The Hershey Company stock research
FY2024 Q2
The Hershey (HSY) Gross Margin — Quarter Ended Jun 30, 2024
Revenue, gross profit, and gross margin all declined compared to both the preceding quarter and the same quarter last year. The cost of revenue was lower in absolute terms but remained elevated relative to revenue, compressing the margin.
Gross margin takeaway
Quarter ended Jun 30, 2024 · FY2024 Q2
Revenue, gross profit, and gross margin all declined compared to both the preceding quarter and the same quarter last year. The cost of revenue was lower in absolute terms but remained elevated relative to revenue, compressing the margin.
- The most observable margin driver is the sharper decline in gross profit relative to revenue, as cost of revenue did not fall proportionally. This relationship drove the gross margin lower sequentially and year over year.
- Compared to the prior quarter, revenue was lower and gross margin weakened significantly. Versus the same quarter last year, revenue was also lower and gross margin deteriorated.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
40.2%
Gross profit
$833.7M
Revenue
$2.1B
Cost of revenue
$1.2B
Quarter-over-quarter change
-11.3 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 |
|---|---|---|---|---|
| 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% |
| Jun 30, 2024 | $2.1B | $833.7M | $1.2B | 40.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2024
-11.3 pts
Year-over-year change
Jul 2, 2023
-5.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable margin driver is the sharper decline in gross profit relative to revenue, as cost of revenue did not fall proportionally. This relationship drove the gross margin lower sequentially and year over year.
Compared to the prior quarter, revenue was lower and gross margin weakened significantly. Versus the same quarter last year, revenue was also lower and gross margin deteriorated.
Monitor the trend in cost of revenue relative to revenue to assess whether margin pressure persists.