Q2 2025 Hershey Co Earnings Call - Pre-Recorded

July 30, 2025

Today, our Hershey's, <unk>, chairman and CEO, Michele Buck and Hersheys Senior Vice President and CFO, Steve Bussell.

Michele Buck: To take a moment to acknowledge the.

To take a moment to acknowledge the.

Michele Buck: Exciting news that Kirk Tanner has been.

Exciting news that Kirk Tanner has been.

Before discussing our results today I wanted to take a moment to acknowledge the exciting news that Kirk Tanner has been appointed as Hershey's next president and CEO.

Michele Buck: Appointed as Hershey's next President and CEO.

Appointed as Hershey's next President and CEO.

In addition to these remarks, we will host an analyst Q&A only session at 815, a M. Eastern on the morning of July 30th.

Michele Buck: Kirk brings over 30 years of experience in the industry, and I am confident.

Kirk brings over 30 years of experience in the industry, and I am confident.

Michele Buck: That he is the right person to.

That he is the right person to.

A replay of this webcast and our subsequent Q&A session will be available on the Investor Relations section of our website along with the corresponding transcripts.

<unk> brings over 30 years of experience in the industry and I am confident that he is the right person to lead Hershey and continue advancing our ambition to be a leading snacking powerhouse.

Michele Buck: Lead Hershey and continue advancing our ambition.

Lead Hershey and continue advancing our ambition.

Michele Buck: To be a leading snacking powerhouse. He will start on 18 August and.

To be a leading snacking powerhouse. He will start on 18 August and.

During the course of today's discussion management will make forward looking statements that are subject to various risks and uncertainties. These statements include expectations and assumptions regarding the company's future operations and financial performance.

Michele Buck: I will transition to an advisory role to ensure a smooth handover and continued execution of Hershey's strategic priorities. I want to extend my sincere congratulations to Kirk and I look forward to.

I will transition to an advisory role to ensure a smooth handover and continued execution of Hershey's strategic priorities. I want to extend my sincere congratulations to Kirk and I look forward to.

He will start on August 18th and I will transition to an advisory role to ensure a smooth handover and continued execution of hershey's strategic priorities.

Michele Buck: I want to extend my sincere congratulations to Kirk and I look forward to Hershey's future under his leadership.

Actual results could differ materially from those projected the company undertakes no obligation to update these statements based on subsequent events.

Michele Buck: Hershey's future under his leadership. Now on to results.

Hershey's future under his leadership. Now on to results.

I want to extend my sincere congratulations to Kirk and I look forward to a hershey's future under his leadership.

Michele Buck: Now, on to results. We are pleased with our second quarter results and the momentum that we are seeing in our business. Investments in our brand and impactful innovation combined with effective execution are enabling solid consumption and share gains across both our U.S. confection and salty snacking businesses.

Michele Buck: Now, on to results. We are pleased with our Q2 results and the momentum that we are seeing in our business. Investments in our brands and impactful innovation, combined with effective execution, are enabling solid consumption and share gains across both our U.S. confection and salty snacking businesses. I would like to thank our people across the business for their relentless focus and effort in executing our plans and delivering this strong quarter. Our capable leadership team continues to make strong decisions and execute with excellence to advance the business. Looking ahead, we remain committed to delivering balanced growth, and we have taken pivotal steps towards mitigating cocoa inflation through enhanced productivity, technology-enabled efficiency and speed, and strategic pricing, which we will talk about in a few moments.

Michele Buck: We are pleased with our Q2.

We are pleased with our Q2.

A detailed listing of such risks and uncertainties can be found in today's press release and the Companys SEC filings.

Michele Buck: Results and the momentum that we are seeing in our business. Investments in our brands and impactful innovation.

Results and the momentum that we are seeing in our business. Investments in our brands and impactful innovation.

Now onto results.

We are pleased with our second quarter results and the momentum that we're seeing in our business.

Finally, please note that during today's discussion we will refer to certain non-GAAP financial measures that we believe will provide useful information for investors.

Michele Buck: Combined with effective execution are enabling solid.

Combined with effective execution are enabling solid.

Investments in our brands and impactful innovation combined with effective execution are enabling solid consumption and share gains across both our U S confection salty snacking businesses.

Michele Buck: Consumption and share gains across both our US Confection and salty snacking businesses.

Consumption and share gains across both our US Confection and salty snacking businesses.

The presentation of this information is not intended to be considered in isolation or as a substitute for the financial information presented in accordance with GAAP reconciliations to the GAAP results are included in this morning's press release.

Michele Buck: I would like to thank our people across the business for their relentless focus and effort in executing our plans and delivering this strong quarter. Our capable leadership team continues to make strong decisions and execute with excellence to advance the business.

Michele Buck: I would like to thank our people.

I would like to thank our people.

Michele Buck: Across the business for their relentless focus and efforts in executing our plans and delivering this strong quarter.

Across the business for their relentless focus and efforts in executing our plans and delivering this strong quarter.

I would like to thank our people across the business for their relentless focus and efforts in executing our plans and delivering the strong quarter.

For certain forward looking non-GAAP measures, including adjusted gross margin reconciliations or not provide it because the company is unable to provide such reconciliation without unreasonable effort. It is now my pleasure to introduce our chairman and CEO Michele Buck.

Michele Buck: Our capable leadership team continues to make strong decisions and execute with excellence to advance the business. Looking ahead, we remain committed to delivering balanced growth and we have taken pivotal.

Our capable leadership team continues to make strong decisions and execute with excellence to advance the business. Looking ahead, we remain committed to delivering balanced growth and we have taken pivotal.

Our capable leadership team continues to make strong decisions and execute with excellence to advance the business.

Michele Buck: Looking ahead, we remain committed to delivering balanced growth and we have taken pivotal steps towards mitigating cocoa inflation through enhanced productivity, Technology Enabled Efficiency and Speed, and Strategic Pricing, which we will talk about in a few moments. First half net sales growth of 1.7%, which smoothed the impact of ERP-related inventory lapse and the timing of Easter, exceeded our expectations, driven by strong performance in our North America Confectionery and North America Salty Snacking segments. As expected, the late Easter favorably impacted retail trends in the quarter. Hershey Candy, Mint, & Gum U.S. Retail Sales increased 21.8% versus the category increase of 17.9% in the 12 weeks ended June 29.

Thank you and Lori and good morning, everyone. Thank.

Looking ahead, we remain committed to delivering balanced growth and we have taken pivotal steps towards mitigating cocoa inflation through enhanced productivity.

Michele Buck: Steps towards mitigating cocoa inflation through enhanced.

Steps towards mitigating cocoa inflation through enhanced.

Thank you for joining us today as you know in January I announced my intention to retire from the Hershey company. After nine years as CEO and more than 20 years with the company before.

Michele Buck: Productivity, technology-enabled efficiency and speed, and strategic pricing, which we will talk about.

Productivity, technology-enabled efficiency and speed, and strategic pricing, which we will talk about.

Technology enabled efficiency and speed and strategic pricing, which we will talk about in a few moments.

Michele Buck: In a few moments. First-half net sales growth of 1.7%, which smoothed the impact of ERP-related inventory lapse and the timing of Easter.

In a few moments. First-half net sales growth of 1.7%, which smoothed the impact of ERP-related inventory lapse and the timing of Easter.

Michele Buck: First half net sales growth of 1.7%, which smoothed the impact of ERP-related inventory laps and the timing of Easter, exceeded our expectations, driven by strong performance in our North America confectionery and North America salty snacking segments. As expected, the late Easter favorably impacted retail trends in the quarter. Hershey candy, mint, and gum U.S. retail sales increased 21.8% versus the category increase of 17.9% in the 12 weeks ended June 29. This resulted in a share gain of approximately 90 basis points, slightly ahead of our outlook. Category growth in non-seasonal candy, mint, and gum continued to outpace broader U.S. snacking trends in the quarter. Everyday chocolate retail takeaway accelerated to 6.7%, the highest level of growth since mid-2023. This reflects the continued relevance of the category in consumers' daily lives, consumers eating more chocolate during stressful periods, and a strong response to robust category news and innovation.

Before discussing our results today I wanted to take a moment to acknowledge the exciting news that Kirk Tanner has been appointed as Hershey's next president and CEO.

First half net sales growth of one, 7%, which smooths the impact of ERP related inventory laps and the timing of Easter exceeded our expectations driven by strong performance in our North America, confectionery and North America Salty snacking segments.

Michele Buck: Exceeded our expectations, driven by strong performance.

Exceeded our expectations, driven by strong performance.

<unk> brings over 30 years of experience in the industry and I am confident that he is the right person to lead Hershey and continue advancing our ambition to be a leading snacking powerhouse.

Michele Buck: In our North America Confectionery and North America salty snacking segments.

In our North America Confectionery and North America salty snacking segments.

Michele Buck: As expected, the late Easter favorably impacted.

As expected, the late Easter favorably impacted.

Michele Buck: Retail trends in the quarter. Hershey candy, mint, and gum US retail sales increased 21.8% versus the category increase of 17.9% in the 12 weeks ended 29 June.

Retail trends in the quarter. Hershey candy, mint, and gum US retail sales increased 21.8% versus the category increase of 17.9% in the 12 weeks ended 29 June.

He will start on August 18th and I will transition to an advisory role to ensure a smooth handover and continued execution of hershey's strategic priorities.

As expected the late Easter favorably impacted retail trends in the quarter.

Hershey Candy Mint and gum U S retail sales increased 21, 8% versus the category increase of 17, 9% in the 12 weeks ended June 29th.

I want to extend my sincere congratulations to Kirk and I look forward to a hershey's future under his leadership.

Michele Buck: This resulted in a share gain of approximately 90 basis points, slightly ahead of our outlook category.

This resulted in a share gain of approximately 90 basis points, slightly ahead of our outlook category.

Michele Buck: This resulted in a share gain of approximately 90 basis points slightly ahead of our outlook. Category growth in non-seasonal candy mint and gum continued to outpace broader U.S. snacking trends in the quarter. Everyday Chocolate Retail Takeaway accelerated to 6.7%, the highest level of growth since mid-2023. This reflects the continued relevance of the category in consumers' daily lives. Consumers eating more chocolate during stressful periods and a strong response to robust category news and innovation. Hershey Non-Seasonal Candy Mint & Gum Retail Takeaway of 4.7% in the quarter outpaced the category as we built momentum on a strong base of innovation and programs. Growth was balanced across the portfolio with Instant Consumable Chocolate up 2.7%, Take-Home Chocolate up 4.6%, and Refreshment up 3%.

Now onto results.

This resulted in a share gain of approximately 90 basis points slightly ahead of our outlook.

We are pleased with our second quarter results and the momentum that we're seeing in our business.

Michele Buck: Growth in non-seasonal candy, mint, and gum continued to outpace broader US snacking trends and the quarter everyday chocolate retail.

Growth in non-seasonal candy, mint, and gum continued to outpace broader US snacking trends and the quarter everyday chocolate retail.

Category growth in non seasonal candy mint and gum continues to outpace broader U S snacking trends in the quarter.

Investments in our brands and impactful innovation combined with effective execution are enabling solid consumption and share gains across both our U S confection and salty snacking businesses.

Michele Buck: Takeaway accelerated to 6.7%, the highest level of growth since mid-2023. This reflects the continued relevance of the category in consumers' daily lives, consumers' eating.

Takeaway accelerated to 6.7%, the highest level of growth since mid-2023. This reflects the continued relevance of the category in consumers' daily lives, consumers' eating.

Every day chocolate retail takeaway accelerated to six 7% the highest level of growth since mid 2023.

I would like to thank our people across the business for their relentless focus and efforts in executing our plans and delivering the strong quarter.

This reflects the continued relevance of the category and consumers' daily lives.

Michele Buck: More chocolate during stressful periods and a strong response to robust category news and innovation. Hershey Nonseasonal Candy, Mint, and Gum retail.

More chocolate during stressful periods and a strong response to robust category news and innovation. Hershey Nonseasonal Candy, Mint, and Gum retail.

Consumers eating more chocolate during stressful periods and a strong response to robust category news and innovation.

Our capable leadership team continues to make strong decisions and execute with excellence to advance the business.

Michele Buck: Hershey non-seasonal candy, mint, and gum retail takeaway of 4.7% in the quarter outpaced the category as we built momentum on a strong base of innovation and programs. Growth was balanced across the portfolio, with instant consumable chocolate up 2.7%, take-home chocolate up 4.6%, and refreshment up 3%. Our expanding sweets portfolio delivered 14.8% growth, up from 10.4% in Q1 and 3.7% in 2024, resulting in approximately 110 basis points of share gains. Our strategies to reinvigorate instant consumable chocolate are demonstrating results. Hershey's takeaway in the convenience channel achieved a 2% growth rate despite a decline in in-store trips. We gained 60 basis points of share in the channel, behind strong execution, innovation, and incremental merchandising. Consumption was strong across our top chocolate franchises, with Reese's growth of 4%, Hershey up nearly 8%, and KitKat up 3% in the quarter, behind our summer limited edition programs and media campaigns.

Michele Buck: Takeaway of 4.7% in the quarter outpaced the category as we built momentum on.

Takeaway of 4.7% in the quarter outpaced the category as we built momentum on.

Hershey non seasonal candy mint and gum retail takeaway of four 7% in the quarter outpaced the category as we built momentum on our strong base of innovation and programs.

Looking ahead, we remain committed to delivering balanced growth and we have taken pivotal steps towards mitigating cocoa inflation through enhanced productivity.

Michele Buck: A strong base of innovation and programs. Growth was balanced across the portfolio, with instant consumable chocolate up 2.7%, take home.

A strong base of innovation and programs. Growth was balanced across the portfolio, with instant consumable chocolate up 2.7%, take home.

