(Reuters) -Hershey Co forecast full-year net sales above analysts’ estimates on Thursday, signaling steady demand for the company’s candy and chocolates despite price increases.
Hershey, like Cadbury chocolate maker Mondelez International Inc, has seen little pushback to a cost-inflation induced increase in prices in the United States, as consumers remain willing to pay more for their favorite candy brands instead of trading down to cheaper alternatives. However, Mondelez on Tuesday warned demand in Europe was taking a hit and that retailers in the region were pushing back against further price hikes.
Hershey said it expects full-year 2023 net sales to grow between 6% and 8%, compared to analysts’ estimates of an 5.6% increase, according to Refinitiv data.
The Reese’s Peanut Butter Cup maker’s revenue for the holiday quarter ended Dec. 31 rose 14% to $2.65 billion. Analysts on average had expected revenue of $2.58 billion, based on Refinitiv data.
(Reporting by Uday Sampath in Bengaluru; Editing by Krishna Chandra Eluri)
