July 30 (Reuters) - Hershey surpassed Wall Street expectations for second-quarter sales and profit on Thursday as higher prices and steady demand for its Reese's chocolates and Dot's Pretzels helped offset a cautious spending environment.
Hershey has spent the past year raising prices to counter elevated cocoa costs, leaving investors closely focused on the resilience of demand for its chocolate products.
The better-than-expected results were driven largely by a 12% jump in prices in the quarter, offsetting
an 8% decline in overall volumes as shoppers remained value-conscious.
Sales in North America Confectionery, the company's largest business, rose 4.2% year-on-year during the reported quarter, while North America Salty Snacks sales increased 22.9%.
The results follow a stronger-than-expected quarter from rival and Cadbury parent Mondelez earlier this week.
"U.S. consumer sentiment remains soft, and shoppers continue to be value-oriented and selective in their spending," CEO Kirk Tanner said in prepared remarks.
Hershey raised the upper end of its annual sales and profit forecast ranges and now expects net sales growth of 4.5% to 5.0% this year, largely in line with analysts' expectations. It forecast adjusted earnings per share of $8.36 to $8.52, compared with analysts' estimate of $8.48 per share.
The company has previously said fall innovation launches, seasonal programs such as S'mores and Summer Sweets and marketing events planned for the second half of the year would drive stronger performance.
Net sales rose 6.6% to $2.79 billion in the quarter ended June 28, topping analysts' estimate of $2.63 billion, according to LSEG data.
Adjusted earnings came in at $1.90 per share, well above an expectation of $1.42 per share.
(Reporting by Savyata Mishra in Bengaluru; Editing by Pooja Desai)
