Company PDF Report
Transcript of Company PDF Report
The Hershey Company Profile
100 Crystal A Dr.Hershey, PA 17033 United StatesPhone : 717-534-4200800-539-0261http://www.thehersheycompany.com
Hoover's is the business information resource that delivers a unique combination of up-to-date data, broad coverage,and comprehensive information about companies, decision makers, and industries - along with powerful tools to putthis information to work for your business. Hoover's offers everything you need to successfully:
* Identify and evaluate potential sales leads, markets, and business partners* Deepen relationships with current customers* Assess competitive risks and eliminate threats* Build presentation-ready reports and customized lists of companies, industries, and decision makers
Unlike other business information providers, only Hoover's has a full-time, in-house editorial and research teamdedicated wholly to investigating, pinpointing, authenticating, and analyzing data to provide the most comprehensive,up-to-date information available on companies, industries, and executives.
WELCOME
HIDDEN TEXT TO MARK THE BEGINNING OF THE TOC
PAGE iJul 06, 2011• •866-541-3770 HOOVERS.COM
Table of Contents1Company Overview
Key Information 1
Key Financials 1
Company Rankings 1
Key People 2
3Company Description
4Company History
6Industry Information
7People
People 8
Board Members 10
10Biographies
James E. Nevels 11
John P. (J.P.) Bilbrey 11
Humberto P. (Bert) Alfonso 12
Michele G. Buck 13
C. Daniel Azzara 13
14Historical Events
14Company Financials
Financial Summary 14
Annual Income Statement 16
Quarterly Income Statement 17
Annual Balance Sheet 18
Quarterly Balance Sheet 19
Annual Cash Flow 20
Quarterly Cash Flow 21
Earnings Estimates 22
Financial Market Data 23
Historical Financials 24
25Competition
Competitors List 25
Competitive Landscape 27
PAGE iiJul 06, 2011• •866-541-3770 HOOVERS.COM
Company Overview100 Crystal A Dr.Hershey, PA 17033 United StatesPhone : 717-534-4200800-539-0261http://www.thehersheycompany.com
The Hershey Company will cover you in Kisses and bring you Almond Joy. The company makes such well-knownchocolate and candy brands as Hershey's Kisses, Reese's peanut butter cups, Twizzlers licorice, Mounds candybars, York Peppermint Patty, and Kit Kat (licensed from Nestlé). Hershey also makes grocery goods,including baking chocolate, ice-cream toppings, chocolate syrup, cocoa mix, cookies, snack nuts, hard candies, andlollipops. Products from the chocolate purveyor are sold throughout North America and exported overseas. TheHershey Trust -- which benefits the Milton Hershey School for disadvantaged children -- controls approximately80% of Hershey's voting power.
Key InformationDUNS Number 003002052
Location Type HeadquartersSubsidiary Status NoManufacturer YesCompany Type PublicPlant/Facility Size (sq. ft.) 210,000.00Owns/Rents RentsForeign Trade Imports / ExportsAccountant KPMG LLPTotal Employees 13,5001-Year Employee Growth (1.46%)Employees At This Location 500Year of Founding or Change in Control 1894Primary Industry 1351:Candy & ConfectionsPrimary SIC Code 20660000:Chocolate and cocoa productsPrimary NAICS Code 311320:Chocolate and Confectionery ManufacturingTradestyle HersheyLatitude/Longitude 40.302605 / -76.649246
Key FinancialsFiscal Year-End DecemberSales ($ M) $5,671.01M1-Year Sales Growth 7.03%Net Income $509.80M1-Year Net Income Growth 16.93%Total Assets $4,272.73MMarket Value $12,946.24M
Prescreen Score Low Risk
Company Rankings395 in FORTUNE 500S&P 500
PAGE 1Jul 06, 2011• •866-541-3770 HOOVERS.COM
Key People
Name Title
Mr. James E. Nevels Chairman
Mr. John P. (J.P.) Bilbrey President, CEO and Director
Mr. Humberto P. (Bert) Alfonso SVP and CFO
Mr. George F. Davis SVP and CIO
Ms. Michele G. Buck SVP and Global Chief Marketing Officer
Mr. David W. Tacka VP and Chief Accounting Officer
Dr. C. Daniel Azzara SVP Global Research and Development
Mr. Javier H. Idrovo SVP Strategy and Business Development
Mr. Terence L. O'Day SVP Global Operations
Mr. Burton H. (Burt) Snyder SVP, General Counsel, and Secretary
PAGE 2Jul 06, 2011• •866-541-3770 HOOVERS.COM
Company Description
With Hershey since 2003, John P. Bilbrey took over as the candy behemoth's president and CEO in mid-2011. Known as J.P., he ascended from his role of EVP and COO when the company's top executive announced hisplans to move on. Hershey lost its CEO David West, who kissed Hershey goodbye to join Del Monte Foods as chiefexecutive. Seasoned replacement Bilbrey has led the chocolate company's international division and its NorthAmerican unit; he will be focused on expanding Hershey's global presence and jockeying for market sharealongside rivals Mars and Kraft, which owns Cadbury. Prior to joining Hershey, the new CEO logged experienceat Danone Waters of North America and at consumer products giant Procter & Gamble.Hershey had its chance to purchase Cadbury. While it was rumored during 2009 that the company might havebeen interested in acquiring UK confectioner Cadbury, it remained mum about any deal until it was clearthat Kraft was intent upon purchasing Cadbury. Hershey issued a statement in early 2010, saying it did not intendto make an offer for Cadbury and Kraft ultimately succeeded in taking over the Dairy Milk maker. While it may havebeen a good fit to merge the two giant chocolate candy makers, Hershey, as always, was answerable to the trust,which -- as it was generally believed -- opposed buying Cadbury. (Cadbury became part of Kraft in February 2010.)Hershey did, however, make an acquisition. It purchased Van Houten Singapore from Switzerland-based producerof cocoa, chocolate, and confectionery products Barry Callebaut in 2009. Part of Barry Callebaut's divestiture plan,the acquisition gave Hershey a stronger presence in the growing Asian confectionery market. Under the terms ofthe deal, Barry retained ownership of the Van Houten brand and granted Hershey a perpetual license for VanHouten consumer products > in the Asia-Pacific, the Middle East, and Australia, and New Zealand.Exhibiting some sour behavior among its board, in early 2009 the trust forced the resignation of the company'snon-executive board chairman, Kenneth L. Wolf, and indicated that it wanted one of its members to serve asHershey's chairman. The board then announced the unanimous election of trust member (and board member)James E. Nevels as chairman.As a result of the rising costs of sugar and cocoa, the company announced price increases in 2008; due to sluggishsales, it revamped some of its packaging to reflect a more updated look. In addition, it introduced a new premiumchocolate brand, Bliss.Chocolate may be the name of the game at Hershey but the company is also a growing presence in the hard- andnon-chocolate candy markets, offering such brands as Good & Plenty and Jolly Rancher. The company hasbeen expanding its products with new versions of old favorites, such as Jolly Rancher lollipops and bite-sized bitsof its popular chocolate bars. It introduced sugar-free chocolate, catering to the growing number of diabetics, andexpanded the snack-food and Hispanic markets. It also began producing packaged cookies whose flavors are basedon the flavors of its Almond Joy, Reese's, and York products.Hershey has been attempting to join the quickly expanding premium chocolate market. It has introduced its ownSpecial Dark, Extra Dark, and Cacao Reserve brands. It has also acquired such top-of-the-line chocolatemanufacturers as Artisan Confections Company (Scharffen Berger brand) and the now discontinued JosephSchmidt (Dagoba brand).Moving from the confectionery market to the snack market, Hershey has been busy introducing such items ascookies (Kisses Mini Cookies), 100-calorie treats (Snacksters), and granola bars (Hershey's SnackBarz).Hershey markets its products under more than 80 brand names in more than 50 countries worldwide. Thewholesale distributor, McLane Company, accounted for 22% of Hershey's sales in 2010. McLane is the maindistributor of Hershey's products to Wal-Mart.
PAGE 3Jul 06, 2011• •866-541-3770 HOOVERS.COM
Company History
The Hershey Company is the legacy of Milton Hershey, of Pennsylvania Dutch origin. Apprenticed in 1872 at age 15to a candy maker, Hershey started Lancaster Caramel Company at age 30. In 1893, at the Chicago Exposition, hesaw a new chocolate-making machine, and in 1900 he sold the caramel operations for $1 million to start a chocolatefactory.The factory was completed in 1905 in Derry Church, Pennsylvania, and renamed Hershey Foods the next year.Chocolate Kisses, individually hand-wrapped in silver foil, were introduced in 1907. Two years later the candy manfounded the Milton Hershey School, an orphanage; the company was donated to a trust in 1918 and for years existedsolely to fund the school. Although Hershey went public in 1927, the school still controls the majority of shareholdervotes.The candy company pioneered mass-production techniques for chocolates and developed much of the machinery formaking and packaging its own products. At one time Hershey supplied its own sugar cane from Cuba and enlargedthe world's almond supply six fold through nut farm ownership. The Hershey bar became so universally familiar thatit was used overseas during WWII as currency. Milton refused to advertise, believing that quality would speak foritself. Even after his death in 1945, the company continued his policy. Then, in 1970, facing a sluggish candy marketand a diet-conscious public, the company lost share to Mars and management relented.During the 1960s and 1970s, Hershey diversified in order to stabilize the effects of changing commodity prices. Thecompany got into the pasta business with its 1966 purchase of San Giorgio Macaroni, and it bought the Friendly IceCream chain in 1979 (sold 1988). The company expanded candy operations by bringing out large-sized bars (1980)and buying Cadbury's US candy business (Peter Paul, Cadbury, Caramello; 1988).In 1990 Hershey formed a joint venture with Fujiya to distribute Hershey products in Japan and bought Ronzoni'spasta, cheese, and sauce operations. Kenneth Wolfe was named chairman and CEO in 1994.Hershey boosted its presence in the non-chocolate candy market with acquisitions of Henry Heide (1995) and theNorth American operations of Leaf (Good & Plenty, Jolly Rancher) from Finnish candy maker Huhtamäki Oyj (1996).In return, it sold Huhtamäki Oyj its struggling European confectionery interests.In 1999 the company sold its pasta business to New World Pasta for $450 million and a 6% interest in thatcompany. Also that year the Hershey Trust, wanting to diversify its holdings, sold $100 million of its stock toHershey. Business melted during the fall of 1999 when a new company-wide computer system delayed orders duringthe critical Halloween season. The glitches cost the company more than $100 million in lost sales.Hershey bought Nabisco Holdings' breath freshener mints and gum businesses (including the Breath Savers,Care*Free, and Fruit Stripe brands) for about $135 million in 2000.In 2001 Nabisco veteran Rick Lenny replaced Wolfe as CEO. Hershey established a manufacturing presence in SouthAmerica that year by acquiring the chocolate and confectionery business of Brazilian company Visagis. It also cutabout 400 salaried positions and closing three plants and a distribution facility.In 2002 Wolfe retired as chairman and Lenny was selected to replace him. Also that year Hershey settled a bittersix-week factory-worker strike, the longest in company history. It subsequently sold its non-chocolate Heide brands(Heide, Jujyfruits, Wunderbeans, Amazin' Fruit) to Farley's & Sathers Candy Company.Also in 2002 the Hershey Trust said that to diversify its holdings, it wanted to sell its 77% interest in Hershey.However, the sale was temporarily blocked while the state of Pennsylvania reviewed the impact it would have on thecommunity. Despite the injunction against the sale, the trust