Technology enabled efficiency and speed and strategic pricing, which we will talk about in a few moments.

Growth was balanced across the portfolio with instant consumable chocolate up two 7% take home chocolate up four 6% and refreshment up 3%.

Michele Buck: Chocolate up 4.6% and refreshment up 3%. Our expanding sweets portfolio delivered 14.8% growth, up from 10.4% in Q1 and 3.7% in 2024, resulting in approximately 110 basis points of share gains. Our strategies to reinvigorate iconic consumable chocolate are demonstrating results.

Chocolate up 4.6% and refreshment up 3%. Our expanding sweets portfolio delivered 14.8% growth, up from 10.4% in Q1 and 3.7% in 2024, resulting in approximately 110 basis points of share gains. Our strategies to reinvigorate iconic consumable chocolate are demonstrating results.

Michele Buck: Our expanding suites portfolio delivered 14.8% growth, up from 10.4% in Q1 and 3.7% in 2024, resulting in approximately 110 basis points of share gains. Our strategies to reinvigorate instant consumable chocolate are demonstrating results. Hershey's Takeaway and The Convenience Channel achieved a 2% growth rate despite a decline in in-store trips. We gained 60 basis points of share in the channel behind strong execution, innovation, and incremental merchandising. Consumption was strong across our top chocolate franchises, with Reese growth of 4%, Hershey up nearly 8%, and Kit Kat up 3% in the quarter behind our summer limited edition programs and media campaigns.

Our expanding suite sports Folio delivered 14, 8% growth up from 10, 4% in Q1, and three 7% in 2024, resulting in approximately 110 basis points of share gains.

As expected the late Easter favorably impacted retail trends in the quarter.

Our strategies to reinvigorate instant consumable chocolate are demonstrating results.

Michele Buck: Hershey's Takeaway and the convenience channel achieved.

Hershey's Takeaway and the convenience channel achieved.

Michele Buck: A 2% growth rate despite a decline.

A 2% growth rate despite a decline.

Hershey Candy Mint and gum U S retail sales increased 21, 8% versus the category increase of 17, 9% in the 12 weeks ended June 29th.

You should take away and the convenience channel achieved a 2% growth rate despite a decline in in store trips.

Michele Buck: In-store trips.

In-store trips.

Michele Buck: We gained 60 basis points of share.

We gained 60 basis points of share.

Michele Buck: In the channel behind strong execution, innovation, and incremental merchandising.

In the channel behind strong execution, innovation, and incremental merchandising.

We gained 60 basis points of share in the channel behind strong execution innovation and incremental merchandising.

This resulted in a share gain of approximately 90 basis points slightly ahead of our outlook.

Michele Buck: Consumption was strong across our top chocolate franchises, with Reese's growth of 4%, Hershey's up nearly 8%, and Kit Kat up 3% in the quarter behind our summer limited.

Consumption was strong across our top chocolate franchises, with Reese's growth of 4%, Hershey's up nearly 8%, and Kit Kat up 3% in the quarter behind our summer limited.

Consumption was strong across our top chocolate franchises with risk growth of 4% Hershey up nearly 8% and kitkat up 3% in the quarter behind our summer limited edition programs and media campaigns take.

Category growth in non seasonal candy mint and gum continues to outpace broader U S snacking trends in the quarter.

Michele Buck: Edition programs and media campaigns.

Edition programs and media campaigns.

Every day chocolate retail takeaway accelerated to six 7% the highest level of growth since mid 2023.

Michele Buck: Takeaway for our variety business also increased 2%, with solid results from Cadbury, Whoppers, York, and Heath. Our Q2 results are proof that we are making progress against key initiatives and.

Takeaway for our variety business also increased 2%, with solid results from Cadbury, Whoppers, York, and Heath. Our Q2 results are proof that we are making progress against key initiatives and.

Michele Buck: Takeaway for our variety business also increased 2% with solid results from Cadbury, Whoppers, York, and Heath.

Michele Buck: Takeaway for our variety business also increased 2%, with solid results from Cadbury, Whoppers, York, and Heaps. Our Q2 results are proof that we are making progress against key initiatives, and we have exciting plans to continue building momentum into the second half. We alluded to some of these product launches and collaborations last quarter, and I'm pleased to share an update across key programs. Our gold standard planogram principles are resonating, driving tremendous results where they have been implemented. The improved shoppability, space allocation, and placement are driving higher conversion and are lifting category results. For example, two major customers recently moved to the gold standard take-home planograms and saw 8% category growth on average in the following two months. This was well ahead of national trends and led to a 40 basis point share gain for those customers.

[noise] away for a variety business also increased 2% with solid results from Cadbury Whoppers Yorke and Heath.

This reflects the continued relevance of the category and consumers' daily lives.

Michele Buck: Our Q2 results are proof that we are making progress against key initiatives, and we have exciting plans to continue building momentum into the second half. We alluded to some of these product launches and collaborations last quarter and I'm pleased to share an update across key programs. Our gold standard planogram principles are resonating, driving tremendous results where they have been implemented. The improved shopability, space allocation, and placement are driving higher conversion and are lifting category results. For example, two major customers recently moved to the gold standard take-home planogram and saw 8% category growth on average in the following two months.

Consumers eating more chocolate during stressful periods and a strong response to robust category news and innovation.

Our Q2 results are proof that we are making progress against key initiatives.

Michele Buck: We have exciting plans to continue building momentum into the second half. We alluded to some of these product launches and collaborations last quarter, and I'm pleased to share an update across key programs. Our gold standard Planogram principles are resonating, driving tremendous results where they have been implemented.

We have exciting plans to continue building momentum into the second half. We alluded to some of these product launches and collaborations last quarter, and I'm pleased to share an update across key programs. Our gold standard Planogram principles are resonating, driving tremendous results where they have been implemented.

And we have exciting plans to continue building momentum into the second half.

Hershey non seasonal candy mint and gum retail takeaway of four 7% in the quarter outpaced the category as we built momentum on our strong base of innovation and programs.

We alluded to some of these product launches and collaborations last quarter and I'm pleased to per share an update across key programs.

Our gold standard plan O Gram principles are resonating driving tremendous results, where they have been implemented.

Growth was balanced across the portfolio with instant consumable chocolate up two 7% take home chocolate up four 6% and refreshment up 3%.

Michele Buck: The improved shopability, space allocation, and placement.

The improved shopability, space allocation, and placement.

Michele Buck: Are driving higher conversion and are lifting category results.

Are driving higher conversion and are lifting category results.

The improved shop ability space allocation and placement are driving higher conversion and our lifting category results. For example, two major customers recently moved to the gold standard take home planet ground and saw 8% category growth on average in the following two months.

Michele Buck: For example, two major customers recently moved.

For example, two major customers recently moved.

Our expanding suite sports Folio delivered 14, 8% growth up from 10, 4% in Q1, and three 7% in 2024, resulting in approximately 110 basis points of share gains.

Michele Buck: To the gold standard take-home planograms and saw 8% category growth on average in the following two months. This was well ahead of national trends.

To the gold standard take-home planograms and saw 8% category growth on average in the following two months. This was well ahead of national trends.

Michele Buck: This was well ahead of national trends and led to a 40 basis point share gain for those customers. Our category captaincy will continue to deliver results for retailers and the category as we reach adoption in 60% of convenience stores this year. An increase from 50% to over 60% in take-home aisles with renewed sell-in effort ahead of spring 26 planograms. The Pokemon program is off to a fantastic start. Pokemon Kiss's velocities are three times those of select other limited time offers in the market, showing the power of both the product and the partnership. Earned media impressions have already reached $2.2 billion with an overwhelming positive net sentiment score of 98%.

Michele Buck: Led to a 40 basis point.

Led to a 40 basis point.

Michele Buck: Share gain for those customers.

Share gain for those customers.

This was well ahead of national trends and led to a 40 basis point share gain for those customers.

Our strategies to reinvigorate instant consumable chocolate are demonstrating results.

Michele Buck: Our category captaincy will continue to deliver results for retailers and the category as we reach adoption in 60% of convenience stores this year, an increase from 50% to over 60% in take-home aisles, with renewed sell-in effort ahead of spring 2026 planograms. The Pokemon Kiss program is off to a fantastic start. Pokemon Kiss's velocities are three times those of select other limited-time offers in the market, showing the power of both the product and the partnership. Earned media impressions have already reached 2.2 billion, with an overwhelming positive net sentiment score of 98%. The collectible nature of the packaging is driving strong consumer engagement and repeat purchases and generating enthusiasm for the back-to-school season. Our robust sweets products pipeline continues this fall as we bring more of Shaquille O'Neal's life into the gummy form.

Michele Buck: Our Category Captaincy will continue to deliver results for retailers and the category as.

Our Category Captaincy will continue to deliver results for retailers and the category as.

Our category captaincy will continue to deliver results for retailers and the category as we reached adoption and 60% of convenience stores. This year, an increase from 50% to over 60% in take home the aisles with renewed selling effort ahead of spring 'twenty six plan O grams.

Michele Buck: We reach adoption in 60% of convenience.

We reach adoption in 60% of convenience.

You should take away and the convenience channel achieved a 2% growth rate despite a decline in in store trips.

Michele Buck: Stores this year, an increase from 50% to over 60% in take-home aisles. With renewed sell-in effort ahead of.

Stores this year, an increase from 50% to over 60% in take-home aisles. With renewed sell-in effort ahead of.

We gained 60 basis points of share in the channel behind strong execution innovation and incremental merchandising.

Michele Buck: Spring 26 planograms, the Pokémon program is.

Spring 26 planograms, the Pokémon program is.

Michele Buck: Off to a fantastic start. Pokémon Kisses' velocities are three times those of select other limited time offers in the market, showing the power of both the product and the partnership earned. Media impressions have already reached 2.2 billion.

Off to a fantastic start. Pokémon Kisses' velocities are three times those of select other limited time offers in the market, showing the power of both the product and the partnership earned. Media impressions have already reached 2.2 billion.

Consumption was strong across our top chocolate franchises with risk growth of 4% Hershey up nearly 8% and kit Kat up 3% in the quarter behind our summer limited edition programs and media campaigns.

The Pokemon program is off to a fantastic start pokemon kisses velocities are three times those of select other limited time offers in the market.

Showing the power of both the product and the partnership.

[noise] away for a variety business also increased 2% with solid results from Cadbury Whoppers Yorke and Heath.

Michele Buck: With an overwhelming positive net sentiment score of 98%.

With an overwhelming positive net sentiment score of 98%.

Earned media impressions have already reached $2 2 billion with an overwhelming positive net sentiment score of 98%.

Michele Buck: The collectible nature of the packaging is.

The collectible nature of the packaging is.

Michele Buck: The collectible nature of the packaging is driving strong consumer engagement and repeat purchases and generating enthusiasm for the back to school season. Our Robust Sweets products pipeline continues this fall as we bring more of Shaquille O'Neal's life into the gummy form. This time we are bringing his very own sneakers into the Shackalicious XL gummies in three popular flavors, strawberry, lime, and mango. We will support this innovation with an experiential marketing campaign with strong cultural relevance, including dropping an actual sneaker in all gummy colors. More excitement will follow with the launch of a new multi-texture product later this year as we continue to strategically advance our presence in the sweets market.

Michele Buck: Driving strong consumer engagement, repeat purchases, and generating enthusiasm for the back to school season. Our robust sweets products pipeline continues this.

Driving strong consumer engagement, repeat purchases, and generating enthusiasm for the back to school season. Our robust sweets products pipeline continues this.

Our Q2 results are proof that we are making progress against key initiatives.

The collectible nature of the packaging is driving strong consumer engagement and repeat purchases and generating enthusiasm for back to school season.

And we have exciting plans to continue building momentum into the second half.

Michele Buck: Fall as we bring more of Shaquille.

Fall as we bring more of Shaquille.

We alluded to some of these product launches and collaborations last quarter and I'm pleased to per share an update across key programs.

Our robust suites products pipeline continues this fall as we bring more of Shaquille O'neal for life into the gummy form.

Michele Buck: O'Neal's life into the gummy form. This time we are bringing his very own sneakers into the Shaq-A-Licious XL gummies in three popular flavors, strawberry, lime, and mango. We will support this innovation with an experiential marketing campaign with strong cultural relevance, including dropping an actual sneaker in all gummy colors. More excitement will follow with the launch.

O'Neal's life into the gummy form. This time we are bringing his very own sneakers into the Shaq-A-Licious XL gummies in three popular flavors, strawberry, lime, and mango. We will support this innovation with an experiential marketing campaign with strong cultural relevance, including dropping an actual sneaker in all gummy colors. More excitement will follow with the launch.

Michele Buck: This time, we are bringing his very own sneakers into the SHAQ-A-LICIOUS Gummies in three popular flavors: strawberry, lime, and mango. We will support this innovation with an experiential marketing campaign with strong cultural relevance, including dropping an actual sneaker in all gummy colors. More excitement will follow with the launch of a new multi-texture product later this year as we continue to strategically advance our presence in the sweets market. Lastly, we are introducing our biggest Reese's brand innovation yet. America's number one candy and the number one cookie are coming together in an iconic collaboration that consumers have been asking us for: Reese's Oreo Cup. You will see more news later today as we officially launch the collaboration. This powerhouse brand partnership will drive trial and repeat via joint displays and media activation.

Our gold standard plan O Gram principles are resonating driving tremendous results, where they have been implemented.

This time, we are bringing his very own sneakers into the shock Alicia's X L. Gummies in three popular flavors strawberry lime and mango.

We will support this innovation with an experiential marketing campaign with strong cultural relevance, including dropping an actual sneaker in all gummy colors.

Michele Buck: Of a new multi-texture product later this year as we continue to strategically.

Of a new multi-texture product later this year as we continue to strategically.

