FINANCIAL CONTACT:MEDIA CONTACT:

Melissa Poole

Leigh Horner

mpoole@hersheys.com

lhorner@hersheys.com

Hershey Reports Fourth-Quarter and Full-Year 2023 Financial Results;
Provides 2024 Outlook
HERSHEY, Pa., February 8, 2024 - The Hershey Company (NYSE: HSY) today announced net sales andearnings for the fourth quarter and full-year ended December 31, 2023.

“We continue to operate in a dynamic environment, but we are encouraged by the resilience of seasonal traditions
and the consumer response to innovation within our categories,” said Michele Buck, The Hershey Company
President and Chief Executive Officer. “While historic cocoa prices are expected to limit earnings growth this year,
we believe our strong marketing plans, innovation and brand investments will drive top-line growth and meet
consumers’ evolving needs. We are elevating our focus on productivity and transformation to strengthen ourbusiness and deliver peer leading performance over the long-term.”

Fourth-Quarter 2023 Financial Results Summary1

1•

Consolidated net sales of $2,657.1 million, an increase of 0.2%.

•

Organic, constant currency net sales decreased 0.1%.

•

Reported net income of $349.0 million, or $1.70 per share-diluted, a decrease of 11.5%.

•

Adjusted earnings per share-diluted of $2.02, flat with the prior year.

All comparisons for the fourth quarter of 2023 are with respect to the fourth quarter ended December 31, 2022.

1

2023 Full-Year Financial Results Summary2• Consolidated net sales of $11,165.0 million, an increase of 7.2%.

2•

Organic, constant currency net sales increased 7.0%.

•

Reported net income of $1,861.8 million, or $9.06 per share-diluted, an increase of 13.8%.

•

Adjusted earnings per share-diluted of $9.59, an increase of 12.6%.

All comparisons for full-year 2023 are with respect to the full-year ended December 31, 2022.

2024 Full-Year Financial Outlook Summary
The company expects net sales growth of 2% to 3%, driven primarily by net price realization, and reported earnings
per share to be relatively flat as higher cocoa and sugar costs as well as one-time expenses related to the Q2 ERP
implementation and planned incremental cost savings initiatives are expected to more than offset higher sales, pricerealization, productivity, administrative efficiencies, and a lower tax rate. The company projects flat adjusted
earnings per share when excluding one-time costs associated with the ERP implementation and incremental costsavings initiatives.
2024 Full-Year Outlook

Total Company

Net sales growthReported earnings per share growth
Adjusted earnings per share growth

2% to 3%~0%~0%

The company also expects:•

A reported and adjusted effective tax rate of approximately 13%;•

Other expense, which primarily reflects the write-down of equity investments that qualify for a tax credit, ofapproximately $220 million to $230 million;•

Interest expense of approximately $165 million to $175 million, reflecting a higher interest rateenvironment; and•Capital expenditures of approximately $600 million to $650 million, driven by core confection capacity
expansion and continued investments in a digital infrastructure including the build and upgrade of a new
ERP system across the enterprise.

The Company is implementing efforts to increase agility, enhance automation, and support a more efficient
operating model to deliver its long-term business and financial goals. These initiatives are expected to generate ongoing supply chain, manufacturing, and operating expense savings, net of reinvestment, of $300 million by 2026, of
which $100 million is expected to be realized in 2024. The company expects to record pre-tax charges of $200
2

million to $250 million in connection with these efforts, of which approximately $25 million is estimated to be noncash charges. In Year 1, pre-tax charges are estimated to be $110 million. The charges the Company expects toincur in connection with these actions are preliminary estimates and are subject to a number of assumptions andrisks, and actual results may differ materially.

Below is a reconciliation of projected 2024 and full-year 2023 and 2022 earnings per share-diluted calculated inaccordance with U.S. generally accepted accounting principles (GAAP) to non-GAAP adjusted earnings per sharediluted:

Reported EPS – Diluted
Derivative Mark-to-Market Losses

2024 (Projected)$9.00 - $9.11
—

2023
$9.06
0.29

2022
$7.96
0.38

Business Realignment Activities

0.50 - 0.56

0.01

0.02

Acquisition and Integration-Related Activities

0.15 - 0.20

0.37

0.24

—

—

0.07

Tax Effect of All Adjustments Reflected Above(0.17)(0.14)(0.15)

Adjusted EPS – Diluted

$9.59

$9.59

$8.52

Other Miscellaneous Losses

2024 projected earnings per share-diluted, as presented above, does not include the impact of mark-to-market gains
and losses on our commodity derivative contracts that are reflected within corporate unallocated expense in segment
results until the related inventory is sold since we are not able to forecast the impact of the market changes.