continued to look for a buyer and was considering a$12.5 billion offer from chewing gum giant, Wm. Wrigley Jr. and a $10.5 billion joint offer from Nestlé and CadburySchweppes.Amid the community outcry and legal wrangling, the sale was finally called off later in 2002, after 10 of the trust's17 members changed their minds. Due to the uproar surrounding the proposed sale, the trust board promised torestructure itself. Among the outgoing board members was William Lepley, president and chief executive of theMilton Hershey School.Due to sharply rising cocoa prices, in 2003 Hershey implemented an approximate 3% price increase across itsentire domestic product line. It also sold some of its gum brands (Fruit Stripe, Rain-Blo, and Super Bubble) to Farley& Sathers that year.The company began marketing sugar-free chocolates (sweetened with lactitol) in its Hershey and Reese's lines in2003. The company also introduced the first permanent addition to its Kisses brand in 10 years -- a dark chocolateversion of the familiar treat, named Rich Dark Chocolates and wrapped in purple foil. Later that year, it introduced aline of sugar-free chocolates; and (the unsuccessful and now discontinued) Swoops, chocolate "potato chips" shapedlike Pringles and packaged in a canister reminiscent of the Pringles can.In order to expand its sales in the Hispanic market, in 2004 Hershey announced a new line of Latin-inspired candiesincluding those with chili-based flavors and dulce de leche fillings. The company also signed an endorsement dealwith Latin singer, Thalia. And in 2004 Hershey's Mexican subsidiary bought one of Mexico's top confectionery
PAGE 4Jul 06, 2011• •866-541-3770 HOOVERS.COM
The company changed its name to The Hershey Company in 2005, dropping the "Foods" from its name in order toreflect the company's move away from coffee, pasta, and restaurant businesses and its concentration onconfectionery. In addition Hershey acquired Scharffen Berger Chocolate Maker in 2005, a maker of premium darkchocolates. The deal marked Hershey's first foray into the premium chocolate market. Later that year, it acquiredits second high-end chocolate company, Joseph Schmidt Confections. Both companies are located in California.With continuuing increases in raw materials, in 2006 the company began to reduce the total number of its productsby up to 25%, eliminating limited-edition and seasonal items and streamlining underperforming brands. It put itsefforts toward the continued to expansion in its high-growth categories such as organic chocolate, dark chocolate,cookies, and nuts; in addition, it purchased organic chocolate confectioner, Dagoba,that year.President and CEO Richard Lenny left the company in 2007, having been at Hershey's helm since 2001. It isgenerally thought that Lenny's resignation was due to disagreements between him and the trust regarding thecompany's business strategies. CFO David J. West was named as Lenny's successor as president and CEO. Wolfe (aformer Hershey CEO) was tapped as chairman.The company formed a joint venture with South Korean confectioner, Lotte, in 2007 to manufacture and sellHershey's products in China. Continuing to expand its geographical reach that year, Hershey acquired a 51%interest in the food and beverage operations of the Indian conglomerate, Godrej Industries, for $54 million. Thepurchase was made for the purpose of distributing Hershey's products in India (one of Asia's fastest growingmarkets). It did not hurt that Godrej owns Nutrine, India's most popular confectionery brand.In another 2007 move, Hershey and Barry Callebaut formed an R&D and supply partnership. Under the terms of theagreement, the companies combined their research and development activities in the areas of new products,premium chocolate, health and wellness, and ingredients. In addition, Barry Callebaut supplies Hershey's Mexicanproduction plant chocolate -- at least 88,000 tons per year.In 2011, David West stepped down as CEO, replaced by John P. Bilbrey, who joined Hershey in 2003.
PAGE 5Jul 06, 2011• •866-541-3770 HOOVERS.COM
Industry InformationHoover's Industries
> Food
> Candy & Confections ( primary )> Grains
> Packaged Cookies & Crackers> Seasoning & Dressing Manufacturing> Snack Foods
> Beverages
> Nonalcoholic Beverages
Denotes In-depth Industry Insight by Hoover's Editorial Staff
Primary SIC Code20660000 : Chocolate and cocoa productsPrimary NAICS Code311320 : Chocolate and Confectionery Manufacturing from Cacao Beans
PAGE 6Jul 06, 2011• •866-541-3770 HOOVERS.COM
People
Employees
Name Age SalaryTitle Bonus
Mr. James E. Nevels -- --59ChairmanMr. John P. (J.P.) Bilbrey $625,577.00 --54President, CEO and DirectorMr. Humberto P. (Bert)Alfonso
$515,000.00 --53SVP and CFO
Mr. George F. Davis -- --62SVP and CIOMs. Michele G. Buck $430,000.00 --49SVP and Global Chief Marketing
OfficerMr. David W. Tacka -- --57VP and Chief Accounting OfficerDr. C. Daniel Azzara -- --56SVP Global Research and
DevelopmentMr. Javier H. Idrovo -- --SVP Strategy and Business
DevelopmentMr. Terence L. O'Day $468,000.00 --60SVP Global OperationsMr. Burton H. (Burt) Snyder $500,000.00 --63SVP, General Counsel, and SecretaryMs. Diane J. Lorello -- --VP Global Portfolio InnovationMr. Andy McCormick -- --VP Public AffairsMr. Mark K. Pogharian -- --VP Investor RelationsMr. Kirk D. Saville -- --VP Corporate CommunicationsMs. Anna Lingeris -- --Manager Public RelationsMs. Pamela M. Arway -- --57DirectorMr. Robert F. Cavanaugh -- --52DirectorMr. Charles A. Davis -- --62DirectorMr. James M. Mead -- --65DirectorMr. Anthony J. Palmer -- --51DirectorMr. Thomas J. (Tom) Ridge -- --65DirectorMr. David L. Shedlarz -- --62DirectorAlan Brechbill -- --Executive DirectorJoseph Dickey -- --Director/manager/department
Head/chief-safetyFrank McAneny -- --Executive DirectorMs Patrice Lemarie -- --Director; PresidentJennifer Cessna -- --Cio; Senior AssociateAndrea Foreman -- --Chief Marketing OfficerMr Thomas K Hernquist -- --Senior Vice President, Chief