More excitement will follow with a launch of a new multi texture product later this year as we continue to strategically advance our presence in the sweets market.

Michele Buck: Advance our presence in the sweets market. Lastly, we are introducing our biggest Reese's brand innovation yet. America's number one candy and the number.

Advance our presence in the sweets market. Lastly, we are introducing our biggest Reese's brand innovation yet. America's number one candy and the number.

This was well ahead of national trends and led to a 40 basis point share gain for those customers.

Michele Buck: Lastly, we are introducing our biggest Reese's brand innovation yet. America's number one candy and the number one cookie are coming together in an iconic collaboration that consumers have been asking us for. Reese's Oreo Cup. You will see more news later today as we officially launch the collaboration. This powerhouse brand partnership will drive trial and repeat via joint displays and media activation. A meaningful portion of the launch will be in take-home pack types, a pivot from prior introductions, as we focus on capturing share in high-growth channels. We also expect to build on last year's seasonal success with solid performance in Halloween and Holiday.

Lastly, we are introducing our biggest reese's brand innovation yet.

Our category captaincy will continue to deliver results for retailers in the category as we reached adoption and 60% of convenience stores. This year, an increase from 50% to over 60% in take home the aisles with renewed selling effort ahead of spring twenty-six plant a gram.

Michele Buck: One cookie are coming together in an.

One cookie are coming together in an.

America's number one candy and the number one cookie are coming together and then like content collaboration that consumers have been asking us for Reese's Oreo costs.

Michele Buck: Iconic collaboration that consumers have been asking.

Iconic collaboration that consumers have been asking.

Michele Buck: Us for Reese's Oreo Cup. You will see more news later today.

Us for Reese's Oreo Cup. You will see more news later today.

Michele Buck: As we officially launch the collaboration.

As we officially launch the collaboration.

You will see more news later today as we officially launched the collaboration.

Michele Buck: This powerhouse brand partnership will drive trial.

This powerhouse brand partnership will drive trial.

The Pokemon program is off to a fantastic start pokemon kisses velocities are three times those of select other limited time offers in the market.

Michele Buck: Repeat via joint displays and media activation. A meaningful portion of the launch will.

Repeat via joint displays and media activation. A meaningful portion of the launch will.

This powerhouse brand partnership will drive trial and repeat via joint displays and media activation.

Michele Buck: A meaningful portion of the launch will be in take-home pack types, a pivot from prior introductions as we focus on capturing share in high-growth channels. We also expect to build on last year's seasonal success with solid performance in Halloween and holiday. With these programs, we remain confident in our plans for full-year share gains. Turning to salty snacks, our portfolio led in share gains among the top 10 salty snack manufacturers this quarter as our brands continue to resonate with consumers' desire for permissible and better-for-you brands. SkinnyPop consumption increased 4% in the quarter, delivering a ready-to-eat popcorn share gain of approximately 50 basis points, driven by our new packaging, Jennifer Aniston media campaign, and avocado and lime and Harry Potter butterbeer flavor innovations. Dot's Homestyle Pretzels growth outpaced our expectations, with retail takeaway up 13%.

Michele Buck: Been in take-home pack types, a.

Been in take-home pack types, a.

Michele Buck: Pivot from prior introductions as we focus on capturing share in high growth channels.

Pivot from prior introductions as we focus on capturing share in high growth channels.

A meaningful portion of the launch will be in take home pack types, a pivot from prior introductions as we focus on capturing share in high growth channels.

Showing the power of both the product and the partnership.

Earned media impressions have already reached $2 2 billion with an overwhelming positive net sentiment score of 98%.

Michele Buck: We also expect to build on last year's seasonal success with solid performance in Halloween and holiday.

We also expect to build on last year's seasonal success with solid performance in Halloween and holiday.

Michele Buck: With these programs, we remain confident in our plans for full year Sharegate.

Michele Buck: With these programs, we remain confident in our plans for full year share gains. Turning to salty snacks, our portfolio led in share gains among the top 10 salty snack manufacturers this quarter as our brands continue to resonate with consumers' desire.

With these programs, we remain confident in our plans for full year share gains. Turning to salty snacks, our portfolio led in share gains among the top 10 salty snack manufacturers this quarter as our brands continue to resonate with consumers' desire.

The collectible nature of the packaging is driving strong consumer engagement and repeat purchases and generating enthusiasm for back to school season.

With these programs we remain confident in our plans for full year share gains.

Michele Buck: Turning to salty snacks, our portfolio led in share gains among the top 10 salty snack manufacturers this quarter as our brands continue to resonate with consumers' desire for permissible and better-for-you brands. Skinny Pop Consumption increased 4% in the quarter, delivering a ready-to-eat popcorn share gain of approximately 50 basis points, driven by our new packaging, Jennifer Aniston media campaign, and avocado and lime and Harry Potter butter beer flavor innovation. Dot's growth outpaced our expectations, with retail takeaway up 13%. This resulted in over 200 basis points of share gains in pretzels, driven by the barbecue flavor innovation and summer activation.

Turning to salty snacks.

Our robust suites products pipeline continues this fall as we bring more of Shaquille O'neal for life into the gummy form.

Our portfolio led in share gains among the top 10 salty snack manufacturers this quarter as our brands continue to resonate with consumers desire for permissible and better for you brands.

Michele Buck: For premium and better for you brands.

For premium and better for you brands.

This time, we are bringing his very own sneakers into the shack Alicia's X L. Gummies in three popular flavors strawberry lime and mango.

Michele Buck: SkinnyPop consumption increased 4% in the quarter.

SkinnyPop consumption increased 4% in the quarter.

Michele Buck: Delivering a ready-to-eat popcorn share.

Delivering a ready-to-eat popcorn share.

Skinny pop consumption increased 4% in the quarter delivering a ready to eat popcorn share gain of approximately 50 basis points driven by our new packaging, Jennifer Aniston media campaign, and avocado and lime and Harry Potter butter beer flavor innovations.

Michele Buck: Gain of approximately 50 basis points driven.

Gain of approximately 50 basis points driven.

We will support this innovation with an experiential marketing campaign with strong cultural relevance, including dropping an actual sneaker in all gummy colors.

Michele Buck: By our new packaging, Jennifer Aniston media.

By our new packaging, Jennifer Aniston media.

Michele Buck: Campaign, avocado and lime, and Harry Potter Butterbeer flavor innovations.

Campaign, avocado and lime, and Harry Potter Butterbeer flavor innovations.

Michele Buck: Dot's growth outpaced our expectations with retail takeaway up 13%. This resulted in over 200 basis points of share gains in pretzels driven by the barbecue flavor innovation and summer activations. Sweet and Salty continues to be a.

Dot's growth outpaced our expectations with retail takeaway up 13%. This resulted in over 200 basis points of share gains in pretzels driven by the barbecue flavor innovation and summer activations. Sweet and Salty continues to be a.

More excitement will follow with a launch of a new multi texture product later this year as we continue to strategically advance our presence in the suites market.

Deluxe growth outpaced our expectations with retail takeaway up 13%.

Michele Buck: This resulted in over 200 basis points of share gains in pretzels, driven by the barbecue flavor innovation and summer activations. Sweet and salty continues to be a white space opportunity, with Reese-filled pretzels seeing strong initial velocities. Our salty variety pack retail takeaway also increased 32%, driven by innovation and distribution gains. We expect momentum to build in Q3 for our salty portfolio, supported by media investment, a robust promotional calendar, flavor innovation, and product rotations like Dot's Buffalo that will serve as the perfect anchor for our fall football programming. Net sales trends within our international segment were below expectations in the quarter, reflecting unfavorable currency translation, softer category growth in Mexico, and reduced export demand. In Mexico, despite economic challenges and changes in regulation impacting overall chocolate category growth, Hershey continued to gain market share.

Lastly, we are introducing our biggest reese's brand innovation yet.

This resulted in over 200 basis points of share gains in pretzels, driven by the Bbq flavor innovation and summer Activations.

Michele Buck: Sweet and Salty continues to be a white space opportunity with Reese filled pretzels seeing strong initial velocity. Our Salty Variety Pack Retail Takeaway also increased 32% driven by innovation and distribution gains. We expect momentum to build in Q3 for our Salty portfolio, supported by media investment, a robust promotional calendar, flavor innovation, and product rotations, like Dot's Buffalo, that will serve as the perfect anchor for our fall football programming.

America's number one candy and the number one cookie are coming together and then my content collaboration that consumers have been asking us for Reese's Oreo costs.

Michele Buck: White space opportunity with Reese's filled pretzels seeing strong initial velocities.

White space opportunity with Reese's filled pretzels seeing strong initial velocities.

We consult he continues to be a white space opportunity with refill pretzel seeing strong initial velocities.

Michele Buck: Our Salty variety pack retail takeaway also increased 32% driven by innovation and distribution gains. We expect momentum to build in Q3 for our Salty portfolio supported by media investment, a robust promotional calendar, flavor innovation, and product rotations like Dot's Buffalo that will serve as the perfect anchor for.

Our Salty variety pack retail takeaway also increased 32% driven by innovation and distribution gains. We expect momentum to build in Q3 for our Salty portfolio supported by media investment, a robust promotional calendar, flavor innovation, and product rotations like Dot's Buffalo that will serve as the perfect anchor for.

Our solti variety pack retail takeaway also increased 32% driven by innovation and distribution gains.

You will see more news later today as we officially launched the collaboration.

Our house brand partnership will drive trial, and repeat via joint displays and media activation.

We expect momentum to build in Q3 for our soldiers portfolio supported by media investment a robust promotional calendar flavor innovation and product rotations like dots Buffalo that will serve as the perfect anchor for our fall football programming.

A meaningful portion of the launch will be in take home pack types, a pivot from prior introductions as we focus on capturing share in high growth channels.

Michele Buck: Our fall football programming. Net sales trends within our international segment were below expectations in the quarter, reflecting unfavorable currency translation, softer category growth in Mexico, and reduced export demand in Mexico.

Our fall football programming. Net sales trends within our international segment were below expectations in the quarter, reflecting unfavorable currency translation, softer category growth in Mexico, and reduced export demand in Mexico.

We also expect to build on last year's seasonal success with solid performance in Halloween and holiday.

Michele Buck: Net sales trends within our international segment were below expectations in the quarter, reflecting unfavorable currency translation, softer category growth in Mexico, and reduced export demand. In Mexico, despite economic challenges and changes in regulation impacting overall chocolate category growth, Hershey continued to gain market share. Constant currency net sales increased double digits in Brazil, driven by a robust Easter and favorable category dynamics. and Mid Single Digits in Europe, led by the UK.

Yeah.

Net sales trends within our international segment were below expectations in the quarter, reflecting unfavorable currency translation softer category growth in Mexico and reduced export demand.

With these programs we remain confident in our plans for full year share gains.

Michele Buck: Despite economic challenges and changes in regulation.

Despite economic challenges and changes in regulation.

Turning to salty snacks.

Our portfolio led in share gains among the top 10 salty snack manufacturers this quarter as our brands continue to resonate with consumers desire for permissible and better for you brands.

Michele Buck: Impacting overall chocolate category growth, Hershey continued.

Impacting overall chocolate category growth, Hershey continued.

In Mexico, despite economic challenges and changes in regulation impacting overall chocolate category growth Hershey continue to gain market share.

Michele Buck: To gain market share, constant currency net sales increased double digits in Brazil, driven by a robust Easter and favorable category dynamics, and mid single digits in Europe, led by the UK. We are executing our playbook to turn our biggest brand Reese's into a global juggernaut with first half international growth of nearly 8%. We expect Reese's acceleration in the second.

To gain market share, constant currency net sales increased double digits in Brazil, driven by a robust Easter and favorable category dynamics, and mid single digits in Europe, led by the UK. We are executing our playbook to turn our biggest brand Reese's into a global juggernaut with first half international growth of nearly 8%. We expect Reese's acceleration in the second.

Michele Buck: Constant currency net sales increased double digits in Brazil, driven by a robust Easter and favorable category dynamics, and mid-single digits in Europe, led by the U.K. We are executing our playbook to turn our biggest brand, Reese's, into a global juggernaut, with first half international growth of nearly 8%. We expect Reese's acceleration in the second half, supported by wire distribution, media activation, and a new Halloween partnership with the Scream movie franchise. For the international segment, our full-year constant currency segment net sales growth outlook remains low single digits. Now for our revised full-year outlook. We are confident in the underlying trajectory of our business. Our retail takeaway and overall execution are delivering robust results, which we expect to continue in the second half. Moreover, we have strong visibility into second half shipment, with nearly 40% tied to season and new items with strong retailer support.

Constant currency net sales increased double digits in Brazil, driven by a robust Easter and favorable category dynamics.

Michele Buck: We are executing our playbook to turn our biggest brand, Reese, into a global juggernaut with first half international growth of nearly 8%. We expect Reese Acceleration in the second half, supported by wire distribution, media activation, and a new Halloween partnership with the Scream movie franchise. For the international segment, our full year constant currency segment net sales growth outlook remains low single digit.

And mid single digits in Europe led by the U K.

We are executing our playbook to turn our biggest brand reach into a global juggernaut with first half international growth of nearly 8%.

Docks growth outpaced our expectations with retail takeaway up 13%.

Michele Buck: Half supported by wire distribution, media activation, and a new Halloween partnership with the Scream movie franchise. For the international segment, our full year constant currency segment net sales growth outlook remains low single digits. Now for our revised full year outlook, we are confident in the underlying trajectory of our business. Our retail takeaway and overall execution are.

Half supported by wire distribution, media activation, and a new Halloween partnership with the Scream movie franchise. For the international segment, our full year constant currency segment net sales growth outlook remains low single digits. Now for our revised full year outlook, we are confident in the underlying trajectory of our business. Our retail takeaway and overall execution are.