Fourth Quarter 2023 Components of Net Sales Growth
A reconciliation between reported net sales growth rates and organic constant currency net sales growth rates, alongwith the contribution from net price realization and volume, is provided below:
Three Months Ended December 31, 2023

Percentage
Change asReported

Impact ofForeign
Currency
Exchange

Percentage
Change onConstant
Currency
Basis

Organic Price

Organic
Volume/Mix

North America Confectionery

2.1 %

—%

2.1 %

7.2 %

(5.1)%

North America Salty Snacks(24.6)%—%(24.6)%

1.5 %(26.1)%

International

12.7 %

4.4 %

8.3 %

6.0 %

2.3 %

Total Company

0.2 %

0.3 %

(0.1)%

6.5 %(6.6)%

3

Twelve Months Ended December 31, 2023

Percentage
Change asReported

Impact ofForeign
Currency
Exchange

Percentage
Change onConstant
Currency
Basis

Organic Price

Organic
Volume/Mix

North America Confectionery

6.9 %(0.2)%

7.1 %

9.0 %

(1.9)%

North America Salty Snacks

6.1 %

—%

6.1 %

5.4 %

0.7 %

International

11.2 %

3.4 %

7.8 %

4.7 %

3.1 %

Total Company

7.2 %

0.2 %

7.0 %

8.3 %

(1.3)%

The company presents certain percentage changes in net sales on a constant currency basis, which excludes the impactof foreign currency exchange. To present this information for historical periods, current period net sales for entities
reporting in currencies other than the U.S. dollar are translated into U.S. dollars at the average monthly exchange rates
in effect during the corresponding period of the prior fiscal year, rather than at the actual average monthly exchange
rates in effect during the current period of the current fiscal year. As a result, the foreign currency impact is equal tothe current year results in local currencies multiplied by the change in the average foreign currency exchange rate
between the current fiscal period and the corresponding period of the prior fiscal year.

Fourth-Quarter 2023 Results
Consolidated net sales increased 0.2% to $2,657.1 million in the fourth quarter of 2023. Organic, constant currency
net sales decreased 0.1%, as net price realization of 6.5 points was offset by decreased volume and planned
inventory declines within North America Salty Snacks related to the Q4 ERP implementation.

Reported gross margin decreased 90 basis points to 42.3% in the fourth quarter of 2023, driven by derivative markto-market losses. Adjusted gross margin increased 50 basis points to 44.2% in the fourth quarter of 2023. Net pricerealization and supply chain productivity more than offset higher cocoa and sugar costs, volume deleverage, andnegative sales mix.

Selling, marketing and administrative expenses increased 6.9% in the fourth quarter of 2023 versus the prior-year
period, primarily driven by capability investments, wage inflation and media increases. Advertising and related
consumer marketing expenses increased by 5.8% in the fourth quarter of 2023 versus the same period last year,
driven by higher investment in the U.S. Selling, marketing and administrative expenses, excluding advertising and4related consumer marketing, increased 7.3% versus the fourth quarter of 2022, driven by capability and technology
investments, and wage and benefits inflation.

Fourth-quarter 2023 reported operating profit of $464.3 million decreased 11.8%, resulting in an operating profit
margin of 17.5%, a decrease of 240 basis points versus the prior-year period. Adjusted operating profit of $544.2
million decreased 2.0% versus the fourth quarter of 2022, resulting in adjusted operating profit margin of 20.5%, adecrease of 40 basis points. Profit decreases in both reported and adjusted operating profit were driven by increased
brand and capability investment and higher wages, which more than offset price realization and productivity.

The reported effective tax rate in the fourth quarter of 2023 was (9.2)% compared to (9.1)% in the fourth quarter of2022, a decrease of 10 basis points. The adjusted effective tax rate in the fourth quarter of 2023 was (3.8)%
compared to (6.5)% in the fourth quarter of 2022, an increase of 270 basis points. The adjusted effective tax rateincrease was driven by lower renewable energy tax credits versus the prior-year period.

