(Reuters) -Hershey on Thursday raised its annual sales and profit forecasts after posting better-than-expected quarterly results, betting on robust demand for its higher-priced chocolates and snacks.
The company now expects 2025 net sales growth of about 3%, up from its prior target of at least 2% rise. It also hiked the lower end of its annual adjusted profit forecast range to $5.90 per share from $5.81 per share.
Sales were boosted by Hershey expanding its portfolio of healthier, zero-sugar offerings and strong growth across chocolate, sweets, and mints, it said.
Volumes in the North America Salty Snacks division jumped 11% year-on-year, driven by brands such as SkinnyPop and Dot’s Pretzels. Prices in the category fell 1% during the quarter.
But volumes slipped 1% in Hershey’s core North America Confectionary business, and prices climbed 7%.
Hershey CEO Kirk Tanner warned of a slower-than-expected start to the Halloween shopping season, due to warmer weather and shoppers delaying purchases as the holiday falls on a Friday.
U.S. retailers are offering more discounts on Hershey goods ahead of Halloween, according to data, as the candymaker hiked prices due to tariffs and cocoa inflation.
The company projects annual tariff expenses in the range of $160 million to $170 million, slightly lower than its August forecast, mainly due to lower Canadian retaliatory tariffs.
Its net sales of $3.18 billion for the quarter ended September 28 beat estimates of $3.11 billion, according to data compiled by LSEG.
Adjusted profit for the third quarter came in at $1.30 per share, topping estimates of $1.07 apiece.
Earlier this week, rival Mondelez cut its annual profit forecast, citing weakening spending among value-conscious consumers in North America and Europe, while higher cost of cocoa added pressure.
(Reporting by Savyata Mishra and Anshi Sancheti in Bengaluru; Editing by Sahal Muhammed)
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