Marketing OfficerBobby Agarwal -- --Business Manager India Intl Mkt;
Business Manager, India,
PAGE 7Jul 06, 2011• •866-541-3770 HOOVERS.COM
Name Age SalaryTitle Bonus
International Marketing; ExecutiveVice President-marketing
Scott Cole -- --Vice President Grocery CustomersAndre Gottlick -- --Vice President Of Talent
ManagementTed Jastrzebski -- --Senior Vice President And
President-hershey International;Vice President, InternationalFinance & Planning; Vp InternationalFinance
Tom Joyce -- --Vice President Customer AndIndustry Affairs
Cindy Gallant -- --Branch ManagerMr Bob Smith -- --Branch ManagerMr Joe Benjamin -- --Director, Operations ImprovementLarry Best -- --North American Final Meet DirectorMr Paul Bomba -- --DirectorGreg Buck -- --It DirectorMr Joe Carlin -- --Senior Director, Finance And Global
OperationsGary Coughlan -- --DirectorDonna Cozzens -- --Director, Global Organizational
CapabilityScott Crowell -- --Director Information Security;
Director, Information SecurityLilibeth Cruz -- --World Travel Retail DirectorMoira Cullen -- --Senior Director, Global DesignRobert Cybulski -- --Director Of Information Systems;
Director, SystemsJames Czupil -- --Director Organizational
EffectivenessChristine Dugan -- --Director Of Public AffairsLois Duquette -- --Director Of Finance; Senior Counsel
PAGE 8Jul 06, 2011• •866-541-3770 HOOVERS.COM
Board Members
Name AgeTitle
Mr. James E. Nevels 59Chairman
Mr. John P. (J.P.) Bilbrey 54President, CEO and Director
Ms. Pamela M. Arway 57Director
Mr. Robert F. Cavanaugh 52Director
Mr. Charles A. Davis 62Director
Mr. James M. Mead 65Director
Mr. Anthony J. Palmer 51Director
Mr. Thomas J. (Tom) Ridge 65Director
Mr. David L. Shedlarz 62Director
PAGE 9Jul 06, 2011• •866-541-3770 HOOVERS.COM
BiographiesJames E. Nevels, Age 59
Title held since 2009 : Chairman
Current Company Titles2009 - Present : Chairman
2007 - 2009 : Director
Other Company AffiliationsDirector, Tasty Baking Company
Director, Milton Hershey School
Biography
Source : Proxy, March 15, 2011
James E. Nevels has been a Hershey director since 2007 and the non-executive Chairman ofthe Board of Directors since February 16, 2009. He also chairs the Governance Committee andthe Executive Committee and is a member of the Compensation and Executive OrganizationCommittee. Mr. Nevels is a director of Hershey Trust Company and the board of managers ofMilton Hershey School. He is one of three representatives of the Milton Hershey School Trustcurrently serving on our Board. In addition to bringing to our Board the perspectives of theMilton Hershey School Trust, Mr. Nevels has extensive finance and leadership experience. He isChairman of The Swarthmore Group, Philadelphia, Pennsylvania, a minority-owned investment-advisory firm, which he founded in 1991. In 2004, he was appointed by the President of theUnited States to the Advisory Committee to the Pension Benefit Guaranty Corporation, wherehe served a three-year term. In 2001, he was appointed by the Governor of Pennsylvania asChairman of the Philadelphia School Reform Commission overseeing the turnaround of thePhiladelphia School System, the seventh largest school district in the United States. He wasappointed by the Federal Reserve Board of Governors to a two-year term on the board ofdirectors of the Federal Reserve Bank of Philadelphia, beginning January 1, 2010. Mr. Nevelshas been a director of Tasty Baking Company since May 2005. He holds a bachelors degree,cum laude and Phi Beta Kappa, in political science and philosophy from Bucknell University, aMasters of Business Administration degree from the Wharton School of the University ofPennsylvania and a Juris Doctor degree from University of Pennsylvania Law School.
John P. (J.P.) Bilbrey, Age 54
Title held since 2011 : President, CEO and Director
Current Company Titles2011 - Present : President, CEO and Director
2011 - 2011 : Interim President and CEO
2010 - 2011 : EVP and COO
2007 - 2010 : SVP; President, Hershey North America
2005 - 2007 : SVP; President, International Commercial Group
2003 - 2005 : SVP; President, Hershey International
Current Company Compensation HistorySalary Bonus Total
PAGE 10Jul 06, 2011• •866-541-3770 HOOVERS.COM
Salary Bonus Total
$625,577.00 --2010 : $4,214,807.00
$550,000.00 --2009 : $3,108,794.00
$517,366.00 --2008 : $3,005,370.00
$404,598.00 --2007 : $1,403,900.00
$370,000.00 --2006 : --
Other Company AffiliationsDirector, McCormick & Company, Incorporated
Past Company AffiliationsPresident and CEO, Danone Waters of North America, Groupe Danone Water Division
Biography
Source : Company Press Release, June 15, 2011
Bilbrey has more than 30 years of global consumer packaged goods experience. He was namedHershey's interim President and Chief Executive Officer in May 2011. Bilbrey was named ChiefOperating Officer in November 2010 with responsibility for day-to-day global operations andcommercial activities, leading the Company's supply chain as well as geographic regions,including the U.S.A., the Americas and Asia. From December 2007 to November 2010, he wasSenior Vice President, President, Hershey North America. Bilbrey played a key leadership rolein the Company's turnaround as well as in the creation and implementation of the Company'sconfectionery demand landscape and establishment of Hershey's presence in markets aroundthe world. Bilbrey joined Hershey in 2003 as Senior Vice President, President HersheyInternational. Before joining Hershey, Bilbrey held executive positions at Mission Foods andDanone Waters of North America, Inc., a division of Groupe Danone, Paris, France. He wasresponsible for all operations of Groupe Danone's North American water division. Additionally,he spent 22 years at The Procter & Gamble Company where he served in positions of increasingresponsibility in both the U.S. domestic business as well as numerous internationalassignments. He has lived abroad and worked in more than 50 countries in North America, LatinAmerica, North Africa and Asia.
