Company Announcements

Hershey Reports First-Quarter 2022 Financial Results; Raises 2022 Net Sales and Earnings Outlook

HERSHEY, Pa. , April 28, 2022 /PRNewswire/ -- The Hershey Company (NYSE: HSY) today announced net sales and earnings for the first quarter ended April 3, 2022, and raised its full-year financial outlook.

"We delivered strong double-digit sales and earnings growth with ongoing momentum across business units," said Michele Buck, The Hershey Company President and Chief Executive Officer.  "Our fast start, sustained consumer relevancy and increased visibility into our recently acquired businesses give us the confidence to increase our full-year net sales and earnings outlook despite an increasingly challenging and inflationary environment."

First-Quarter 2022 Financial Results Summary 1

  • Consolidated net sales of $2,666.2 million, an increase of 16.1%.
  • Organic, constant currency net sales increased 11.5%.
  • The impact of acquisitions on net sales was a 4.6-point benefit.2
  • Reported net income of $533.5 million and $2.57 per share-diluted, an increase of 35.3%.           
  • Adjusted earnings per share-diluted of $2.53, an increase of 31.8%.

1

All comparisons for the first quarter of 2022 are with respect to the first quarter ended April 4, 2021

2

Reflects the impact from the 2021 acquisitions of Pretzels Inc. (Pretzels), Dot's Pretzels, LLC (Dot's) and Lily's Sweets, LLC (Lily's)

 

2022 Full-Year Financial Outlook

The company is raising its 2022 net sales and earnings per share outlook to reflect the strength of its performance in the first quarter and expectations for the balance of the year:

2022 Full-Year Outlook


Total Company

Net sales growth3


10% - 12%

Reported earnings per share growth


8% - 11%

Adjusted earnings per share growth


10% - 12%


3 The impact of the Pretzels, Dot's and Lily's acquisitions is anticipated to be a 4- to 5-point benefit to net sales growth for the full-year 2022.

 

The primary drivers of the increased outlook are sustained consumer demand and favorable price elasticities across all segments along with increased visibility into customer orders and programs of the recently acquired Dot's and Pretzels businesses.  Elasticities were stronger than anticipated in the first quarter but are expected to moderate as consumers' buying power is further pressured by inflation and fewer government benefits as the year progresses.  Incremental profit from higher sales is expected to be partially offset by supply chain inflation and higher costs to serve incremental demand, resulting in slightly higher adjusted earnings per share growth.

Below is a reconciliation of projected 2022 and full-year 2021 earnings per share-diluted calculated in accordance with U.S. generally accepted accounting principles (GAAP) to non-GAAP adjusted earnings per share-diluted:


2022 (Projected)


2021

Reported EPS – Diluted

$7.69$7.91


$7.11

Derivative mark-to-market gains


(0.12)

Business realignment activities

0.02 – 0.04


0.09

Acquisition-related activities

0.19 – 0.25


0.16

Noncontrolling interest share of business realignment and impairment charges


0.03

Other miscellaneous benefits


(0.07)

Tax effect of all adjustments reflected above

(0.07)


(0.01)

Adjusted EPS – Diluted

$7.91 - $8.05


$7.19

 

2022 projected earnings per share-diluted, as presented above, does not include the impact of mark-to-market gains and losses on our commodity derivative contracts that are reflected within corporate unallocated expense in segment results until the related inventory is sold since we are not able to forecast the impact of the market changes.

First-Quarter 2022 Results

Consolidated net sales were $2,666.2 million in the first quarter of 2022 versus $2,295.9 million in the prior-year period, an increase of 16.1%.  Net price realization was a 6.9-point benefit driven primarily by list price increases across segments.  Volume drove an incremental 4.6-point benefit driven by the replenishment of distributor inventory levels in the North America Confectionery segment as well as favorable price elasticities.  Sales from the acquisition of Pretzels, Dot's and Lily's were a 4.6-point benefit and foreign exchange was not material in the first quarter.  

Reported gross margin was 46.7% in the first quarter of 2022, compared to 45.7% in the first quarter of 2021, an increase of 100 basis points.  This increase was driven by higher derivative mark-to-market gains and net price realization, partially offset by higher supply chain inflation and costs.  Adjusted gross margin was 45.8% in the first quarter of 2022, in line with the prior-year period.  Net price realization, a timing benefit related to the inventory valuation method and fixed cost leverage benefited adjusted gross margin in the quarter, but were offset by broad-based supply chain inflation, increased labor investments and elevated costs to service higher-than-expected demand.  Unfavorable mix, driven by recent acquisitions and the accelerated growth of the North America Salty Snacks segment, also contributed to this offset.

