Hershey Company reported first-quarter 2025 financial results showing declines in revenue and profit due to lower volumes and increased costs.

Key financials for Q1 2025 compared to Q1 2024:

- Net sales were $2.81 billion, a decrease of 13.8 percent.
- Organic, constant currency net sales declined 13.2 percent.
- Reported net income was $224 million, down 71.7 percent.
- Reported earnings per share (diluted) were $1.10, compared to $3.89 last year.
- Adjusted EPS was $2.09, a decline of 31.9 percent.
- Gross margin fell to 33.7 percent from 51.5 percent.
- Adjusted gross margin was 41.2 percent, down 370 basis points.
- Operating profit declined 65.1 percent to $369 million.
- Adjusted operating profit was $608 million, down 29.4 percent.

Segment performance:

- North America Confectionery net sales decreased 15.0 percent, driven by volume declines tied to prior-year inventory timing, the later Easter, and fewer shipping days. Segment profit was down 26.6 percent.
- North America Salty Snacks sales rose 1.0 percent, supported by strong performance from Dot’s Pretzels and SkinnyPop. Segment profit increased 8.1 percent.
- International segment sales dropped 15.9 percent, mostly due to reduced volume and currency impacts. Segment profit declined 32.9 percent.

Outlook for 2025:

- Net sales growth is expected to be at least 2 percent.
- Adjusted EPS is projected between $6.00 and $6.18, reflecting a mid-30 percent decline.
- Tariff expenses in Q2 are estimated at $15 to $20 million.
- Capital expenditures are expected to be between $425 million and $450 million.
- The company aims for $125 million in cost savings through its automation and agility initiative.
- Reported and adjusted effective tax rates are expected to be approximately 16 percent.

Main headwinds in Q1 included derivative mark-to-market losses, increased input costs, and volume softness. The company reaffirmed its full-year guidance despite ongoing tariff uncertainty.