Financial Analysis of Hershey Corporation Essay example

INTRODUCTION The Hershey Company is North Americas largest manufacturer of quality chocolate and sugar confectionary products. They produce and sell a wide variety of confections from the familiar favorites such as Hersheys, Reeses, and Hershey Kisses to the Ice Breaker line of gums and mints. They have also emerged as the forerunner in the dark and premium chocolate category (http://www.thehersheycompany.com/). This paper will discuss the history of The Hershey Company, general facts and information pertaining to operations as well as industry statistics including trends and key competitors. Furthermore, this paper will examine the financial position of The Hershey Company, through use of ratio analyses and forecasting models in†¦show more content†¦When combined the international operations share most of the aggregation criteria and represent less than 10% of consolidated revenues, operating profits and assets. Industry Overview The confectionery industry while having some difficulty with consumer demands concerning health seems to be a quite lucrative industry. The food and beverage industry as a whole sustained sales and profitable growth due to improved efficiencies and new and innovative product lines. The major problem in the food and beverage industry continues to be the rising costs of raw materials and the uncertainty of being able to increase the price of their products (MergentOnline.com). The Hershey Company and other chocolate confectioners are worried with civil unrest in the worlds largest cocoa- producing country, The Ivory Coast, where prices have remained volatile. During 2006, cocoa prices traded between .67 and .75 per pound, based on the New York Board of Trade futures contract (The Hershey Company Annual Report). As mentioned earlier, health conscience consumers also play a huge part in the success or failure of this industry. Although the majority of consumers are stil l purchasing junk food and the like, there are a growing number of consumers that demand a healthier option. Several companies including The Hershey Company, MM Mars, and Nestle have begun to provide a spectrum of healthier products. According to The Washington Times, companies areShow MoreRelatedEssay on Acc 504965 Words   |  4 PagesExamYour Course Project Financial Statement Analysis Project—A Comparative Analysis of Oracle Corporation and Microsoft Corporation Here is the link for the financial statements for Oracle Corporation for the fiscal year ending 2011. First, select 2011 using the drop-down arrow labeled for Year on the right-hand side of the page, and then select Annual Reports using the drop-down arrow labeled Filing Type on the left-hand side of the page. 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Further in March 2002, the Trust Board decided to make a decision that was more in the schools favor, which was making sure that its holdings were less concentrated in Hershey stock. Moreover, the composition of the board movedRead MoreHershe y Case Study3050 Words   |  13 PagesCase 1: Hershey Christopher Dobbins MBA 710 July 24th, 2012 Dr. Moscato Introduction to Hershey Hershey Foods Corporation is number one in the confectionary foods market. Although many people associate Hershey with chocolate, the company started when founder Milton Hershey decided to produce caramel in 1894.They are most famous for their major candy brands such as Hershey s, Reese s, Kit Kat, Kisses, Twizzlers, Jolly Rancher etc. However, Hershey also sells grocery products including: baking