HSY - Earnings call transcript Q4 2024

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Operator

Greetings, and welcome to The Hershey Company's Fourth Quarter 2024 Question-and-answer session. [Operator Instructions] As a reminder, this conference is being recorded. I'd now like to turn the call over to your host, Anoori Naughton, Senior Director of Investor Relations for The Hershey Company. Thank you.

You may begin.

Anoori Kadakia Naughton

joining Earnings for Q&A for Fourth Hershey everyone, XXXX Quarter session. morning, us The today Company's Good I hope our everyone our our both press has which website. had the as of well chance [ as available ] are prerecorded remarks, release mention on to read

statements of we post call. In conclusion session, a today's expectations make audio results on of detailed A posted of this company's transcript note could that to remarks. At company's the have session, The that press are Q&A subsequent Q&A future such we Actual from uncertainties. listing various uncertainties can transcript the and risks of materially and live addition, today's financial SEC these those prerecorded in projected. forward-looking statements risks we performance. filings. Please during obligation and the These may a the be based assumptions today's differ release no found company events. will also subject operations including statements, regarding undertakes replay and and update and to

financial note non-GAAP refer with not presentation in presented GAAP. this to as GAAP are or morning's is that the may in results we accordance a information considered that included investors. this isolation to be we financial of release. information provide certain for substitute The the intended please for in believe Finally, useful measures information Reconciliations for press

Hershey's Michele the With and for over CEO, Joining the that, it and turn Senior President question. me will to and first today Hershey's are Steve I Buck; Vice CFO, Voskuil. Chairman operator

Operator

you. Thank

Lazar Andrew from question Our first Barclays. is with

Andrew Lazar

could line levels? And at growth in 'XX. really if 'XX. such around context incremental you -- at I in about too how this, have by top growth this received positioning you way pricing get company doable do if in bottom do provide consumers feel for about this the so, Even remains there? what's you of a pricing currently as hoping we for yet elevated early broader is for the And the just it's sort in stage to your know overly I remarks, really some Michele, prescriptive to to though and in just just good how sense will maybe trying the balanced mention prepared clearly I'm 'XX some be take put 'XX the was around to and But for more 'XX. ability on parameters in this potential growth get cocoa embedded balanced don't year. comment

Michele Buck

it. Got crack you just to do a want Yes. Steve, take at one? that

Steven Voskuil

be happy I'd to. Yes,

on growth, So eventually as implied, get to when EPS we say back algorithm. want balance we

you one as and so to hedging when to have factor so efficiency drive the use benefits productivity to at the to SG&A in and savings, includes we more manage additional looking some price, even same levers return paying the 'XX, relative team the And that spend. includes and always not market driving marketing great we CI that price, and we we're to includes have suite pricing, just catch-up dollars look case, cocoa commodity to for the that commodity. But is and XXXX, said, of for full look we on of that expect 'XX, the continuing like at

confection $X would about and to the pricing less portfolio have what as XXXX. we think We on things can [ all ] is to the make be set easy. probably of That be do a consideration in those side. look But we in still internally XX% So impact. have a take conversation our of be would the will than we'd at

the to at. look have And be that one we a would things of so take

Andrew Lazar

its made a the some to as approach can I sort sort up XQ? the is of you're And elasticity sort of taken about there? instant Hershey of pricing price talk of not maybe if this currently year then of not concerns? of understanding has because seeing market where portfolio. And wonder other strategic just that different I asked into our elasticity across company sort what prices way has in there's taking in of consumables part you And is pricing is a sort some fully maybe line reflection Or intent already the

Michele Buck

Sure.

is So what us coming better. either with visibility to expectations our is have full elasticities I'd What it's results. little the bit those in on we're cases, in early for par a to slightly seeing and some say

carefully obviously. are we watching So that,

where in aggressive we confidence we lot we expectation selected And think and go. an of take account pricing think we into that. into so do strategically price, And was We always cocoa best have we be. our as of to ability where that to a to it how we are going normalize, factor decisions we thought is how we will really that the balancing certainly

what will that, seeing to about feel but we we're monitor continue to good So date.

