Snack acquisitions push Hershey sales up 5.3 percent in second quarter
North American sales reached $1.56 billion.
August 1, 2018
The Hershey Co.’s consolidated net sales reached $1.75 billion in the second quarter of 2018, thanks to snack acquisitions and divestitures of its Golden Monkey unit and the Tyrells brand.
The company, which announced its quarterly results last week, said global consolidated net sales were up 5.3 percent from $1.66 billion in the same period last year. Hershey’s North American net sales were up 5.6 percent, reaching $1.56 billion.
"We continue to invest in the U.S. with our core brands and build capabilities for growth while taking measured steps to enhance long-term profitability.” CEO Michele Buck said. “Amplify's strong performance in the marketplace continues and the integration is proceeding as planned. I am very pleased with the ongoing transformation of our international business with solid organic growth, meaningful profit improvement, and the successful divestitures of Tyrrells and Golden Monkey.”
Hershey acquired Tyrells through its $1.6 billion acquisition of Amplify Snack Brands earlier this year. The company announced the sale in December 2017, which also included Skinny Pop, Oatmega and Paqui brands.
In 2014, Hershey’s Netherlands division acquired an 80 percent stake of Shanghai Golden Monkey Food Joint Stock Co., a privately held confectionery company based in Shanghai, China, for $394 million. Hershey was set to acquire the remaining 20 percent for $98 million soon after.
Through this acquisition, Hershey purchased the Golden Monkey brand under which candy, chocolates, protein-based products and snack foods are made and marketed. Sales in China did not hit projections, falling 16.6 percent in the fourth quarter of 2017.
Though Hershey’s overall North American sales were up and Hershey bolstered advertising and marketing for its core confectionery brands, sales in the U.S. candy, mint, and gum dropped by 0.4 percent, resulting in a market share loss of 30 basis points.