Analysis of Reportable Segments
Hershey Co. operates in 3 segments: North America Confectionery; North America Salty Snacks; and International.
Segment Profit Margin
Hershey Co., profit margin by reportable segment
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| North America Confectionery | 32.93% | 32.23% | 32.10% | 31.11% | — |
| North America Salty Snacks | 15.54% | 18.14% | 17.31% | 12.39% | — |
| International | 12.65% | 10.11% | 0.00% | 6.64% | — |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | North America Confectionery | North America Confectionery segment profit margin ratio improved from 2020 to 2021 and from 2021 to 2022. |
| North America Salty Snacks | North America Salty Snacks segment profit margin ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. | |
| International | International segment profit margin ratio improved from 2020 to 2021 and from 2021 to 2022. |
Segment Profit Margin: North America Confectionery
Hershey Co.; North America Confectionery; segment profit margin calculation
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Segment income (loss) | 2,811,066) | 2,475,873) | 2,274,584) | 2,120,212) | —) |
| Net sales | 8,536,480) | 7,682,416) | 7,084,860) | 6,815,111) | —) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 32.93% | 32.23% | 32.10% | 31.11% | — |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Segment profit margin = 100 × Segment income (loss) ÷ Net sales
= 100 × 2,811,066 ÷ 8,536,480 = 32.93%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | North America Confectionery | North America Confectionery segment profit margin ratio improved from 2020 to 2021 and from 2021 to 2022. |
Segment Profit Margin: North America Salty Snacks
Hershey Co.; North America Salty Snacks; segment profit margin calculation
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Segment income (loss) | 159,935) | 100,777) | 75,845) | 50,816) | —) |
| Net sales | 1,029,405) | 555,424) | 438,224) | 410,005) | —) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 15.54% | 18.14% | 17.31% | 12.39% | — |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Segment profit margin = 100 × Segment income (loss) ÷ Net sales
= 100 × 159,935 ÷ 1,029,405 = 15.54%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | North America Salty Snacks | North America Salty Snacks segment profit margin ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Segment Profit Margin: International
Hershey Co.; International; segment profit margin calculation
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Segment income (loss) | 107,927) | 74,170) | (14) | 50,535) | —) |
| Net sales | 853,409) | 733,497) | 626,635) | 761,136) | —) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 12.65% | 10.11% | 0.00% | 6.64% | — |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Segment profit margin = 100 × Segment income (loss) ÷ Net sales
= 100 × 107,927 ÷ 853,409 = 12.65%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | International | International segment profit margin ratio improved from 2020 to 2021 and from 2021 to 2022. |
Net sales
Hershey Co., net sales by reportable segment
US$ in thousands
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| North America Confectionery | 8,536,480) | 7,682,416) | 7,084,860) | 6,815,111) | —) |
| North America Salty Snacks | 1,029,405) | 555,424) | 438,224) | 410,005) | —) |
| International | 853,409) | 733,497) | 626,635) | 761,136) | —) |
| Total | 10,419,294) | 8,971,337) | 8,149,719) | 7,986,252) | —) |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
Segment income (loss)
Hershey Co., segment income (loss) by reportable segment
US$ in thousands
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| North America Confectionery | 2,811,066) | 2,475,873) | 2,274,584) | 2,120,212) | —) |
| North America Salty Snacks | 159,935) | 100,777) | 75,845) | 50,816) | —) |
| International | 107,927) | 74,170) | (14) | 50,535) | —) |
| Total | 3,078,928) | 2,650,820) | 2,350,415) | 2,221,563) | —) |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).