Hershey offloads two of its international businesses
“We delivered our second quarter results and we remain on track to achieve the financial targets we shared in April,” said Hershey Company president and CEO, Michele Buck in a statement.
“We continue to invest in the US with our core brands and build capabilities for growth while taking measured steps to enhance long-term profitability. Amplify’s strong performance in the marketplace continues and the integration is proceeding as planned. I am very pleased with the ongoing transformation of our international business with solid organic growth, meaningful profit improvement, and the successful divestitures of Tyrrells and Golden Monkey.”
Hershey announced its half year results which showed sales for its global business surged during the second quarter by 3.1 per cent to $191.7 million. The segmented recorded $16.6 million in net income, up from $8.4 million the year prior. The chocolate maker has also taken a lead at the Wall Street’s estimates for both quarterly sales and profit. Shares were up more than 6 per cent in trading midday Thursday, according to CNBC.
“Hershey’s Board of Directors has approved a new $500 million stock repurchase authorization and a dividend increase of 10 per cent. Hershey’s solid balance sheet and strong cash flow generation gives the company continued flexibility against its cash priorities, including returning cash to shareholders in the form of dividends and buy backs, while also being able to participate in strategic merger and acquisition activity,” said Buck.
Hershey said its popular sweets brands such as Reese’s Outrageous! bar and new chocolate campaigns has contributed to the company’s growth.