Chocolate maker Hershey Foods Corp. Wednesday posted a 17-percent jump in quarterly profit on the back of sales of new candies and nutrition bars.
Hershey has been focused on its new product pipeline and limited edition products in order to help boost sales. Key products in the fourth quarter included snack bar versions of its Reese's and Hershey's brands.
The company also expanded its product line by creating cookies based on several of its popular candy bars.
Profit for the maker of Hershey Kisses and Reese's peanut butter cups was $170.3 million, or 68 cents per share, up from $144.9 million, or 55 cents a share. Analysts on average had forecast 66 cents a share, according to Reuters Estimates.
Sales rose 7.5 percent, to $1.27 billion. The company said it gained market share in all outlets.
The company also forecast a 9 to 11 percent increase in diluted earnings per share in 2005, with sales near the top of its 3 to 4 percent long-term goal, before acquisitions. In November, Hershey announced a $112.4 million deal to acquire Mauna Loa Macadamia Nut Corp.
Analysts on average forecast profit of $2.29 a share for 2005, which would be an 11 percent increase over 2004 earnings per share after a one-time tax-related gain in 2004.
Hershey said in December that it would raise prices to offset increased costs for raw packaging materials, fuel, utilities, transportation and employee benefits.
The price of the company's standard namesake chocolate bar will rise to 59 cents from 55 cents, the company said.
