The Hershey Company stock research
FY2024 Q1
The Hershey (HSY) Gross Margin — Quarter Ended Mar 31, 2024
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Cost of revenue was slightly lower than the year-ago quarter but higher than the preceding quarter, resulting in an improved gross margin.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q1
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Cost of revenue was slightly lower than the year-ago quarter but higher than the preceding quarter, resulting in an improved gross margin.
- The gross margin rose compared to both the prior quarter and the same quarter last year, driven by a stronger increase in gross profit relative to the cost of revenue.
- Versus the preceding quarter, revenue and gross profit improved substantially, while cost of revenue increased at a slower pace, leading to a higher gross margin. Compared to the same quarter one year earlier, revenue and gross profit were also higher, with cost of revenue slightly lower, contributing to margin expansion.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
51.5%
Gross profit
$1.7B
Revenue
$3.3B
Cost of revenue
$1.6B
Quarter-over-quarter change
+9.3 pts
Year-over-year change
+5.3 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 |
|---|---|---|---|---|
| Jul 2, 2023 | $2.5B | $1.1B | $1.4B | 45.5% |
| Oct 1, 2023 | $3.0B | $1.4B | $1.7B | 44.9% |
| Dec 31, 2023 | $2.7B | $1.1B | $1.5B | 42.3% |
| Mar 31, 2024 | $3.3B | $1.7B | $1.6B | 51.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2023
+9.3 pts
Year-over-year change
Apr 2, 2023
+5.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin rose compared to both the prior quarter and the same quarter last year, driven by a stronger increase in gross profit relative to the cost of revenue.
Versus the preceding quarter, revenue and gross profit improved substantially, while cost of revenue increased at a slower pace, leading to a higher gross margin. Compared to the same quarter one year earlier, revenue and gross profit were also higher, with cost of revenue slightly lower, contributing to margin expansion.
Monitor the trajectory of cost of revenue relative to revenue to assess whether margin improvement can be sustained.