Operator

question next Goldman JPMorgan. Our Ken from is with

Kenneth Goldman

In your adjust said to you're prepared prepared pack et architecture, you cetera. remarks, pricing,

I how what and at futures to might Is they sense market commodity that are on line how dependent decision on just little your necessarily get okay, bit decisions you trying get view that it really more the If to dependent other right a hey, demand? wanted that about formulations around of to think just more supply is or means? forth. adjust want a the pricing or markets evolve, prices to view what Or saying, make make when and underlying your you on looking and so color and time are wrong? Just you on

Michele Buck

of things take into So Ken, account. those we both

our how by a talk to going to then start it to on over about about factors. Steve balance talk the I'm turn view little little bit market, a bit me those Let and we

And for going cocoa what with over think much coming to to we're Ghana. continuing global the increase half we and time. of in seeing really production We outside It's more Ivory Coast continue healthy to from be of diversified continuing market production that investments an good supply take the feel see as to about going nearly to it's that's resilience fundamentals. We're today areas impact, diversify inherent is Africa and -- in continue Africa. West et we And the our diversification West to by factors different help market. We've factors, actions it's balancing resiliency. made going weather to look cetera. We're and provide drive just in looking to geopolitical

We will our also do We've diversified continue sources. to that. supply

little us. factor Steve, as do that exactly So certainly is And more about that? and aligned, know we're you for that we aren't watching a we those to want time, the same certainly, market well. into fundamentals. fundamentals price the account and one that take At bit talk

Steven Voskuil

half say EPS. is earlier, would first the right same as 'XX. the on said through I year. in ready that the algorithm event. for in that We waiting of lot don't reality, the see for now. say time that building plans still on we're the with watching pricing in to and as cocoa so ground, back of a all retrenchment plans even parts that which But what's hopeful XXXX. before on of happening I for setting get kind P&L at dealing opportunity to just And [ not We'll be touching again, go we're the we're to reality Yes. We're market the see transient ] the

Michele Buck

differential in the The but exchange, price origin. to other is not is prices some there launch what's thing only those actually And there. we do what's on happening the

that we well. into so And as take account

Kenneth Goldman

Understood. that's follow-up. just No, then helpful. quick a And

slightly I had in think hear maybe elasticities for Andrew's question what or to about better. you par It's seeing cases, some that answered on great you're today. they're

you is what into curious, how more are And you baked pricing missed Just I said as if your about this unfolds throughout thinking this, elasticity it, year? but guidance?

Michele Buck

So though, factors, we think think we've there we minus is could depending be for on us that at that into right but prudent level. elasticities We'll now. baked that the historic our watch approach do guidance upside, because one

Operator

Gumport with question Our BNP. next Max is from

Max Andrew Gumport

elasticities have You've or in, and a on the cocoa clear. pretty me, it largely is got to costs minus cost visibility this follow-up X 'XX, the I for unknown mean, to savings right? pricing the feels I key like locked something. implemented question

particularly bit elasticity 'XX? color what's if be applies more would a talking more favorable. about X? the minus in give competitor too, in just on That your context a you to could segment, much in informing the so that international level smaller And And of

Michele Buck

we work through we international see we do know And some come that outlook. if we upside as considered the in stance and elasticities of that also have in volatile marketplace elasticities better think it again consumer is in So the take greater a exists consumers. to we pressures the for prudent

We are those leading price markets, in the not many so those not of increases. always market leader

we do doesn't it's big we have I at relative a a differently. our as it to So different nearly so business, impact, smaller take there. an but of obviously, approach it mean, piece of our look stance

Max Andrew Gumport

small across your that Right. a on how had The strength but segment, international, tightened you strong Great. very it I And a staying competitive broad-based Can it? single-digit then those XQ low realized in it's with was a stood markets growth the pronounced of was commentary markets. and where to 'XX activity seeing to talk bit expect activity more through you're about competitive you manage you is out what more me. and

