US chocolate manufacturer Hershey has reported that its net earnings for the second quarter of 2013 increased by 17.6% to $159.5m, compared with $135.6m for the same quarter in 2012, driven by core brand and new product performance.
For the quarter ending 30 June 2013, net sales increased 7.09% to $1.51bn, compared with $1.41bn a year ago.
Hershey president and chief executive officer John Bilbrey said that the company's intellectual capital and Insights Driven Performance programme initiatives continue to provide it with a competitive advantage in the marketplace.
"This has resulted in solid in-store execution related to core brand merchandising and programming, as well as new product distribution," Bilbrey said.
"Combined with supply chain efficiencies, we have the financial flexibility to invest in our greatest opportunities to drive global growth and deliver on our objectives."
For the six months ending 30 June, net earnings increased by 20% to $401.4m, compared with $334.3m for the same period in the previous year, while net sales increased 6% to $3.14bn, compared with $3.33bn a year ago.
For the full year 2013, the company expects reported earnings per share diluted of $3.60 to $3.65.
In addition, Hershey expects about 7% increase in net sales, primarily driven by Brookside distribution gains as well as the launch of new products in the US, Hershey's Mais candy in Brazil, and Hershey's Kisses Deluxe and Hershey's Drops chocolates in China.
The SM&A expenses, excluding advertising, are expected to increase at a rate greater than net sales growth and these investments will build on the marketing, selling and go-to-market capabilities established over the last few years.
As a result, the company expects adjusted earnings per share-diluted growth of around 14% over a previous estimate of a 12% increase.