We expect re acceleration in the second half supported by wire distribution media activation and a new Halloween partnership with the screen movie franchise.

This resulted in over 200 basis points of share gains and pretzels, driven by the Bbq flavor innovation and summer Activations.

For the international segment, our full year constant currency segment net sales growth outlook remains low single digits.

We can solve he continues to be a white space opportunity with resale pretzel seeing strong initial velocities.

Michele Buck: Now for our revised full year outlook. We are confident in the underlying trajectory of our business. Our retail takeaway and overall execution are delivering robust results, which we expect to continue in the second half. Moreover, we have strong visibility into second half shipments with nearly 40% tied to seasons and new items with strong retailer support. Our full year adjusted EPS guidance is now expected to decline between 36% and 38%, reflecting strong first half results, incremental pricing, and the successful execution of COCO procurement strategy. which are more than offset by the impact of higher taxes and current tariff policies.

Our salty variety pack retail takeaway also increased 32% driven by innovation and distribution gains.

Now for our revised full year outlook.

We are confident in the underlying trajectory of our business.

Michele Buck: Delivering robust results which we expect to.

Delivering robust results which we expect to.

Our retail takeaway and overall execution are delivering robust results, which we expect to continue in the second half.

We expect momentum to build in Q3 for our salty portfolio supported by media investment a robust promotional calendar flavor innovation and product rotations like dots Buffalo that will serve as the perfect anchor for our fall football programming.

Michele Buck: Continue in the second half.

Continue in the second half.

Michele Buck: Moreover, we have strong visibility into second.

Moreover, we have strong visibility into second.

Michele Buck: Half shipments with nearly 40% tied to seasons and new items with strong retailer support. Our full-year Adjusted EPS guidance is now expected to decline between 36% and.

Half shipments with nearly 40% tied to seasons and new items with strong retailer support. Our full-year Adjusted EPS guidance is now expected to decline between 36% and.

Moreover, we have strong visibility into second half shipments with nearly 40% tied to seasons and new items with strong retailer support.

Michele Buck: Our full-year adjusted EPS guidance is now expected to decline between 36% and 38%, reflecting strong first half results, incremental pricing, and the successful execution of cocoa procurement strategies, which are more than offset by the impact of higher taxes and current tariff policy. Without tariffs, we would have raised our full-year adjusted EPS outlook. Our updated guidance fully reflects the risk from tax and tariff fluctuations based on what we know today. Let me turn to cocoa, our recent price increase, and the other initiatives we are implementing to drive balanced growth as we look ahead. First, though cocoa prices have retreated year to date, they remain volatile and significantly elevated versus history. Based on what we know today, we continue to anticipate inflation in our cocoa input costs year over year in 2026.

Net sales trends within our international segment were below expectations in the quarter, reflecting unfavorable currency translation softer category growth in Mexico and reduced export demand.

Our full year adjusted EPS guidance is now expected to decline between 36% and 38% reflecting.

Michele Buck: 38% reflecting strong first half results, incremental.

38% reflecting strong first half results, incremental.

Michele Buck: Pricing and the successful execution of cocoa.

Pricing and the successful execution of cocoa.

<unk> strong first half results incremental pricing and the successful execution of cocoa procurement strategies.

Michele Buck: Procurement strategies, which are more than offset.

Procurement strategies, which are more than offset.

In Mexico, despite economic challenges and changes in regulation impacting overall chocolate category growth Hershey continue to gain market share.

Michele Buck: By the impact of higher taxes and current tariff policy.

By the impact of higher taxes and current tariff policy.

Which are more than offset by the impact of higher taxes and current tariff policy.

Michele Buck: Without tariffs, we would have raised our full year adjusted EPS outlook. Our updated guidance fully reflects the risk from tax and tariff fluctuations based on what we know today.

Michele Buck: Without tariffs, we would have raised our.

Without tariffs, we would have raised our.

Michele Buck: Full year adjusted EPS outlook.

Full year adjusted EPS outlook.

Constant currency net sales increased double digits in Brazil, driven by a robust Easter and favorable category dynamics.

Without tariffs, we would have raised our full year adjusted EPS outlook.

Michele Buck: Our updated guidance fully reflects the risk from tax and tariff fluctuations based on what we know today. Let me turn to Cocoa, our recent price increase and.

Our updated guidance fully reflects the risk from tax and tariff fluctuations based on what we know today. Let me turn to Cocoa, our recent price increase and.

Our updated guidance fully reflects the risk from tax and tariff fluctuations based on what we know today.

And mid single digits in Europe led by the U K.

Michele Buck: Let me turn to COCO, our recent price increase, and the other initiatives we are implementing to drive balanced growth as we look ahead. First, though cocoa prices have retreated year to date, they remain volatile and significantly elevated versus history. Based on what we know today, we continue to anticipate inflation in our COCO input costs year over year in 2026. This is due to our robust hedging practices, which locked in 2025 prices well below the market, modest improvement in our cost outlook for the year through execution of innovative sourcing and hedging strategies, and forward visibility from hedges we have begun to place for 2026.

We are executing our playbook to turn our biggest brand reece into a global juggernaut with first half international growth of nearly 8%.

Michele Buck: The other initiatives we are implementing to drive balanced growth as we look ahead.

The other initiatives we are implementing to drive balanced growth as we look ahead.

Let me turn to cocoa, our recent price increase and the other initiatives we are implementing to drive balanced growth as we look ahead.

Michele Buck: First, though, cocoa prices have retreated year to date. They remain volatile and significantly elevated versus history. Based on what we know today, we.

First, though, cocoa prices have retreated year to date. They remain volatile and significantly elevated versus history. Based on what we know today, we.

We expect recent acceleration in the second half supported by wire distribution media activation and a new Halloween partnership with the screen movie franchise.

First they'll cocoa prices have retreated year to date, they remain volatile and significantly elevated versus history.

Michele Buck: Continue to anticipate inflation in our cocoa input costs year over year in 2026.

Continue to anticipate inflation in our cocoa input costs year over year in 2026.

Based on what we know today, we continue to anticipate inflation in our cocoa input cost year over year in 'twenty 'twenty six.

For the international segment, our full year constant currency segment net sales growth outlook remains low single digits.

Michele Buck: This is due to our robust hedging practices which locked in 2025 prices well below the market.

This is due to our robust hedging practices which locked in 2025 prices well below the market.

Michele Buck: This is due to our robust hedging practices, which locked in 2025 prices well below the market, modest improvement in our cost outlook for the year through execution of innovative sourcing and hedging strategies, and forward visibility from hedges we have begun to place for 2026. Our flexible hedging strategies would allow us to participate if cocoa markets retreat further in 2025, and we continue to use similar strategies in our approach to 2026 hedges. Cocoa market fundamentals remain encouraging. The data continues to support a modest global supply surplus for the 2024-2025 crop as the top three global cocoa markets track to a double-digit increase in supply this season. There has been considerable investment from top and new origins over the past several years. In the Ivory Coast, reports indicate fertilizer usage has reached its highest level in at least five years, which should support crop development.

This is due to our robust hedging practices, which locked in 'twenty twenty-five prices well below the market modest improvement in our cost outlook for the year through execution of innovative sourcing and hedging strategies.

Michele Buck: Modest improvement in our cost outlook for the year through execution of innovative sourcing.

Modest improvement in our cost outlook for the year through execution of innovative sourcing.

Now for our revised full year outlook.

We are confident in the underlying trajectory of our business.

Michele Buck: Hedging strategies and forward visibility from hedges we have begun to place for 2026. Our flexible hedging strategies would allow us to participate if cocoa markets retreat further in 2025, and we continue to use.

Hedging strategies and forward visibility from hedges we have begun to place for 2026. Our flexible hedging strategies would allow us to participate if cocoa markets retreat further in 2025, and we continue to use.

Our retail takeaway and overall execution are delivering robust results, which we expect to continue in the second half.

And forward visibility from hedges, we have begun to place for 'twenty 'twenty six.

Michele Buck: Our flexible hedging strategies would allow us to participate if COCO markets retreat further in 2025 and we continue to use similar strategies in our approach to 2026 hedging. Cocoa market fundamentals remain encouraging. The data continues to support a modest global supply surplus for the 24-25 crop as the top three global cocoa markets track to a double-digit increase in supply this season. There has been considerable investment from top and new origins over the past several years. In the Ivory Coast, reports indicate fertilizer usage has reached its highest level in at least five years, which should support crop development.

Our flexible hedging strategies would allow us to participate if cocoa markets retreat further in 2025, and we continue to use similar strategies in our approach to 'twenty twenty-six hedges.

Moreover, we have strong visibility into second half shipments with nearly 40% tied to seasons and new items with strong retailer support.

Michele Buck: Similar strategies in our approach to 2026 hedges. Cocoa Market fundamentals remain encouraging.

Similar strategies in our approach to 2026 hedges. Cocoa Market fundamentals remain encouraging.

Our full year adjusted EPS guidance is now expected to decline between 36% and 38%.

Michele Buck: The data continues to support a modest.

The data continues to support a modest.

Cocoa market fundamentals remain encouraging.

Michele Buck: Global supply surplus for the 2024/25 crop as the top three global cocoa markets track to a double-digit increase in supply this season. There has been considerable investment from top and new origins over the past several years.

Global supply surplus for the 2024/25 crop as the top three global cocoa markets track to a double-digit increase in supply this season. There has been considerable investment from top and new origins over the past several years.

The data continues to support a modest global supply surplus for the 'twenty four 'twenty five crop as the top three global cocoa markets track to a double digit increase in supply this season.

Reflecting strong first half results incremental pricing and the successful execution of cocoa procurement strategies.

Which are more than offset by the impact of higher taxes and Kurt tariff policy.

There has been considerable investment from top and do origins over the past several years.

Michele Buck: In the Ivory Coast, reports indicate fertilizer.

In the Ivory Coast, reports indicate fertilizer.

Michele Buck: Usage has reached its highest level in at least five years, which should support crop development. Early pod count suggests that the 2025-2026 crop season is off to a strong start. Our robust internal models are projecting a larger global surplus for the 25-26 crop as supply normalizes and end users continue to take steps to adapt to persistently high prices. While we remain hopeful, we have not yet seen the progress in fundamentals translate to significant improvement in the cocoa financial markets.

Usage has reached its highest level in at least five years, which should support crop development. Early pod count suggests that the 2025-2026 crop season is off to a strong start. Our robust internal models are projecting a larger global surplus for the 25-26 crop as supply normalizes and end users continue to take steps to adapt to persistently high prices. While we remain hopeful, we have not yet seen the progress in fundamentals translate to significant improvement in the cocoa financial markets.

Without tariffs, we would have raised our full year adjusted EPS outlook.

In the Ivory Coast reports indicate fertilizer usage has reached its highest level in at least five years, which should support crop development.

Michele Buck: Early pod counts suggest that the 2025-2026 crop season is off to a strong start. Our robust internal models are projecting a larger global surplus for the 2025-2026 crop as supply normalizes and end users continue to take steps to adapt to persistently high prices. While we remain hopeful, we have not yet seen the progress in fundamentals translate to significant improvement in the cocoa financial markets. As such, we have put into action our plans to address the commodity inflation we have absorbed in our P&L over the past two years. This month, Hershey announced a new price action on the entirety of our U.S. confection portfolio. These products represent roughly 80% of total net sales, and through a combination of list price and price pack architecture, we will deliver an estimated 16 points of pricing contribution to the overall company.

Our updated guidance fully reflects the risk from tax and tariff fluctuations based on what we know today.

Early pod count suggests that the 'twenty 'twenty five 'twenty 'twenty six crop season is off to a strong start.

Let me turn to cocoa, our recent price increase and the other initiatives we are implementing to drive balanced growth as we look ahead.

Our robust internal models are projecting a larger global surplus for the 'twenty five 'twenty six crops as supply normalizes and end users continue to take steps to adapt to persistently high prices.

First they'll cobalt prices have retreated year to date, they remain volatile and significantly elevated versus history.

Based on what we know today, we continue to anticipate inflation in our cocoa input cost year over year and 2026.

While we remain hopeful we have not yet seen the progress in fundamentals translate to significant improvement in the Coco financial markets as.

Michele Buck: As such, we have put into action our plans to address the commodity inflation we have absorbed in our P&L over the past two years. This month, Hershey announced a new price action on the entirety of our U.S. confection portfolio. These products represent roughly 80% of total net sales, and through a combination of list price and price pack architecture, we will deliver an estimated 16 points of price and contribution to the overall company. Consistent with previous practices, we will have a transition period for our retailers to adjust to these new prices, and we will protect key promotional events and important tentpoles for our customers and consumers who rely on Hershey's diverse portfolio of snacking options to celebrate life's moments, big and small.

Michele Buck: As such, we have put into action.

As such, we have put into action.

Michele Buck: Our plans to address the commodity inflation we have absorbed in our P&L over the past two years. This month, Hershey announced a new price action on the entirety of our US confection portfolio.

Our plans to address the commodity inflation we have absorbed in our P&L over the past two years. This month, Hershey announced a new price action on the entirety of our US confection portfolio.

This is due to our robust hedging practices, which locked in 'twenty twenty-five prices well below the market model.

As such we have put into action our plans to address the commodity inflation, we have absorbed in our P&L over the past two years.

Modest improvement in our cost outlook for the year through execution of innovative sourcing and hedging strategies and forward visibility from hedges, we have begun to place for 'twenty 'twenty six.

This month, Hershey announced a new price action on the entirety of our U S confection portfolio.

Michele Buck: These products represent roughly 80% of total.

These products represent roughly 80% of total.

Michele Buck: Net sales and through a combination of.

Net sales and through a combination of.

