agile supply chain, and advanced capabilities in analytics, media, category management, and sales**, positioning the company to meet the changing needs of consumers and drive long-term success.  **[HSY_3395777_6]**
- **New product innovations are expected to accelerate growth into 2025 and beyond**, including the launch of a new Jolly Rancher gummy form and the Shaq-a-licious gummy line in collaboration with Shaquille O'Neal, which has seen strong retailer interest and sell-in.  **[HSY_3395777_2]** **[HSY_3395777_1]**
- **The North America Salty Snacks segment delivered above expectations with 8% retail sales growth in Q2**, leading to a **22-basis point share gain in salty snacking**, reflecting robust consumer demand and strong execution.  **[HSY_3395777_2]**

db06a9fcf305c2749fb599044225db26865ad51d5ce7df5f93bc740c533c1be1

| Year | Amount Due (in millions) | Debt Type       | Interest Rate | % of Total Debt |
|------|--------------------------|-----------------|---------------|-----------------|
| 2024 | $300.0 **[0000047111-24-000055_hsy-20240929.htm:12]**           | 2.050% Notes    | 2.050% **[0000047111-24-000055_hsy-20240929.htm:12]**| 5.7% = (300 / 5,290.3) * 100 **[0000047111-24-000055_hsy-20240929.htm:4]** **[0000047111-24-000055_hsy-20240929.htm:12]** |
| 2025 | $300.0 **[0000047111-24-000055_hsy-20240929.htm:12]**           | 0.900% Notes    | 0.900% **[0000047111-24-000055_hsy-20240929.htm:12]**| 5.7% = (300 / 5,290.3) * 100 **[0000047111-24-000055_hsy-20240929.htm:4]** **[0000047111-24-000055_hsy-20240929.htm:12]** |
| 2025 | $300.0 **[0000047111-24-000055_hsy-20240929.htm:12]**           | 3.200% Notes    | 3.200% **[0000047111-24-000055_hsy-20240929.htm:12]**| 5.7% = (300 / 5,290.3) * 100 **[0000047111-24-000055_hsy-20240929.htm:4]** **[0000047111-24-000055_hsy-20240929.htm:12]** |
| 2026 | $500.0 **[0000047111-24-000055_hsy-20240929.htm:12]**           | 2.300% Notes    | 2.300% **[0000047111-24-000055_hsy-20240929.htm:12]**| 9.5% = (500 / 5,290.3) * 100 **[0000047111-24-000055_hsy-20240929.htm:4]** **[0000047111-24-000055_hsy-20240929.htm:12]** |
| 2027 | $193.6 **[0000047111-24-000055_hsy-20240929.htm:12]**           | 7.200% Debentures| 7.200% **[0000047111-24-000055_hsy-20240929.htm:12]**| 3.7% = (193.6 / 5,290.3) * 100 **[0000047111-24-000055_hsy-20240929.htm:4]** **[0000047111-24-000055_hsy-20240929.htm:12]** |
| 2028 | $350.0 **[0000047111-24-000055_hsy-20240929.htm:12]**           | 4.250% Notes    | 4.250% **[0000047111-24-000055_hsy-20240929.htm:12]**| 6.6% = (350 / 5,290.3) * 100 **[0000047111-24-000055_hsy-20240929.htm:4]** **[0000047111-24-000055_hsy-20240929.htm:12]** |
| 2029 | $300.0 **[0000047111-24-000055_hsy-20240929.htm:12]**           | 2.450% Notes    | 2.450% **[0000047111-24-000055_hsy-20240929.htm:12]**| 5.7% = (300 / 5,290.3) * 100 **[0000047111-24-000055_hsy-20240929.htm:4]** **[0000047111-24-000055_hsy-20240929.htm:12]** |
| 2030 | $350.0 **[0000047111-24-000055_hsy-20240929.htm:12]**           | 1.700% Notes    | 1.700% **[0000047111-24-000055_hsy-20240929.htm:12]**| 6.6% = (350 / 5,290.3) * 100 **[0000047111-24-000055_hsy-20240929.htm:4]** **[0000047111-24-000055_hsy-20240929.htm:12]** |
| 2033 | $400.0 **[0000047111-24-000055_hsy-20240929.htm:12]**           | 4.500% Notes    | 4.500% **[0000047111-24-000055_hsy-20240929.htm:12]**| 7.6% = (400 / 5,290.3) * 100 **[0000047111-24-000055_hsy-20240929.htm:4]** **[0000047111-24-000055_hsy-20240929.htm:12]** |
| 2046 | $300.0 **[0000047111-24-000055_hsy-20240929.htm:12]**           | 3.375% Notes    | 3.375% **[0000047111-24-000055_hsy-20240929.htm:12]**| 5.7% = (300 / 5,290.3) * 100 **[0000047111-24-000055_hsy-20240929.htm:4]** **[0000047111-24-000055_hsy-20240929.htm:12]** |
| 2049 | $400.0 **[0000047111-24-000055_hsy-20240929.htm:12]**           | 3.125% Notes    | 3.125% **[0000047111-24-000055_hsy-20240929.htm:12]**| 7.6% = (400 / 5,290.3) * 100 **[0000047111-24-000055_hsy-20240929.htm:4]** **[0000047111-24-000055_hsy-20240929.htm:12]** |
| 2050 | $350.0 **[0000047111-24-000055_hsy-20240929.htm:12]**           | 2.650% Notes    | 2.650% **[0000047111-24-000055_hsy-20240929.htm:12]**| 6.6% = (350 / 5,290.3) * 100 **[0000047111-24-000055_hsy-20240929.htm:4]** **[0000047111-24-000055_hsy-20240929.htm:12]** |