Selling, marketing and administrative expenses increased 6.0% in the first quarter of 2022 versus the first quarter of 2021 primarily driven by higher amortization and operating expenses related to recent acquisitions.  Advertising and related consumer marketing expenses decreased 0.7% in the first quarter of 2022 versus the same period last year.  Lower levels of advertising in response to capacity constraints on select confectionery brands and efficiencies related to new media partners were offset by higher advertising accruals related to increased sales and increased brand investment in the North America Salty Snacks segment.  Selling, marketing and administrative expenses, excluding advertising and related consumer marketing, increased 9.9% versus the first quarter of 2021.  This increase was driven by higher amortization and operating expenses related to recent acquisitions and incremental capabilities and technology investments, partially offset by lower accruals for incentive compensation versus the prior-year period.   

First-quarter 2022 reported operating profit of $721.0 million increased 30.4% versus the first quarter of 2021, resulting in an operating profit margin of 27.0%, an increase of 290 basis points.  Adjusted operating profit of $707.9 million increased 27.4% versus the first quarter of 2021, resulting in adjusted operating profit margin of 26.6%, an increase of 240 basis points.  Price realization and volume growth across segments, combined with a timing benefit related to the inventory valuation method and fixed cost leverage, more than offset broad-based inflation; higher supply chain costs, including investments in labor; and increased amortization and costs related to recent acquisitions to drive operating margin expansion in the first quarter.

The reported effective tax rate in the first quarter of 2022 was 21.2%, a decrease of 160 basis points versus the first quarter of 2021.  The adjusted effective tax rate in the first quarter of 2022 was 21.2%, a decrease of 130 basis points versus the first quarter of 2021.  Both the reported and adjusted effective tax rate decreases were driven by higher renewable energy tax credits and higher benefits related to employee-shared based payments versus the prior-year period.

The company's first-quarter 2022 results, as prepared in accordance with GAAP, included items negatively impacting comparability of $13.1 million, or $0.04 per share-diluted.  For the first quarter of 2021, items positively impacting comparability totaled $3.7 million, or $0.02 per share-diluted.

The following table presents a summary of items impacting comparability in each period (see Appendix I for additional information):


Pre-Tax (millions)


Earnings Per Share-Diluted


Three Months Ended


Three Months Ended


April 3, 2022


April 4, 2021


April 3, 2022


April 4, 2021









Derivative mark-to-market gains

$                 (27.4)


$                    (2.3)


$                 (0.13)


$                 (0.01)

Business realignment activities

1.3


6.9



0.04

Acquisition-related activities

13.0


0.2


0.07


Noncontrolling interest share of business
realignment and impairment charges


1.1



0.01

Other miscellaneous benefits


(2.2)



(0.01)

Tax effect of all adjustments reflected above



0.02


(0.01)


$                 (13.1)


$                     3.7


$                 (0.04)


$                   0.02

 

Segment performance for the first quarter of 2022 versus the prior-year period are detailed below. See the schedule of supplementary information within this press release for additional information on segment net sales and profit.

North America Confectionery

Hershey's North America Confectionery segment net sales were $2,217.0 million in the first quarter of 2022, an increase of 11.7% versus the same period last year.  Price realization was a 6.8-point benefit.  Volume was a 3.8-point benefit driven by distributor inventory replenishment as well as favorable price elasticities.  The net impact of the acquisition from Lily's was a 1.1-point benefit. 

Hershey's U.S. candy, mint and gum (CMG) retail takeaway for the twelve-week period ended April 17, 20224 in the multi-outlet combined plus convenience store channels (MULO+C) increased 4.9%.  Excluding seasonal products, demand for Hershey's confectionery products remained strong with retail sales growth of 8.1%.  Take-home chocolate sales and accelerating sales of Jolly Rancher and Twizzlers products drove this strong everyday growth.  Despite strong growth across brands, Hershey's confectionery share declined 144 basis points as capacity constraints limited the company's ability to invest in media and promotions and fully service demand.  These declines were in line with expectations and are expected to improve as supportability improves throughout the year.  Hershey's confectionery share remains approximately 38 basis points higher than pre-pandemic levels.

