The festive season often brings more profits to businesses. Halloween, especially, is an important date for sweets and confectionary companies. Hershey reported to have benefitted a lot on this year’s Halloween. With people stuck in lockdowns, it seems that people have shifted their Halloween parties and trick or treats into a bake-a-ton.
Chocolate brands and baking items show a significant rise in sales
Halloween Day is one of the biggest gains for businesses. Hershey’s sales in the Halloween Day alone take over a tenth the company’s roughly $8 billion annual revenue. Accordingly, in this year’s quarter to October 3, the company recorded a 6.6% jump in its U.S. retail sales alone. A remarkable figure, considering the pandemic has been slowing down a lot of businesses.
Noted from Reuters, the chocolate brands sales surged 9.8%. Meanwhile, among the products that Hershey sells, baking items such as peanut butter, syrup, chips and cocoa soared the most at 15.7%. Due to the pandemic restrictions, the tradition for trick or treating likely has changed into a bake at home party.
Hershey exceeds expected shares growth through Halloween sales
Reuters noted that the net sales for Hershey on Halloween Day are slightly above the previous year. The surge of net sales led to an estimated 400 basis points growth throughout seasonal market share gains.
Consequently, the net sales for the third quarter ended on September 27th is 4% higher to $2.22 billion. With that, Hershey managed to exceed analysts’ prediction of $2.16 billion, in accordance with Refinitiv data. Accordingly, Hershey recorded a 3.8% rise in organic sales, in which the impact of M&A and currency fluctuations are neglected.
Hershey expects similar organic sales growth in the fourth quarter. Hence, at least a 1% rise in the full-year net sales is forecasted in the fourth quarter. The company also forecasts to elevate the adjusted earnings per share to 7% to 8%, valuing around $6.18 and $6.24 per share.