US chocolate manufacturer Hershey has reported that its net earnings increased by 21.77% to $241.91m for the first quarter of 2013, compared with $198.65m for the same quarter in 2012.
The company attributed the increase in net earnings to lower commodity prices and cost cutting boosted margins.
For the quarter ended 31 March 2013, Hershey posted a 5.5% increase in net revenues to $1.83bn, compared with $1.73bn a year ago, driven by higher sales in the US and the launch of Brookside Foods products into its line-up.
Hershey president and chief executive officer John Bilbrey said the first quarter results, driven by solid volume growth across core brands, represent a good start to the year.
"We maintained our retail momentum in the U.S. and key international markets. Specifically, first quarter U.S. marketplace performance was strong, driven by solid volume and unit trends across most major pack types resulting in market share gains in every channel where we compete," Bilbrey added.
Hershey noted that it is focused on executing against its plans and will continue to drive core brand volume growth in the US and international markets throughout the year.
For the full year 2013, Hershey expects earnings per share-diluted of $3.52 to $3.58 and net sales growth of 5 to 7%, including the impact of foreign currency exchange rates. The net sales are expected to be driven primarily by core brand volume growth, the US launch of the Brookside product line in food, drug and mass segments.