These products represent roughly 80% of total net sales and through a combination of list price and price pack architecture, we will deliver an estimated 16 points of pricing contribution to the overall company.

Michele Buck: List price and Price Pack Architecture, we will deliver an estimated 16 points of.

List price and Price Pack Architecture, we will deliver an estimated 16 points of.

Our flexible hedging strategies would allow us to participate if cocoa markets retreat further in 2025, and we continue to use similar strategies in our approach to 'twenty twenty-six hedges.

Michele Buck: Pricing contribution to the overall company.

Pricing contribution to the overall company.

Michele Buck: Consistent with previous practices.

Consistent with previous practices.

Michele Buck: Consistent with previous practices, we will have a transition period for our retailers to adjust to these new prices, and we will protect key promotional events and important tentpoles for our customers and consumers who rely on Hershey's diverse portfolio of snacking options to celebrate life's moments, big and small. Our teams have been strategic and thoughtful about our relative value within our categories and broader consumption occasions. Over 75% of items in our portfolio remain under $4. This action is projected to benefit adjusted gross margin, with no significant effect on sales anticipated for 2025. This pricing announcement reinforces our commitment to covering commodity inflation with pricing over time. We are also implementing an initiative called Smart Complexity to simplify packaging and product assortments and optimize manufacturing efficiency to drive savings for Hershey and our customers.

Michele Buck: We will have a transition period for.

We will have a transition period for.

Michele Buck: Our retailers to adjust to these new prices, and we will protect key promotional events and important tent poles for our customers and consumers who rely on Hershey's.

Our retailers to adjust to these new prices, and we will protect key promotional events and important tent poles for our customers and consumers who rely on Hershey's.

Consistent with previous practices, we will have a transition period for our retailers to adjust to these new process and we will protect key promotional events and important tent poles for our customers and consumers who rely on hershey's diverse portfolio of snacking options to celebrate life's moments.

Cocoa market fundamentals remain encouraging.

The data continues to support a modest global supply surplus for the 'twenty four 'twenty five crop as the top three global cocoa markets track to a double digit increase in supply this season.

Michele Buck: Diverse portfolio of snacking options to celebrate life's moments big and small.

Diverse portfolio of snacking options to celebrate life's moments big and small.

Michele Buck: Our teams have been strategic and thoughtful about our relative value within our categories and broader consumption occasions. Over 75% of items in our portfolio remain under $4. This action is projected to benefit adjusted growth margin with no significant effect on sales anticipated for 2025. This pricing announcement reinforces our commitment to covering commodity inflation with pricing over time.

Michele Buck: Our teams have been strategic and thoughtful about our relative value within our categories.

Our teams have been strategic and thoughtful about our relative value within our categories.

Big and small.

There has been considerable investment from top and new origins over the past several years.

Our teams have been strategic and thoughtful about our relative value within our categories and broader consumption occasions over 75% of items in our portfolio remain under $4.

Michele Buck: Broader consumption occasions. Over 75% of items in our portfolio remain under $4.

Broader consumption occasions. Over 75% of items in our portfolio remain under $4.

And the Ivory Coast reports indicate fertilizer usage has reached its highest level in at least five years, which should support crop development.

Michele Buck: This action is projected to benefit adjusted.

This action is projected to benefit adjusted.

Early pod count suggests that the 'twenty 'twenty five 'twenty 'twenty six crop season is off to a strong start.

Michele Buck: Gross margin with no significant effect on sales anticipated for 2025. This pricing announcement reinforces our commitment to covering commodity inflation with pricing over time.

Gross margin with no significant effect on sales anticipated for 2025. This pricing announcement reinforces our commitment to covering commodity inflation with pricing over time.

This action is projected to benefit adjusted gross margin with no significant effect on sales anticipated for 2025.

Yeah.

This pricing announcement reinforces our commitment to covering commodity inflation with pricing over time.

Michele Buck: We are also implementing an initiative called Smart Complexity to simplify packaging and product.

We are also implementing an initiative called Smart Complexity to simplify packaging and product.

Michele Buck: We are also implementing an initiative called Smart Complexity to simplify packaging and product assortments and optimize manufacturing efficiency to drive savings for Hershey and our customers. This project enables us to raise our Advancing Automation and Agility Transformation Program Savings Target to $400 million from $350 million as our teams accelerate a strong pipeline of opportunity, including smart complexity, to drive automation and efficiency, leveraging our technology investment. We are taking significant steps to address cocoa inflation and restore our advantaged margin structure while continuing to support investments in our brands and capabilities to take the business to the next level.

We are also implementing an initiative called smart complexity, so simplified packaging and product assortments and optimize manufacturing efficiency to drive savings for Hershey and our customers.

While we remain hopeful we have not yet seen the progress in fundamentals translate to significant improvement in the Coco financial markets.

Michele Buck: Assortments and optimize manufacturing efficiency to drive savings for Hershey and our customers.

Assortments and optimize manufacturing efficiency to drive savings for Hershey and our customers.

Michele Buck: This project enables us to raise our.

This project enables us to raise our.

Michele Buck: This project enables us to raise our advancing automation and agility transformation program savings target to $400 million from $350 million as our teams accelerate a strong pipeline of opportunity, including Smart Complexity, to drive automation and efficiency, leveraging our technology investments. We are taking significant steps to address cocoa inflation and restore our advantaged margin structure while continuing to support investments in our brands and capabilities to take the business to the next level. In aggregate, the initiatives discussed today would restore adjusted gross margins by over 500 basis points in 2026. Although current market conditions suggest that increased cocoa costs and tariffs may partially offset these efforts, we are confident we are taking the right actions to deliver sustainable top and bottom line growth in 2026 and long term.

As such we have put into action our plans to address the commodity inflation, we have absorbed in our P&L over the past two years.

Michele Buck: Advancing Automation and Agility Transformation program savings target to $400 million from $350 million, as our teams accelerate a strong pipeline of opportunity, including Smart Complexity to drive automation and efficiency. Leveraging our technology investments, we are taking significant steps to address cocoa inflation and restore our advantaged margin structure while continuing to support investments in our brands and capabilities to take the business to the next level.

Advancing Automation and Agility Transformation program savings target to $400 million from $350 million, as our teams accelerate a strong pipeline of opportunity, including Smart Complexity to drive automation and efficiency. Leveraging our technology investments, we are taking significant steps to address cocoa inflation and restore our advantaged margin structure while continuing to support investments in our brands and capabilities to take the business to the next level.

This project enables us to raise our advancing automation and agility transformation program savings target to $400 million from $350 million as our teams accelerate a strong pipeline of opportunity.

This month, Hershey announced a new price action on the entirety of our U S confection portfolio.

Including smart complexity to drive automation and efficiency leveraging our technology investments.

We are taking significant steps to address cocoa inflation and restore our advantaged margin structure, while continuing to support investments in our brands and capabilities to take the business to the next level.

Consistent with previous practices, we will have a transition period for our retailers to adjust to these new process and we will protect key promotional events and important temp pools for our customers and consumers who rely on hershey's diverse portfolio of snacking options to celebrate life's moments.

Michele Buck: In aggregate, the initiatives discussed today would restore adjusted gross margins by over 500 basis points in 2026. Although current market conditions suggest that increased COCO costs and tariffs may partially offset these efforts, we are confident we are taking the right actions to deliver sustainable top and bottom line growth in 2026 and long term.

Michele Buck: In aggregate, the initiatives discussed today are.

In aggregate, the initiatives discussed today are.

Michele Buck: Would restore adjusted gross margins by over 500 basis points in 2026.

Would restore adjusted gross margins by over 500 basis points in 2026.

In aggregate the initiatives discussed today would restore adjusted gross margins by over 500 basis points in 2026.

Michele Buck: Although current market conditions suggest that increased.

Although current market conditions suggest that increased.

Michele Buck: Cocoa costs and tariffs may partially offset these efforts. We are confident we are taking the right actions to deliver sustainable top and bottom line growth in 2026 and long term.

Cocoa costs and tariffs may partially offset these efforts. We are confident we are taking the right actions to deliver sustainable top and bottom line growth in 2026 and long term.

Although current market conditions suggest that increased cocoa costs and tariffs may partially offset these efforts. We are confident we are taking the right actions to deliver sustainable top and bottom line growth in 2020 six and long term.

Big and small.

Our teams have been strategic and thoughtful about our relative value within our categories and broader consumption occasions.

We're 75% of items in our portfolio remain under $4.

Steve Voskuil: I'll now turn it over to Steve who will provide you with details on our financial results and outlook for the year. Thank you, Michele, and good morning everyone. Second quarter net sales results were slightly ahead of expectations, driven by strong results in North America Confectionary and North America Salty Snacks, partially offset by lower than expected results in International. Reported net sales increased 26% versus the same period last year. Organic, constant currency net sales growth of 26.3% was driven by net price realization of approximately 5 points and volume growth of approximately 21 points. Volume growth in the quarter was impacted by the lap of planned inventory decreases after our ERP system implementation in the prior year period, a later Easter season in 2025, and customers requesting earlier shipment of Halloween orders versus the prior year.

Michele Buck: I'll now turn it over to Steve.

I'll now turn it over to Steve.

Michele Buck: I'll now turn it over to Steve, who will provide you with details on our financial results and outlook for the year.

Michele Buck: Who will provide you with details on our financial results and outlook for the year.

Who will provide you with details on our financial results and outlook for the year.

This action is projected to benefit adjusted gross margin with no significant effect on sales anticipated for 2025.

I'll now turn it over to Steve who will provide you with details on our financial results and outlook for the year.

Steve Voskuil: Thank you, Michele, and good morning, everyone. Second quarter net sales results were slightly ahead of expectations, driven by strong results in North America Confectionery and North America Salty Snacks, partially offset by lower than expected results in international. Reported net sales increased 26% versus the same period last year. Organic constant currency net sales growth of 26.3% was driven by net price realization of approximately 5 points and volume growth of approximately 21 points. Volume growth in the quarter was impacted by the lap of planned inventory decreases after our ERP system implementation in the prior year period, a later Easter season in 2025, and customers requesting earlier shipment of Halloween orders versus the prior year. North America Confectionery segment net sales growth of 32% was ahead of expectations. The Sour Strips acquisition was a 60 basis points benefit and foreign currency exchange was a 20 basis points headwind.

Steve Voskuil: Thank you, Michele, and good morning, everyone. Second quarter net sales results were slightly ahead of expectations, driven by strong results in North America confectionery and North America salty snacks, partially offset by lower than expected results in international. Reported net sales increased 26% versus the same period last year. Organic constant currency net sales growth of 26.3% was driven by net price realization of approximately 5 points and volume growth of approximately 21 points. Volume growth in the quarter was impacted by the lap of planned inventory decreases after our ERP system implementation in the prior year period, a later Easter season in 2025, and customers requesting earlier shipment of Halloween orders versus the prior year. North America confectionery segment net sales growth of 32% was ahead of expectation. The Sour Strips acquisition was a 60 basis point benefit, and foreign currency exchange was a 20 basis point headwind.

Thank you Michelle and good morning, everyone second quarter net sales results were slightly ahead of expectations driven by strong results in North America, confectionery, and North America, salty snacks, partially offset by lower than expected results in international.

This pricing announcement reinforces our commitment to covering commodity inflation with pricing overtime.

We are also implementing an initiative called smart complexity to simplified packaging and product assortments and optimize manufacturing efficiency to drive savings for Hershey and our customers.

We reported net sales increased 26% versus the same period last year.

<unk> constant currency net sales growth of 26, 3% was driven by net price realization of approximately five points and volume growth of approximately 21 points.

This project enables us to raise our advancing automation and agility transformation program savings target to $400 million from $350 million and our teams accelerate a strong pipeline of opportunity <unk>.

Volume growth in the quarter was impacted by the lack of planned inventory decreases after our ERP system implementation in the prior year period.

Including smart complexity to drive automation and efficiency leveraging our technology investments.

The later Easter season in 2025 and customers requesting earlier shipment of Halloween orders versus the prior year.

Steve Voskuil: North America confectionery segment net sales growth of 32% was ahead of expectations. The Sour Strips acquisition was a 60 basis point benefit and foreign currency exchange was a 20 basis point headwind. Net price realization of approximately 6% reflects the impact of pricing announced in 2024. Volume increased 25%, of which approximately 13 points was lapping inventory changes related to the ERP system implementation in the prior year. The balance reflects the benefit of Easter timing in 2025 and an approximate 2 to 3 point benefit from customers requesting earlier delivery of Halloween orders versus prior year, partially offset by pricing elasticity.

North America confectionery segment net sales growth of 32% was ahead of expectations.

Our strips acquisition was a 60 basis point benefit and foreign currency exchange was a 20 basis point headwind.

Steve Voskuil: Net price realization of approximately 6% reflects the impact of pricing announced in 2024. Volume increased 25%, of which approximately 13 points was lapping inventory changes related to the ERP system implementation in the prior year. The balance reflects the benefit of Easter timing in 2025 and an approximate 2 to 3 point benefit from customers requesting earlier delivery of Halloween orders versus prior year, partially offset by pricing elasticity. Net sales for our North America salty snacks segment increased 8.8%. Volume growth of over 4% reflects growth across Dot's Homestyle Pretzels and SkinnyPop, an incrementality from variety multi-packs and Reese's-filled pretzels, which more than offset a planned reduction in private label production. Net price realization increased nearly 5%, driven by the timing of promotional investments and the lap of one-time expenses related to our route-to-market transition in Q2 of 2024.