4

Includes candy, mint, gum, confectionery salty snacks and grocery items

 

The North America Confectionery segment reported segment income of $781.9 million in the first quarter of 2022, reflecting an increase of 21.7% versus the prior-year period, resulting in segment margin of 35.3%, an increase of 2.9-points.  Net price realization and reduced advertising levels, combined with a timing benefit related to the inventory valuation method and fixed cost leverage, drove profit gains, which were partially offset by inflation, incremental costs to serve elevated demand and higher operating expenses.

North America Salty Snacks

Hershey's North America Salty Snacks segment net sales were $226.1 million in the first quarter of 2022, an increase of 86.2% versus the same period last year.  Sales from the acquisitions of Dot's and Pretzels was a 69.0-point benefit.  Net price realization was a 13.2-point benefit and volume was a 4.0-point benefit. 

Hershey's U.S. salty snack retail takeaway, including Dot's, in MULO+C increased 36.7% in the 12-week period ended April 17, 2022, driven by robust consumer demand across Hershey's salty snack brands.  SkinnyPop brand's retail sales growth increased 13.4%, gaining 60 basis points of ready-to-eat popcorn share in the 12-week period.  Pirate Booty's brand maintained its momentum with retail sales growth of 55.4%.  Both brands benefited from consumers seeking permissibility and convenience as they return to pre-pandemic routines, benefiting multi-pack and instant consumable products with combined retail sales growth of 35.7%.  Dot's products reported extraordinary retail sales growth of 103.0% as the brand gained significant distribution while sustaining sales velocities in the latest period.  As a result of this strong performance, Dot's gained 630 basis points of pretzel share, and now holds 17.1% of total pretzel category share as of the latest 12-week period. 

North America Salty Snacks segment income decreased 16.1% to $21.3 million in the first quarter of 2022, compared to $25.4 million in the first quarter of 2021, resulting in segment margin of 9.4%, a decrease of 11.5 points.  Unfavorable mix from acquisitions was an approximately 500 basis point headwind in the first quarter.  Broad-based supply chain inflation also led to higher raw material and logistics costs.  Additionally, higher brand investment to support volume elasticities and to maintain household penetration gains led to higher advertising expenses.  Incremental start-up costs related to distribution network expansion and outsourcing costs related to higher-than-anticipated demand further pressured profits.  Net price realization and volume gains partially offset these headwinds.

International

First-quarter 2022 net sales for Hershey's International segment increased 17.9% versus the same period last year to $223.1 million.  Excluding a 0.2-point benefit from foreign currency exchange rates, constant currency net sales increased 17.7%.  Volume gains contributed 11.9 points to net sales growth, driven by the strong consumer buying power and mobility along with key strategic brand activations.  Price realization was a 5.8-point benefit driven by list price increases across markets. 

The International segment reported a $42.0 million profit in the first quarter of 2022, reflecting an increase of $14.6 million versus the prior-year period, resulting in segment margin of 18.8%, an increase of 4.3 points.  The profit increase was driven by volume gains, net price realization and favorable operating expenses in the prior-year period related to the operating model optimization in China, which more than offset inflation and higher logistics costs.

Unallocated Corporate Expense

Hershey's unallocated corporate expense in the first quarter of 2022 was $137.3 million, a decrease of $2.4 million, or 1.7%, versus the same period of 2021.  This decrease was driven by lower accruals for incentive compensation versus the prior-year period, which was partially offset by incremental capability and technology investments.

Live Webcast

At approximately 7 a.m. (Eastern time) today, Hershey will post a pre-recorded management discussion of its first-quarter 2022 results and business update to its website at www.thehersheycompany.com/investors.  In addition, at 8:30 a.m. (Eastern time) today, the company will host a live question and answer session with investors and financial analysts.  Details to access this call are available on the company's website.

Note:  In this release, for the first-quarter 2022, Hershey references income measures that are not in accordance with GAAP because they exclude certain items impacting comparability, including gains and losses associated with mark-to-market commodity derivatives, business realignment activities, acquisition-related activities, and other miscellaneous benefits.  The company refers to these income measures as "adjusted" or "non-GAAP" financial measures throughout this release.  These non-GAAP financial measures are used in evaluating results of operations for internal purposes and are not intended to replace the presentation of financial results in accordance with GAAP.  Rather, the company believes exclusion of such items provides additional information to investors to facilitate the comparison of past and present operations.  A reconciliation of the non-GAAP financial measures referenced in this release to their nearest comparable GAAP financial measures as presented in the Consolidated Statements of Income is provided below.

