The Strong Revenue Growth : Hershey 's Net Sales

Sweet chocolate contains more sweeteners and less chocolate liquor than semisweet chocolate. Hershey’s are also much known for there ‘Cookies and Cream’ chocolate bars which they started producing in 1994 (Hersheys, 2011). Now, Hershey’s is a middle range chocolate, which globally sell their products but still is not as big as Lindt regarding globalising the brand mostly because their biggest market is their own people, the Americans.

The Hershey Company was founded in 1894 by Milton S. Hershey. It has been the market leader in Chocolate & Sugar Confectionary market in the U.S. The company is the largest producer of quality chocolate in North America and a global leader in chocolate and sugar confectionery. Headquartered in Hershey, Pa., The Hershey Company has operations throughout the world and has approximately 14,000 employees. With revenues of more than $6.6 billion, Hershey offers confectionery products under more than 80 brand names, including iconic brands such as Hershey 's, Reese 's, Hershey 's Kisses, Hershey 's Bliss, Hershey 's Special Dark, Kit Kat, Twizzlers, Jolly Rancher and Ice Breakers. The

In 1907 the Hershey Chocolate Company started producing a flat bottomed milk chocolate candy which Mr. Hershey decided to call the Hershey Kiss. In early production the Hershey Kisses were individually wrapped in little squares of silver foil. In 1921 when the wrapping machine was invented Hershey decided to give the Hershey Kiss a “plume” like appearance that we recognize today. This was to signify to consumers that this was a genuine Hershey’s Kiss Chocolate. This was eventually trademarked in 1913. Over the next two decades the Hershey Chocolate Company would produce several more products. These products were Mr. Goodbar (1925), Hershey’s Syrup (1926), chocolate chips (1928) and the Krackel bar (1938). During the Great Depression of the 1930’s these products made it possible for employees to keep their jobs and the company was able to sustain profitability. During even harder times, WW II, The Hershey Company provided survival rations of chocolate bars for military use. By doing this The Hershey Chocolate Company earned no less than five Army-Navy “E” Production Awards for its exceptional contributions to the war effort. In fact, the company’s machine shop even turned out parts for the Navy’s antiaircraft guns.

The Hershey Company was originally founded in Delaware in 1894 by Milton S. Hershey, and on October 24, 1927, the company was incorporated into the laws of the state of Delaware (1). The Hershey Company is one of the largest chocolate sellers in the world, selling their products to approximately 70 countries worldwide. The company is also a Securities Exchange Commission (SEC) recognized company (1). In other words, the company is required to report multiple documents to the SEC annually including the Form 10-K. The Hershey Company’s Form 10-K contains copies of the financial statements. This paper “The Hershey Company: Final 10-K Paper” discusses the information for the end of the fiscal year 2013, which ends on December 31, 2013. The financial statements being discussed are the Balance Sheet, also known as the Consolidated Balance Sheets, and the Income Statement, also known as the Consolidated Statements of Income. The paper also discusses information in regards to the days sales in inventory ratio, current ratio, the acid test ratio, times interest earned ratio, and the gross profit ratio.

Hershey’s market ranking is at $107 per share in cash and stock. For investors, this means it is time

he employed over 14,000 people in his business. In 1893, Milton went to Worlds Columbian exposition. It was here that he had to take a closer look at the art of chocolate. And yet again Milton Hershey became fascinated with the entire process. “With a thriving Carmel business already in hand, he decided to start the Hershey chocolate company.” (Bilbrey 2) Milton wanted to concentrate more on milk chocolate rather than Carmel. After several years, he started a candy-making factory in Derry Church. “The factory had modern machinery and was considered as a path breaking unit in the history of Hershey and the candy industry. Milton Hershey’s experimentation with the milk chocolates in the long run led to the discovery of the Hershey bar which became popular with everyone. But in 1924 was a land mark in Milton’s career when he found the most impeccable way to mass-distribute his chocolates with the introduction of foil

Milton Hershey was very motivated, even though all his previous shops had closed and gone broke, he didn’t want to give up and wanted to start a sweet company that made people in the US happy. When his caramel company started, The sales went up and Hersheys motivation paid off. Another one of Hershey’s personal traits was creativity. He wanted to start up something new, to make people around the world happier and introduce new things. An example of this was the original milk chocolate Hershey bar, it had never been made before in the US and was different to the chocolate bars made in Europe.

we saw increase in sales from 11070 to 12223.8, net earnings also boosted from 382.9 to 519.3. Similarly, cash flow from operating activities also increased by 136 million dollars. At the same time, net earnings rose up to 523 million dollars in 2015. On the other hand, total assets upgraded from 4817.4 to

The Hershey Co use multi steps income statements in order to get the detailed information regarding on gross profit and operating income of Hershey Co. In the year of 2014 compared to 2013, total operating profit increased by 3.59%, net income increased up to $820.47 (3.12%), and diluted EPS increased 4.4%. This increasing points in both EPS and net income were given the affects by higher sales, offset by unfavourable sales mix and higher commodity costs. The volume of growth increased was driven by incremental sales of Hershey’s new innovation products which sold in North America segment markets and Other segments which coupled almost 1% growth from SGM acquisition. For the net sales segment, which not stated above, compared

When the company began more than one hundred years ago, it was granted immediate success with its low-cost, high quality milk chocolate. Though one of Milton Hershey’s founding principles that has persisted over the years is to “make and sell a high-quality product at a fair price” (CSR Report 7), another threat Hershey contends with is changing consumer preference. “The company is experiencing changing consumer trends toward premium and trade-up product segments (SWOT 4).” In order to adapt to the changing marketplace, Hershey will have to continue to constantly develop, produce and market new products.

The overall Gross Profit Margin increased by 0.43% from 33.16% in 2014 to 33.59% in 2015.

Year 12 finished with Net Sales of $6,601,000. In year 13, Net Sales increased slightly by 0.5% to $6,633,200 from year 12. In year 14, Net Sales declined by -3.4% to 6,407,800 from year 13. Year 14 also reflects a decline in Net Sales from year 12 by -2.93%.

Hershey’s Chocolate is one of the most recognizable brands in the U.S. Hershey built this recognition by building brand loyalty. They began to build this loyalty in the early 1990’s by targeting their marketing to adults. The reasons for this are many, but two are that adults eat about 55% of all candy consumed and that mothers shape their children’s early taste in candy. Hershey revised their marketing strategy in several ways. Hershey also has an amusement park in the hometown of the Company, Hershey, Pennsylvania.

The confectionary market consists of retail sales of chocolate, gum, cereal bars and sugar confectionary. The chocolate segment of the market was the most profitable in 2014, with a total revenue of $18,835.3m USD, which equates to 50.4% of the markets total value while the sugar confectionary segment achieved a total revenue of $11,193.8m USD, equalling 29.9% of the markets aggregate value. (MarketLine 2015, p.7)

The Hershey Company currently employs 21,000 people worldwide and holds 44.4% of the U.S. chocolate market. Products are sold in 60 countries under 80 brand names including Hershey’s, Reese’s, and Kisses. Additionally, Hershey maintains the right to manufacture and sell competitor’s products such as Kit-Kat bars through licensing agreements with foreign Nestle and the former Cadbury Schweppes, now a part of Kraft foods.