Steven Voskuil

fourth couple little we that and big big quarter Black holiday. have of was the a performance where also in bit favorable They markets were a helped a strong. ] [ Sure. Friday lap Yes, some was by

point. last year, the the there. performance at strong X business was So When you about of up look totality

balance. 'XX doesn't outlook was would saw, promotion. Brazil say, competitive and particular as lot a in on The of I Mexico. activity look more the intense, Brazil in So different. We highest very

growth those We expect market look fourth have the increase, But see again, we in of that's a to in kind the innovation what's the and helped lot really totality of that competition informing and that at of markets, XXXX, as quarter. to certainly there. we

Operator

Our from question Cowen. TD is next Moskow with Robert

Robert Moskow

I'll quarter? your ask pressure Or even pretty quarters? phasing. Do for there be hedges Steve, will the in like gross when fourth quarter hit just are to covered fully in roll Or I throughout you margin about you another fourth over? fourth expect be think quarter,

Steven Voskuil

Sure.

covered year, the on we're completely for full So cocoa. nearly

fourth don't hit -- in a kind And new hit of so expect big we outlook the a from the quarter.

practice of look split neighborhood going in in less will less of to on cocoa. gross margin, cocoa half the flow And to on half, the we our higher hedging pressure get probably based those have are the where the under as we're first at of positions be If gross hedge margin impact the going be see basis to as more you points. based back XXX we'll

half the in back than more the half. definitely first So

Robert Moskow

are just Okay. Michele, quick you follow-up pricing. a similar seeing Michele. And competitors take your for on actions

it. been it there? strategic or in very doesn't like some It to are similar take yet. discrepancies seen sound Have consumables about out you're You've actions you going you're some where taking there

Michele Buck

has their which appropriate very think is have we through for overall, taken then say channels. portfolio pricing say, including label, I the pricing the I'd I'd we We people category and see pretty But most pricing, at cycle pressure aggressive know guess XX% us. be major broad-based, to nothing probably the well. of though just I taking seen more bit that been is of also as time and certain price rational, one to next players considerate they parts that has private tend piece. go and as in to table tried off a

We entire are portfolio. evaluating the continuously

Operator

next with Alexia Bernstein. Our is question from Howard

Alexia Howard

in for that So takes first [indiscernible] assumption? conservative the there around. on the outlook Or strong Is are just other time to muted can performance XXXX, elasticity the this due compared there? of to ask it's all, price obviously puts I and mainly sales

Michele Buck

International algorithm. things. So our pressured a of I'd say we a than see bit couple growth in normally was would more

primarily played a certainly be volatility anticipate certainly that inventory in account bit stronger do retailer into taking in the will due North a to marketplace. We We're than our America that confection. So shipments role. consumption the

well back And the playing closer but role do fewer And half the the play are in a day. activations so that some coming have really year, of commercial one shipping those that's are into as we addition, components. key to

Alexia Howard

it? this seeing the And I Follow-up. what's you plays any that the time? to topic over back the impact which you has are past? as strategy in the Can moment? out here material up How to the GLP-Xs, on call, come measuring at Are come topic of

Michele Buck

Yes.

seeing impacts. are we So no material

continuously data. are externally and We to looking get evaluate

like triangulated studies, the have studies external our internal and recent views. internal Cornell evidence, ] both and including to [ numerator validate of We some they recent tend and the most

broader also that sources view eat drugs important do users our consumer of data preference We the that shift do not healthier multiple our know less have categories. a disproportionately there's in support We as of to that has for been we to we to underway what's continue low claims items portfolio that sugar time, for track consumers. have some that other and things. around items our will evolve nutritional continue And

Operator

from of Our next Galbo Bank Peter question is with America.