Reconciliation of Certain Non-GAAP Financial Measures

Consolidated results

Three Months Ended

In thousands except per share data

April 3, 2022


April 4, 2021

Reported gross profit

$                 1,245,480


$                 1,048,951

Derivative mark-to-market gains

(27,379)


(2,284)

Business realignment activities

27


3,995

Acquisition-related activities

3,384


Non-GAAP gross profit

$                 1,221,512


$                 1,050,662





Reported operating profit

$                    720,990


$                    553,044

Derivative mark-to-market gains

(27,379)


(2,284)

Business realignment activities

1,281


6,927

Acquisition-related activities

12,996


171

Other miscellaneous benefits


(2,155)

Non-GAAP operating profit

$                    707,888


$                    555,703





Reported provision for income taxes

$                    143,926


$                    117,323

Derivative mark-to-market gains*

(6,485)


(2,319)

Business realignment activities*

303


1,194

Acquisition-related activities*

3,088


41

Other miscellaneous benefits*


54

Non-GAAP provision for income taxes

$                    140,832


$                    116,293





Reported net income

$                    533,478


$                    395,799

Derivative mark-to-market (gains) losses

(20,894)


35

Business realignment activities

978


5,733

Acquisition-related activities

9,908


130

Noncontrolling interest share of business realignment and impairment charges


1,078

Other miscellaneous benefits


(2,209)

Non-GAAP net income

$                    523,470


$                    400,566





Reported EPS - Diluted

$                           2.57


$                           1.90

Derivative mark-to-market gains

(0.13)


(0.01)

Business realignment activities


0.04

Acquisition-related activities

0.07


Noncontrolling interest share of business realignment and impairment charges


0.01

Other miscellaneous benefits


(0.01)

Tax effect of all adjustments reflected above**

0.02


(0.01)

Non-GAAP EPS - Diluted

$                           2.53


$                           1.92



*

The tax effect for each adjustment is determined by calculating the tax impact of the adjustment on the company's quarterly effective tax rate, unless the nature of the item and/or the tax jurisdiction in which the item has been recorded requires application of a specific tax rate or tax treatment, in which case the tax effect of such item is estimated by applying such specific tax rate or tax treatment.

**

Adjustments reported above are reported on a pre-tax basis before the tax effect described in the reconciliation above for Non-GAAP provision for income taxes.

In the assessment of our results, we review and discuss the following financial metrics that are derived from the reported and non-GAAP financial measures presented above:


Three Months Ended


April 3, 2022


April 4, 2021

As reported gross margin

46.7%


45.7%

Non-GAAP gross margin (1)

45.8%


45.8%





As reported operating profit margin

27.0%


24.1%

Non-GAAP operating profit margin (2)

26.6%


24.2%





As reported effective tax rate

21.2%


22.8%

Non-GAAP effective tax rate (3)

21.2%


22.5%



(1)

Calculated as non-GAAP gross profit as a percentage of net sales for each period presented.

(2)

Calculated as non-GAAP operating profit as a percentage of net sales for each period presented.

(3)

Calculated as non-GAAP provision for income taxes as a percentage of non-GAAP income before taxes (calculated as non-GAAP operating profit minus non-GAAP interest expense, net plus or minus non-GAAP other (income) expense, net).

We present certain percentage changes in net sales on a constant currency basis, which excludes the impact of foreign currency exchange.  To present this information for historical periods, current period net sales for entities reporting in currencies other than the U.S. dollar are translated into U.S. dollars at the average monthly exchange rates in effect during the corresponding period of the prior fiscal year, rather than at the actual average monthly exchange rates in effect during the current period of the current fiscal year.  As a result, the foreign currency impact is equal to the current year results in local currencies multiplied by the change in the average foreign currency exchange rate between the current fiscal period and the corresponding period of the prior fiscal year.

A reconciliation between reported net sales growth rates and (i) constant currency net sales growth rates and (ii) organic constant currency net sales growth rates is provided below:


Three Months Ended April 3, 2022


Percentage
Change as
Reported


Impact of
Foreign
Currency
Exchange


Percentage
Change on
Constant
Currency Basis


Impact of
Acquisitions


Percentage
Change on
Organic
Constant
Currency Basis

North America Confectionery

11.7%


—%


11.7%


1.1%


10.6%











North America Salty Snacks

86.2%


—%


86.2%


69.0%


17.2%











International

17.9%


0.2%


17.7%


—%


17.7%











Total Company

16.1%


—%


16.1%


4.6%


11.5%

 

Appendix I

Details of the charges included in GAAP results, as summarized in the press release (above), are as follows:

Derivative mark-to-market (gains) losses:  The mark-to-market (gains) losses on commodity derivatives are recorded as unallocated and excluded from adjusted results until such time as the related inventory is sold, at which time the corresponding (gains) losses are reclassified from unallocated to segment income.  Since we often purchase commodity contracts to price inventory requirements in future years, we make this adjustment to facilitate the year-over-year comparison of cost of sales on a basis that matches the derivative gains and losses with the underlying economic exposure being hedged for the period.