8f0bd9250bab810c87d4c30381939666d8cc0e4ff8677f80bfd69217a98f8ad2

1. **Price Increases and Elasticity**  
   **Q:** How are you handling price increases amid consumer elasticity concerns?  
   **A:** We are experiencing outsized inflation due to historic cocoa prices and have taken a measured approach to pass some costs to consumers. We're implementing about **6 to 7 points of net price realization** but not across the entire portfolio.  **[HSY_3395650_1]**  We assume historic elasticities, slightly worse than recent increases, and focus on key price points, maintaining a significant portion of our products under the **$3 price point**.  **[HSY_3395650_1]** **[HSY_3395650_4]** 

2. **Cocoa Cost Inflation Impact**  
   **Q:** Will recent pricing cover longer-term cocoa inflation?  
   **A:** Our pricing strategy hasn't changed, but we don't expect this round to fully cover inflation.  **[HSY_3395650_7]**  While current cocoa prices are not sustainable, future prices may remain higher than previous levels.  **[HSY_3395650_1]**  We'll use multiple levers like cost reduction and productivity to manage costs.  **[HSY_3395650_7]** 

3. **Market Share Trends in Core Chocolate**  
   **Q:** Why are you losing share in core chocolate, and when will it improve?  
   **A:** Despite category growth of around **2%**  **[HSY_3395650_2]** , we faced pressure due to under-indexing in sweets and reduced merchandising at a key retailer.  **[HSY_3395650_2]**  We anticipate improvement in the second half with incremental innovation like the Shaq launch and reversal of merchandising reductions.  **[HSY_3395650_2]** 

4. **Gross Margin Outlook for Back Half**  
   **Q:** What is the gross margin outlook for the second half?  
   **A:** We expect more commodity inflation and a mix impact from seasonal products, which are slightly margin-dilutive.  **[HSY_3395650_8]**  We'll see benefits from cost savings initiatives and lapping prior year incremental costs, but overall margins may be pressured.  **[HSY_3395650_8]** 

5. **Consumer Spending and C-store Weakness**  
   **Q:** How is consumer pullback affecting convenience stores?  
   **A:** Consumers are seeking better value, shifting purchases from convenience stores to mass and dollar channels.  **[HSY_3395650_11]**  We expect this trend to continue but are confident in adjusting our offerings across channels.  **[HSY_3395650_11]** 

6. **Inventory Levels and Destocking**  
   **Q:** Is destocking a red flag for demand?  
   **A:** We don't see it as a red flag but a reversion to traditional ordering patterns, with Halloween shipments moving to the third quarter.  **[HSY_3395650_0]**  We have good visibility into seasonal orders and strong expectations for the season.  **[HSY_3395650_0]** 

7. **2025 Pricing Impact and Visibility**  
   **Q:** Will the 6-7% price increase reflect in 2025 results?  
   **A:** The price increase is phased, with some impact this year and more in 2025. We expect overall mid-single-digit price realization in 2025.  **[HSY_3395650_6]** 

8. **Inflation Offsetting Strategies**  
   **Q:** What levers are you using to offset inflation besides pricing?  
   **A:** We're focusing on cost reduction, productivity, and product portfolio adjustments.  **[HSY_3395650_7]** **[HSY_3395650_14]**  Initiatives include formulation changes and collaboration with retailers on value offerings.  **[HSY_3395650_7]** **[HSY_3395650_14]** 

