Hershey Co. Q2 FY2024 results: revenue $2.1 billion, down 16.7% on the year

Hershey Co. (HSY) reported revenue of $2.1 billion for Q2 FY2024, the quarter ended 30 June 2024, down 16.7% on the same quarter a year earlier. Net income was $181 million, down 55.6% on the year. The figures are the company's own, from the 10-Q it filed with the SEC on 1 August 2024.

Revenue$2.1 billiondown 16.7%

Net income$181 milliondown 55.6%

Diluted EPSn/a

QuarterQ2 FY2024ended 30 June 2024

The quarter, against the one before and a year earlier

Line	Q2 FY2024	Q1 FY2024	A year earlier	Change on the year
Revenue	2,074	3,253	n/a	n/a
Cost of revenue	1,241	1,577	n/a	n/a
Gross profit	834	1,676	n/a	n/a
Gross margin	40.2%	51.5%	n/a
Selling, general and administrative	541	618	n/a	n/a
Operating income	288	1,058	n/a	n/a
Operating margin	13.9%	32.5%	n/a
Interest expense	44.3	41.6	n/a	n/a
Pre-tax income	246	986	n/a	n/a
Income tax	65.0	189	n/a	n/a
Effective tax rate	26.4%	19.1%	n/a
Net income	181	797	n/a	n/a
Net margin	8.7%	24.5%	n/a

$ million except per share. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow and capital returned

Line	Q2 FY2024	Q1 FY2024	A year earlier	Change on the year
Operating cash flow	326	569	n/a	n/a
Capital expenditure	130	213	n/a	n/a
Free cash flow	195	356	n/a	n/a
Free cash flow margin	9.4%	10.9%	n/a
Depreciation and amortisation	110	108	n/a	n/a
Share-based compensation	11.5	6.0	n/a	n/a
Buybacks	0.0	494	n/a	n/a
Dividends paid	271	273	n/a	n/a

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet at quarter end

Line	Q2 FY2024	Q1 FY2024	A year earlier	Change on the year
Total assets	12,416	12,390	n/a	n/a
Cash and equivalents	467	520	n/a	n/a
Receivables	846	1,206	n/a	n/a
Inventory	1,459	1,138	n/a	n/a
Goodwill	2,692	2,694	n/a	n/a
Long-term debt	4,095	4,095	n/a	n/a
Long-term debt including finance leases	3,489	3,790	n/a	n/a
Operating lease liabilities	308	276	n/a	n/a
Finance lease liabilities	69.0	70.5	n/a	n/a
Shareholders' equity	4,010	4,108	n/a	n/a

Quarterly results, the last 12 quarters

	Q3 FY2023	Q4 FY2023 *	Q1 FY2024	Q2 FY2024	Q3 FY2024	Q4 FY2024 *	Q1 FY2025	Q2 FY2025	Q3 FY2025	Q4 FY2025 *	Q1 FY2026	Q2 FY2026
Revenue	3,030	2,657	3,253	2,074	2,987	2,888	2,805	2,615	3,181	3,091	3,104	2,787
Cost of revenue	1,670	1,534	1,577	1,241	1,755	1,329	1,861	1,818	2,144	1,946	1,881	1,524
Gross profit	1,360	1,123	1,676	834	1,233	1,558	944	796	1,037	1,145	1,223	1,263
Gross margin	45%	42%	52%	40%	41%	54%	34%	30%	33%	37%	39%	45%
SG&A	624	659	618	541	592	623	559	603	601	698	576	621
Operating income	736	464	1,058	288	613	939	369	193	435	445	641	643
Operating margin	24%	17%	33%	14%	21%	33%	13%	7%	14%	14%	21%	23%
Interest expense	41.8	40.1	41.6	44.3	46.6	41.8	50.6	57.3	59.2	57.7	54.8	55.8
Pre-tax income	653	320	986	246	519	723	324	149	372	370	593	588
Tax rate	21%	-9%	19%	26%	14%	-10%	31%	58%	26%	13%	27%	22%
Net income	519	349	797	181	446	797	224	62.7	276	320	435	458
Net margin	17%	13%	25%	9%	15%	28%	8%	2%	9%	10%	14%	16%
Operating cash flow	516	758	569	326	695	942	397	112	842	927	469	419
Capital expenditure	218	223	213	130	128	135	146	85.1	85.9	138	115	89.8
Free cash flow	298	535	356	195	567	807	251	27.1	756	788	354	329
Buybacks	0.0	25.0	494	0.0	0.0	0.0	0.0	0.0	0.0	0.0	69.3	370
Dividends paid	238	238	273	271	270	270	272	271	271	271	288	286
Shares outstanding	n/a	204m	n/a	n/a	n/a	202m	n/a	n/a	n/a	203m	n/a	n/a
Filing	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q

* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and the share count are as they are. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

Source

10-Q for the period ended 30 June 2024, filed 1 August 2024, accession 0000047111-24-000045: the filing on EDGAR. All of Hershey Co.'s filings: EDGAR company page.

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