Benzinga | Jul 29, 2021 11:52AM EDT

Hershey Beats On Q2 Earnings; Raises FY21 Sales Guidance On Stronger Recovery In Away-From-Home Consumption

* Hershey Co (NYSE:HSY) reported second-quarter FY21 sales growth of 16.5% year-on-year, to $1.99 billion, beating the analyst consensus of $1.83 billion. Organic, constant currency net sales increased 15.5%.

* Hershey's North America segment net sales rose 12.3% Y/Y to $1.78 billion. Sales for Hershey's International and other segments increased 70.2% to $210.2 million.

* The gross margin expanded 10 basis points Y/Y to 46.5%, and gross profit rose 16.8% Y/Y to $925.4 million.

* The operating margin expanded 50 bps to 23.0%, and operating income for the quarter rose 19.1% Y/Y to $456.7 million.

* Adjusted EPS of $1.47 beat the analyst consensus of $1.44.

* Hershey held $426.2 million in cash and equivalents as of July 4, 2021.

* "Our business continued to excel in the second quarter with robust recovery in away-from-home consumption and international markets and sustained elevated at-home consumption," said CEO Michele Buck.

* Outlook: Hershey raised FY21 net sales growth guidance to 6% - 8%, from the previous 4% - 6%.

* It sees an adjusted EPS of $6.79 - $6.92 versus the consensus of $6.89. The outlook is unchanged from the previously communicated 8% to 10% increase from $6.29 in FY20.

* It slightly lowered its reported EPS outlook to $6.59 - $6.85 due to incremental costs to execute and integrate Lily's acquisition.

* Hershey also anticipates FY21 effective tax rate of 17 -18% and Capex of $550 million.

* Price action: HSY shares are trading higher by 0.97% at $178.22 on the last check Thursday.

* Photo by mjimages from Pixabay