Hershey Sees FY2025 Adj EPS $6.00-$6.18 vs $7.36 Est

2025 Full-Year Financial Outlook Summary

The company expects net sales growth of at least 2%, driven primarily by net price realization. Reported earnings per share is expected to be down in the high-40% range as higher commodity costs, rebased incentive compensation, and a higher economic tax rate are expected to more than offset price realization, productivity and cost savings programs.  The company projects adjusted earnings per share to be down in the mid-30% range when excluding one-time costs associated with cost savings initiatives and acquisition integration activities.  The gap between the reported and adjusted earnings per share growth outlooks primarily reflects a large derivative mark-to-market gain recorded in reported earnings per share in 2024.

2025 Full-Year Outlook		Total Company
Net sales growth4		At least 2%
Reported earnings per share growth		Down high-40% range
Adjusted earnings per share growth		Down mid-30% range

4 The impact of the Sour Strips acquisition is anticipated to be an approximate 30 basis point benefit to net sales growth for the full-year 2025. Additionally, the impact of foreign currency exchange rates is anticipated to be an approximate 30 basis point headwind to net sales growth for the full-year 2025.

The company also expects:

• A reported and adjusted effective tax rate in the range of approximately 14% to 15%;
• Other expense, which primarily reflects the write-down of equity investments that qualify for a tax credit, of approximately $170 million to $180 million;
• Interest expense of approximately $190 million to $195 million, reflecting a higher interest rate environment;
• Capital expenditures of approximately $425 million to $450 million, as capital spending as a percentage of sales returns to historical levels; and
• Advancing Agility & Automation Initiative savings of approximately $125 million.