The Hershey Company (NYSE: HSY) found its shares reaching skyward Thursday, on the results of net sales and earnings for the second quarter.
Consolidated net sales came in at $1,707.3 million, a decrease of 3.4%. Organic, constant currency net sales decreased 3.5%.
The Hershey, Pa.-based chocolate bar giant also reported net income of $268.9 million, or $1.29 per share-diluted, for a decrease of 12.8%. Adjusted earnings per share-diluted were $1.31, flat versus the same period a year ago.
According to CEO Michele Buck, "We delivered profitable sales growth in North America in the second quarter despite the increased complexities presented by the COVID-19 pandemic. Our iconic brands and great execution enabled us to gain 225 basis points of confectionery market share.
"In addition, strong cost management enabled us to offset many of the COVID-19 related financial pressures and deliver adjusted earnings per share in line with last year."
The company’s second-quarter 2020 results, as prepared in accordance with U.S. generally accepted accounting principles (GAAP), included items positively impacting comparability of $3.8 million, or $0.02 per share-diluted, as outlined in the table below. For the second quarter of 2019, items negatively impacting comparability totaled $39.7 million, or $0.17 per share-diluted.
Reported gross margin was 46.4% in the second quarter of 2020, compared to 49.5% in the second quarter of 2019, a decrease of 310 basis points. The decline reflects a higher derivative mark-to-market commodity gain in the prior period.
Shares vaulted $5.71, or 4.1%, to $144.17.
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