Hershey (NYSE:HSY) reports Q1 profit ahead of estimates as its gross margin rate of 47.5% topped the consensus estimate of 46.8%. Cost savings initiatives and supply chain productivity improvement helped lift the margin rate.
Net volume was up 0.7% during the quarter, while the company realized a two point benefit due to lower levels of trade.
Looking ahead, Hershey says it expects full-year sales to fall at the low end of its range for 2% to 3% growth and sees EPS of $3.31 to $3.55.
"We anticipate that our innovation, as well as our consumer marketing plans, will enable us to build on our first-quarter U.S. CMG market share gains," says CEO Michele Buck.
Shares of Hershey are up 0.64% premarket to $109.15.
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