HSYNYSESugar & Confectionery ProductsUS GAAP · USD

The Hershey Company

The Hershey Company makes and sells chocolate, candy, mints, salty snacks, and related snack products under more than 85 brand names. Founded in 1894 and incorporated in Delaware, it operates through North America Confectionery, North America Salty Snacks, and International segments, with a business centered on branded consumer packaged goods sold through retail and wholesale channels.

Revenue11.7bn USD
+4.4 %y/y
Operating profit (EBIT)1,442m USD
−50.3 %y/y
EBIT margin12.3%
−13.5 ppy/y
Net income883m USD
−60.2 %y/y
Free cash flow1,823m USD
−5.3 %y/y

Fiscal year 2025 · change from previous year

Development 2020–2025

0.02.55.07.510.012.5bn USD2020: 8.1 bn USD2020: EBIT 1.8 bn USD20202021: 9.0 bn USD2021: EBIT 2.0 bn USD20212022: 10.4 bn USD2022: EBIT 2.3 bn USD20222023: 11.2 bn USD2023: EBIT 2.6 bn USD20232024: 11.2 bn USD2024: EBIT 2.9 bn USD20242025: 11.7 bn USD2025: EBIT 1.4 bn USD202511.71.4
RevenueOperating profit (EBIT)

Business

Share of revenue
North America Confectionery81 %

Chocolate, candy, gum, refreshment products, bars, spreads, snack bites, mixes, pantry and food service lines.

North America Salty Snacks10 %

Ready-to-eat popcorn, baked snacks, pretzels, and other salty snack products sold in the U.S.

International9 %

Confectionery products manufactured, imported, marketed, sold, and distributed outside North America.

Customers

Hershey sells primarily through wholesale distributors and retail channels that resell to end consumers, including grocery, mass merchandisers, drug stores, convenience stores, clubs, dollar stores, vending, concession, and department stores. Its largest customer is McLane Company, a major U.S. distributor to convenience and other channels, which highlights the company’s dependence on a concentrated route-to-market as well as broad consumer demand for branded snacks.

Wholesale distributors

Buy large volumes for resale into convenience, drug, club, and mass channels; critical for U.S. distribution.

Chain grocery and mass merchandisers

Buy core confectionery and snack assortments for everyday household demand and shelf visibility.

Convenience stores and vending

Buy impulse-oriented candy, mints, and snacks that benefit from frequent small-ticket purchases.

Wholesale clubs, dollar stores, and drug stores

Buy branded, value-oriented packs and multipacks for high-traffic retail formats.

International consumers and trade partners

Buy confectionery products in export markets and local regions outside North America.

Strategy

Hershey’s strategy centers on brand strength, product innovation, and distribution reach across confectionery and snacking occasions. The company is expanding beyond traditional chocolate into salty snacks and adjacent categories through acquisitions and capacity investments, while also pushing international growth and operational efficiency.

Expand snacking portfolio beyond core confectioneryMedium term

Diversifies growth away from chocolate-only demand and captures more eating occasions.

Protect and extend core confectionery brandsShort term

Core brands drive scale, retailer relationships, and seasonal demand in North America.

Improve supply chain and manufacturing capacityMedium term

Supports service levels, cost control, and the ability to meet demand across channels.

Develop international growth marketsLong term

Reduces dependence on North America and builds a broader global confectionery footprint.

Geography

Hershey is heavily concentrated in North America, with North America Confectionery representing 81.1% of 2025 net sales and North America Salty Snacks focused on the United States. International operations are smaller but strategically important, with manufacturing in Mexico, Brazil, India, and Malaysia and sales into export markets across Asia, Latin America, Europe, the Middle East, and Africa.

Risks

Hershey faces commodity, pricing, and demand risks typical of branded food companies, but its exposure is amplified by cocoa, sugar, dairy, and energy costs and by seasonal sales concentration in the second half of the year. Company-specific risks include execution on acquisitions, international growth, ERP implementation, and maintaining brand reputation amid product safety, ESG, and regulatory scrutiny.

Sorted by severity
LowMediumHighLowMediumHighImpact →Likelihood →Commodity cost inflation and supply shortages1Pricing elasticity and volume decline2Brand, safety, and ESG-related reputation damage3Acquisition integration risk4International execution and geopolitical exposure5
Impact is the risk’s severity and likelihood how probable it is over the next few years, both assessed from the company’s reports. Numbers match the list.
  1. Commodity cost inflation and supply shortagesImpact: HighLikelihood: High

    The company uses cocoa, sugar, dairy, corn, peanuts, almonds, natural gas, and diesel.

    Exposure: Gross margin and inventory costs

  2. Pricing elasticity and volume declineImpact: HighLikelihood: High

    Price increases may not fully offset input inflation if consumers trade down.

    Exposure: Revenue growth and unit volumes

  3. Brand, safety, and ESG-related reputation damageImpact: HighLikelihood: Medium

    Product quality, ingredients, packaging, and human rights concerns can affect demand and litigation.

    Exposure: Brand equity and legal costs

  4. Acquisition integration riskImpact: HighLikelihood: Low

    Recent deals must be integrated to realize expected synergies and capacity benefits.

    ExposureMarginsExecution costsGoodwill
  5. International execution and geopolitical exposureImpact: MediumLikelihood: Medium

    Growth outside the U.S. depends on local operations in Mexico, Brazil, India, and Malaysia.

    Exposure: Foreign operations and export markets

  6. Seasonality and holiday concentrationImpact: Medium

    Sales are typically higher in Q3 and Q4, increasing quarter-to-quarter variability.

    Exposure: Quarterly revenue and operating leverage

Accounting

Judgemental items
Trade promotion accruals

Management must estimate retailer promotions and allowances, affecting revenue and SG&A timing.

Impact: Can shift reported sales and margins between periods

Business acquisitions and goodwill valuation

Recent acquisitions require fair value allocation and create goodwill/intangibles subject to impairment.

Impact: Can materially affect assets, amortization, and impairment charges

Commodity derivative accounting

Mark-to-market gains and losses on commodity hedges flow through earnings and can be volatile.

Impact: Affects gross margin and unallocated derivative gains/losses

Seasonality and inventory build

Higher third- and fourth-quarter sales can distort quarterly comparisons and working capital.

Impact: Affects revenue timing, inventory, and cash flow seasonality

Income taxes and pension/OPEB estimates

Judgmental assumptions influence tax expense and benefit obligations.

Impact: Can move net income and liabilities

Publicly listed companies with a comparable business focus.

Last updated: 24/09/2026