Hershey’s (HSY -1.9%) Q2 net income increased 5.4% Y/Y to $168.2M from $159.5M in the same quarter a year ago.
60% of overall volume growth was derived from new product offerings, with core products contributing the remaining 40%.
Revenue rose 4.6% to $1.58B from $1.51B Y/Y.
Due to increased input costs, the company reported a gross margin of 45.5%, 210 basis points lower than the gross margin in Q2 2013.
Hershey's expects full-year 2014 net sales growth to be around the low end of its long-term 5-7% target due to the impact of price increases and foreign currency exchange rates.