Operating Profit Margin
since 2005
Calculation
Hershey Co., operating profit margin, long-term trends, calculation
| Operating profit margin | = | 100 | × | Operating profit1 | ÷ | Net sales1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2022 | 21.70% | = | 100 | × | 2,260,787) | ÷ | 10,419,294) |
| Dec 31, 2021 | 22.78% | = | 100 | × | 2,043,722) | ÷ | 8,971,337) |
| Dec 31, 2020 | 21.87% | = | 100 | × | 1,782,698) | ÷ | 8,149,719) |
| Dec 31, 2019 | 19.98% | = | 100 | × | 1,595,952) | ÷ | 7,986,252) |
| Dec 31, 2018 | 20.84% | = | 100 | × | 1,623,664) | ÷ | 7,791,069) |
| Dec 31, 2017 | 16.96% | = | 100 | × | 1,274,641) | ÷ | 7,515,426) |
| Dec 31, 2016 | 16.21% | = | 100 | × | 1,205,783) | ÷ | 7,440,181) |
| Dec 31, 2015 | 14.05% | = | 100 | × | 1,037,759) | ÷ | 7,386,626) |
| Dec 31, 2014 | 18.72% | = | 100 | × | 1,389,575) | ÷ | 7,421,768) |
| Dec 31, 2013 | 18.75% | = | 100 | × | 1,339,675) | ÷ | 7,146,079) |
| Dec 31, 2012 | 16.72% | = | 100 | × | 1,111,148) | ÷ | 6,644,252) |
| Dec 31, 2011 | 17.35% | = | 100 | × | 1,055,028) | ÷ | 6,080,788) |
| Dec 31, 2010 | 15.96% | = | 100 | × | 905,298) | ÷ | 5,671,009) |
| Dec 31, 2009 | 14.37% | = | 100 | × | 761,590) | ÷ | 5,298,668) |
| Dec 31, 2008 | 11.49% | = | 100 | × | 589,898) | ÷ | 5,132,768) |
| Dec 31, 2007 | 9.28% | = | 100 | × | 458,827) | ÷ | 4,946,716) |
| Dec 31, 2006 | 20.08% | = | 100 | × | 992,558) | ÷ | 4,944,230) |
| Dec 31, 2005 | 17.80% | = | 100 | × | 860,911) | ÷ | 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 analysis of the financial data over the period from 2005 to 2022 reveals several notable trends in operating profit, net sales, and operating profit margin.
- Operating Profit
- The operating profit shows a general upward trend throughout the years. Starting at approximately $861 million in 2005, the figure increased significantly, despite a dip observed in 2007 where it fell to around $459 million. After 2007, there was a recovery and consistent growth with operating profit peaking at about $2.26 billion in 2022. This reflects a positive trajectory in profitability, especially notable after 2008 with sustained improvement and some fluctuations in the middle years, such as a slight decline in 2014.
- Net Sales
- Net sales steadily increased over the 18-year span, beginning at roughly $4.8 billion in 2005 and nearly doubling to over $10.4 billion by 2022. Growth was relatively consistent without major setbacks, indicating steady demand and successful revenue generation. The pace of increase was particularly strong in the latter years, especially between 2020 and 2022, which saw an accelerated rise in net sales.
- Operating Profit Margin
- The operating profit margin experienced variability across the years. It started at 17.8% in 2005 and reached its lowest point in 2007 at 9.28%, indicating a reduced operational efficiency or increased costs during that year. Afterward, margins improved steadily, peaking at 22.78% in 2021 before a slight decrease to 21.7% in 2022. The margin's recovery and maintenance above 20% in recent years suggest improved cost management and profitability relative to sales.
In summary, the company exhibited robust financial performance, with net sales and operating profits generally rising over the analyzed period. The oscillations in operating profit margin highlight some variability in profit efficiency, but the overall trend reflects enhanced profitability and sales growth toward the end of the period.
Comparison to Competitors
Hershey Co., operating 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 | 21.70% | 25.37% | 11.22% | 13.33% | 38.56% |
| Dec 31, 2021 | 22.78% | 26.67% | 16.20% | 14.04% | 41.32% |
| Dec 31, 2020 | 21.87% | 27.25% | 14.50% | 14.32% | 40.66% |
| Dec 31, 2019 | 19.98% | 27.06% | 14.86% | 15.32% | 35.33% |
| Dec 31, 2018 | 20.84% | 27.31% | 12.77% | 15.64% | 38.40% |
| Dec 31, 2017 | 16.96% | 21.18% | 13.54% | 16.54% | 40.01% |
| Dec 31, 2016 | 16.21% | 20.61% | 9.91% | 15.58% | 40.53% |
| Dec 31, 2015 | 14.05% | 19.70% | 30.02% | 13.25% | 39.65% |
| Dec 31, 2014 | 18.72% | 21.11% | 9.47% | 14.37% | 39.31% |
| Dec 31, 2013 | 18.75% | 21.83% | 11.25% | 14.61% | 43.29% |
| Dec 31, 2012 | 16.72% | 22.45% | 10.39% | 13.91% | 44.18% |
| Dec 31, 2011 | 17.35% | 21.82% | 12.25% | 14.48% | 42.90% |
| Dec 31, 2010 | 15.96% | 24.06% | 11.51% | 14.41% | 41.16% |
| Dec 31, 2009 | 14.37% | 26.56% | 13.68% | 18.61% | 40.10% |
| Dec 31, 2008 | 11.49% | 26.44% | 9.04% | 16.03% | 39.87% |
| Dec 31, 2007 | 9.28% | 25.13% | 11.63% | 18.16% | — |
| Dec 31, 2006 | 20.08% | 26.19% | 13.17% | 18.33% | — |
| Dec 31, 2005 | 17.80% | 26.34% | 13.93% | 18.19% | — |
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).