Humberto P. (Bert) Alfonso, Age 53
Title held since 2007 : SVP and CFO
Current Company Titles2007 - Present : SVP and CFO
2006 - 2007 : VP, Finance and Planning, North American Commercial Group
Current Company Compensation HistorySalary Bonus Total
$515,000.00 --2010 : $2,387,993.00
$500,000.00 --2009 : $2,213,636.00
$500,000.00 --2008 : $2,022,937.00
$448,180.00 --2007 : $1,782,399.00
PAGE 11Jul 06, 2011• •866-541-3770 HOOVERS.COM
Other Company AffiliationsDirector, Eastman Chemical Company
Past Company AffiliationsEVP, Finance, Dr Pepper Snapple Group, Inc.
Biography
Source : 10K, February 18, 2011
Senior Vice President, Chief Financial Officer (July 2007); Vice President, Finance andPlanning, North American Commercial Group (October 2006); Vice President, Finance andPlanning, U.S. Commercial Group (July 2006).
Michele G. Buck, Age 49
Title held since 2007 : SVP and Global Chief Marketing Officer
Current Company Titles2007 - Present : SVP and Global Chief Marketing Officer
2005 - 2007 : SVP and Chief Marketing Officer, U.S.
Current Company Compensation HistorySalary Bonus Total
$430,000.00 --2008 : $1,430,421.00
$270,385.00 $509,083.002005 : --
Past Company AffiliationsEVP and General Manager, Confections, Kraft North America
Biography
Source : 10K, February 18, 2011
Senior Vice President, Global Chief Marketing Officer (December 2007); Senior Vice President,Chief Marketing Officer, U.S. Commercial Group (November 2005).
C. Daniel Azzara, Age 56
Title held since 2011 : SVP Global Research and Development
Current Company Titles2011 - Present : SVP Global Research and Development
2007 - 2011 : VP Global Research and Development
2005 - 2007 : VP, Global Innovation and Quality
2004 - 2005 : VP, Global Research and Development
Unknown - 2004 : VP, Research and Development
Other Company AffiliationsTrustee, National Confectioners Association
Biography
PAGE 12Jul 06, 2011• •866-541-3770 HOOVERS.COM
Source : 10K, February 18, 2011
Senior Vice President, Global Research and Development (January 2011); Vice President, GlobalResearch and Development (April 2007); Vice President, Global Innovation and Quality (October2005).
PAGE 13Jul 06, 2011• •866-541-3770 HOOVERS.COM
Event DetailsDate
Historical Events
Top Executive Change The company named John P. Bilbrey CEO on a permanent basis.2011-06-15Top Executive Change David J. West resigned.2011-05-18Top Executive Change The company named John P. Bilbrey Interim President and CEO.2011-05-18Top Executive Change David J. West succeeded Richard H. Lenny, who remained chairman.2007-12-01Top Executive Change The company announced that David J. West will succeed the retiring Richard H.
Lenny on 12/01/2007; Lenny will remain chairman.2007-10-02
Name Change The company changed its name from Hershey Foods Corporation to The HersheyCompany.
2005-04-19
PAGE 14Jul 06, 2011• •866-541-3770 HOOVERS.COM
Company Financials
Auditor
$5,671.01M
$509.80M
PublicCompany Type
1-Year Sales Growth
Prescreen Score16.93%1-Year Net Income Growth
7.03%
Low RiskKPMG LLP
Financial Summary
Fiscal Year-End December
NYSE: HSYHeadquarters
2010 Sales
2010 Net Income
PAGE 15Jul 06, 2011• •866-541-3770 HOOVERS.COM
Annual Income StatementAll amounts in millions of US Dollars except per share amounts.
Dec 2010
Revenue 5,671.01Cost of Goods Sold 3,255.80Gross Profit 2,415.21
Gross Profit Margin 42.59%SG&A Expense 1,426.48Depreciation and Amortization 197.12Operating Income 905.30Operating Margin 15.96%Nonoperating Income 0.00Nonoperating Expenses (96.43)Income Before Taxes 808.86Income Taxes 299.07Net Income After Taxes 509.80
Continuing Operations 509.80Discontinued Operations --Total Operations 509.80Total Net Income 509.80Net Profit Margin 8.99%
Diluted EPS from Continuing Operations 2.21Diluted EPS from Total Operations 2.21Diluted EPS from Total Net Income 2.21Dividends per Share 1.28
Dec 2009
5,298.67
3,245.532,053.14
38.75%1,208.67
182.41761.59
14.37%0.00
(90.46)671.13
235.14435.99
435.99--
435.99435.998.23%
1.901.901.901.19
Dec 2008
5,132.77
3,375.051,757.72
34.25%1,073.02
249.49589.9011.49%
0.00(97.88)492.02180.62311.41
311.41--
311.41311.41
6.07%
1.361.361.361.19
Dec 2007
4,946.72
3,315.151,631.57
32.98%895.87310.93458.839.28%
(118.59)--
340.24126.09214.15
214.15--
214.15214.15
4.33%
0.930.930.931.14
Dec 2006
4,944.23
3,076.721,867.51
37.77%860.38199.91
992.5620.08%(116.06)
876.50317.44
559.06
559.06--
559.06559.0611.31%
2.342.342.341.03
PAGE 16Jul 06, 2011• •866-541-3770 HOOVERS.COM
Quarterly Income StatementAll amounts in millions of US Dollars except per share amounts.
