People with more time on their hands due to lockdowns have led
to a new wave of amateur bakers and a surge in demand for
Hershey's chocolate chips and cocoa powder that are used in
making cakes, cookies and other desserts.
Sales trends in recent weeks have led Hershey to expect growth
to accelerate in the second half of the year.
However, the company said it was uncertain of the effects a
resurgence of COVID-19 cases would have on demand during
Halloween, one of the most important periods in the year for
candy sales in the United States.
Net sales fell 3.4% to $1.71 billion in the second quarter ended
June 28, hurt by a drop in demand in overseas markets and.
Analysts were expecting sales of $1.74 billion, according to
IBES data from Refinitiv data.
Net income attributable to the company fell to $268.9 million,
or $1.29 per share, from $312.8 million, or $1.48 per share, a
year earlier.
Excluding one-time items, the company earned $1.31 per share,
beating the average analyst estimate of $1.13 per share.
(Reporting by Uday Sampath in Bengaluru; Editing by Shailesh
Kuber and Shinjini Ganguli)
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