On Thursday, Hershey predicted a candy shortage leading up to its most successful holiday of the year: Halloween.
The global supply chain of its ingredients, including cocoa and oil, has been adversely affected by the pandemic and the war in Ukraine. It could result in shortages through the Christmas season as well. Not only are the raw ingredients harder to come by, but suppliers are also in decline, according to the candy company.
Hershey’s CEO Michele Buck still anticipates to increase sales this year by raising the price of its candy. Her expectation is that net sales will grow between 12% and 14%, compared with a 10%-12% earlier estimate. The company also raised its forecast for 2022 adjusted profit per share growth to 12%-14%.
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The 128-year-old company saw net sales rise over 19% to $2.37 billion in the quarter that ended on July 3, according to IBES data from Refinitiv. Analysts had previously estimated net sales of $2.22 billion for that quarter. Its shares also rose 2.5% despite price hikes.