Business realignment activities:  We periodically undertake restructuring and cost reduction activities as part of ongoing efforts to enhance long-term profitability.  During the fourth quarter of 2020, we commenced the International Optimization Program to streamline resources and investments in select international markets, including the optimization of our China operating model to improve efficiencies and provide a more sustainable and simplified base going forward. During the first quarter of 2022 and 2021, business realignment charges related primarily to other third-party costs related to this program, as well as severance and employee benefit costs.

Acquisition-related activities:  During the first quarter of 2022, we incurred costs related to the integration of the 2021 acquisitions of Lily's, Dot's and Pretzels.  During the first quarter of 2021, we incurred costs related to the integration of the 2019 acquisition of ONE Brands, LLC.

Noncontrolling interest share of business realignment and impairment charges:  Certain of the business realignment and impairment charges recorded related to the divestiture of Lotte Shanghai Foods Co., Ltd. ("LSFC"), a joint venture in which we previously owned a 50% controlling interest.  Therefore, we have also adjusted for the portion of these charges included within the income (loss) attributed to the noncontrolling interest.

Other miscellaneous benefits:  In 2021, we recorded a gain on the divestiture of LSFC.

Tax effect of all adjustments:  This line item reflects the aggregate tax effect of all pre-tax adjustments reflected in the preceding line items of the applicable table.  The tax effect for each adjustment is determined by calculating the tax impact of the adjustment on the company's quarterly effective tax rate, unless the nature of the item and/or the tax jurisdiction in which the item has been recorded requires application of a specific tax rate or tax treatment, in which case the tax effect of such item is estimated by applying such specific tax rate or tax treatment.

Safe Harbor Statement

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Many of these forward-looking statements can be identified by the use of words such as "anticipate," "assume," "believe," "continue," "estimate," "expect," "forecast," "future," "intend," "plan," "potential," "predict," "project," "strategy," "target" and similar terms, and future or conditional tense verbs like "could," "may," "might," "should," "will" and "would," among others. These statements are made based upon current expectations that are subject to risk and uncertainty. Because actual results may differ materially from those contained in the forward-looking statements, you should not place undue reliance on the forward-looking statements when deciding whether to buy, sell or hold the company's securities. Factors that could cause results to differ materially include, but are not limited to: risks related to the impact of the COVID-19 global pandemic on our business, suppliers, distributors, consumers, customers, and employees; the scope and duration of the pandemic; government actions and restrictive measures implemented in response to the pandemic, including the distribution of vaccinations and continuation of social distancing guidelines and stay at home orders; disruptions or inefficiencies in our supply chain due to the loss or disruption of essential manufacturing or supply elements or other factors; issues or concerns related to the quality and safety of our products, ingredients or packaging, human and workplace rights, and other environmental, social or governance matters; changes in raw material and other costs, along with the availability of adequate supplies of raw materials; the company's ability to successfully execute business continuity plans to address the COVID-19 pandemic and resulting changes in consumer preferences and the broader economic and operating environment; selling price increases, including volume declines associated with pricing elasticity; market demand for our new and existing products; increased marketplace competition; failure to successfully execute and integrate acquisitions, divestitures and joint ventures; changes in governmental laws and regulations, including taxes; political, economic, and/or financial market conditions, including impacts on the business arising from the conflict between Russia and Ukraine; risks and uncertainties related to our international operations; disruptions, failures or security breaches of our information technology infrastructure; our ability to hire, engage and retain a talented global workforce, our ability to realize expected cost savings and operating efficiencies associated with strategic initiatives or restructuring programs; complications with the design or implementation of our new enterprise resource planning system; and such other matters as discussed in our Annual Report on Form 10-K for the year ended  December 31, 2021 and from time to time our other filings with the U.S. Securities and Exchange Commission.  The company undertakes no obligation to publicly update or revise any forward-looking statements to reflect actual results, changes in expectations or events or circumstances.