Steve Voskuil: Net price realization of approximately 6% reflects the impact of pricing announced in 2024. Volume increased 25%, of which approximately 13 points was lapping inventory changes related to the ERP system implementation in the prior year. The balance reflects the benefit of Easter timing in 2025 and an approximate 2 to 3 point benefit from customers requesting earlier delivery of Halloween orders versus prior year, partially offset by pricing elasticity. Net sales for our North America Salty Snacks segment increased 8.8%, volume growth of over 4% reflects growth across Dot's, SkinnyPop, and incrementality from Variety Multi Packs and Reese's Filled Pretzels, which more than offset a planned reduction in private label production. Net price realization increased nearly 5% driven by the timing of promotional investments and the lap of one-time expenses related to our route to market transition in Q2 of 2024.

Net price realization of approximately 6% reflects the impact of pricing announced in 2024. Volume increased 25%, of which approximately 13 points was lapping inventory changes related to the ERP system implementation in the prior year. The balance reflects the benefit of Easter timing in 2025 and an approximate 2 to 3 point benefit from customers requesting earlier delivery of Halloween orders versus prior year, partially offset by pricing elasticity. Net sales for our North America Salty Snacks segment increased 8.8%, volume growth of over 4% reflects growth across Dot's, SkinnyPop, and incrementality from Variety Multi Packs and Reese's Filled Pretzels, which more than offset a planned reduction in private label production. Net price realization increased nearly 5% driven by the timing of promotional investments and the lap of one-time expenses related to our route to market transition in Q2 of 2024.

In aggregate the initiatives discussed today would restore adjusted gross margins by over 500 basis points in 2026.

Net price realization of approximately 6% reflects the impact with pricing announced in 2024.

<unk> increased 25% of which approximately 13 points was lapping inventory changes related to the ERP system implementation in the prior year.

The balance reflects the benefit of Easter timing in 2025.

And an approximate two to three point benefit from customers requesting earlier delivery of Halloween orders versus prior year, partially offset by pricing elasticity.

I'll now turn it over to Steve who will provide you with details on our financial results and outlook for the year.

Steve Voskuil: Net sales for our North America Salty Snacks segment increased 8.8%. Volume growth of over 4% reflects growth across Dots and Skinny Pop, and incrementality from variety multipacks and Reese filled pretzels, which more than offset a planned reduction in private label production. Net price realization increased nearly 5%. Driven by the timing of promotional investments and the lap of one-time expenses related to our route-to-market transition in Q2 of 2024. International segment net sales increased 4.4% in the second quarter. Foreign currency translation represented an approximate six point headwind. Organic constant currency net sales increased 10 percent. Volume increased around 9 points, driven by an approximate 10 point volume benefit from lapping inventory shifts related to the ERP system implementation last year.

Net sales for our North America Salty snacks segment increased eight 8%.

Volume growth of over 4% reflects growth across dance and skinny pop and incrementally from variety multi packs and re spilled pretzels, which more than offset a planned reduction in private label production.

Reported net sales increased 26% versus the same period last year.

Organic constant currency net sales growth of 26, 3% was driven by net price realization of approximately five points and volume growth of approximately 21 points.

Net price realization increased nearly 5%.

Driven by the timing of promotional investments in the lap of onetime expenses related to our route to market transition in Q2 of 'twenty 'twenty four.

Steve Voskuil: International segment net sales increased 4.4% in Q2. Foreign currency translation represented an approximate 6 point headwind. Organic constant currency net sales increased 10%. Volume increased around 9 points, driven by an approximate 10 point volume benefit from lapping inventory shifts related to the ERP system implementation last year. Excluding this dynamic, volume was below our expectations, primarily reflecting category softness in Mexico and lower export market demand. Net price realization of around 1% was also below expectations, reflecting higher trade promotion and unfavorable mix.

International segment net sales increased 4.4% in Q2. Foreign currency translation represented an approximate 6 point headwind. Organic constant currency net sales increased 10%. Volume increased around 9 points, driven by an approximate 10 point volume benefit from lapping inventory shifts related to the ERP system implementation last year. Excluding this dynamic, volume was below our expectations, primarily reflecting category softness in Mexico and lower export market demand. Net price realization of around 1% was also below expectations, reflecting higher trade promotion and unfavorable mix.

Steve Voskuil: International segment net sales increased 4.4% in the second quarter. Foreign currency translation represented an approximate 6 point headwind. Organic constant currency net sales increased 10%. Volume increased around 9 points, driven by an approximate 10 point volume benefit from lapping inventory shifts related to the ERP system implementation last year. Excluding this dynamic, volume was below our expectations, primarily reflecting category softness in Mexico and lower export market demand. Net price realization of around 1% was also below expectations, reflecting higher trade promotion and unfavorable mix. Moving down the P&L, adjusted gross margin of 38.1% decreased 510 basis points in the second quarter, as commodity inflation and $2 million of incremental tariff expenses were only partially offset by higher volume, net price realization, productivity, and transformation program net savings.

Volume growth in the quarter was impacted by the lap of planned inventory decreases after our ERP system implementation in the prior year period.

International segment net sales increased four 4% in the second quarter foreign currency translation represented an approximate six point headwind.

The later Easter season in 2025 and customers requesting earlier shipment of Halloween orders versus the prior year.

Organic constant currency net sales increased 10%.

North America confectionery segment net sales growth of 32% was ahead of expectations.

Volume increased around nine points driven by an approximate 10 point volume benefit from lapping inventory shifts related to the ERP system implementation last year.

Our strips acquisition was a 60 basis point benefit and foreign currency exchange was a 20 basis point headwind.

Steve Voskuil: Excluding this dynamic, volume was below our expectations, primarily reflecting category softness in Mexico and lower export market demand. Net price realization of around 1% was also below expectations, reflecting higher trade promotion and unfavorable mix.

Excluding this dynamic volume was below our expectations, primarily reflecting category softness in Mexico, and lower export market demand.

Net price realization of approximately 6% reflects the impact with pricing announced in 2024.

Net price realization of around 1% was also below expectations, reflecting higher trade promotion and unfavorable mix.

Volume increased 25% of which approximately 13 points was lapping inventory changes related to the ERP system implementation in the prior year.

Steve Voskuil: Moving down the P&L, adjusted gross margin of 38.1%, decreased 510 basis points in the second quarter as commodity inflation and $2 million of incremental tariff expenses were only partially offset by higher volume, net price realization, productivity, and transformation program net savings. Gross margin was higher than expected due to the timing of cocoa hedges, higher volume leverage, and lower tariff expenses than anticipated in the quarter. Advertising and related consumer marketing increased 35.5 percent in the second quarter, reflecting the timing of expenses in North America confectionery and international segments in the prior year. Adjusted operating expenses, excluding advertising and related consumer marketing spend, increased 2.2 percent.

Steve Voskuil: Moving down the P&L, Adjusted Gross Margin of 38.1% decreased 510 basis points in the second quarter as commodity inflation and $2 million of incremental tariff expenses were only partially offset by higher volume, net price realization, productivity, and transformation program net savings. Gross margin was higher than expected due to the timing of cocoa hedges, higher volume leverage, and lower tariff expenses than anticipated in the quarter. Advertising and related consumer marketing increased 35.5% in the second quarter, reflecting the timing of expenses in North America, confectionery, and international segments in the prior year. Adjusted operating expenses excluding advertising and related consumer marketing spend increased 2.2%.

Moving down the P&L, Adjusted Gross Margin of 38.1% decreased 510 basis points in the second quarter as commodity inflation and $2 million of incremental tariff expenses were only partially offset by higher volume, net price realization, productivity, and transformation program net savings. Gross margin was higher than expected due to the timing of cocoa hedges, higher volume leverage, and lower tariff expenses than anticipated in the quarter. Advertising and related consumer marketing increased 35.5% in the second quarter, reflecting the timing of expenses in North America, confectionery, and international segments in the prior year. Adjusted operating expenses excluding advertising and related consumer marketing spend increased 2.2%.

Moving down the P&L adjusted gross margin of 38, 1% decreased 510 basis points in the second quarter as commodity inflation and $2 million of incremental tariff expenses were only partially offset by higher volume net price realization productivity.

The balance reflects the benefit of Easter timing in 2025, and an approximate two to three point benefit from customers requesting earlier delivery of Halloween orders versus prior year, partially offset by pricing elasticity.

Steve Voskuil: Gross margin was higher than expected due to the timing of cocoa hedges, higher volume leverage, and lower tariff expenses than anticipated in the quarter. Advertising and related consumer marketing increased 35.5% in the second quarter, reflecting the timing of expenses in North America confectionery and international segments in the prior year. Adjusted operating expenses, excluding advertising and related consumer marketing spend, increased 2.2%. This was driven by higher incentive compensation expenses, partially offset by fewer technology investments related to the ERP system upgrade and transformation program net savings. As Michele Buck mentioned, we are raising the outlook for our AAA initiative for the year and for the full program. We now expect to deliver $150 million in net savings this year, up from $125 million, to be realized across costs of goods sold and selling, marketing, and administrative expenses.

Net sales for our North America Salty snacks segment increased eight 8%.

<unk> and transformation program net savings.

Gross margin was higher than expected due to the timing of cocoa hedges.

Your volume leverage and lower tariff expenses than anticipated in the quarter.

Advertising and related consumer marketing increased 35, 5% in the second quarter.

Net price realization increased nearly 5%.

Selecting the timing of expenses in North America, confectionery and international segments in the prior year adjusted.

Driven by the timing of promotional investments in the lap of onetime expenses related to our route to market transition in Q2 of 2024.

Operating expenses, excluding advertising and related consumer marketing spend increased two 2%.

Steve Voskuil: This was driven by higher incentive compensation expenses and partially offset by fewer technology investments related to the ERP system upgrade and transformation program. Net Savings. As Michelle mentioned, we are raising the outlook for our AAA initiative for the year and for the full program. We now expect to deliver $150 million in net savings this year, up from $125 million to be realized across cost of goods sold, and selling, marketing, and administrative expenses. We are also raising our three-year program target to $400 million, up from $350 million as we advance a strong pipeline of opportunities to drive organizational efficiency and speed through technology. Interest expense was $46 million in the second quarter. Our full-year outlook for interest expense is now approximately $200 million, which reflects higher leverage versus our prior outlook.

This was driven by higher incentive compensation expenses and partially offset by fewer technology investments related to the ERP system upgrade and transformation program. Net Savings. As Michelle mentioned, we are raising the outlook for our AAA initiative for the year and for the full program. We now expect to deliver $150 million in net savings this year, up from $125 million to be realized across cost of goods sold, and selling, marketing, and administrative expenses. We are also raising our three-year program target to $400 million, up from $350 million as we advance a strong pipeline of opportunities to drive organizational efficiency and speed through technology. Interest expense was $46 million in the second quarter. Our full-year outlook for interest expense is now approximately $200 million, which reflects higher leverage versus our prior outlook.

Steve Voskuil: This was driven by higher incentive compensation expenses, partially offset by fewer technology investments related to the ERP system upgrade and transformation program net savings.

International segment net sales increased four 4% in the second quarter foreign currency translation represented an approximate six point headwind.

This was driven by higher incentive compensation expenses, partially offset by fewer technology investments related to the ERP system upgrade and transformation program savings.

Steve Voskuil: As Michele mentioned, we are raising the outlook for our AAA initiative for the year and for the full program. We now expect to deliver $150 million in net savings this year, up from $125 million, to be realized across costs of goods sold and selling, marketing, and administrative expenses. We are also racing our three-year program target to $400 million from $350 million as we advance a strong pipeline of opportunities to drive organizational efficiency and speed through technology. Interest expense was $46 million in the second quarter. Our full year outlook for interest expense is now approximately $200 million, which reflects higher leverage versus our prior outlook.

Organic constant currency net sales increased 10%.

As Michel mentioned, we are raising the outlook for our AAA initiative for the year and for the full program.

Volume increased around nine points driven by an approximate 10 point volume benefit from lapping inventory shifts related to the ERP system implementation last year.

We now expect to deliver $150 million and net savings this year up from $125 million to be realized across cost of goods sold and selling marketing and administrative expenses.

Excluding this dynamic volume was below our expectations, primarily reflecting category softness in Mexico, and lower export market demand.

Steve Voskuil: We are also raising our three-year program target to $400 million, up from $350 million, as we advance a strong pipeline of opportunities to drive organizational efficiency and speed through technology. Interest expense was $46 million in the second quarter. Our full-year outlook for interest expense is now approximately $200 million, which reflects higher leverage versus our prior outlook. The adjusted tax rate for the quarter was 32.8%, an increase of 840 basis points versus last year, driven by incremental non-U.S. tax reserves. We expect other expenses of approximately $75 million to $80 million and a full-year adjusted tax rate of approximately 24%. The increase in effective tax rate is due to changes in the global tax landscape, which have affected the execution of our tax strategies.

We're also raising our three year program target to $400 million.

Net price realization of around 1% was also below expectations, reflecting higher trade promotion and unfavorable mix.

From $350 million.

As we advance a strong pipeline of opportunities to drive organizational efficiency and speed through technology.

Interest expense was $46 million in the second quarter, our full year outlook for interest expense is now approximately $200 million, which reflects higher leverage versus our prior outlook.

Steve Voskuil: The adjusted tax rate for the quarter was 32.8%, an increase of 840 basis points versus last year, driven by incremental non-U.S. tax reserves. We expect other expenses of approximately $75 million to $80 million and a full-year adjusted tax rate of approximately 24%. The increase in effective tax rate is due to changes in the global tax landscape which have affected the execution of our tax strategies. Adjusted earnings per share declined 4.7% year over year as incremental commodity costs and a higher tax rate more than offset the benefit from volume growth, productivity, and transformation program cost savings in the second quarter. Capital expenditures including software were $231 million, $113 million lower than the prior year period. As several capacity and technology projects have concluded, we continue to expect full-year capital investments of between $425 and $450 million.