9. **Marketing Spend Plans**  
   **Q:** How will marketing spend change given cost pressures?  
   **A:** We plan to maintain marketing support in line with sales growth this year and expect the same for next year.  **[HSY_3395650_9]**  No significant changes are anticipated.  **[HSY_3395650_9]** 

10. **Salty Snacks Outlook**  
    **Q:** What drives confidence in Dot's and SkinnyPop growth?  
    **A:** Dot's continues strong growth with distribution expansion and innovation like new flavors.  **[HSY_3395650_10]**  For SkinnyPop, we're seeing stabilization and are investing in innovation and marketing to regain momentum.  **[HSY_3395650_10]** 

a47ea283b4ecc4092f93db843de9c653f8ad1a9dd66208d57ff9ee67060b176e

1. **Cocoa Prices and Future Pricing**  
   **Q:** How will cocoa prices affect 2025 pricing?  
   **A:** We're in the midst of building the 2025 plan, considering multiple levers like pricing and supply chain savings. Cocoa prices have been volatile due to both structural and transient factors, including poor weather, regulatory impacts like the EU deforestation regulation, market speculation, and lack of liquidity. We have full coverage for **2024** and some into **2025**, and we'll continue to monitor and manage what's within our control.  **[HSY_3382583_3]** **[HSY_3382583_7]** **[HSY_3382583_20]** 

2. **Price Elasticity and Consumer Response**  
   **Q:** How might price elasticity change with large price increases?  
   **A:** We've seen no material change in our elasticities over the past several months. We remain in line with historical levels, which is about **minus 1**, and that's what we assume going forward.  **[HSY_3382583_14]** 

3. **Margin Outlook and Cost Savings**  
   **Q:** How will cost savings impact the P&L amid inflation?  
   **A:** Our model is to offset inflationary costs over time through various levers in the P&L. We have two programs focused on productivity and savings, totaling **$700 million** over the next three years. These will be a net benefit to the P&L despite near-term stresses from cocoa inflation.  **[HSY_3382583_16]** **[HSY_3382583_21]** 

4. **North America Confectionery Sales and Market Share**  
   **Q:** Why did market share exceed expectations but the category didn't?  
   **A:** Our Q1 top-line performance was in line with expectations, but our market share exceeded due to strong seasons and innovation like **Reese's Caramel**. The category's softness was partly due to our largest competitor, **Mars**, being down in share, driven by their innovation not sustaining.  **[HSY_3382583_1]** **[HSY_3382583_5]** 

5. **State of the American Consumer**  
   **Q:** How is the lower-income consumer affecting demand?  
   **A:** We've seen impact from the **SNAP** reductions in the back part of last year, but we're beginning to see some stabilization as we start to lap those reductions. Value-seeking behavior continues, especially among lower-income consumers. Our **C-store** business is okay, while **mass, club, and dollar** channels are very strong.  **[HSY_3382583_4]** **[HSY_3382583_15]** 

6. **Salty Snacks Performance**  
   **Q:** What is driving Salty Snacks' improvement and margin outlook?  
   **A:** Salty was on track with expectations, with strong **Dot's** performance up about **30%**, gaining over **300** market share points. **SkinnyPop** improved, but significant gains will occur as we lap Q2. Profitability will improve going forward, with increased advertising starting in Q2.  **[HSY_3382583_6]** **[HSY_3382583_19]** 

7. **Inventory Dynamics and ERP Implementation**  
   **Q:** How will inventory reversal impact Q2 and pricing actions?  
   **A:** The fixed cost leverage that benefited us in Q1 will fully reverse in Q2, with a high single-digit decline expected. We remain consistent with our strategy to evaluate pricing actions after stabilizing our ERP system at the end of Q2.  **[HSY_3382583_8]** **[HSY_3382583_10]** **[HSY_3382583_13]** 

8. **Gross Margin Expectations**  
   **Q:** Has the gross margin outlook evolved through the year?  
   **A:** No change; we're still about **200 basis points** down year-over-year for the full year. Productivity savings are on track and right in line with the plan.  **[HSY_3382583_16]** 

9. **International Expansion in Europe**  
   **Q:** What is Hershey's approach to Europe?  
   **A:** We've been successful with **Reese's** in the **U.K.**, seeing phenomenal success without significant investment. We now have a profitable business there, which is our primary focus, leveraging differentiated products in a well-developed market.  **[HSY_3382583_24]** 

10. **Seasonal Sales and Olympics Activation**  
    **Q:** How are you approaching seasonal events like the Olympics?  
    **A:** Winning in seasons starts with the right product portfolio and innovation. We apply lessons from previous seasons to events like the **Olympics**, with activations starting as early as **June** to engage consumers ahead of the event.  **[HSY_3382583_12]** **[HSY_3382583_22]** **[HSY_3382583_23]** 

