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Hershey, like Cadbury chocolate maker Mondelez International Inc (NASDAQ:MDLZ), has seen little pushback to a cost-inflation induced increase in prices in the United States, as consumers remain willing to pay more for their favorite candy brands instead of trading down to cheaper alternatives. However, Mondelez on Tuesday warned demand in Europe was taking a hit and that retailers in the region were pushing back against further price hikes.
Hershey, the maker of Kisses chocolates and Jolly Rancher, said it expects full-year 2023 net sales to grow between 6% and 8%, compared with analysts’ estimates of an 5.6% increase, according to Refinitiv data.
It expects 2023 adjusted profit per share to grow by 9% to 11%, compared with analysts’ estimates of a 5% increase.
The Reese’s Peanut Butter Cup maker’s revenue for the holiday quarter ended Dec. 31 rose 14% to $2.65 billion, beating analysts’ estimates of $2.58 billion.
The company’s organic sales increased 10.7%, with higher prices driving 8.5 points of the gain, and increased volumes accounting for the rest.
