Hershey Co. (HSY) – Expansion over integrations and mergers to increase sales in FY23

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Hershey Co. (HSY) (Q1FY23)

Introduction

The Hershey Company, together with its subsidiaries, engages in the manufacture and sale of confectionery products and pantry items in the United States and internationally. The company operates through three segments: North America Confectionery, North America Salty Snacks, and International.

It offers chocolate and non-chocolate confectionery products; gum and mint refreshment products, including mints, chewing gums, and bubble gums; pantry items, such as baking ingredients, toppings, beverages, and sundae syrups; and snack items comprising spreads, bars, snack bites, mixes, popcorn, and pretzels.

The company provides its products primarily under the Hershey’s, Reese’s, Kisses, Jolly Rancher, Almond Joy, Brookside, barkTHINS, Cadbury, Good & Plenty, Heath, Kit Kat, Payday, Rolo, Twizzlers, Whoppers, York, Ice Breakers, Breath Savers, Bubble Yum, Lily’s, SkinnyPop, Pirates Booty, Paqui, Dot’s Homestyle Pretzels, and ONE Bar brands, as well as under the Pelon Pelo Rico, IO-IO, and Sofit brands. It markets and sells its products to wholesale distributors, chain grocery stores, mass merchandisers, chain drug stores, vending companies, wholesale clubs, convenience stores, dollar stores, concessionaires, and department stores.

Highlights

Hershey plans to acquire two manufacturing plants from Weaver Popcorn Manufacturing. The acquisition is expected to enhance flexibility, agility, and resiliency in the company’s salty snacks supply chain network and will support the strong growth of brands like SkinnyPop, for which Weaver Popcorn Manufacturing is a co-manufacturer.

Stock Performance

Hershey’s stock gave returns of 6.1% and 20.5% in the period of three months and one year. The stock has a 52-week high of $276.88 and a 52-week low of $201.63. The stock gave returns of 86.6% and CAGR of 23.1% over a period of three years. The stock had a 200-Day Moving Average of $238.91 and a 50-Day Moving Average of $263.31

Valuation

– Enterprise Value
– CrispIdea Forecast
– CrispIdea Segment Forecast
– Economic Value Added Analysis
– P/E Analysis
– Peer Valuation
– CrispIdea Forecast Relative to Consensus
– Consensus History and Surprise
– Consensus Momentum

Actual & Historical Performance

– Income Statement
– Balance Sheet
– Cash Flow
– 10 Year Historical Performance
– Ratio Analysis
– Du Pont Analysis
– ROIC & ROCE Analysis
– Segment Performance
– Key Metrics
– M&A Deals

Peer Performance

– Summary
– Profitability
– Growth
– Price Performance

Ownership

Stock Price Performance

Crispidea Coverage

No of Pages: 34

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