The company’s fourth-quarter 2023 results, as prepared in accordance with GAAP, included items positively
impacting comparability of $79.9 million, or $0.32 per share-diluted. For the fourth quarter of 2022, items
positively impacting comparability totaled $28.7 million, or $0.10 per share-diluted.

The following table presents a summary of items impacting comparability in each period (see Appendix I for
additional information):

Derivative Mark-to-Market Losses

Pre-Tax (millions)Three Months Ended
December 31,
December 31,
2023
2022

Earnings Per Share-Diluted
Three Months Ended
December 31,
December 31,
2023
2022

$

$

53.7

Business Realignment Activities
Acquisition and Integration-Related Activities
Tax Effect of All Adjustments Reflected Above

$

$

0.07

2.0

—

0.01

26.2

12.0

0.13

0.06

79.9

5

0.26

—
—
$

14.7

—
$

28.7

(0.07)$

0.32(0.04)$

0.10

Derivative Mark-to-Market Losses

Pre-Tax (millions)Twelve Months Ended
December 31,
December 31,
2023
2022

Earnings Per Share-Diluted
Twelve Months Ended
December 31,
December 31,
2023
2022

$

$

58.9

$

78.2

0.29

$

0.38

Business Realignment Activities

3.4

4.4

0.01

0.02

Acquisition and Integration-Related Activities

75.9

48.5

0.37

0.24

Other Miscellaneous Losses

—

13.6

—

0.07

Tax Effect of All Adjustments Reflected Above——(0.14)(0.15)

$

138.2

$

144.6

$

0.53

$

0.56

The following are comments about segment performance for the fourth quarter of 2023 versus the prior-year period.
See the schedule of supplementary information within this press release for additional information on segment net
sales and profit.

North America Confectionery
Hershey’s North America Confectionery segment net sales were $2,220.2 million in the fourth quarter of 2023, an
increase of 2.1% versus the same period last year. Organic, constant currency net sales increased 2.1%, as 7.2points of net price realization was partially offset by volume declines related to price elasticity in everyday candy.
Hershey’s U.S. candy, mint and gum (CMG) retail takeaway for the twelve-week period ended December 31, 2023
in the multi-outlet combined plus convenience store channels (MULO+C) increased 3.6%. Hershey’s CMG sharedeclined by 38 basis points as seasonal and refreshment share gains were offset by declines in everyday chocolate
and sweets share. Organic net sales growth trailed retail takeaway due to the timing of seasonal shipments versus
sell-through.

North America Confectionery segment income was $724.6 million in the fourth quarter of 2023, reflecting an
increase of 3.0% versus the prior-year period. This resulted in segment margin of 32.6%, an increase of 30 basis
points. Gains were driven by net sales growth and gross margin expansion, which more than offset higher brandand capability investment.

North America Salty Snacks
Hershey’s North America Salty Snacks segment net sales were $205.2 million in the fourth quarter of 2023, adecrease of 24.6% versus the same period last year. Volume decreased 26.1%, reflecting an approximate 16-point
headwind from planned inventory declines related to our ERP implementation in October 2023. Excluding this6

inventory impact, volume declined high-single-digits due to category softness within the ready-to-eat popcorn
category.

Hershey’s U.S. salty snack retail takeaway in MULO+C declined 7.0% in the 12-week period ended December 31,
2023. SkinnyPop ready-to-eat popcorn retail sales declined 12.9%, reflecting continued softness in the popcorn
category and planned reductions in advertising and merchandising in the period following the October ERP
upgrade, resulting in a category share decline of 135 basis points in the fourth quarter. Dot’s Homestyle Pretzels
retail sales increased 6.8%, resulting in a 44-basis point pretzel category share gain.

North America Salty Snacks segment income was $10.4 million in the fourth quarter of 2023, reflecting a decreaseof 81.7% versus the prior-year period. This resulted in a segment margin of 5.1%, a decrease of 1,570 basis points
versus the prior-year period. Profit and margin contraction were driven by volume deleverage, increased
commodity costs, and higher brand and capability investments, which more than offset lower manufacturing costs
and higher productivity.

