Hershey reports 5.4% increase in Q4 2012 net earnings

US chocolate manufacturer Hershey has reported that its net earnings for the fourth quarter of 2012 increased by 5.4% to $149.8m, compared to $142.1m for the same quarter in 2011, driven by higher sales and margins, as well as gains in market share across all areas.

The company’s net sales for the quarter that ended on 31 December increased by 11.7% to $1.75bn, compared to $1.56bn for the corresponding period in 2011, due to improved organic core brand volume trends driven by the US business.

Hershey president and chief executive officer John Bilbrey said the fourth quarter results reflect the company’s strategy of focusing investments in the US and key international geographies.

"While the macroeconomic environment remains challenging, we are well positioned to succeed in the marketplace and deliver on our commitments in 2013," Bilbrey added.

For the full year 2012, net income increased by 5.08% to $660m, compared to $628m in 2011, while sales increased by 9.26% to $6.64bn from $6.08bn a year earlier.

Hershey stated that the full year results were impacted upon by acquisition and integration costs related to the Brookside acquisition of $13.4m and the non-cash goodwill damage charges of $7.5m.

For fiscal 2013, the company has forecasted earnings per share-diluted to be in the range of $3.47 to $3.56.

In addition, Hershey expects five to seven percent growth in net sales, primarily driven by core brand volume growth, the launch of the Brookside product range in the US and new products, such as Twizzlers Bites and Jolly Rancher Bites.

Furthermore, the company also plans to extend its product portfolio in key international markets, such as China, with the launch of Hershey’s Kisses Deluxe.