Allentown
81° F
Scattered Clouds
Scattered Clouds

Higher prices boost Hershey 1Q results

By 69 News, follow: @69news, news@wfmz.com
Published On: Apr 24 2012 01:52:48 PM CDT
Updated On: Apr 24 2012 01:53:37 PM CDT

HERSHEY, Pa. -

The Hershey Co. said its first-quarter profit rose 24% as higher prices and cost-cutting helped offset higher ingredient costs.

Most food makers have been increasing prices to offset rising ingredient costs.

Hershey said higher prices spurred an 11% gain in revenue, offset by slightly lower volume. The Hershey, Pa.-based company has also been boosting advertising spending in the U.S. and abroad.

The candy maker said net income rose to nearly $199 million, or 87 cents per share, for the quarter ended April 1. That is up from $160 million, or 70 cents per share, a year ago.

Excluding one-time items, earnings totaled 96 cents per share. Analysts expected 81 cents per share.

Revenue rose 11% to $1.73 billion. Analysts predicted revenue of $1.66 billion.