Peter Galbo

phasing actually prepared the But to you XQ follow-up I I of just in color the was and just think the back line. around a question maybe know has XQ just half on maybe day. a there on gave made comment top year, one Steve, XQ, on remarks. you less Alexia's

we make the given sure on top line think to in want to the comps. all have about moving Just the as bridging wonkiness there's some X% we parts

Steven Voskuil

X Sure. One quarter, quarter shipping Fourth first has days. fewer has the quarter one.

have extra. so one And they

So net-net, for year. half, in first second between you're between second one the day and growth. pretty we'd minor single-digit the low X short expect Again, overall full half. half But those

Peter Galbo

caps. I there's the Michele, if participate downside gears could switch fall cocoa your about do risk That's in then, of markets helpful. And to maybe able commentary being given

some believe, There's have been own norm. competitors bit spoke out the about about of seeing of some You that little been the maybe reporting you're off your exchange doing. mechanisms are activities a I

wanted what you activity perspective, that just of and seeing understanding kind also seeing comment been your a your can on And from get you're the yourselves instruments maybe just it? what So deeper you're to maybe outside competitors if norm. own of using that

Michele Buck

looking low right how chain. participation we of approach yes, are the supply been on And cocoa options our exchange. commercial seeing now, alternatives So very we and have we at

approach -- dislocations on has opportunistic that? an you in the the anything we place a how area market origin advantage get that bit to in see very come of focus there lower trying be a whole and versus and that we're is prices about really Steve, opportunity add exchange, differently. take Our we to been can in would this we to

Steven Voskuil

think dislocation market types I No, we get instruments, opportunities. of the present but on sometimes won't specific more

And can so to sure want looking for everywhere opportunities. we make we we're

Operator

with is Our next from question Citi. Tom Palmer

Thomas Palmer

talk assume in make we I pricing, starts as would minus without what elasticity out, elasticity relatively do kind roughly could level point to have guess, you your I I sure I the the right, this than to you just about then starting starting assumption. to starting X, just point, it back coming of a think it Maybe the circle want is would as year, and or we when long-term growth different normal? of when a have maybe trigger? And you about starting point guess be algorithm

Michele Buck

look up mean impact approach retailer, looks go is it's to that the there relative always largely of then there that on what the we number conversion we how pricing, and I we by and say would is really So that it retailer a do to have similar pack volume by helps pack consumption and to unlock and we on what by price, it. curve build that's I we to get say from at growth back you once and to that brand, programming a brand us like. brand. And a the we on you

somewhat top But than those to this us that a on had long of [ we we The ] us starting better get that's allow Easter X. programs as year that how minus derive helps So it. point.

Thomas Palmer

just then to in a there was reference fourth inventory And timing the quarter to remarks, benefit Understood. prepared in related valuation. the

Just any And this this impact on help drove all? at what this? has and then quantifying whether XXXX any

Steven Voskuil

the was what P&L ERP really allocation and of which inventory related and Yes. new based a system, has The cost it's between about to we impact $XX much sell. finer million, our on

system. With a And little more sort that of system, comes so variability. bit better it's a that precision

the not quarters, based not -- go little had past than as I going but more setting that And we bit material. So we to may see we through models on a our we're differently it's wouldn't of that. movement be the in

Operator

with Jim Stephens. Salera from is question next Our

James Salera

In Sweets Rancher. the the you on called with portfolio successes acceleration remarks, and the Shaq-a-licious Gummies some and out Jolly prepared

out on Just the have of in thinking how will this rolling can of you efforts that portfolio, of non-chocolate on advertising and about you the some drivers play innovation maybe year? upside potential about the portion the talk portfolio the into

Michele Buck

absolutely. Yes,

purchased know, in in QX, innovation, a support, of Strips. marketplace innovation, new Sour lot including Shaq-a-licious as Rancher we in then launched Gummies actually So the you QX, Jolly and we heightened

were balance of QX on year. all new to of the of kind of things the late So the into as mid Sweets

we're a look benefit get So those the at to from pretty 'XX, carryover you going strong benefit, as carryover items. year a of

launched Freeze that, to addition marketplace. and the In hit we JR Dried recently that's

on and new is that So news innovation year. for Sweets this

as We have and later yet coming well. obviously we then news this announced haven't on Sour year that Strips we distribution and opportunities velocity have

on So continued and as we news of opportunity we have the a enter lineup continued year, nice the through Sweets year.