International
Fourth-quarter 2023 net sales for Hershey’s International segment increased 12.7% versus the same period last year
to $231.7 million. Organic, constant currency net sales increased 8.3% driven by price realization and 2.3-points ofvolume growth. The volume improvement reflects double-digit growth in Latin America, World Travel Retail, andEurope, and high-single-digit growth in India. This more than offset the impact of the discontinuation of a dairy
beverage product line in Mexico in the second quarter of 2023.

International segment income was $20.4 million in the fourth quarter of 2023, a $20.5 million increase versus theprior year period driven by sales growth and gross margin expansion. This resulted in a segment margin of 8.8%, anincrease of 890 basis points versus the prior year period.

Unallocated Corporate Expense
Hershey’s unallocated corporate expense in the fourth quarter of 2023 was $211.3 million, an increase of $6.5
million, or 3.2% versus the same period of 2022. This increase was driven by capability and technology
investments, including the upgrade of the Company’s ERP system and related amortization, as well as higher
employee wages, partially offset by lapping a non-income tax reserve in the prior-year period.

7

Live Webcast
At approximately 7:00 a.m. (Eastern time) today, Hershey will post a pre-recorded management discussion of its
fourth-quarter and full-year 2023 results and business update to its website at
www.thehersheycompany.com/investors. In addition, at 8:30 a.m. (Eastern time) today, the company will host a live
question and answer session with investors and financial analysts. Details to access this call are available on thecompany’s website.

Note: In this release, for the fourth-quarter of and full-year 2023, Hershey references income measures that are notin accordance with GAAP because they exclude certain items impacting comparability, including gains and losses
associated with mark-to-market commodity derivatives, business realignment activities, acquisition and integrationrelated activities and other miscellaneous losses and benefits. The company refers to these income measures as“adjusted” or “non-GAAP” financial measures throughout this release. These non-GAAP financial measures areused in evaluating results of operations for internal purposes and are not intended to replace the presentation offinancial results in accordance with GAAP. Rather, the company believes exclusion of such items provides
additional information to investors to facilitate the comparison of past and present operations. A reconciliation of the
non-GAAP financial measures referenced in this release to their nearest comparable GAAP financial measures aspresented in the Consolidated Statements of Income is provided below.

8

Reconciliation of Certain Non-GAAP Financial Measures
Consolidated results
Three Months Ended
Twelve Months Ended
December 31,
December 31,
December 31,
December 31,
In thousands except per share data
2023
2022
2023
2022
Reported gross profit$

Derivative mark-to-market losses
Business realignment activities

1,123,142$

1,144,806$

4,997,816$

4,498,785

53,723

15,25858,93778,782

—

—

527

3

(2,256)—(1,702)

4,041

Acquisition and integration-related
activities
Non-GAAP gross profit$

1,174,609$

1,160,064$

5,055,578$

4,581,611

Reported operating profit$

464,329$

526,646$

2,560,867$

2,260,787

Derivative mark-to-market losses
Business realignment activities
Acquisition and integration-related
activities
Other miscellaneous losses

53,723

14,65858,93778,182

—

2,044

3,440

4,417

26,163

12,00175,85348,482———

13,568

Non-GAAP operating profit$

544,215

Reported (benefit) provision for income
taxes
Derivative mark-to-market losses*$$

555,349$

2,699,097$

2,405,436(29,367) $(33,174) $310,077$

272,254

7,931

4,521

10,19013,508Business realignment activities*

—

567

777

1,119

Acquisition and integration-related
activities*
Other miscellaneous losses*

6,328

2,804

18,256

11,525

—

—

—

3,256

Non-GAAP (benefit) provision for income
taxes

$

(15,108) $(25,282) $Reported net income$

349,042396,296

Derivative mark-to-market losses
Business realignment activities
Acquisition and integration-related
activities
Other miscellaneous losses
Non-GAAP net income

$

$

$

339,300$

301,662

1,861,787$

1,644,817

45,792

10,137

48,74764,674

—

1,477

2,663

3,298

19,835

9,197

57,59736,957———

10,312

414,6699$417,107$

1,970,794$

1,760,058

Consolidated results

Reported EPS - Diluted

Reconciliation of Certain Non-GAAP Financial Measures
Three Months Ended
Twelve Months Ended
December 31,
December 31,
December 31,
December 31,
2023
2022
2023
2022
$
1.70 $
1.92 $
9.06 $
7.96

