May 1 (Reuters) - Hershey posted a

smaller-than-expected drop in sales for the first quarter and

beat profit estimates on Thursday, helped by steady demand for

its salty snacks business in North America.

Sales in Hershey's North America snack business, home to

Dot's pretzels and SkinnyPop popcorn, got a boost as the company

reduced prices after several quarters of hikes.

Its quarterly organic volumes in the North America salty

snacks business rose 4%, while prices were 3% lower than a year

ago.

The Reese's Peanut Butter Cups maker also maintained its

annual net sales and adjusted earnings forecast, including

estimated tariff-related expenses of about $15 million to $20

million for the second quarter.

The Trump administration's steep import tariffs and

often erratic trade-policy shifts have raised costs for many

American businesses and clouded their outlook.

Peer Mondelez International ( MDLZ ) had also flagged

potential uncertainty around tariffs, after the chocolate maker

beat quarterly profit estimates.

Hershey benefited from a 2% price hike for its overall

business as well as decreased advertising and marketing expenses

that helped shield its margins from higher costs of

manufacturing and commodities such as cocoa.

The company's net sales declined 13.8% to $2.81 billion from

a year ago. Analysts had estimated a 14.1% decline to $2.79

billion, per data compiled by LSEG.

On an adjusted basis, the company reported profit of $2.09

per share for the quarter ended March 30, compared with

estimates of $1.95 per share.

Shares of the company were marginally up at $167.80 in

premarket trading.