The Hershey Company has delivered another strong signal that the global confectionery sector is proving resilient despite elevated cocoa prices, reporting robust second-quarter net sales, which grew 6.6% year-on-year to $2.78 billion. Organic, constant-currency net sales also rose by 3.6%.
The US confectionery company also posted a sharp recovery in earnings as investments in brands, innovation and productivity continue to pay off.
The results suggest leading chocolate manufacturers are successfully protecting margins through pricing, operational efficiencies and portfolio diversification while consumer demand remains intact.
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With Hershey raising its full-year guidance and Mondelez also outperforming expectations, the latest earnings reinforce confidence that branded confectionery demand has remained resilient even as cocoa costs continue to reshape the industry's cost base.
More on Hershey’s results to follow.
Mondelez International also exceeded second-quarter expectations, further supporting the view that demand for chocolate and biscuits remains strong despite ongoing raw material inflation.