Hershey reports 21.77% rise in Q1 net profit

US chocolate manufacturer Hershey has reported that its net earnings for the first quarter of 2013 increased by 21.77% to $241.91m, compared with $198.65m for the same quarter in 2012 due to lower commodity costs, cost-cutting initiatives, and growth across core brands.

For the quarter ended 31 March 2013, the company posted a 5.5% increase in net revenues to $1.83bn, compared with $1.73bn a year ago, driven by higher sales in the US and the launch of Brookside Foods products into its line-up.

Hershey president and chief executive officer John Bilbrey said the first quarter results, driven by solid volume growth across core brands, represent a good start to the year.

"We maintained our retail momentum in the US and key international markets."

"Specifically, first quarter US marketplace performance was strong, driven by solid volume and unit trends across most major pack types resulting in market share gains in every channel where we compete," Bilbrey added.

Hershey stated that the company is focused on executing its plans and will continue to drive core brand volume growth in the US and international markets throughout the year.

For the full year 2013, Hershey expects earnings per share-diluted of $3.52 to $3.58.

In addition, Hershey expects 5% to 7% growth in net sales, primarily driven by core brand volume growth, the launch of the Brookside product range in the US, and new products.

In the second quarter, the company plans to launch new products in the US and international markets, including Kit Kat Minis, Hershey’s Kisses Deluxe and Hershey’s solid chocolate products in China and the Hershey’s Mais wafer product in Brazil.