Mar 2011Quarter Ending
Revenue 1,564.22Cost of Goods Sold 908.04Gross Profit 656.19
Gross Profit Margin 41.95%SG&A Expense 377.80Depreciation and Amortization 51.05Operating Income 276.55Operating Margin 17.68%Nonoperating Income 0.00Nonoperating Expenses (24.48)Income Before Taxes 252.07Income Taxes 91.96Net Income After Taxes 160.12
Continuing Operations 160.12Discontinued Operations --Total Operations 160.12Total Net Income 160.12Net Profit Margin 10.24%
Diluted EPS from Continuing Operations 0.70Diluted EPS from Total Operations 0.70Diluted EPS from Total Net Income 0.70Dividends per Share 0.35
Dec 2010
1,482.81
863.34619.47
41.78%391.23197.12
227.8915.37%
0.00(27.65)200.25
64.73135.51
135.51--
135.51135.519.14%
0.580.580.590.32
Sep 2010
1,547.12
891.90655.22
42.35%357.62145.74299.6519.37%
0.00(22.26)277.3997.22180.17
180.17--
180.17180.17
11.65%
0.780.780.780.32
Jun 2010
1,233.24
686.70546.54
44.32%336.98
93.30124.42
10.09%0.00
(22.78)101.6454.9246.72
46.72--
46.7246.72
3.79%
0.200.200.200.32
Mar 2010
1,407.84
813.86593.98
42.19%340.65
47.33253.3317.99%
0.00(23.75)229.59
82.19147.39
147.39--
147.39147.39
10.47%
0.640.640.640.32
PAGE 17Jul 06, 2011• •866-541-3770 HOOVERS.COM
Annual Balance SheetAll amounts in millions of US Dollars except per share amounts.
Current Assets
Inventories
Dec 2010
CashNet Receivables
Total Current Assets
390.06
Net Fixed Assets
196.89
1,437.70
884.64
2,005.22
533.62
829.81
Other Current Assets
4,272.73Total Assets
Assets
Other Noncurrent
Preferred Stock EquityCommon Stock Equity
0.00
Dec 2010
902.32
Shares Outstanding (M) 227.03902.32Total Equity
Shareholder's Equity
Long-Term Debt
Accounts Payable
Other Current Liabilities
Dec 2010
529.75Total LiabilitiesOther Noncurrent
Current Liabilities
1,541.83
285.48
3,370.42
410.66
602.711,298.85
Short-Term Debt
Total Current Liabilities
Liabilities
Dec 2009
410.39
201.73
1,404.77
253.61
1,385.43
519.71
884.833,675.03
--
Dec 2009
720.46
228.00720.46
Dec 2009
541.211,502.73
39.31
2,954.57
287.94
583.38910.63
Dec 2008
455.15
260.16
1,458.95
37.10
1,344.95
592.53
830.833,634.72
0.00
Dec 2008
318.20
166.39318.20
Dec 2008
540.351,505.95
501.50
3,316.52
249.45
519.251,270.21
Dec 2007
487.29
209.91
1,539.72
129.20
1,426.57
600.19
1,280.824,247.11
--
Dec 2007
592.92
166.24592.92
Dec 2007
755.461,279.97
856.39
3,654.19
223.02
539.361,618.77
Dec 2006
522.67
149.18
1,651.30
97.14
1,417.81
648.82
1,088.454,157.57
--
Dec 2006
683.42
171.02683.42
Dec 2006
772.481,248.13
844.00
3,474.14
155.52
454.021,453.54
PAGE 18Jul 06, 2011• •866-541-3770 HOOVERS.COM
Quarterly Balance SheetAll amounts in millions of US Dollars except per share amounts.
Quarter EndingCurrent Assets
Inventories
Mar 2011
CashNet Receivables
Total Current Assets
433.52
Net Fixed Assets
233.22
1,443.82
752.27
1,954.52
535.52
836.81
Other Current Assets
4,235.16Total Assets
Assets
Other Noncurrent
Preferred Stock EquityCommon Stock Equity
0.00
Quarter Ending Mar 2011
875.42
Shares Outstanding (M) 227.30875.42Total Equity
Shareholder's Equity
Long-Term Debt
Accounts Payable
Other Current Liabilities
Quarter Ending Mar 2011
527.88Total LiabilitiesOther Noncurrent
Current Liabilities
1,540.92
285.51
3,359.74
381.50
623.921,290.93
Short-Term Debt
Total Current Liabilities
Liabilities
Dec 2010
390.06
196.89
1,437.70
884.64
2,005.22
533.62
829.814,272.73
0.00
Dec 2010
902.32
227.03902.32
Dec 2010
529.751,541.83
285.48
3,370.42
410.66
602.711,298.85
Sep 2010
605.74
219.55
1,378.03
244.95
1,664.81
594.57
844.103,886.94
0.00
Sep 2010
826.75
227.12826.75
Sep 2010
539.561,250.55
276.91
3,060.19
350.25
642.931,270.09
Jun 2010
321.05
241.14
1,378.51
249.07
1,414.99
603.73
826.493,619.99
0.00
Jun 2010
697.37
227.23697.37
Jun 2010
545.281,501.34
41.01
2,922.62
304.99
530.01876.01
Mar 2010
411.25
216.15
1,394.68
303.79
1,413.03
481.85
890.983,698.69
0.00
Mar 2010
752.22
227.92752.22
Mar 2010
541.991,502.18
55.95
2,946.47
294.22
552.12902.30
PAGE 19Jul 06, 2011• •866-541-3770 HOOVERS.COM
Annual Cash FlowAll amounts in millions of US Dollars except per share amounts.
