Provides update on progress against growth initiatives.
In a presentation today at the 2013 Consumer Analyst Group of New York (CAGNY) conference, John Bilbrey, president and CEO of The Hershey Co.; Humberto Alfonso, executive vice president, chief financial officer and chief administrative officer; and Michele Buck, senior vice president and chief growth officer; reviewed the progress the company has achieved in its consumer-driven global approach to core brand investment in both the U.S. and key international markets.
The company outlined initiatives underway in its focused international markets where it is making solid progress on expanding its five core global brands—Hershey’s, Reese’s, Hershey’s Kisses, Jolly Rancher and Ice Breakers.
“We continue to build and execute our consumer-centric business model and are creating a virtuous cycle that is delivering predictable, profitable and sustainable results,” said Bilbrey. “We believe the strategies in place support our long-term targets of organic net sales growth of 5-7% and adjusted earnings per share-diluted growth of 8-10%,” Bilbrey concluded.
During the presentation Bilbrey reaffirmed the company’s full-year 2013 financial expectations for net sales, gross margin and earnings per share-diluted growth provided in its Jan. 31, 2013, earnings release. The Hershey Co. CAGNY presentation was accompanied by slides that can be accessed at the corporate Website (http://www.thehersheycompany.com).
In 2013, the company expects to record total GAAP charges of about $10 million to $15 million, or $0.03 to $0.05 per share-diluted, attributable to Project Next Century and $13.2 million, or $0.04 per share-diluted, of non-service related pension expenses (NSRPE). Below is a reconciliation of earnings per share-diluted in accordance with GAAP to non-GAAP adjusted earnings per share-diluted:
Reported EPS-Diluted $3.47 – $3.56
Total Business Realignment and Impairment Charges $ 0.03 – $0.05
Non-Service Related Pension Expense $ 0.04
Adjusted EPS-Diluted $3.56 – $3.63
Possible adjustments to exclude business realignment and impairment charges over the long term are not known at this time; therefore, the company is unable to provide a reconciliation of earnings per share-diluted in accordance with GAAP to adjusted earnings per share-diluted.