Derivative mark-to-market losses

0.26

0.07

0.29

0.38

Business realignment activities

—

0.01

0.01

0.02

Acquisition and integration-related
activities
Other miscellaneous losses

0.13

0.06

0.37

0.24

—

—

—

0.07

Tax effect of all adjustments reflected
above**
Non-GAAP EPS - Diluted(0.07)(0.04)(0.14)(0.15)

$

2.02

$

2.02

$

9.59

$

8.52

* The tax effect for each adjustment is determined by calculating the tax impact of the adjustment on the company's quarterly
effective tax rate, unless the nature of the item and/or the tax jurisdiction in which the item has been recorded requires applicationof a specific tax rate or tax treatment, in which case the tax effect of such item is estimated by applying such specific tax rate ortax treatment.
** Adjustments reported above are reported on a pre-tax basis before the tax effect described in the reconciliation above for NonGAAP provision for income taxes.

10In the assessment of our results, we review and discuss the following financial metrics that are derived from thereported and non-GAAP financial measures presented above:
Three Months Ended

Twelve Months Ended

December 31,
2023
42.3 %
44.2 %

December 31,
2022
43.2 %
43.7 %

December 31,
2023
44.8 %
45.3 %

December 31,
2022
43.2 %
44.0 %As reported operating profit margin17.5 %

19.9 %

22.9 %

21.7 %

Non-GAAP operating profit margin (2)20.5 %

20.9 %

24.2 %

23.1 %As reported effective tax rate(9.2)%(9.1)%

14.3 %

14.2 %

Non-GAAP effective tax rate (3)(3.8)%(6.5)%

14.7 %

14.6 %As reported gross margin
Non-GAAP gross margin (1)(1) Calculated as non-GAAP gross profit as a percentage of net sales for each period presented.
(2) Calculated as non-GAAP operating profit as a percentage of net sales for each period presented.
(3) Calculated as non-GAAP provision for income taxes as a percentage of non-GAAP income before taxes(calculated as non-GAAP operating profit minus non-GAAP interest expense, net plus or minus non-GAAP
other (income) expense, net).

11

Appendix I
Details of the charges included in GAAP results, as summarized in the press release (above), are as follows:

Derivative Mark-to-Market Losses (Gains): The mark-to-market losses (gains) on commodity derivatives arerecorded as unallocated and excluded from adjusted results until such time as the related inventory is sold, at whichtime the corresponding losses (gains) are reclassified from unallocated to segment income. Since we often purchasecommodity contracts to price inventory requirements in future years, we make this adjustment to facilitate the yearover-year comparison of cost of sales on a basis that matches the derivative gains and losses with the underlying
economic exposure being hedged for the period.

Business Realignment Activities: We periodically undertake restructuring and cost reduction activities as part ofongoing efforts to enhance long-term profitability. During the fourth quarter of 2020, we commenced the International
Optimization Program to streamline resources and investments in select international markets, including the
optimization of our China operating model to improve efficiencies and provide a more sustainable and simplified basegoing forward. During 2023 business realignment charges related primarily to other third-party costs related to thisprogram, as well as severance and employee benefit costs. For the three-month period of 2023 there were no businessrealignment activities. During the three- and 12-month periods of 2022, business realignment charges related
primarily to other third-party costs related to this program, as well as severance and employee benefit costs. This
program was completed in 2023.

Acquisition and Integration-Related Activities: During the three- and 12-month periods of 2023, we incurred costs
related to the acquisition of two manufacturing plants from Weaver Popcorn Manufacturing, Inc., the integration of
the 2021 acquisitions of Dot’s Pretzels, LLC (“Dot’s”) and Pretzels Inc. (“Pretzels”) into our North America Salty
Snacks segment and costs related to building and upgrading our new ERP system for implementation across our North
America Salty Snacks segment in the fourth quarter of 2023. During the three- and 12-month periods of 2022, we
incurred costs related to the integration of the 2021 acquisitions of Lily’s Sweets, LLC, Dot’s and Pretzels.

Other Miscellaneous Losses: In 2022, we recorded a loss on the sale of non-operating assets located in Pennsylvania.

