Net Profit Margin
since 2005
Calculation
Hershey Co., net profit margin, long-term trends, calculation
| Net profit margin | = | 100 | × | Net income attributable to The Hershey Company1 | ÷ | Net sales1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2022 | 15.79% | = | 100 | × | 1,644,817) | ÷ | 10,419,294) |
| Dec 31, 2021 | 16.47% | = | 100 | × | 1,477,512) | ÷ | 8,971,337) |
| Dec 31, 2020 | 15.69% | = | 100 | × | 1,278,708) | ÷ | 8,149,719) |
| Dec 31, 2019 | 14.40% | = | 100 | × | 1,149,692) | ÷ | 7,986,252) |
| Dec 31, 2018 | 15.11% | = | 100 | × | 1,177,562) | ÷ | 7,791,069) |
| Dec 31, 2017 | 10.42% | = | 100 | × | 782,981) | ÷ | 7,515,426) |
| Dec 31, 2016 | 9.68% | = | 100 | × | 720,044) | ÷ | 7,440,181) |
| Dec 31, 2015 | 6.94% | = | 100 | × | 512,951) | ÷ | 7,386,626) |
| Dec 31, 2014 | 11.41% | = | 100 | × | 846,912) | ÷ | 7,421,768) |
| Dec 31, 2013 | 11.48% | = | 100 | × | 820,470) | ÷ | 7,146,079) |
| Dec 31, 2012 | 9.95% | = | 100 | × | 660,931) | ÷ | 6,644,252) |
| Dec 31, 2011 | 10.34% | = | 100 | × | 628,962) | ÷ | 6,080,788) |
| Dec 31, 2010 | 8.99% | = | 100 | × | 509,799) | ÷ | 5,671,009) |
| Dec 31, 2009 | 8.23% | = | 100 | × | 435,994) | ÷ | 5,298,668) |
| Dec 31, 2008 | 6.07% | = | 100 | × | 311,405) | ÷ | 5,132,768) |
| Dec 31, 2007 | 4.33% | = | 100 | × | 214,154) | ÷ | 4,946,716) |
| Dec 31, 2006 | 11.31% | = | 100 | × | 559,061) | ÷ | 4,944,230) |
| Dec 31, 2005 | 10.20% | = | 100 | × | 493,244) | ÷ | 4,835,974) |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in thousands
The financial performance from 2005 to 2022 is characterized by consistent top-line growth and a long-term expansion of net profit margins, despite periodic volatility in net income.
- Revenue Trajectory
- Net sales exhibited a steady upward trend, increasing from approximately $4.84 billion in 2005 to over $10.42 billion by 2022. This represents a continuous expansion of the revenue base over the 17-year period, with sales more than doubling.
- Profitability Volatility
- The net profit margin experienced significant contractions at two distinct intervals. A sharp decline occurred in 2007, where the margin dropped to its lowest point of 4.33%. A secondary contraction was observed in 2015, with the margin falling to 6.94%. These fluctuations indicate periods where expense growth or one-time charges disproportionately affected the bottom line relative to sales.
- Margin Expansion and Stabilization
- Following the 2015 dip, a period of sustained margin expansion began. From 2018 through 2022, net profit margins remained consistently elevated, fluctuating within a higher range of 14.40% to 16.47%. The peak margin of 16.47% was achieved in 2021, suggesting an improvement in operational efficiency and cost management during the latter stage of the period.
- Net Income Growth
- Net income attributable to the company rose from $493.2 million in 2005 to $1.64 billion in 2022. While revenue growth was linear, net income growth was more aggressive in the final five years of the analysis, contributing to the overall increase in the net profit margin from 10.20% at the start of the period to 15.79% at the conclusion.