11. **Channel Performance and C-Stores**  
    **Q:** Are you seeing pressure in the C-store channel?  
    **A:** Our business in **C-stores** has been holding up well; we haven't seen a significant change. We always evaluate price gaps and points both within and across categories.  **[HSY_3382583_9]** 

de05e65b238a9cb36c4b38fd289004864a0110413e79d9573da140cf80abcd31

- **Hershey expects double-digit EPS declines in the first half of 2024**, indicating profitability pressures.  **[HSY_3382583_10]**
- **Gross margins are projected to decrease by approximately 200 basis points year-over-year for the full year**, suggesting ongoing margin compression.  **[HSY_3382583_16]**
- **Challenges in the Salty Snacks segment, particularly with SkinnyPop, which remains under pressure along with the rest of the ready-to-eat popcorn category**, could impact overall performance. Additionally, **Q1 Salty Snacks profit was the weakest for the year**, signaling margin concerns in that business unit.  **[HSY_3382583_6]**

cb7719fbb2615496d2318c281907b013d1296e4784bfcd2544edf4e8286906bb

- **Increased competition from private label and smaller manufacturers is impacting Hershey's market share in the confectionery segment, particularly in take-home products.** Michele Buck acknowledged that "there are some smaller players who came in and have competitive velocities, and we need to switch out some of the items we have for even stronger items."  **[HSY_3406453_18]**
- **Hershey's gross margin for the quarter was below expectations due to sales flow-through issues, negative mix, and volume deleverage.** Steven Voskuil stated that "it was below what we were expecting... The biggest piece was the sales flow through and... the mix of sales... there was some negative mix inside the sales delivery that had an impact on gross margin... we also had some volume deleverage..."  **[HSY_3406453_4]**
- **The impact of GLP-1 weight loss drugs is leading to a decline in consumption in their categories, with consumers on these drugs eating disproportionately less of confectionery products.** Michele Buck noted that "we're seeing a mild year-on-year impact... we've continued to see multiple sources of data validating that the consumers on those drugs are eating disproportionately less of our categories."  **[HSY_3406453_5]**

3f85839f178e09e240c9e9bb9135a681cb4f74fc317af762eb767941068d5d56

- **Strong market share gains and performance in North America Confectionery**, driven by successful innovation such as **Reese's Caramel**, which was **the best innovation in the category** and drove strong merchandising efforts.  **[HSY_3382583_1]**  The company expects **improvement in trends** as the year progresses.  **[HSY_3382583_1]**
- **Salty Snacks segment is on track**, with **Dot's Pretzels up about 30%** and gaining over **300 market share points**, fueled by increased distribution and velocity, especially in club channels.  **[HSY_3382583_6]** **[HSY_3382583_19]**  Profitability in Salty Snacks is expected to **improve throughout the year**, with strong media and trade investments and new flavor and pack innovations driving growth and share gains in the second half.  **[HSY_3382583_6]**
- **Continued strength in seasonal products**, with market share gains in **Valentine's** and **Easter** seasons, driven by the right product portfolio, strong merchandising, and improved supply.  **[HSY_3382583_12]** **[HSY_3382583_22]**  The company plans to leverage these strategies to make events like the **Olympics** a strong opportunity in the summer.  **[HSY_3382583_22]**

c0c4ebc3cbc3de5cca39499725a3d77a269c698c5503ad4d64c783b34e258b4d

- **Reported net sales declined 16.7% in Q2 2024**, indicating potential challenges in maintaining revenue growth.  **[HSY_3395777_4]**
- **Adjusted earnings per share declined 12.5% in the first half**, driven by lower sales, gross margin declines, higher capability and technology investments, and a higher tax rate.  **[HSY_3395777_5]**
- The company is facing increasing input costs, particularly in cocoa and sugar, leading to gross margin pressures and necessitating price increases, which may impact consumer demand in a challenging economic environment.  **[HSY_3395777_2]**

907f0d4c8808ebf549ffccc7548307e59e76fb88bb548789688b2632be704d80

1. **Cocoa Cost Impact**  
   **Q:** How will cocoa inflation affect 2025 earnings?  
   **A:** Cocoa prices are significantly increasing for next year, leading to a substantial inflationary headwind in 2025. This year's cocoa costs were hedged and set earlier, but next year's prices reflect current higher market rates. The impact will be significant, but exact figures aren't provided yet.  **[HSY_3406453_3]** **[HSY_3406453_7]** **[HSY_3406453_10]** **[HSY_3406453_14]** 