Dec 2010
Cash and Cash Equivalents at the Beginningof Year
253.61
Net Cash Provided in Operating Activities 901.42Net Cash Provided by Investing Activities (199.29)Net Cash Provided by Financing Activities (71.10)Net Increase/Decrease in Cash and CashEquivalents
631.04
Cash and Cash Equivalents at the End ofYear
884.64
Dec 2009
37.10
1,065.75(150.33)(698.92)
216.50
253.61
Dec 2008
129.20
519.56(198.20)(413.45)
(92.10)
37.10
Dec 2007
97.14
778.84(304.35)(442.43)
32.06
129.20
Dec 2006
67.18
723.19(215.51)
(477.72)29.96
97.14
PAGE 20Jul 06, 2011• •866-541-3770 HOOVERS.COM
Quarterly Cash FlowAll amounts in millions of US Dollars except per share amounts.
Quarter Ending Mar 2011
Cash and Cash Equivalents at the Beginningof Year
884.64
Net Cash Provided in Operating Activities 159.38Net Cash Provided by Investing Activities (87.18)Net Cash Provided by Financing Activities (204.57)Net Increase/Decrease in Cash and CashEquivalents
(132.38)
Cash and Cash Equivalents at the End ofYear
752.27
Dec 2010
244.95
901.42(199.29)
(71.10)631.04
884.64
Sep 2010
249.07
388.20(121.61)
(275.25)(8.66)
244.95
Jun 2010
303.79
264.85(74.10)
(195.28)(4.54)
249.07
Mar 2010
253.61
181.19(35.38)(95.63)
50.18
303.79
PAGE 21Jul 06, 2011• •866-541-3770 HOOVERS.COM
Earning Estimates
High Estimate
Average Estimate
Year ago EPS
13
Growth Rate
$0.51
6.18%
$0.54
$0.51
$0.58
Low Estimate
Consensus Recommendation
Jun 11
Number of Analysts
Current Quarter
7.91%$0.79$0.80$0.90
12
$0.85
Sep 11
Next Quarter
$2.81 $3.08
Current Year Next Year
Jun 11 Jun 11
15 13$2.90 $3.20$2.76 $2.93$2.55 --
10.12% 9.61%
Hold
PAGE 22Jul 06, 2011• •866-541-3770 HOOVERS.COM
Financial Market DataCurrent Information
Latest Short Interest Ratio
Dividend Yield 2.27%# of Institutional Holders
2.82
0.32Market Cap
15.04
225.51M$12,946.24M
52-Week High$57.41
64.21%
$58.2025.32
Last Close (01-Jul-2011)
52-Week Low
13.17%
2.27
Price/Cash Flow Ratio
Price/Sales Ratio
Price/Earnings RatioPrice/Book Ratio
Return on Assets
% Owned by InstitutionsLatest Net Insider Transactions
Long-Term Debt/Equity
Return on Equity
2.03--
14.79$45.31
Shares Outstanding
60-Month Beta
Dividend Rate 1.38 Current Ratio 1.51
7.56%
12 MonthGrowth 36 Month 60 Month
4.09% 6.60%
7.03% 4.66% 3.24%16.32% 33.45% 2.12%
Revenue GrowthEPS GrowthDividend Growth
PAGE 23Jul 06, 2011• •866-541-3770 HOOVERS.COM
Historical Financials
Income Statement
Year Revenue ($ M) Net Income ($ M) Net Profit Margin Employees
Dec 2010 5,671.01 509.80 8.99% 13,500
Dec 2009 5,298.67 435.99 8.23% 13,700
Dec 2008 5,132.77 311.41 6.07% 14,400
Dec 2007 4,946.72 214.15 4.33% 12,800
Dec 2006 4,944.23 559.06 11.31% 15,000
Dec 2005 4,835.97 493.24 10.20% 13,750
Dec 2004 4,429.25 590.88 13.34% 13,700
Dec 2003 4,172.55 464.95 11.14% 14,800
Dec 2002 4,120.32 403.58 9.79% 15,400
Dec 2001 4,557.24 207.16 4.55% 16,000
2010 Year-End Financials
Debt Ratio 170.87%Return on Equity 64.21%Cash ($ M) 884.64Current Ratio 1.54Long-Term Debt ($ M) 1,541.83Shares Outstanding (M) 227.03Dividend Yield 2.27%Dividend Payout 0.58Market Cap ($ M) 10,704.48
Stock HistoryStock Price ($) P/E Per Share ($)
Year FY High FY Low FY Close High Low Earns. Div. Book Value
Dec 2010 52.10 35.76 47.15 23.57 16.18 2.21 1.28 3.97
Dec 2009 42.25 30.27 35.79 22.24 15.93 1.90 1.19 3.16
Dec 2008 44.32 32.10 34.74 32.59 23.60 1.36 1.19 1.91
Dec 2007 56.75 38.21 39.40 61.02 41.09 0.93 1.14 3.57
Dec 2006 57.65 48.20 49.80 24.64 20.60 2.34 1.03 4.00
Dec 2005 67.37 52.49 55.25 33.85 26.38 1.99 0.93 5.65
Dec 2004 56.75 37.28 55.54 24.67 16.21 2.30 0.84 5.88
Dec 2003 39.33 30.35 38.50 22.73 17.54 1.73 0.72 4.92
Dec 2002 39.75 28.23 33.72 27.13 19.27 1.47 0.63 5.04
Dec 2001 35.08 27.94 33.85 46.77 37.25 0.75 0.58 4.23
PAGE 24Jul 06, 2011• •866-541-3770 HOOVERS.COM
Competitors ListGross Revenue Net Profit
MarginNet Operating Cash FlowCompany
$9.60M ----Annabelle Candy
-- ----Anthony-Thomas Candy
$17.60M ----Asher's Chocolates
-- ----Betsy Ann Candies
