The Hershey Company stock research
FY2023 Q1
The Hershey (HSY) Gross Margin — Quarter Ended Apr 2, 2023
Revenue increased from both the prior quarter and the year-ago quarter, driving higher gross profit. Cost of revenue also rose, resulting in a gross margin that improved sequentially but was slightly lower than the same quarter last year.
Gross margin takeaway
Quarter ended Apr 2, 2023 · FY2023 Q1
Revenue increased from both the prior quarter and the year-ago quarter, driving higher gross profit. Cost of revenue also rose, resulting in a gross margin that improved sequentially but was slightly lower than the same quarter last year.
- The sequential improvement in gross margin was primarily driven by a larger increase in gross profit relative to revenue, while cost of revenue increased at a slower pace.
- Compared to the immediately preceding quarter, revenue and gross profit both increased, and gross margin improved. Compared to the same quarter one year earlier, revenue and gross profit were higher, but gross margin weakened slightly.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
46.3%
Gross profit
$1.4B
Revenue
$3.0B
Cost of revenue
$1.6B
Quarter-over-quarter change
n/a
Year-over-year change
-0.4 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Apr 2, 2023 | $3.0B | $1.4B | $1.6B | 46.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Previous quarter unavailable
n/a
Year-over-year change
Apr 3, 2022
-0.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The sequential improvement in gross margin was primarily driven by a larger increase in gross profit relative to revenue, while cost of revenue increased at a slower pace.
Compared to the immediately preceding quarter, revenue and gross profit both increased, and gross margin improved. Compared to the same quarter one year earlier, revenue and gross profit were higher, but gross margin weakened slightly.
Monitor the company's recent agreement to acquire additional manufacturing capacity for popcorn products, as it may influence future cost of revenue.