Detailed narrative
FY25 Performance and Strategic Position
Hershey delivered consolidated net sales of approximately $11.7 billion in FY25, an increase of 4.4% year-over-year, with organic constant currency growth of 4.2%. The company successfully navigated unprecedented🌐 cocoa inflation and macroeconomic volatility🌐 through disciplined execution, strengthened customer relationships, and impactful innovation. This performance built strong momentum for 2026, which is viewed as an inflection point for accelerating sustainable sales growth and restoring margins.
North America Confectionery and Salty Snacks Strength
U.S. Confection retail sales growth was in line with the category in Q4 FY25, driven by innovation and holiday programming. For the full year, Hershey gained market share across instant consumable chocolates, sweets, mints, and seasons. The U.S. Salty Snacking business had an exceptionally strong year, with retail sales growth accelerating to 15.6% in Q4 FY25.
SkinnyPop and Dot's Pretzels remained top performers, contributing to a nearly 40 basis point share gain in 2025 and positioning Hershey as the third largest portfolio in the U.S. Salty Snack business.
International Segment Resilience and Growth
The International segment achieved full-year organic constant currency net sales growth of 2.2% in 2025 despite challenging market conditions. The teams maintained focus on key markets, resulting in market share gains in Mexico, Brazil, and the U.K. Reese's continued its robust international expansion, recording double-digit growth for the year and exceeding $300 million in net sales outside of the U.S.
Efficiency and Transformation Programs
The AAA program has generated over $300 million in net savings over the past two years, surpassing initial plans, and is projected to deliver an incremental $100 million in 2026. These programs, along with agile hedging and sourcing strategies for cocoa, have strengthened the cost structure and enabled investments in talent, technology, and differentiated performance.
An additional $230 million in efficiency and transformation program savings are expected in 2026.
2026 Strategic Priorities and Innovation Pipeline
Hershey's strategic priorities for 2026 include delivering top-line growth at or above market categories, driving sustainable margin and earnings improvement, and evolving the strategy and organization for the future. The innovation pipeline is strong, with launches like Shaq-A-Licious SLAMS and Jolly Rancher Heatwave, and reformulations for SkinnyPop.
Increased brand investments, including double-digit media spend and new campaigns for Reese's and Hershey, are planned to support these initiatives.
Capital Allocation and Shareholder Returns
The company continues to prioritize reinvestment in the business, including M&A, as demonstrated by the LesserEvil acquisition in November 2025. Capital additions for FY25 totaled approximately $455 million. Given strong cash flow and future performance confidence, Hershey is raising its dividend by 6% and will evaluate opportunistic share repurchases to return excess cash and enhance long-term shareholder value.