PEP - Hershey: Confectionery Remains A Growth Driver Salty Snack Headwinds May Last
2024-06-06 16:00:00 ET
Summary
- HSY has delivered robust FQ1'24 results, with the consistent cost optimization triggering expanding profit margins, despite the elevated commodity inflation.
- Readers must also note that cocoa and sugar futures have been moderating, with H2'24/ 2025 likely to bring forth improved bottom lines.
- Despite so, HSY continues to face demand softness in the North America Salty Snacks segment, with PEP similarly commenting on impacted discretionary spending.
- And it is for these reasons that we believe HSY's discounted valuation offers interested investors with the chance to dollar cost average.
- This is especially since patient investors will be paid to wait with expanded forward dividend yields of 2.77%.
We previously covered Hershey Company ( HSY ) in March 2024, discussing its mixed FQ4'23 earnings call, with the management competently delivering stable bottom lines despite the multiple headwinds, with H2'24/ 2025 likely to bring forth improved numbers....
Hershey: Confectionery Remains A Growth Driver, Salty Snack Headwinds May Last