Tax Effect of All Adjustments: This line item reflects the aggregate tax effect of all pre-tax adjustments reflected in
the preceding line items of the applicable table. The tax effect for each adjustment is determined by calculating the12

tax impact of the adjustment on the company’s quarterly effective tax rate, unless the nature of the item and/or the
tax jurisdiction in which the item has been recorded requires application of a specific tax rate or tax treatment, inwhich case the tax effect of such item is estimated by applying such specific tax rate or tax treatment.

13

Safe Harbor Statement
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act
of 1995. Many of these forward-looking statements can be identified by the use of words such as “anticipate,”“assume,” “believe,” “continue,” “estimate,” “expect,” “forecast,” “future,” “intend,” “plan,” “potential,” “predict,”“project,” “strategy,” “target” and similar terms, and future or conditional tense verbs like “could,” “may,” “might,”“should,” “will” and “would,” among others. These statements are made based upon current expectations that are
subject to risk and uncertainty. Because actual results may differ materially from those contained in the forwardlooking statements, you should not place undue reliance on the forward-looking statements when deciding whether
to buy, sell or hold the company’s securities. Factors that could cause results to differ materially include, but are notlimited to: disruptions or inefficiencies in our supply chain due to the loss or disruption of essential manufacturing
or supply elements or other factors; issues or concerns related to the quality and safety of our products, ingredientsor packaging, human and workplace rights, and other environmental, social or governance matters; changes in raw
material and other costs, along with the availability of adequate supplies of raw materials; the company’s ability tosuccessfully execute business continuity plans to address changes in consumer preferences and the broader
economic and operating environment; selling price increases, including volume declines associated with pricing
elasticity; market demand for our new and existing products; increased marketplace competition; failure to
successfully execute and integrate acquisitions, divestitures and joint ventures; changes in governmental laws andregulations, including taxes; political, economic, and/or financial market conditions, including with respect toinflation, rising interest rates, slower growth or recession, and other events beyond our control such as the impacts
on the business arising from the conflict between Russia and Ukraine; risks and uncertainties related to ourinternational operations; disruptions, failures or security breaches of our information technology infrastructure andthat of our customers and partners (including our suppliers); our ability to hire, engage and retain a talented global
workforce, our ability to realize expected cost savings and operating efficiencies associated with strategic initiatives
or restructuring programs; complications with the design or implementation of our new enterprise resource planningsystem; and such other matters as discussed in our Annual Report on Form 10-K for the year ended December 31,
2022 and from time to time in our other filings with the U.S. Securities and Exchange Commission. The company
undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in
the company’s expectations.

14

The Hershey Company
Consolidated Statements of Income
for the periods ended December 31, 2023 and December 31, 2022
(unaudited) (in thousands except percentages and per share amounts)
Three Months Ended

Net sales

Twelve Months Ended

December 31,
2023

December 31,
2022

December 31,
2023

December 31,
2022

$

$

Cost of sales
Gross profit

2,657,111

2,652,338$ 11,164,992$ 10,419,294

1,533,969

1,507,532

6,167,176

5,920,509

1,123,142

1,144,806

4,997,816

4,498,785

658,813616,4452,436,508

2,236,009

—

1,715

441

1,989

464,329

526,646

2,560,867

2,260,787

Selling, marketing and administrative expense
Business realignment costs
Operating profit
Interest expense, net

37,68435,587

151,785

137,557

Other (income) expense, net

106,970

127,937

237,218

206,159

Income before income taxes

319,675

363,1222,171,864

1,917,071(Benefit) provision for income taxes(29,367)(33,174)

310,077

272,254

Net income attributable to The Hershey Company$

349,042$396,296$

1,861,787$

1,644,817

Net income per share

Shares outstanding- Basic- Common

$

1.75

$

1.98

$

9.31

$

8.22

- Diluted- Common

$

1.70

$

1.92

$

9.06

$

7.96

- Basic- Class B

$

1.59

$

1.80

$

8.52

$

7.47

- Basic- Common150,083

147,173

149,499

146,713- Diluted- Common205,357

206,291

205,547

206,575- Basic- Class B

54,614

58,11455,23958,822

Key margins:
Gross margin42.3 %

43.2 %

44.8 %

43.2 %

Operating profit margin17.5 %

19.9 %

22.9 %

21.7 %Net margin13.1 %

14.9 %

16.7 %

15.8 %

15

The Hershey Company
Supplementary Information – Segment Results
for the periods ended December 31, 2023 and December 31, 2022
(unaudited) (in thousands except percentages)
Three Months Ended
December 31,
2023

