The Hershey Company Q3 FY2025 earnings call

• Kirk Tanner highlighted balanced growth across the portfolio, with everyday CMG showing double-digit growth in the past 4 weeks. • Emphasis on innovation, with REESE'S Oreo being a top growth driver in the category. • Focus on the convenience channel, with hyper-focus on execution and gold standard merchandising plans. • Strong performance in salty snacks, with brands like SkinnyPop, Dot's Pretzels, and Pirate's Booty driving growth ahead of the category. • Discussion on analyzing Halloween performance to adjust product lineup and marketing strategies for future seasons.

No detailed absolute revenue and contribution % provided for product segments in the transcript.

• Expect 2026 to be a non-algorithm top and bottom line year, focusing on growing ahead of the category and rebuilding margin. • Elasticity is a key assumption, currently planning on minus 1, with ongoing monitoring of market dynamics. • Cocoa costs are moderating but still expected to be inflationary in 2026, with some optimism on tariff relief through trade deals. • Innovation pipeline for 2026 and beyond, balancing core business with new products to engage consumers.

• Concerns about consumer health and its potential impact on sales. • Impact of SNAP program changes on the business. • Competitive pricing gaps in certain pack types and channels, though not currently a major concern. • Uncertainty around cocoa price movements and the timing of tariff relief.

Q: Andrew Lazar asks about 2026 outlook balancing factors like cocoa costs, tariff estimates, and elasticity.

A: Kirk Tanner and Steve Voskuil discuss momentum, balanced growth, and monitoring elasticity and cocoa/tariff factors.

Q: Max Gumport asks about elasticity and everyday business performance.

A: Steven Voskuil notes double-digit growth in everyday CMG and ongoing monitoring.

Q: David Palmer asks about Halloween disappointment and consumer trends.

A: Kirk Tanner discusses Halloween season start, consumer insights, and adjusting strategies.

Q: Leah Jordan asks about innovation pipeline and brand investments.

A: Kirk Tanner talks about innovation balance with core business and REESE'S Oreo as a growth driver.

Q: Megan Clapp asks about 2026 EPS potential and cocoa/tariff visibility.

A: Steve Voskuil discusses factors influencing EPS, including cocoa, innovation, and tariffs.

Q: Tom Palmer asks about cocoa deflation and pricing.

A: Steven Voskuil talks about cocoa deflation expectations and balanced pricing recovery.

Q: Peter Galbo asks about international segment and pricing dynamics.

A: Steven Voskuil clarifies differences between U.S. and European markets and international business challenges.

Q: Jim Salera asks about salty snacks performance and innovation.

A: Kirk Tanner highlights salty snacks growth drivers and innovation pipeline.

Q: Robert Moskow asks about elasticity impact on guidance and pricing gaps.

A: Steven Voskuil discusses elasticity importance and temporary nature of pricing gaps.

Q: Alexia Howard asks about convenience channel and innovation percentages.

A: Kirk Tanner talks about convenience channel focus and innovation's role in core brand elevation.

Q: Scott Marks asks about consumer health monitoring and SNAP impact.

A: Kirk Tanner discusses consumer health monitoring and minimal SNAP impact outlook.

Q: Michael Lavery asks about cocoa hedging and price thresholds.

A: Steven Voskuil explains cocoa hedging and price point distribution.

Q: Chris Carey asks about pricing implications of cocoa and tax rate.

A: Steven Voskuil and Kirk Tanner discuss pricing plans for 2026 and tax rate factors.

Q: John Baumgartner asks about convenience store merchandising competition.

A: Kirk Tanner talks about changing retail landscape and focus on convenience channel growth.