Hershey has grown its sales 6.7% in the second quarter (Q2) driven by strong performance in the US and volume increases in key international markets like China.
In its Q2 results released today, Hershey upped its net sales almost 7% to $1.5bn and its profit (EBIT) by 21% to $269m.
The performance was driven by volume increases from US-focused acquisition Brookside Foods and new products in Hershey’s key international markets.
During the quarter, Hershey launched premium milk candy brand Lancaster - its first brand exclusively for the Chinese market, which it has earmarked a priority market overseas.
Strong US performance
Closer to home, Hershey reported that its US business was also growing.
The firm’s US candy, mint and gum (CMG) retail sales were up 6.8% in Q2 as core brands such as Hershey's, Reese's, Kit Kat and Ice Breakers as well as Brookside made share gains.
Kit Kat Minis and China launches
The company expects full-year net sales will be up 7% on 2012.
“Net sales will be driven by core brand volume growth, Brookside distribution gains and repeat purchases as well as innovation such as Kit Kat Minis, Twizzlers Bites and Jolly Rancher Bites products in the U.S., Hershey's Mais candy in Brazil, and the fourth-quarter launch of Hershey's Kisses Deluxe and Hershey's Drops chocolates in China,” said the company.
We'll be following what comes out from the company's conference call due at 8.30am ET. Check back for updates.