2. **2025 Earnings Outlook**  
   **Q:** Are you expecting a double-digit earnings decrease in 2025?  
   **A:** While acknowledging significant pressures from cocoa inflation, tax normalization, and incentive compensation adjustments, management cannot provide precise guidance yet due to evolving cocoa prices.  **[HSY_3406453_14]** **[HSY_3406453_15]** 

3. **Pricing Strategy**  
   **Q:** Will pricing increase more in 2025 compared to 2024?  
   **A:** Pricing next year is expected to be similar to this year, as price increases will flow through. They've taken pricing on about half of their chocolate volume, netting to a **low to mid-single-digit** pricing increase overall.  **[HSY_3406453_0]** **[HSY_3406453_7]** **[HSY_3406453_19]** **[HSY_3406453_20]** 

4. **Market Share Trends**  
   **Q:** When will chocolate market share stabilize?  
   **A:** Expecting gradual improvement, with momentum building through the end of this year and into next. Most of the portfolio should recover, but instant consumables may remain under pressure until mid-2025 due to convenience store channel pressures.  **[HSY_3406453_1]** **[HSY_3406453_16]** 

5. **GLP-1 Drug Impact**  
   **Q:** Are GLP-1 drugs affecting chocolate sales?  
   **A:** Experiencing a **mild year-on-year** impact, as consumers on these drugs consume less from their categories. The effect is gradual and in line with expectations. The company is monitoring behavior and evolving the portfolio to meet consumer needs.  **[HSY_3406453_5]** **[HSY_3406453_13]** 

6. **Gross Margin Performance**  
   **Q:** What caused the gross margin shortfall?  
   **A:** Gross margins were below expectations due to lower sales, negative mix—particularly in convenience stores—and volume deleverage. These factors collectively drove the disappointing margin performance.  **[HSY_3406453_3]** **[HSY_3406453_4]** 

7. **Increased Competition**  
   **Q:** What's causing increased competition internationally?  
   **A:** Facing intensified pricing competition in international markets, especially in Mexico and Brazil, where competitors are deeply discounting. These are smaller markets where Hershey is a smaller player, but competition has been intense.  **[HSY_3406453_6]** **[HSY_3406453_7]** **[HSY_3406453_16]** 

8. **Marketing Spending**  
   **Q:** Will marketing spend decrease due to cost pressures?  
   **A:** No, Hershey believes in investing in their brands and plans to maintain or increase marketing spend, focusing on high ROI and efficiency. They are strategically investing to bolster the instant consumable business and leveraging media to drive top-line growth.  **[HSY_3406453_8]** **[HSY_3406453_17]** 

9. **Inventory Impacts**  
   **Q:** How are inventory moves affecting guidance?  
   **A:** Inventory movements are causing about a **0.5-point** drag on full-year guidance. Expecting mid-single-digit shipping timing impacts in Q4. These inventory effects will be less significant in 2025.  **[HSY_3406453_9]** **[HSY_3406453_16]** 

10. **Leadership Changes**  
    **Q:** What will the new head of North America Confectionery bring?  
    **A:** Mike, coming from PepsiCo, brings external perspective and strong customer and retail experience. He will enhance customer focus to unlock growth and evolve the portfolio to meet shifting consumer channels.  **[HSY_3406453_2]** **[HSY_3406453_18]** 

11. **Future Growth Drivers**  
    **Q:** Which areas will drive growth in 2025 and beyond?  
    **A:** Growth will come from salty snacks (**SALT**), sweets, and seasonal products, where there's strong category growth and household penetration opportunity. Channel opportunities, especially in chocolate, will also contribute, but the biggest inflection point may come from other areas.  **[HSY_3406453_15]** **[HSY_3406453_17]** 

f081e1fcda5360fdad251a179841750ec41fe1bce05ba7bec4725fe3d2393826

- **Hershey is enhancing execution by implementing the "gold standard shelf" for instant consumables, anticipated to lead to stellar results.**  **[HSY_3406453_17]**
- **The company is focusing on growth opportunities in underdeveloped areas like sweets, with strong innovation and distribution expansion, expecting these areas to drive significant growth in 2025 and beyond.**  **[HSY_3406453_15]**
- **Hershey is seeing positive market share trends due to successful innovations and strong performances in key categories like sweets and SkinnyPop, expecting gradual improvement and share gains.**  **[HSY_3406453_1]**

9c10aca7d392826d45171028f5ecc046bfbcb06ebae6796fbd2308cff9baeac2

Hershey Co (HSY)

Financials