(Reuters) -Hershey posted a smaller-than-expected drop in sales for the first quarter and beat profit estimates on Thursday, helped by steady demand for its salty snacks business in North America.
Sales in Hershey’s North America snack business, home to Dot’s pretzels and SkinnyPop popcorn, got a boost as the company reduced prices after several quarters of hikes.
Its quarterly organic volumes in the North America salty snacks business rose 4%, while prices were 3% lower than a year ago.
The Reese’s Peanut Butter Cups maker also maintained its annual net sales and adjusted earnings forecast, including estimated tariff-related expenses of about $15 million to $20 million for the second quarter.
The Trump administration’s steep import tariffs and often erratic trade-policy shifts have raised costs for many American businesses and clouded their outlook.
Peer Mondelez International had also flagged potential uncertainty around tariffs, after the chocolate maker beat quarterly profit estimates.
Hershey benefited from a 2% price hike for its overall business as well as decreased advertising and marketing expenses that helped shield its margins from higher costs of manufacturing and commodities such as cocoa.
The company’s net sales declined 13.8% to $2.81 billion from a year ago. Analysts had estimated a 14.1% decline to $2.79 billion, per data compiled by LSEG.
On an adjusted basis, the company reported profit of $2.09 per share for the quarter ended March 30, compared with estimates of $1.95 per share.
Shares of the company were marginally up at $167.80 in premarket trading.
(Reporting by Anuja Bharat Mistry in Bengaluru; Editing by Devika Syamnath)
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