The Strong Revenue Growth : Hershey 's Net Sales

2010 Words9 Pages
Forecasting Strong Revenue Growth: Hershey’s net sales increased by 9% in the 2012 fiscal year, which was heavily influenced by net price and volume increases in domestic operations in the United States as well as international markets. Net sales increased by 2% as a result of sales from new products in the United States. Canada contributed another 2% increase as a result of Hershey’s Canada acquiring Brookside Foods. (EuroMonitor Inc., 2014) Growing Impact Of International Sales On Growth: Hershey’s currently generates less than 10% of revenue from its Asian, European, Middle Eastern, and African market segments, however its presence abroad is steadily increasing, leading to future global revenue growth. (EuroMonitor Inc., 2014) Revenue Growth Demands Investments: Hershey’s net income margin decreased by approximately 40 basis points, due to higher input costs, an increase in sales volume and increasing supply chain expenses. Advertising expenditures decreased by 16% from 2011. This can also be attributed to a lower net income. (EuroMonitor Inc., 2014). The fiscal year ends for the past five years, make it clear that Hershey’s quarterly fiscal reports are increasing, which has contributed to a higher fiscal year consistently. Analysts predict that throughout 2016 and 2017, there will be a 1% increase in the fiscal year annual results (EuroMonitor Inc., 2014). IT Activities Hershey’s made significant information systems upgrades in 2002 by advancing its enterprise-wide
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