08:47 AM EDT, 05/03/2024 (MT Newswires) -- Hershey (HSY) on Friday reported better-than-expected first-quarter results buoyed by price hikes and volume gains, while the confectionery company maintained its full-year outlook.

Adjusted earnings came in at $3.07 per share for the March quarter, up from $2.96 the year before and surpassing the Capital IQ-polled consensus of $2.76. Sales advanced 8.9% to $3.26 billion, topping the Street's view for $3.11 billion, as the company benefited from price increases of 5.2% and volume growth of 3.4%.

Hershey shares rose 1.1% in recent premarket activity.

North America confectionery sales climbed 10% to $2.71 billion, driven mainly by accelerated shipments related to the implementation of Hershey's new enterprise resource planning system that was completed in April. North America salty snacks ticked up 1.9% to $275.1 million, boosted by higher prices. International sales rose 1.8% to $270.3 million with growth in Europe and Latin America offset by planned declines in Mexico.

Gross margin expanded by 520 basis points to 51.5% for the quarter driven by price hikes and derivative mark-to-market gains. Selling, marketing and administrative expenses widened to nearly $618 million from $581.6 million year-on-year, according to the company.

"We are off to a strong start and remain on track to deliver our business strategies and financial commitments for the year," Chief Executive Michele Buck said in a statement. "Our investments in innovation, marketing and in-store execution are driving consumer engagement and improving market share performance across segments."

Hershey continues to project adjusted EPS of $9.59 for the 2024 financial year, in line with the Street's current forecast. The company also recorded per-share adjusted EPS of $9.59 last year. Sales are still pegged to grow between 2% and 3% for the current year, while the market is looking for revenue of $11.47 billion.

"As we continue to navigate recent volatility in the business, we remain committed to strategies that drive long-term growth and sustainable value creation," according to Buck.

Price: 198.00, Change: +2.12, Percent Change: +1.08