James Salera

then it you have occasion, pieces consumption with Sweets the that your immediate didn't is the the especially selection, that Sweets, those when conversations space incremental of in of expanding And before? areas? you often Great. in and reopeners swapping for on chocolate is have cash kind ramp like Or

Michele Buck

Yes.

in Sweets. So under-index we

We are underdeveloped.

opportunity incremental us, to for it So be is distribution, incremental an consumer occasions.

look with way. that a do strong, some seasons as helps we at So there Sweets these us already able quite into get of in our being but portfolio to where that opportunity as we're Seasons innovative It helping also new well. components us

Operator

question Goldman Leah Sachs. next Jordan from with is Our

Leah Jordan

I wanted prepared chocolate noted the share the in you about remarks. in ask to declines market that everyday

from impulse bigger because as versus First, do innovation cyclical on curious trended quarter you to potential an going smaller just like the players? versus the improve has much And is ] the need improvement about newness throughout and intensified think just how quarter. drivers planning forward, C-store that you how then [ for you're in think and competition dependent in the channel drive last been

Michele Buck

the better. getting is So everyday I'd say

improvement significant take-home. and significant improvement in also seen with have we've We Sweets,

that lap we we lapped of and year, a some driven distribution had position improvements were the to relative those And the those and as to was back through of category. merch. normalized in prior That then pressures helpful. got retailer-specific the certainly, Some we strength and by

Innovation as that important each important. types right innovation is and is competition pack make across got innovation pack to we there lever, type increased sure having incredibly are we've our is for an looking the space, of right within that each shelf

year, home dialed share growth. This really the some have and levels take up that, will this and strength is acceleration marketplace. in do improvement in driven ever of outlook that have year, we had and the We Sweets, continued TDPs on to biggest in and So in think innovation result continued the every the coming Reese's have by seasons innovation that we we day.

so And our convenience of continue that to is commercial trends with concentrate. store area driven in the consumable of year. pressure consumer later that work business. That's come to the partners an more improve some news this we'll to And on in the instant by particularly these pressures macro and portfolio

a the and downward as but other there's on momentum we of bit pressure little We share focus continue So upside there. category on there to more well. see areas,

Leah Jordan

you That's very discussion. then invest helpful. that It in going were following standard And up maybe just like and to sounded quarter, lean into your C-store planogram]. more last variety gold brands on [

it is like improvement those as but of to you the starting So you still any see sounded channel are plans? kind implement soft,

Michele Buck

our seen So the standard. still of but some portfolio, we up seeing ramping On QX. X we significant pressured, are that gold about points And saw to improvement. trends improvements by variety from we we are improvement. have They QX in our in are process

takes time some So to implement. that

that. have from Xx So lot monitor It planogram. based has that, on in. impact of so we've by require the to I sell continuing retailers, It you confidence a as the places tested a it old where the the but we're does reset

More to we'll that the So we of see those marketplace the And hit into to lifts. the will we're those as half. closer upside year. midyear come progress confident through second in continue

Operator

is question Sandler. with from Piper Michael next Our Lavery

Michael Lavery

through you're you're maybe in what well? you seeing touch you as mentioned reformulating there exactly You on are remarks, prepared end adapting Could yourselves seeing if users cocoa and reformulation. your

Steven Voskuil

critically of So at the the we maintain our have looking where the brands. last but always and may taste some over specialness iconic there several be in profile years, We formulation, opportunities important.

And look time, far, that would whatsoever. I over look our that a we there say portfolio, all continue it's made no we've space. impact test made has parts consumer some at. We place in changes. some and thus so changes And in We'll the we've in of been to

As you testing. a we the smallest in were can on of make portfolio, consumer even change to if imagine, extensive brand the

we're it's So definitely on focused look but an sure we we'll the to make that want area consumer. at,

Michele Buck

some alternative. We have global demand market increased cocoa been seeing the across for

brands the as are market have are some do folks we stand perhaps possible, they to [indiscernible] But in we we're to Obviously, switch seeing that. see alternatives. with for some it do who yes, destruction demand that we but the create what does precious and pretty who pressured consumers. cocoa others So the where opportunity about

Michael Lavery

the far is Okay. something kind how solution. -- over that? on potential Got it. mentioned that cellular what play might horizon, a Is years? that agriculture we for the And should is how a few role, think consider being potential you've off think you which the before, Is substitute? far don't touched I about if long-term that just How as of to something any, next, say, on

Michele Buck

necessarily near we're watching don't it certainly a is it's very of something right I now. think it I investment a be changer, can getting and It's lot but think term, game closely.

