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Being salty has never been sweeter for Hershey.
The snacks company had a stronger-than-expected second financial quarter, thanks largely to booming sales of its salty snack brands like Dot's Pretzels and SkinnyPop popcorn, showing it is finding success beyond the Hershey bars and Kisses that made it a household name.
The company reported $2.79 billion in sales, up 6.6 percent from the same time last year and well above Wall Street’s expectations. Profits soared to $457.7 million, or $2.26 per share, compared with $62.7 million, or 31 cents per share, a year ago, Hershey reported Thursday.
The standout performer was Hershey's North American salty snacks business, where sales jumped 23 percent.
Its traditional confectionery division, which includes brands like Reese's Peanut Butter Cups and Twizzlers, also grew 4.2 percent, while international sales increased 5.7 percent.
The success comes years after Hershey expanded its snack portfolio by acquiring brands like SkinnyPop, Pirate's Booty, Dot's Homestyle Pretzels and, most recently, LesserEvil, an organic brand which sells popcorn and puffs.
Hershey expects sales to grow between 4.5 percent and 5 percent year, slightly up from its previous outlook of 4 percent to 5 percent growth.
Veronica Villasenor, president of Hershey’s salty snacks division, spoke about the company’s growing focus on the salty category in February. At the time, Hershey aimed to expand its salty snacks business to account for 20 percent of total revenue by investing in acquisitions, new products, updated packaging and wider retail availability.
“It’s a big bet. It’s a long-term bet, and it’s a bet that is working, and we want to continue to extend that bet into the future,” Villasenor told Food Dive. “Our full leadership team at Hershey is committed to salty.”
