Hershey (HSYFB), the maker of Hershey’s Kisses and Reese’s Peanut Butter Cups, reported a better-than-expected quarterly profit as stronger demand and a shift in the timing of shipments helped to boost sales in North America, its biggest market.
The company also reported its first rise in net sales this year, a 3.7% increase to $1.64 billion that beat the average estimate of $1.61 billion.
Hershey, which rejected a $23 billion buyout offer from Mondelez International (MDLZ) in June, said volume sales were higher than expected in North America as some shipments it expected to make in the third quarter were made in the second.
Promotions also contributed to strong demand in North America, the company said on Thursday.
Hershey said its net sales in North America rose 3.2% to $1.44 billion in the three months ended July 3.
The Hershey, Pennsylvania-based company posted a net profit of $146 million, or 68 cents per share, compared with a loss of $99.9 million, or 47 cents per share, a year earlier.
Excluding items, Hershey earned 85 cents per share, handily beating the average analysts’ estimate of 78 cents per share, according to Thomson Reuters I/B/E/S.
However, the company reduced its full-year net sales forecast, citing slow sales growth in the United States and macroeconomic challenges in China.
Up to Wednesday’s close of $108.19, the company’s shares had risen 11.4% since news of the Mondelez offer became public in late June.