So I it's something to think watch.

Operator

is Carey question from Securities. next Fargo Wells with Our Chris

Christopher Carey

for assume other about? the Or year. and there XX% considerations it's thinking the fair to XX% of Just should cocoa remainder be that it first, there gross think the is maybe that for Steve, Is we implied core are I differential roughly QX, margin like inflation? the

Steven Voskuil

than we'll year. the the yes, the we like to also more cocoa's your areas, -- the half. things commodities, the other some question, about XXX inflation component, for biggest over than labor, forth, more in really less evenly but so in And are of the points paced the warehousing be those and the other Yes, that, first earlier be basis half, we'll talked down second answer

Christopher Carey

Okay.

an your the be transition role, of context as timing that provide you any organization? color and just to sort would or process, Okay. And obviously, which out Can you Michele, then you exciting. looking is the Great. more announced capabilities on for maybe plans of search

Michele Buck

Sure.

do. had succession we've place So always for companies as in long-term always, framework a

practice the I announced search is firm my a or that actively is the underway that date retirement, appropriate. process Now search as for have

a board. process search are very paying robust we be and the to conduct world Certainly, fast-evolving and we a will committee on attention search We industry the led recognizing that will and qualifications focus selective right skills, to allow the in people to living experience, somebody during today and and this experiencing bring environment. all to on has very us being board win by who

So seamless will the successor right the sure working right to phase Board execute delivering find to with ensure growth. transition. I'm for and a on our on making I am selection confident we and But positioning continuing and the closely I'm the the that absolutely I'm of our plan, in 'XX interim XXX% this next transformation company laser-focused

Operator

from Our next question with Rob Dickerson is Jefferies.

Robert Dickerson

'XX, a just it price kind bit, in a weakens I maybe hearing Steve. you Michele, settle, [indiscernible] I'm Great. [indiscernible] I down, comes okay, crop around of can down. so the demand start is of maybe kind what dynamics little today guess it's for chime supply-demand question maybe to the in. pulls hopefully more it guess comes

direct I And of more then kind heard you on line you top the hopefully But or the think right, Steve, and kind line as get prepared of get 'XX, you kind bottom balanced remarks, of comment then, mention you also to growth. in algo. the

has is, [ right? Because is a a be right? go feel scenario those way Is to earnings? [indiscernible] absolute comes really probability algo like down more just some that growth? have of of all of get such comes growth, hoping I kind I'm could kind are back so the better the we're And far question could you some, you be That's like 'XX, it growth, If then kind gauge down at have. but once you trying yes, bit that more try cocoa absolute we clearly, to to a up how decent earnings So like if out back it ] core of it down, a what is year okay, earnings there that this -- can such then bunch, of kind around above on a little our how year, me, go for bunch. like

Steven Voskuil

Sure. Yes.

see, even track. at path this 'XX, there's cocoa about a in back and execution, we that depending we back think from the see prices the We cocoa some some get of year. And that help we we I start on particularly EPS for earlier talked first growth. for again, half actions opportunity to see then framing growth of an on for what we're outsized So to aggressive cocoa, these

So those are of year. say That's we when our assumptions. we we're mean when next balanced kind that operating we That's see shooting for. say for -- to what what want growth we

Robert Dickerson

Okay.

kind vaguely And 'XX. would plays it down, how out. you think start guess, give kind a fair assume sense. my on bit -- makes hedge assumption little bit of about to you hedge? see actively if you, And then I really may your think to while practices, respect of quickly, right? of And talk of before like cocoa where start do Okay. like touched it hedging fully you We'll I of that, that more you think, a then, before it kind sits you wait it kind ever comes today, just don't time I that I kind is to that But right, you be be