The adjusted tax rate for the quarter was 32.8%, an increase of 840 basis points versus last year, driven by incremental non-U.S. tax reserves. We expect other expenses of approximately $75 million to $80 million and a full-year adjusted tax rate of approximately 24%. The increase in effective tax rate is due to changes in the global tax landscape which have affected the execution of our tax strategies. Adjusted earnings per share declined 4.7% year over year as incremental commodity costs and a higher tax rate more than offset the benefit from volume growth, productivity, and transformation program cost savings in the second quarter. Capital expenditures including software were $231 million, $113 million lower than the prior year period. As several capacity and technology projects have concluded, we continue to expect full-year capital investments of between $425 and $450 million.

The adjusted tax rate for the quarter was 32, 8% an increase of 840 basis points versus last year, driven by incremental non U S tax reserves.

<unk> and transformation program net savings.

Gross margin was higher than expected due to the timing of cocoa hedges.

Your volume leverage and lower tariff expenses than anticipated in the quarter.

We expect other expenses of approximately $75 million to $80 million and a full year adjusted tax rate of approximately 24%.

Advertising and related consumer marketing increased 35, 5% in the second quarter.

The increase in effective tax rate is due to changes in the global tax landscape, which have affected the execution of our tax strategies.

Selecting the timing of expenses in North America, confectionery and international segments in the prior year adjust.

Steve Voskuil: Adjusted earnings per share declined 4.7% year over year, as incremental commodity costs and a higher tax rate more than offset the benefit from volume growth, productivity, and transformation program cost savings. In the second quarter, capital expenditures, including software, were $231 million, $113 million lower than the prior year period, as several capacity and technology projects have concluded. We continue to expect full-year capital investments of between $425 million and $450 million. Dividends paid to shareholders in Q2 totaled $271 million. The company did not repurchase any shares in the second quarter against our December 2023 $500 million authorization, of which $470 million remains. We are prioritizing capital for the acquisition of Fulfill North America and the pending acquisition of LesserEvil, and therefore do not expect to repurchase shares this year. We continue to expect the LesserEvil acquisition to close later this year.

Adjusted operating expenses, excluding advertising and related consumer marketing spend increased two 2%.

Adjusted earnings per share declined four 7% year over year as incremental commodity costs and a higher tax rate more than offset the benefit from volume growth productivity and transformation program cost savings.

This was driven by higher incentive compensation expenses, partially offset by fewer technology investments related to the ERP system upgrade and transformation program net savings.

Steve Voskuil: In the second quarter, capital expenditures, including software, were $231 million, $113 million lower than the prior year period, as several capacity and technology projects have concluded. We continue to expect full year capital investments of between $425 and $450 million. Dividends paid to shareholders in Q2 totaled $271 million. The company did not repurchase any shares in the second quarter against our December 2023 $500 million authorization, of which $470 million remains. We are prioritizing capital for the acquisition of Fulfill North America and the pending acquisition of Lesser Evil, and therefore do not expect to repurchase shares this year.

In the second quarter capital expenditures, including software were $231 million $113 million lower than the prior year period as several capacity and technology projects have concluded.

As Michel mentioned, we are raising the outlook for our AAA initiative for the year and for the full program.

We now expect to deliver $150 million and net savings this year up from $125 million to be realized across cost of goods sold and selling marketing and administrative expenses.

We continue to expect full year capital investments of between 425 and $450 million.

Steve Voskuil: Dividends paid to shareholders in Q2 totaled $271 million. The company did not repurchase any shares in the second quarter against our December 2023 $500 million authorization, of which $470 million remains. We are prioritizing capital for the acquisition of Fulfill North America and the pending acquisition of Lesser Evil and therefore do not expect to repurchase shares this year. We continue to expect the Lesser Evil acquisition to close later this year. To summarize our updated outlook for the full year, there is no change to our net sales outlook of at least 2% growth. Net sales growth in the first half, which smooths the ERP lapse and Easter timing, increased 1.7%. We are seeing positive momentum in our categories, and we expect an acceleration in our performance in the second half to 2% to 4% growth with improvement across segments behind strong innovation, merchandising plans, and seasonal contribution.

Dividends paid to shareholders in Q2 totaled $271 million. The company did not repurchase any shares in the second quarter against our December 2023 $500 million authorization, of which $470 million remains. We are prioritizing capital for the acquisition of Fulfill North America and the pending acquisition of Lesser Evil and therefore do not expect to repurchase shares this year. We continue to expect the Lesser Evil acquisition to close later this year. To summarize our updated outlook for the full year, there is no change to our net sales outlook of at least 2% growth. Net sales growth in the first half, which smooths the ERP lapse and Easter timing, increased 1.7%. We are seeing positive momentum in our categories, and we expect an acceleration in our performance in the second half to 2% to 4% growth with improvement across segments behind strong innovation, merchandising plans, and seasonal contribution.

Dividends paid to shareholders in Q2 totaled $271 million the company did not repurchase any shares in the second quarter against our December 2023, $500 million authorization of which $470 million remains.

We're also raising our three year program target to $400 million.

From $350 million as we advance a strong pipeline of opportunities to drive organizational efficiency and speed through technology.

Interest expense was $46 million in the second quarter, our full year outlook for interest expense is now approximately $200 million, which reflects higher leverage versus our prior outlook.

We are prioritizing capital for the acquisition of fulfill North America, and the pending acquisition of lesser evil and therefore do not expect to repurchase shares this year.

Steve Voskuil: We continue to expect the Lesser Evil acquisition to close later this year.

We continue to expect the lesser evil acquisition to close later this year.

The adjusted tax rate for the quarter was 32, 8% an increase of 840 basis points versus last year, driven by incremental non U S tax reserves.

Steve Voskuil: To summarize our updated outlook for the full year, there is no change to our net sales outlook of at least 2% growth. Net sales growth in the first half, which smoothed the ERP laps and Easter timing, increased 1.7%. We are seeing positive momentum in our categories, and we expect an acceleration in our performance in the second half to 2% to 4% growth, with improvement across segments behind strong innovation, merchandising plans, and seasonal contribution. Full-year net price realization is expected to be approximately 5 points, reflecting contribution from our August 2024 and July 2025 pricing actions. Regarding tariffs, the global business environment remains dynamic as trade negotiations continue. For the full year, we are now modeling tariff expense in the range of $170 million to $180 million, below our prior expectations due to inventory on hand, fluctuations in country-specific rates, and sourcing optimization.

To summarize our updated outlook for the full year. There is no change to our net sales outlook of at least 2% growth.

We expect other expenses of approximately $75 million to $80 million and a full year adjusted tax rate of approximately 24%.

Net sales growth in the first half, which smooth the ERP labs, and Easter timing increased one 7% we.

We are seeing positive momentum in our categories and we expect an acceleration in our performance in the second half to 2% to 4% growth with improvement across segments behind strong innovation merchandising plans and seasonal contribution.

The increase in effective tax rate is due to changes in the global tax landscape, which have affected the execution of our tax strategies.

Steve Voskuil: Full year net price realization is expected to be approximately 5 points, reflecting contribution from our August 2024 and July 2025 pricing actions. Regarding tariffs, the global business environment remains dynamic as trade negotiations continue for the full year. We are now modeling tariff expense in the range of $170 to 180 million below our prior expectations due to inventory on hand, fluctuations in country-specific rates, and sourcing optimization. Given the unique circumstances surrounding cocoa, which cannot be grown in the United States, we remain hopeful that tariffs on our largest exposure will improve as trade negotiations continue. Though this will likely take time, we are not planning for relief in 2025 and have fully embedded these incremental costs in our full year outlook. We will mitigate our tariff exposures over time if they endure and already have a robust plan underway.

Full year net price realization is expected to be approximately 5 points, reflecting contribution from our August 2024 and July 2025 pricing actions. Regarding tariffs, the global business environment remains dynamic as trade negotiations continue for the full year. We are now modeling tariff expense in the range of $170 to 180 million below our prior expectations due to inventory on hand, fluctuations in country-specific rates, and sourcing optimization. Given the unique circumstances surrounding cocoa, which cannot be grown in the United States, we remain hopeful that tariffs on our largest exposure will improve as trade negotiations continue. Though this will likely take time, we are not planning for relief in 2025 and have fully embedded these incremental costs in our full year outlook. We will mitigate our tariff exposures over time if they endure and already have a robust plan underway.

Full year net price realization is expected to be approximately five points, reflecting contribution from our August 2024, and July 2025 pricing actions.

Steve Voskuil: Regarding tariffs, the global business environment remains dynamic as trade negotiations continue. For the full year, we are now modeling tariff expense in the range of $170 to $180 million, below our prior expectations due to inventory on hand, fluctuations in country-specific rates, and sourcing optimization. Given the unique circumstances surrounding cocoa, which cannot be grown in the United States, we remain hopeful that tariffs on our largest exposure will improve as trade negotiations continue, though this will likely take time. We are not planning for relief in 2025, and have fully embedded these incremental costs in our full year outlook.

In the second quarter capital expenditures, including software were $231 million $113 million lower than the prior year period.

Regarding tariffs the global business environment remains dynamic as trade negotiations continue for.

For the full year, we are now modeling tariff expense in the range of $170 million to $180 million below our prior expectations due to inventory on hand fluctuations in country specific rates and sourcing optimization.

Several capacity and technology projects have concluded.

We continue to expect full year capital investments of between 425 and $450 million.

Steve Voskuil: Given the unique circumstances surrounding cocoa, which cannot be grown in the United States, we remain hopeful that tariffs on our largest exposure will improve as trade negotiations continue, though this will likely take time. We are not planning for relief in 2025 and have fully embedded these incremental costs in our full-year outlook. We will mitigate our tariff exposures over time if they endure and already have a robust plan underway. Adjusted gross margin is expected to decline approximately 675 to 700 basis points in 2025. This is at the high end of our prior outlook due to the inclusion of tariffs in the second half, which more than offset the benefit from our recently announced U.S. confection pricing action, incremental cost savings through our transformation program, and favorability from our cocoa sourcing and hedging strategies.

Given the unique circumstances surrounding cocoa, which cannot be grown in the United States. We remain hopeful that tariffs on our largest exposure will improve as trade negotiations continue though this will likely take time.

We are not planning for relief in 2025, and if fully embedded these incremental costs in our full year outlook we.

We are prioritizing capital for the acquisition of fulfill North America, and the pending acquisition of lesser evil and therefore do not expect to repurchase shares this year.

Steve Voskuil: We will mitigate our tariff exposures over time, if they endure, and already have a robust plan underway. Adjusted growth margin is expected to decline approximately 675 to 700 basis points in 2025. This is at the high end of our prior outlook due to the inclusion of tariffs in the second half, which more than offset the benefit from our recently announced U.S. confection pricing action, incremental cost savings through our transformation program, and favorability from our COCO sourcing and hedging strategy. Adjusted earnings per share is expected to decline in the range of 36 to 38 percent for the year.

We will mitigate our tariff exposure is over time, if they endure.

Steve Voskuil: Adjusted gross margin is expected to decline approximately 675 to 700 basis points in 2025. This is at the high end of our prior outlook due to the inclusion of tariffs in the second half, which more than offset the benefit from our recently announced US Confection pricing action, incremental cost savings through our transformation program, and favorability from our cocoa sourcing and hedging strategies. Adjusted earnings per share is expected to decline in the range of 36% to 38% for the year. For the third quarter, we anticipate adjusted earnings per share to decline sequentially from Q2, reflecting the impact of higher cocoa costs in the second half, incremental tariff expenses, continued strong brand investment, and a higher interest expense and tax rate year over year. We continue to deliver strong progress across our key growth initiatives and remain confident in our outlook for top line acceleration.

Adjusted gross margin is expected to decline approximately 675 to 700 basis points in 2025. This is at the high end of our prior outlook due to the inclusion of tariffs in the second half, which more than offset the benefit from our recently announced US Confection pricing action, incremental cost savings through our transformation program, and favorability from our cocoa sourcing and hedging strategies. Adjusted earnings per share is expected to decline in the range of 36% to 38% for the year. For the third quarter, we anticipate adjusted earnings per share to decline sequentially from Q2, reflecting the impact of higher cocoa costs in the second half, incremental tariff expenses, continued strong brand investment, and a higher interest expense and tax rate year over year. We continue to deliver strong progress across our key growth initiatives and remain confident in our outlook for top line acceleration.

Already have a robust plan underway.

We continue to expect a lesser evil acquisition to close later this year.

Adjusted gross margin is expected to decline approximately 675 to 700 basis points in 2025.

To summarize our updated outlook for the full year. There is no change to our net sales outlook of at least 2% growth net sales growth in the first half, which smooth the ERP laughs and Easter timing increased one 7%.

This is at the high end of our prior outlook due to the inclusion of tariffs in the second half, which more than offset the benefit from our recently announced U S confection pricing action incremental cost savings through our transformation program and favorability from our cocoa sourcing and hedging strategies.

Steve Voskuil: Adjusted earnings per share is expected to decline in the range of 36% to 38% for the year. For the third quarter, we anticipate adjusted earnings per share to decline sequentially from Q2, reflecting the impact of higher cocoa costs in the second half, incremental tariff expenses, continued strong brand investment, and a higher interest expense and tax rate year over year. We continue to deliver strong progress across our key growth initiatives and remain confident in our outlook for top line acceleration. Although higher hedged cocoa costs and the recent implementation of tariffs are expected to create additional earnings pressure through the remainder of 2025, we will continue to drive productivity improvements and cost efficiencies.

Adjusted earnings per share is expected to decline in the range of 36% to 38% for the year.

Steve Voskuil: For the third quarter, we anticipate adjusted earnings per share to decline sequentially from Q2, reflecting the impact of higher COCO costs in the second half, incremental tariff expenses, continued strong brand investment, and a higher interest expense and tax rate year over year.