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Comparison to Competitors
Hershey Co., net profit margin, long-term trends, comparison to competitors
| Hershey Co. | Coca-Cola Co. | Mondelēz International Inc. | PepsiCo Inc. | Philip Morris International Inc. | |
|---|---|---|---|---|---|
| Dec 31, 2022 | 15.79% | 22.19% | 8.63% | 10.31% | 28.49% |
| Dec 31, 2021 | 16.47% | 25.28% | 14.97% | 9.59% | 29.00% |
| Dec 31, 2020 | 15.69% | 23.47% | 13.37% | 10.12% | 28.08% |
| Dec 31, 2019 | 14.40% | 23.94% | 14.96% | 10.89% | 24.11% |
| Dec 31, 2018 | 15.11% | 20.20% | 13.03% | 19.35% | 26.70% |
| Dec 31, 2017 | 10.42% | 3.52% | 11.28% | 7.65% | 20.99% |
| Dec 31, 2016 | 9.68% | 15.59% | 6.40% | 10.08% | 26.11% |
| Dec 31, 2015 | 6.94% | 16.60% | 24.52% | 8.65% | 25.65% |
| Dec 31, 2014 | 11.41% | 15.43% | 6.38% | 9.77% | 25.17% |
| Dec 31, 2013 | 11.48% | 18.32% | 11.09% | 10.15% | 27.47% |
| Dec 31, 2012 | 9.95% | 18.78% | 8.65% | 9.43% | 28.05% |
| Dec 31, 2011 | 10.34% | 18.42% | 6.49% | 9.69% | 27.63% |
| Dec 31, 2010 | 8.99% | 33.63% | 8.36% | 10.93% | 26.68% |
| Dec 31, 2009 | 8.23% | 22.02% | 7.48% | 13.75% | 25.33% |
| Dec 31, 2008 | 6.07% | 18.18% | 6.87% | 11.89% | 26.80% |
| Dec 31, 2007 | 4.33% | 20.73% | 6.95% | 14.33% | — |
| Dec 31, 2006 | 11.31% | 21.09% | 8.91% | 16.06% | — |
| Dec 31, 2005 | 10.20% | 21.09% | 7.72% | 12.52% | — |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Food, Beverage & Tobacco)
Hershey Co., net profit margin, long-term trends, comparison to sector (food, beverage & tobacco)
| Hershey Co. | Food, Beverage & Tobacco | |
|---|---|---|
| Dec 31, 2022 | 15.79% | 15.68% |
| Dec 31, 2021 | 16.47% | 17.28% |
| Dec 31, 2020 | 15.69% | 16.69% |
| Dec 31, 2019 | 14.40% | 17.04% |
| Dec 31, 2018 | 15.11% | 19.88% |
| Dec 31, 2017 | 10.42% | 9.81% |
| Dec 31, 2016 | 9.68% | 13.66% |
| Dec 31, 2015 | 6.94% | 16.45% |
| Dec 31, 2014 | 11.41% | 13.18% |
| Dec 31, 2013 | 11.48% | 15.47% |
| Dec 31, 2012 | 9.95% | 15.02% |
| Dec 31, 2011 | 10.34% | 13.67% |
| Dec 31, 2010 | 8.99% | 17.42% |
| Dec 31, 2009 | 8.23% | 15.85% |
| Dec 31, 2008 | 6.07% | 14.49% |
| Dec 31, 2007 | 4.33% | 13.48% |
| Dec 31, 2006 | 11.31% | 14.73% |
| Dec 31, 2005 | 10.20% | 12.90% |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Consumer Staples)
Hershey Co., net profit margin, long-term trends, comparison to industry (consumer staples)
| Hershey Co. | Consumer Staples | |
|---|---|---|
| Dec 31, 2022 | 15.79% | 6.11% |
| Dec 31, 2021 | 16.47% | 6.21% |
| Dec 31, 2020 | 15.69% | 6.22% |
| Dec 31, 2019 | 14.40% | 4.62% |
| Dec 31, 2018 | 15.11% | 6.05% |
| Dec 31, 2017 | 10.42% | 5.52% |
| Dec 31, 2016 | 9.68% | 5.88% |
| Dec 31, 2015 | 6.94% | 5.62% |
| Dec 31, 2014 | 11.41% | 6.00% |
| Dec 31, 2013 | 11.48% | 6.75% |
| Dec 31, 2012 | 9.95% | 6.65% |
| Dec 31, 2011 | 10.34% | 6.99% |
| Dec 31, 2010 | 8.99% | 7.59% |
| Dec 31, 2009 | 8.23% | 6.93% |
| Dec 31, 2008 | 6.07% | 6.75% |
| Dec 31, 2007 | 4.33% | 6.11% |
| Dec 31, 2006 | 11.31% | 6.35% |
| Dec 31, 2005 | 10.20% | 6.29% |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).