Steven Voskuil

cocoa comment can't exchange, the 'XX They're much happening team. we Yes, for plan the too of competitive got markets we've happening in and to great on timing what's very a their close exchange hedging solutions. and off the what's reasons. for innovative But on

working cocoa the And out going continue of there that. so advantage best take this. got We've to to traders we're

more their it and the leave hands, year progresses. get as to going we'll we're So in information

Operator

is next from question John Our Baumgartner with Mizuho Securities.

John Baumgartner

bit now on category, specifically. And And U.S. I about X%. pricing in half the about it's magnitude. Alexia's to wanted even chocolate was was though come back XXXX, XXXX, down XXXX than Michele, worse in question the to a volume little

and that the may health And impact, I not though a driver, but some as guess, be having it independently. sounds wellness are big GLP-Xs still

lot destruction going truckload So savory snacks outright point any prices? infection on between how just you It [indiscernible] factors simultaneously. demand feels versus wellness, into maybe bucket declines the a like from or shift would at there's this health and

Michele Buck

Yes.

I'd going So a on. there is lot say

say, has confection all, So category, high-growth start really think of area. first I and I would broad the been Sweets a about if

So pallet value to experience, delivers been Sweets there's has been component evolving some mix Sweets a it. on that's a there. different

So -- impact so that's a that's but trend longer for that's there. continues be certainly while been been category on to the in chocolate. And one an factor a impacting and having place been overall

channel evolution. I think seen of we've a lot

growth So that there's mainstream primary then in chocolate there's in traditionally like sold, lot a chocolate. across have And some of is of the some channels been some been been there as unmeasured not strong is where channels pressure convenience. the of some

And focus overall really accommodate And us category. is for so in and the also, that's for category our really think, we're that. an those to shifting is strong opportunity growth places, and I the

focus of of see seeing and the and focused a it think on X I is on heightened wellness health lot products both and don't I see opportunity protein change. sugar line products, a a which our those continuation. certainly, of on as growth forward. really we're going And massive also put line we consumer a growing, also our nice on of we

Operator

is question Evercore Palmer ISI. David from with next Our

David Palmer

a that curious you're bucket some I this Seasons about picture primarily, wanted area questions. year. how and been big greater thinking to for ask you growth It's growth. I I'm about about maybe mean

about point convenience tough and wondering from a budgeting stores out, think that there's other comparisons this sort I any I'm and a how play a at year. of about other also And perspective you're of then seasons insights? if thinking from had post-COVID recovery channel and how any this have grower maybe been channel might wondering that year this thinking lapped notable was commentary of you're Some COVID. I'm lack how as you're sort forecasting

Michele Buck

Yes.

pretty their the macro being love part years season, so and year. Seasons consistently them makes and a participate what have been their may expecting with during been consumers on Think Easter, growth. brands with [indiscernible] over want the environment. regardless elongates going late the expect of Seasons. very and year, traditions we're in they we that their strong We've families. This component strength there's strong of is Seasons doing this in that advantage very So to Easter in be that the well rituals

also to seasons. we we'll continue believe And We do expect in that to gain well share the there. other

up the in about well delivered you a set foundation that year give year good a helps Seasons the and year going into As following in we us performance in as this feel to season we 'XX. in success what good know, prior

David Palmer

as a forecast you that any will in your what's line your be there? comment channel? on then that, with think Do convenience And Or broadly? thoughts

Michele Buck

Yes.

our think I with will be line forecast. that in absolutely convenience

to stabilize continuing that are we in until forecast more. We it see some channel pressure

pressure. So we'll some of parts lap that

help summer lapping So will frame. a that about it time be the

until see continued we lap. So softness that

Operator

question-and-answer This does conclude our session.

Thank participation. time. your You your lines may this at you for disconnect

The Hershey Company (HSY) 6 Feb 252024 Q4 Earnings call transcript