Financial Analysis of Hershey Corporation Essay

7667 Words Feb 15th, 2008 31 Pages
INTRODUCTION

The Hershey Company is North America's largest manufacturer of quality chocolate and sugar confectionary products. They produce and sell a wide variety of confections from the familiar favorites such as Hershey's, Reese's, 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
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Key Competitors
Tootsie Roll Industries

Tootsie Roll Industries began in 1896 when Austrian immigrant Leo Hirshfield brought his recipe for a chewy, chocolaty candy to the United States. His recipe has since turned into a product line that consists of such candies as Tootsie Roll, Charm's, Sugar Daddies, and Junior Mints. Tootsie Roll Industries is number 31 on the market capitalization rankings, mostly because of the conservative financial posture and their beliefs of not jeopardizing long-term growth for short-term results (Tootsieroll.com). Tootsie Roll's five year average net profit margin is higher at 15.47% than The Hershey Company's 11.01%, due to smaller product lines and lower interest expense.
Cadbury Schweppes PLC Cadbury Schweppes PLC is a United Kingdom based company that sells and markets its products internationally and trades in the non-alcoholic beverage industry. It is included in this industry because of it's beverage sales of carbonated beverages and sodas. Cadbury Schweppes operates four market segments including one America's confectionery of which 60% of its sales come from the United States and Canada (reuters.com). Cadbury Schweppes is the third largest in market capitalization for its industry, being beaten by only The Coca-Cola Company and PepsiCo (reuters.com). Cadbury Schweppes PLC was chosen for this paper because of its America's Confectionery market segment. Cadbury

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