$2.94M $0.20M(1.83%)Chase General
$25.90M ----Chocolates à la Carte
$119.23M ----Chupa Chups
$9.20M ----Endangered Species Chocolate
-- ----Enstrom
-- ----Farley's & Sathers
$11.78M --7.65%Fazer Konfektyr
$2,495.60M ----Ferrero
$2,573.77M $306.05M5.33%Flowers Foods
-- ----Ghirardelli Chocolate
-- ----Godiva Chocolatier
$11.20M ----Goetze's Candy
$41.10M ----Guittard
-- ----Harry London Candies
$2,700.00M ----Hostess Brands
$0.06M ----Jelly Belly Candy
$12,397.00M $1,008.00M9.51%Kellogg
$49,207.00M $3,748.00M6.00%Kraft Foods (Top Competitor)
$91.90M ----Laura Secord
$2,741.54M $386.58M9.38%Lindt & Sprüngli
$30,000.00M ----Mars, Incorporated (Top Competitor)
$116,623.51M $14,463.94M31.20%Nestlé (Top Competitor)
$533.79M ----Otis Spunkmeyer
$36.97M ----Perfetti Van Melle
$3.60M ----Purdy's Chocolates
$31.13M $3.80M12.56%Rocky Mountain Chocolate
-- ----Russell Stover
-- ----See's Candies
$4,825.74M $391.56M9.94%Smucker
-- ----Spangler Candy
$10.00M ----Sweet Shop USA
$521.45M $82.81M9.97%Tootsie Roll
-- ----Warrell Corporation
PAGE 25Jul 06, 2011• •866-541-3770 HOOVERS.COM
Gross Revenue Net ProfitMargin
Net Operating Cash FlowCompany
-- ----World's Finest Chocolate
-- ----Wrigley
$35.10M ----Zachary Confections
PAGE 26Jul 06, 2011• •866-541-3770 HOOVERS.COM
Competitive Landscape
Annual Sales ($ M)EmployeesMarket Cap ($ M)
The HersheyCompany
$5,671.01M13,500
$10,704.48M
Companies listed are Top Competitors.
Key Numbers
--
Mars,Incorporated
$30,000.00M65,000
$203,626.92M
Nestlé S.A.
$116,623.51M281,000 127,000
Kraft Foods Inc.
$49,207.00M
$55,081.58M
Profitability
Gross Profit MarginPre-Tax ProfitNet Profit MarginReturn on EquityReturn on Assets
The HersheyCompany
42.51%14.27%8.97%
64.21%13.17%
Return on InvestedCapital
20.85%
Mars,Incorporated
------------
Nestlé S.A.
58.21%34.69%31.20%61.80%30.76%44.38%
Kraft Foods Inc.
36.56%8.44%6.00%8.47%3.12%4.57%
Industry
36.94%15.27%
(0.29%)(1.21%)
(0.39%)(0.60%)
Market
30.57%10.96%3.29%5.28%0.88%2.43%
Valuation
Price/Sales RatioPrice/Earnings RatioPrice/Book RatioPrice/Cash Flow
The HersheyCompany
2.2725.3214.7915.04
Mars,Incorporated
--------
Nestlé S.A.
1.635.222.7813.12
Kraft Foods Inc.
1.2320.53
1.6722.52
Industry
2.0721.198.18
15.60
Market
1.51--
2.2710.29
Operations
Days of SalesOutstandingInventory TurnoverDays Cost of GoodsSold in InventoryAsset TurnoverNet ReceivablesTurnover FlowEffective Tax Rate
The HersheyCompany
26.5
6.655.4
1.513.8
37.15%
Mars,Incorporated
--
----
----
--
Nestlé S.A.
40.6
5.962.3
1.09.0
9.70%
Kraft Foods Inc.
49.6
5.763.9
0.57.4
28.45%
Industry
24.1
6.457.1
1.315.1
--
Market
43.2
7.647.9
0.38.4
--
PAGE 27Jul 06, 2011• •866-541-3770 HOOVERS.COM
Financial
Current RatioQuick RatioLeverage RatioTotal Debt/ EquityInterest Coverage
The HersheyCompany
1.540.984.742.039.40
Mars,Incorporated
----------
Nestlé S.A.
1.291.011.800.32
45.94
Kraft Foods Inc.
1.040.582.660.803.64
Industry
1.610.993.131.04
12.06
Market
1.461.305.801.087.61
Per Share Data
Per Share DataDividend Per ShareCash Flow Per ShareWorking Capital Per ShareLong-Term Debt Per ShareBook Value Per ShareTotal Assets Per Share
The HersheyCompany
$25.28$1.31
$3.82$3.13$6.84$3.88
$18.95
Mars,Incorporated
--------------
Nestlé S.A.
$38.23$1.26$4.74$2.72$2.30
$22.39$34.28
Kraft Foods Inc.
$28.75$1.16$1.58$0.32
$15.28$21.26$54.21
Industry
$23.47$1.03$3.12
$3.04$5.10$5.94
$18.59
Market
$20.22$0.53$2.97$2.50
$12.25$13.47$78.15
Growth
12-Month Revenue12-Month Net Income12-Month EPS Growth12-Month Dividend Growth36-Month Revenue Growth36-Month Net Income Growth36-Month EPS Growth36-Month Dividend Growth
The HersheyCompany
7.03%16.93%16.32%7.56%4.66%
33.52%33.45%4.09%
Mars,Incorporated
----------------
Nestlé S.A.
1.96%228.28%247.77%(10.55%)
0.67%47.59%
(47.27%)23.86%
Kraft Foods Inc.
21.84%36.18%
(29.06%)0.00%9.73%
16.68%(3.85%)
3.71%
Industry
13.62%49.78%50.42%
7.15%4.33%
31.33%30.43%
1.51%
Market
8.06%44.41%
--2.18%2.77%
(1.30%)----
PAGE 28Jul 06, 2011• •866-541-3770 HOOVERS.COM