Good Michele. everyone. morning, you, Thank
deliver is say minutes like get of and marketing take started, I'd to innovation, to great and partnering by few a transformation. with strong and their I Before to return. positions how passion here team. to our and with shareholder a strong achieve sustainable approach to for the Hershey our the brands, part whole I've a growth Michele, be to look been Hershey team balanced company vision, energized strategic growth. team Board I and I am talented excited forward profitable leading the and
the to on financial Now, results.
year. was driven basis-point growth increased XX of price translation line of X.X and by was period were versus constant in volume all sales currency The impact a currency and and basis-point of basis of results net points. of the divestitures $X.X net realization X.X% acquisitions net quarter billion growth same was Second X.X% sales last These points a expectations. XX foreign headwinds. with XX headwind net Organic
XX.X% two week. increase we earnings $X.XX, of an year. Adjusted period driven primarily versus increase related same the expectation, and the was driven to share-diluted margin gross was ahead last expansion, per price key factors announced This last were by of by
mix a select significantly a not benefited of price from items inventory from most were for while inventory First, profitable quarter. few increased retail up We in positive on levels increase, anticipation the total year. our prior customers
quarter resulted new points expansion our normalize. margin and and from demand transitioned we these in internal coming be in increased cost the two factors, inventory second to support as gross the About QX the more of internal is absorption. inventory which weeks favorable levels to external half, the to basis offset XX be we our primarily in expected second to levels fixed the in Second, attributed retailers as can prices,
is We are the and pleased with balanced expansion enabling initiatives, bottom-line it our top business reinvestment growth and the driving. margin is underlying it momentum against
divestitures the Volume period America basis-point contributed was expectations. XX a sales by These line of foreign was of were growth basis-point headwind. increased results X.X and with North X.X% acquisitions pricing, driven segment, net points impact year, net rates XX which currency basis-point and quarter. same XX the or By headwind, the versus last headwind, in in exchange a
the basis second North America XXX in gross margins points expanded quarter.
remaining by I increase, the and XXXX offset program. related commodities, As in as of be with into we driven underlying and we execute The well additional integrating QX costs and supply was gains expectations favorable our basis-point continue will second half, fixed solid Brands to price continue operations. driven fixed half, factors QX. as SKU to second favorable increase absorption, XX chain by gross as of this expansion expected from expected are July rationalization price from expansion mix our price by week absorption last though announced These to the reversal some product cost the reverse realization primarily Pirate about to consistent was with the product associated fully in partially improved and and is margin contributing mix mentioned, ways half was cost to our
increased by in primarily expenses marketing consumer X.X% related and the advertising advertising. driven quarter, America North
expect move last lapping investment accelerate investment increased year's gains We to due we brands. confection efficiency our to and through in media as year the dollar continue the of to
XXX points. basis-point Second and foreign quarter and partially net basis by from currency headwind driven gains offset volume Other XXX realization from headwind XXX was XXX a divestitures, a of This by exchange basis-point a net segment’s basis-point total International X.X%, increased price headwind.
second India the support and Organic constant in consumer in of spending. markets, Mexico, and sales focus XXXX. XX% this investment increase advertising our year. India versus International and net increased by Kisses Ramadan related increased EMEA, of is of China, our consumer marketing timing versus X% marketing quarter and Brazil, to launch prior currency Most grew driven Other
resulting increase of an Total XXXX. Hershey adjusted gross margin XXX basis quarter the profit gross adjusted second XX.X%, X.X%, of in increased versus of an points
half and expansion from initiatives. As fixed and of reverse half. July that cost by rationalization absorption efficiencies was mentioned, remainder in mix this product increase, driven our favorable SKU price by price to realization The our approximately favorable was commodities, from the expected driven second XXXX are
points. made visibility basis full year the approximately have second we progress margin to increase the now half, expect and our gross we XXX into Given year-to-date
in adjusted XXXX. advertising incremental increase second operating basis quarter profit and an versus the Gross partially profit continued offset of points margin by gains million quarter resulted SG&A margin our were Second on discipline XXX $XXX of of of brands. operating confection XX.X%,
of lower to rate. $XXX expense million year QX versus due million $X now to $XX range interest be interest P&L, in $XXX the down million million Full XXXX expected last the decrease is year. Moving expense to interest
for rate second compensation, allowance XX% tax investments. ago driven the versus fewer releases, benefits primarily stock-based offset tax were was declines partially by quarter in period. XX.X% and the adjusted The tax credit by valuation from year These access
due investments. year was fewer a to quarter decrease expense of versus Second other tax million $XX $X prior credit million,
expect XXXX approximately to our versus XX% previous be now our of rate We estimate full XX%. tax year
fewer expense to is However, the estimate. we negligible expect The tax our we these impact net expected $XX previous also to to two million to year expect investments. full-year of credit million full decline versus be to other changes our $XX as
of is quarter a second average outstanding approximately versus of million shares remaining. July For in exercise our with the in to shares connection million the the an authorization exercises This and options. XXX quarter of were against Company repurchased did on not shares a increased second stock basis diluted repurchase million The the any increase number XXXX, option due the common quarter XXXX, quarter. million. second of in The weighted slight $XXX Company stock in first $XXX quarter the $XX
were million software including additions, the in capital $XXX Total second quarter.
year For million we towards of adds to to XXXX, range. million the the $XXX cap be high-end our full estimate $XXX
As than this core to new continue higher remains and our long-term as invest a sales, ERP we slightly percent capacity. of net implement in systems target, our
shareholders cash million. We our was of to with stock. XXXth continued to consecutive $XXX on return This our dividend quarter second quarterly the common dividends
generation. Additionally, this X% solid sheet and our morning, a cash to announced we increase, flow dividend a testament balance strong
the expect of year midpoint communicated our previously X%, the full sales reported To year, to we for grow summarize, full range. net around
negligible, based from and continue acquisitions foreign and full net FX divestitures rates. be impact exchange year We to X.X-point to on approximately the anticipate benefit a
are year. around expected be per Full to to year share-diluted comparable earnings prior $X.XX, reported
year share We our expect range. the top to previous of earnings X%, growth X% adjusted diluted half full around per of
half, As to to versus to we a the to we areas builds. build vary trends continue pricing margin to we half. second as gross expect look few where the is Underlying expected highlight want first
half, of approximately the However, QX to in second half expansion QX. the primarily recall we expect reverse
the is marketing and than as second the confection brands. last support to we first expense in more media increase consumer expected well core from grow as Advertising year, half lap related our on efficiencies as half
we XXXX. to Given is the compensation of sales half half second timing and to be a second guidance, tax Due of current prior versus tax half impact to strategies, the in expect net the headwind second versus unfavorable year. the EPS of XXXX anticipated be
the we expect a For benefit slight full to year, EPS, tax. from continue to
Michele. That discussions. to concludes I'll And my turn financial back now it
