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The Hershey Company was incorporated under the laws of the State of Delaware on October 24, 1927 as a successor to a business founded in 1894 by Milton S. In this report, the terms Hershey, Company, we, us or our mean The Hershey Company and its wholly-owned subsidiaries and entities in which it has a controlling financial interest, unless the context indicates otherwise.
12.33% operating margin is respectable but not wide. ROIC at 10.74%. Suggests the business covers its cost of capital, but doesn't point to a wide moat.
Revenue grew 4.4%, steady but not accelerating. Margins contracted 13.5pp, which offsets some of the top-line progress.
ROIC dropped from 27.08% to 10.74%, capital efficiency is deteriorating. Operating margin contracted 13.5pp YoY, cost discipline may be slipping.
Profitability & Returns
Revenue (TTM)
$11.99B
▲ +4.4% YoY
Net Income (TTM)
$1.09B
▼ -60.2% YoY
Op. Margin
14.29%
▼ -13.5pp YoY
ROIC
12.64%
▼ -16.3pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$1.93B
▼ -5.3% YoY
Op. Cash Flow (TTM)
$2.35B
▼ -10.0% YoY
Net Debt
$4.88B
Cash & Equiv.
$877M
5Y CAGR: +7.5%
5Y CAGR: +7.7%
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