December 31,
2022

$

$

Twelve Months Ended% Change

December 31,
2023

December 31,
2022% Change

Net sales:
North America Confectionery
North America Salty Snacks

205,157

International
Total

2,220,248
231,706

2,174,785

2.1 % $

271,962(24.6)%

205,591

12.7 %$

2,657,111$

2,652,338$

724,647$

703,502

9,123,139$

1,092,689
949,164

8,536,480

6.9 %

1,029,405

6.1 %

853,40911.2 %

0.2 % $

11,164,992$

10,419,294

7.2 %

3.0 % $

3,117,044$

Segment income (loss):
North America Confectionery

2,811,066

10.9 %

North America Salty Snacks

10,39956,685(81.7)%

158,333

159,935(1.0)%

International

20,421(131)

NM

148,259

107,92737.4 %

Total segment income

755,467

760,056(0.6)%

3,423,636

3,078,928

11.2 %

Unallocated corporate expense (1)211,253

204,707

3.2 %

724,537

673,492

7.6 %

53,722

14,658

NM

58,93978,182(24.6)%—

2,044(100.0)%

3,440

4,417

(22.1)%

26,163

12,001118.0 %

75,85348,48256.5 %

—

—

NM

—

13,568(100.0)%Operating profit

464,329

526,646(11.8) %2,560,867

2,260,787

13.3 %

Interest expense, net

37,68435,587

5.9 %

151,785

137,557

10.3 %

127,937(16.4)%

237,218

206,159

15.1 %

363,122(12.0)% $2,171,864

1,917,071

13.3 %

Mark-to-market adjustment forcommodity derivatives (2)Costs associated with businessrealignment initiatives
Acquisition and integration-related
activities
Other miscellaneous losses

Other (income) expense, net
Income before income taxes

106,970$319,675$$(1) Includes centrally-managed (a) corporate functional costs relating to legal, treasury, finance, and human resources, (b) expenses
associated with the oversight and administration of our global operations, including warehousing, distribution and manufacturing, information
systems and global shared services, (c) non-cash stock-based compensation expense, and (d) other gains or losses that are not integral tosegment performance.
(2) Net (gains) losses on mark-to-market valuation of commodity derivative positions recognized in unallocated derivative losses (gains).
NM - not meaningful

Three Months Ended
Twelve Months Ended
December 31, December 31, December 31, December 31,
2023
2022
2023
2022
Segment income (loss) as a percent of net sales:
North America Confectionery
North America Salty Snacks
International

32.6 %
5.1 %
8.8 %

16

32.3 %
20.8 %(0.1)%

34.2 %
14.5 %
15.6 %

32.9 %
15.5 %
12.6 %

The Hershey Company
Consolidated Balance Sheets
as of December 31, 2023 and December 31, 2022
(in thousands of dollars)
Assets

December 31, 2023
(unaudited)$
401,902823,617
1,340,996
345,588

Cash and cash equivalents
Accounts receivable - trade, net
Inventories
Prepaid expenses and otherDecember 31, 2022$

463,889
711,2031,173,119
272,195

Total current assets

2,912,103

2,620,406

Property, plant and equipment, net

3,309,678

2,769,702

Goodwill

2,696,050

2,606,956

Other intangibles

1,879,229

1,966,269

Other non-current assets

1,061,427

944,989

Deferred income taxes

44,45440,498

Total assets$

11,902,941$

10,948,820$

1,086,183$

970,558

Liabilities and Stockholders' Equity
Accounts payable
Accrued liabilities

867,815

832,518

Accrued income taxes

29,457

6,710

Short-term debt

719,839693,790

Current portion of long-term debt

305,058

753,578

Total current liabilities

3,008,352

3,257,154

Long-term debt

3,789,132

3,343,977

Other long-term liabilities

660,673

719,742

Deferred income taxes

345,698

328,403

Total liabilities

7,803,855

7,649,276

Total stockholders’ equity

4,099,086

3,299,544

Total liabilities and stockholders’ equity$

17

11,902,941$

10,948,820