By Melodie Warner
Hershey Co. (HSY) raised its long-term growth targets as the
candy maker began a comprehensive five-year strategic plan that
includes expanding its five core brands: Hershey's, Reese's,
Hershey's Kisses, Jolly Rancher and Ice Breakers.
The company plans to announce its initiatives at Monday's
investor conference in New York scheduled for 9 a.m. EDT.
Hershey said it has the strategies in place to support long-term
organic-net-sales growth of 5% to 7% and adjusted per-share
earnings growth of 8% to 10%.
Earlier this month, Goldman Sachs added Hershey to its
conviction buy list as the firm expected management to finally
raise its long-term earnings per share growth targets from 6% to
8%.
Hershey said its operating cash flow and strong balance sheet
will also allow its to participate in "value enhancing strategic
acquisitions."
"While acquisitions are difficult to predict, combined with
solid organic growth, we have aspirational goals of reaching $10
billion in net sales by the end of 2017," said President and Chief
Executive John P. Bilbrey.
In April, Hershey reported its first-quarter earnings jumped 24%
as the candy maker saw its pricing efforts pay off with a 11% rise
in sales.
Shares closed Friday at $69.50 and were inactive premarket. The
stock is up 13% so far this year.
Write to Melodie Warner at melodie.warner@dowjones.com