HERSHEY, Pa. — In a reflection of how the company has approached acquisitions and product growth in recent years, the Hershey Co. is recasting how it reports its financial and sales results.
Historically, the Hershey Co. offered two reportable segments: “North America” and “International and Other.” Moving forward, the company will divide its business into three reportable segments: North America Confectionery, North America Salty Snacks and International.
“Following the December 2021 acquisitions of Dot’s Pretzels LLC and Pretzels Inc., the new reportable segments better align Hershey’s strong brands and the markets it serves, are consistent with how the company manages its business, including resource allocation and performance assessment, and provide more transparency to Hershey’s investors,” the company said.
Here is how the new segments break down:
North America Confectionery
This segment is responsible for Hershey’s chocolate and nonchocolate confectionery market position in the United States and Canada. This includes business in chocolate and nonchocolate confectionery, gum and refreshment products, protein bars, spreads, snack bites and mixes, as well as pantry and foodservice lines. This segment also includes retail operations, including Hershey's Chocolate World stores in Hershey, Pa., New York City, Las Vegas, Niagara Falls (Ontario) and Singapore, as well as operations associated with licensing the use of certain of the company’s trademarks and products to third parties around the world.
North America Salty Snacks
This segment is responsible for salty-snack products in the United States. This includes ready-to-eat popcorn, baked and trans-fat free snacks, pretzels and other snacks.
International is a combination of all other operating segments that are not individually material, including those geographic regions where the Hershey Co. operates outside of North America. The company currently has operations and manufactures product in Mexico, Brazil, India and Malaysia, primarily for consumers in these regions, and also distributes and sells confectionery products in export markets of Asia, Latin America, Middle East, Europe, Africa and other regions.
The company began providing financial results through the three new reportable segments with its fourth-quarter and year-end 2021 results, announced Feb. 3.
In those results, Hershey reported full-year 2021 consolidated net sales of nearly $9 billion, an increase of 10.1%, and organic, constant currency net sales up 8.7%.
“In 2021, we delivered a record year of production and double-digit sales and earnings growth, with a strong finish and momentum heading into 2022,” said Michele Buck, The Hershey Co. president and CEO. “While the environment remains volatile, we are confident in our ability to continue to respond to the changes in the world around us and deliver another year of advantaged performance in 2022.”
The Hershey Co., Hershey, Pa., has more than 80 brands around the world that drive $8 billion in annual revenues, including Hershey’s, Reese’s, Kit Kat, Jolly Rancher, Ice Breakers, SkinnyPop and Pirate’s Booty.
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