Hershey Co. Sec 10-K
Hershey Inc.
April 23, 2013
Hershey Inc.
The purpose of this analysis is to analyze the Hershey Inc, 10-K report with ratios, comparisons in the sector, growth and structure, differentials on the statements and other factors that show the company’s current financial health in the world.
Background
The Hershey Company engages in the manufacture, marketing, distribution, and sale of various types of chocolate and confectionery, refreshment and snack products, and food and beverage enhancers in the United States and internationally. The Hershey Company sells its products through sales representatives and food brokers, primarily to wholesale distributors, chain grocery stores, mass merchandisers, chain drug stores, vending companies, wholesale clubs, convenience stores, dollar stores, concessionaires, department stores, and natural food stores. The company was founded in 1894 and is based in Hershey, Pennsylvania. The Hershey Company went public on the New York Stock Exchange (NYSE) in 1922. The call letters are HSY.
Raw Materials
Raw materials have a significant impact on Hershey Inc and the prices that the firm pays in order to produce chocolate and other merchandise. The 10-K shows that during 2011, average cocoa futures contract prices traded in a range between $0.99 and $1.55 per pound, based on the Intercontinental Exchange futures contract. During the first half of 2011, cocoa futures traded at prices that were near 30-year highs. During the fourth quarter of 2011, cocoa futures prices declined significantly due to a very large West African crop flourishing which resulted in a substantial global surplus for the year. When the prices of cocoa drop because of the crops having positive performance, the manufacturing prices drop and will result in greater profitability. The essence of manufacturing is to provide quality goods while reaching efficiency. Hershey sells these products in 70 countries and consumer loyalty is essential to
April 23, 2013
Hershey Inc.
The purpose of this analysis is to analyze the Hershey Inc, 10-K report with ratios, comparisons in the sector, growth and structure, differentials on the statements and other factors that show the company’s current financial health in the world.
Background
The Hershey Company engages in the manufacture, marketing, distribution, and sale of various types of chocolate and confectionery, refreshment and snack products, and food and beverage enhancers in the United States and internationally. The Hershey Company sells its products through sales representatives and food brokers, primarily to wholesale distributors, chain grocery stores, mass merchandisers, chain drug stores, vending companies, wholesale clubs, convenience stores, dollar stores, concessionaires, department stores, and natural food stores. The company was founded in 1894 and is based in Hershey, Pennsylvania. The Hershey Company went public on the New York Stock Exchange (NYSE) in 1922. The call letters are HSY.
Raw Materials
Raw materials have a significant impact on Hershey Inc and the prices that the firm pays in order to produce chocolate and other merchandise. The 10-K shows that during 2011, average cocoa futures contract prices traded in a range between $0.99 and $1.55 per pound, based on the Intercontinental Exchange futures contract. During the first half of 2011, cocoa futures traded at prices that were near 30-year highs. During the fourth quarter of 2011, cocoa futures prices declined significantly due to a very large West African crop flourishing which resulted in a substantial global surplus for the year. When the prices of cocoa drop because of the crops having positive performance, the manufacturing prices drop and will result in greater profitability. The essence of manufacturing is to provide quality goods while reaching efficiency. Hershey sells these products in 70 countries and consumer loyalty is essential to
References: The Hershey Company, (2013) Retrieved from http://www.thehersheycompany.com/investors.aspx Hershey Co 10K (2012). Retrieved from http://www.hersheys.com/assets/pdfs/hersheycompany/TheHersheyCompany_10K_20120217.pdf