For the third quarter, we anticipate adjusted earnings per share to decline sequentially from Q2, reflecting the impact of higher cocoa cost in the second half incremental tariff expenses continued strong brand investment and higher interest expense and tax rate year over year.

Full year net price realization is expected to be approximately five points, reflecting contribution from our August 2024, and July 2025 pricing actions.

Regarding tariffs the global business environment remains dynamic as trade negotiations continue for.

Steve Voskuil: We continue to deliver strong progress across our key growth initiatives and remain confident in our outlook for top-line acceleration. Although higher hedged COCO costs and the recent implementation of tariffs are expected to create additional earnings pressure through the remainder of 2025, we will continue to drive productivity improvements and cost efficiencies. We are also taking appropriate action in response to COCO inflation to restore margins over time and support ongoing investment in our brands and capabilities, positioning the company for balanced growth as we look ahead to 2026.

We continued to deliver strong progress across our key growth initiatives and remain confident in our outlook for top line acceleration.

Steve Voskuil: Although higher hedged cocoa costs and the recent implementation of tariffs are expected to create additional earnings pressure through the remainder of 2025, we will continue to drive productivity improvements and cost efficiencies. We are also taking appropriate action in response to cocoa inflation to restore margins over time and support ongoing investment in our brands and capabilities, positioning the Company for balanced growth as we look ahead to 2026. Before concluding, I would like to take a moment to express my personal gratitude to Michele. Your unwavering vision of expanding, innovating, and diversifying our business has been a cornerstone of our success. Under your leadership, Hershey has transformed into the resilient multi-category snacking leader that we are today.

Although higher hedged cocoa costs and the recent implementation of tariffs are expected to create additional earnings pressure through the remainder of 2025, we will continue to drive productivity improvements and cost efficiencies. We are also taking appropriate action in response to cocoa inflation to restore margins over time and support ongoing investment in our brands and capabilities, positioning the Company for balanced growth as we look ahead to 2026. Before concluding, I would like to take a moment to express my personal gratitude to Michele. Your unwavering vision of expanding, innovating, and diversifying our business has been a cornerstone of our success. Under your leadership, Hershey has transformed into the resilient multi-category snacking leader that we are today.

Although higher hedged cocoa costs and the recent implementation of tariffs are expected to create additional earnings pressure through the remainder of 2025.

Steve Voskuil: We are also taking appropriate action in response to cocoa inflation to restore margins over time and support ongoing investment in our brands and capabilities, positioning The Hershey Company for balanced growth as we look ahead to 2026. Before concluding, I would like to take a moment to express my personal gratitude to Michele Buck. Your unwavering vision of expanding, innovating, and diversifying our business has been a cornerstone of our success. Under your leadership, Hershey has transformed into the resilient, multi-category snacking leader that we are today. Your commitment to excellence and strategic growth has left an enduring mark on our organization, and we'll continue to prioritize those values as we reach new heights in our business going forward. We wish you all the best in your next chapter and look forward to building upon the strong foundation you have established.

We will continue to drive productivity improvements and cost efficiencies.

We are also taking appropriate action in response to cocoa inflation to restore margins overtime and support ongoing investment in our brands and capabilities positioning the company for balanced growth as we look ahead to 2026.

We are not planning for relief in 2025, and if fully embedded these incremental costs in our full year outlook we.

Michele Buck: Before concluding, I would like to take a moment to express my personal gratitude to Michele. Your unwavering vision of expanding, innovating, and diversifying our business has been a cornerstone of our success. Under your leadership, Hershey has transformed into the resilient, multi-category snacking leader that we are today. Your commitment to excellence and strategic growth has left an enduring mark on our organization. And we'll continue to prioritize those values as we reach new heights in our business going forward.

We will mitigate our tariff exposures overtime, if they endure.

Before concluding I would like to take a moment to express my personal gratitude to Michelle.

Already have a robust plan underway.

Your unwavering vision of expanding innovating and diversifying our business has been a cornerstone of our success.

Adjusted gross margin is expected to decline approximately 675 to 700 basis points in 2025.

Under your leadership Hershey has transformed into the resilient multi category snacking leader that we are today your commitment to excellence and strategic growth has left an enduring mark on our organization and we will continue to prioritize those values as we reached new heights in our business.

This is at the high end of our prior outlook due to the inclusion of tariffs in the second half, which more than offset the benefit from our recently announced U S. Confection pricing action the incremental cost savings through our transformation program and favorability from our cocoa sourcing and hedging strategies.

Steve Voskuil: Your commitment to excellence and strategic growth has left an enduring mark on our organization, and we'll continue to prioritize those values as we reach new heights in our business going forward. We wish you all the best in your next chapter and look forward to building upon the strong foundation you have established.

Your commitment to excellence and strategic growth has left an enduring mark on our organization, and we'll continue to prioritize those values as we reach new heights in our business going forward. We wish you all the best in your next chapter and look forward to building upon the strong foundation you have established.

Michele Buck: We wish you all the best in your next chapter and look forward to building upon the strong foundation you have established.

Going forward.

Adjusted earnings per share is expected to decline in the range of 36% to 38% for the year.

We wish you all the best in your next chapter and look forward to building upon the strong foundation you have established.

Michele Buck: Thank you, Steve. As I reflect on.

Thank you, Steve. As I reflect on.

Michele Buck: Thank you, Steve. As I reflect on my over 20 year career at Hershey and nine years as CEO, I am immensely proud of what we have accomplished during a time of tremendous change for our industry. We pushed ourselves to evolve and grow alongside our consumers and establish ourselves as a leading snacking powerhouse while honoring our incredible history in confectionery. We made strategic acquisitions like Skinny Pop, One Brand, and Dots Pretzels to diversify our offerings and respond to changing consumer preferences. And we've invested heavily in our digital infrastructure and capabilities, increasing our agility and efficiency.

Michele Buck: Thank you, Steve. As I reflect on my over 20-year career at Hershey and nine years as CEO, I am immensely proud of what we have accomplished during a time of tremendous change for our industry. We pushed ourselves to evolve and grow alongside our consumers and establish ourselves as a leading snacking powerhouse while honoring our incredible history in confection. We made strategic acquisitions like SkinnyPop, ONE Brands, and Dot's Homestyle Pretzels to diversify our offerings and respond to changing consumer preferences. We have invested heavily in our digital infrastructure and capabilities, increasing our agility and efficiency. Leading this iconic company has been the pinnacle of my career and highlight of my life. To the incredible Hershey organization, thank you for your dedication to our mission and your commitment to excellence.

Michele Buck: My over 20-year career at Hershey and nine years as CEO, I am immensely proud of what we have accomplished during a time of tremendous change for our industry.

My over 20-year career at Hershey and nine years as CEO, I am immensely proud of what we have accomplished during a time of tremendous change for our industry.

For the third quarter, we anticipate adjusted earnings per share to decline sequentially from Q2, reflecting the impact of higher cocoa cost in the second half incremental tariff expenses continued strong brand investment and a higher interest expense and tax rate year over year.

Thank you Steve as I reflect on my over 20 year career at Hershey and nine years as CEO I.

I am immensely proud of what we have accomplished during a time of tremendous change for industry.

Michele Buck: We pushed ourselves to evolve and grow alongside our consumers and establish ourselves as.

We pushed ourselves to evolve and grow alongside our consumers and establish ourselves as.

We pushed ourselves to evolve and grow alongside our consumers and establish ourselves as a leading snacking powerhouse.

Michele Buck: A leading snacking powerhouse. While honoring our incredible history and confection, we made strategic acquisitions like SkinnyPop, One.

A leading snacking powerhouse. While honoring our incredible history and confection, we made strategic acquisitions like SkinnyPop, One.

We continued to deliver strong progress across our key growth initiatives and remain confident in our outlook for top line acceleration.

[noise] honoring our incredible history and confection.

Michele Buck: brands and Dot's Pretzels to diversify our.

brands and Dot's Pretzels to diversify our.

Although higher hedged cocoa costs and the recent implementation of tariffs are expected to create additional earnings pressure through the remainder of 2025.

We made strategic acquisitions like Skinny pop, one brands and dots pretzels to diversify our offerings and respond to changing consumer preferences.

Michele Buck: Offerings and respond to changing consumer preferences.

Offerings and respond to changing consumer preferences.

Michele Buck: And we've invested heavily in our digital infrastructure and capabilities, increasing our agility and efficiency.

And we've invested heavily in our digital infrastructure and capabilities, increasing our agility and efficiency.

We will continue to drive productivity improvements and cost efficiencies.

And we've invested heavily in our digital infrastructure and capabilities, increasing our agility and efficiency.

Michele Buck: Leading this iconic company has been the pinnacle of my career and highlight of my life. To the incredible Hershey organization, thank you for your dedication to our mission and your commitment to excellence. To my executive team, thank you for your relentless focus on delivering results today, while also courageously evolving Hershey to set us up for sustainable growth. To our partners and customers, thank you for your insights, creativity, and shared focus on innovation. To our consumers, thank you for allowing us to delight you and create more moments of goodness, however big or small.

Michele Buck: Leading this iconic company has been the pinnacle of my career and highlight of my life. To the incredible Hershey organization, thank you.

Leading this iconic company has been the pinnacle of my career and highlight of my life. To the incredible Hershey organization, thank you.

Leading this iconic company has been the pinnacle of my career and highlight of my life.

Michele Buck: For your dedication to our mission and your commitment to excellence. To my executive team, thank you for your relentless focus on delivering results today while also courageously evolving Hershey to set.

For your dedication to our mission and your commitment to excellence. To my executive team, thank you for your relentless focus on delivering results today while also courageously evolving Hershey to set.

To the incredible Hershey organization. Thank you for your dedication to our mission and your commitment to excellence.

Before concluding I would like to take a moment to express my personal gratitude to Michelle.

Michele Buck: To my executive team, thank you for your relentless focus on delivering results today while also courageously evolving Hershey to set us up for sustainable growth. To our partners and customers, thank you for your insights, creativity, and shared focus on innovation. To our consumers, thank you for allowing us to delight you and create more moments of goodness, however big or small. Finally, thank you to our investors and analysts. You have been alongside us for all of it, and your engagement and focus on our business and the industry has undoubtedly pushed us to become an even stronger company, one that is well-positioned for the future, and one that I am honored to hand over to Kirk. Steve, Anoori, and I are now available to take your questions.

To my executive team. Thank you for your relentless focus on delivering results today, while also courageously evolving Hershey to set us up for sustainable growth.

Our unwavering vision of expanding.

Waiting in diversifying our business has been a cornerstone of our success under your leadership Hershey has transformed into the resilient multi category snacking leader that we are today.

Michele Buck: Us up for sustainable growth.

Us up for sustainable growth.

Michele Buck: To our partners and customers, thank you.

To our partners and customers, thank you.

Michele Buck: For your insights, creativity, and shared focus on innovation.

For your insights, creativity, and shared focus on innovation.

To our partners and customers. Thank you for your insights creativity and shared focus on innovation.

Michele Buck: To our consumers, thank you for allowing us to delight you and create more moments of goodness, however big or small.

To our consumers, thank you for allowing us to delight you and create more moments of goodness, however big or small.

Your commitment to excellence and strategic growth has left an enduring mark on our organization and will continue to prioritize those values as we reached new heights in our business going forward.

To our consumers. Thank you for allowing us to delight, you and create more moments of goodness, however, big or small.

Michele Buck: Finally, thank you to our investors and analysts.

Michele Buck: And finally, thank you to our investors and analysts. You've been alongside us for all of it, and your engagement and focus on our business and the industry has undoubtedly pushed us to become an even stronger company, one that is well-positioned for the future, and one that I am honored to hand over to Kirk.

Finally, thank you to our investors and analysts.

Michele Buck: You've been alongside us for all of.

You've been alongside us for all of.

And finally, thank you to our investors and analysts youth.

We wish you all the best in your next chapter and look forward to building upon the strong foundation you have established.

Michele Buck: It and your engagement and focus on.

It and your engagement and focus on.

Michele Buck: Our business and the industry has undoubtedly.

Our business and the industry has undoubtedly.

You've been alongside us for all of it and your engagement and focus on our business and the industry has undoubtedly pushed us to become an even stronger company. One that is well positioned for the future and one that I am honored to hand over to Kirk.

Michele Buck: Pushed us to become an even stronger company, one that is well positioned for the future and one that I am honored to hand over to Kirk. Steve, Anoori, and I are now available to take your questions.

Pushed us to become an even stronger company, one that is well positioned for the future and one that I am honored to hand over to Kirk. Steve, Anoori, and I are now available to take your questions.

Thank you Steve as I reflect on my over 20 year career at Hershey and nine years as CEO.

I am immensely proud of what we have accomplished during a time of tremendous change for industry.

Michele Buck: Steve, Anoori, and I are now available to take your questions.

We pushed ourselves to evolve and grow alongside our consumers.

Steve and Lori and I are now available to take your questions.

And establish ourselves as a leading snacking powerhouse, while honoring our incredible history and confection.

We made strategic acquisitions like Skinny pop, one brands and dots pretzels to diversify our offerings and respond to changing consumer preferences.

And we've invested heavily in our digital infrastructure and capabilities, increasing our agility and efficiency.

Leading this iconic company has been the pinnacle of my career and highlight of my life.

To the incredible Hershey organization. Thank you for your dedication to our mission and your commitment to excellence.

To my executive team. Thank you for your relentless focus on delivering results today, while also are courageously evolving Hershey to set us up for sustainable growth.

To our partners and customers. Thank you for your insights creativity and shared focus on innovation.

To our consumers. Thank you for allowing us to delight, you and create more moments of goodness, however, big or small.

And finally, thank you to our investors and analysts.

Steve I know, where he and I are now available to take your questions.

Q2 2025 Hershey Co Earnings Call - Pre-Recorded

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