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Packaged food makers including Hershey, Kraft Heinz (NASDAQ:KHC) and Campbell Soup (NYSE:CPB) Co have been steadily raising prices over the past year to combat inflationary pressures and supply chain costs, aggravated by the Russia-Ukraine crisis.
The company said higher pricing boosted its quarterly net sales growth by 9.5 percentage points to 19.3% from a year earlier, while volumes rose by 4.6 percentage points.
Hershey expects some consumer pushback over higher prices in the second half of the year as consumers tighten their belts with inflation running at decades-high levels.
The 128-year-old company said it now expects 2022 adjusted profit per share growth of 12% to 14%, compared with its prior forecast of a 10% to 12% rise.
It also raised its net sales to growth forecast to between 12% and 14% from its earlier outlook of 10% to 12% growth.
Net sales rose to $2.37 billion in the quarter ended July 3 from $1.99 billion a year earlier. Analysts had expected revenue of $2.22 billion, according to IBES data from Refinitiv.
Net income attributable to the company for the second quarter rose to $315.6 million, or $1.53 per share, from $301.2 million, or $1.45 per share, a year earlier.