 

The Hershey Company

Consolidated Statements of Income

for the periods ended April 3, 2022 and April 4, 2021

(unaudited) (in thousands except percentages and per share amounts)














Three Months Ended






April 3, 2022


April 4, 2021








Net sales




$              2,666,221


$              2,295,948

     Cost of sales



1,420,741


1,246,997

Gross profit




1,245,480


1,048,951






     Selling, marketing and administrative expense


524,216


494,665

     Business realignment costs


274


1,242







Operating profit


720,990


553,044

Interest expense, net



33,179


36,436

Other (income) expense, net



10,407


2,414







Income before income taxes



677,404


514,194

Provision for income taxes



143,926


117,323








Net income including noncontrolling interest


533,478


396,871








     Less: Net gain attributable to noncontrolling interest



1,072

Net income attributable to The Hershey Company


$                 533,478


$                 395,799








Net income per share

- Basic

- Common


$                       2.66


$                       1.96


- Diluted

- Common


$                       2.57


$                       1.90


- Basic

- Class B


$                       2.42


$                       1.78








Shares outstanding

- Basic

- Common


146,464


146,972


- Diluted

- Common


207,270


208,563


- Basic

- Class B


59,614


60,614








Key margins:







     Gross margin



46.7%


45.7%

     Operating profit margin



27.0%


24.1%

     Net margin



20.0%


17.2%

 

The Hershey Company

Supplementary Information – Segment Results

for the periods ended April 3, 2022 and April 4, 2021

(unaudited) (in thousands except percentages)












Three Months Ended




April 3, 2022


April 4, 2021


% Change

Net sales:







    North America Confectionery


$                 2,217,044


$                 1,985,416


11.7%

    North America Salty Snacks


226,122


121,418


86.2%

    International


223,055


189,114


17.9%

Total


$                 2,666,221


$                 2,295,948


16.1%








Segment income:







    North America Confectionery


$                    781,885


$                    642,605


21.7%

    North America Salty Snacks


21,301


25,378


(16.1)%

    International


41,979


27,417


53.1%

Total segment income


845,165


695,400


21.5%

Unallocated corporate expense (1)


137,277


139,697


(1.7)%

Unallocated mark-to-market gains on commodity derivatives (2)


(27,379)


(2,284)


NM

Costs associated with business realignment initiatives


1,281


6,927


(81.5)%

Acquisition-related activities


12,996


171


NM

Other miscellaneous benefits



(2,155)


NM

Operating profit


720,990


553,044


30.4%

Interest expense, net


33,179


36,436


(8.9)%

Other (income) expense, net


10,407


2,414


331.1%

Income before income taxes


$                    677,404


$                    514,194


31.7%











(1)

Includes centrally-managed (a) corporate functional costs relating to legal, treasury, finance, and human resources, (b) expenses associated with the oversight and administration of our global operations, including warehousing, distribution and manufacturing, information systems and global shared services, (c) non-cash stock-based compensation expense and (d) other gains or losses that are not integral to segment performance.

(2)

Net (gains) losses on mark-to-market valuation of commodity derivative positions recognized in unallocated derivative losses (gains).

NM - not meaningful

 




Three Months Ended




April 3, 2022


April 4, 2021

Segment income as a percent of net sales:





    North America Confectionery


35.3%


32.4%

    North America Salty Snacks


9.4%


20.9%

    International


18.8%


14.5%

 

The Hershey Company

Consolidated Balance Sheets

as of April 3, 2022 and December 31, 2021

(in thousands of dollars)





Assets

April 3, 2022


December 31, 2021


(unaudited)



Cash and cash equivalents

$                          338,055


$                          329,266

Accounts receivable - trade, net

868,426


671,464

Inventories

1,031,503


988,511

Prepaid expenses and other

219,454


256,965





Total current assets

2,457,438


2,246,206





Property, plant and equipment, net

2,592,628


2,586,187

Goodwill

2,620,594


2,633,174

Other intangibles

2,029,220


2,037,588

Other non-current assets

902,347


868,203

Deferred income taxes

42,817


40,873





Total assets

$                    10,645,044


$                    10,412,231





Liabilities and Stockholders' Equity








Accounts payable

$                          825,231


$                          692,338

Accrued liabilities

784,660


855,638

Accrued income taxes

79,635


3,070

Short-term debt

873,783


939,423

Current portion of long-term debt

2,328


2,844





Total current liabilities

2,565,637


2,493,313





Long-term debt

4,088,437


4,086,627

Other long-term liabilities

781,048


787,058

Deferred income taxes

294,373


288,004





Total liabilities

7,729,495


7,655,002





Total stockholders' equity

2,915,549


2,757,229





Total liabilities and stockholders' equity

$                    10,645,044


$                    10,412,231

 

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SOURCE The Hershey Company