HERSHEY, PA. — Strong seasonal sell-in and successful implementation of the company’s new Salty Snacks ERP in early October have The Hershey Co. on track to deliver projected full-year sales and earnings targets, said Michele G. Buck, chairman, president and chief executive officer of The Hershey Co.

Ms. Buck’s comments came against the backdrop of strong third-quarter financials that saw the maker of Reese’s, Twizzlers and Jolly Rancher post gains in earnings and sales.

Net income for the third quarter ended Oct. 1 was $518.58 million, equal to $2.60 per share on the common stock, up 30% from $399.5 million, or $2 per share, in the same period a year ago. The most recent quarterly results included costs related to the acquisition of two manufacturing plants from Weaver Popcorn Manufacturing, Inc., the integration of the 2021 acquisition of Dot’s Pretzels, LLC and Pretzels Inc. into the company’s North America Salty Snacks segment and costs related to building and upgrading the company’s new ERP system for implementation across its North America Salty Snacks segment in the fourth quarter of fiscal 2023.

Net sales totaled $3.03 billion, up 11% from $2.73 billion the year before. Organic, constant currency net sales increased 11.1%.

Executives at the company iterated full-year net sales growth of approximately 8%, unchanged from the previous guidance issued following the second quarter. Reported earnings per share growth is expected to be in the range of 13% to 15%, also unchanged from previous guidance.

Operating income in Hershey’s North America Confectionery segment increased 19.9% to $847.5 million on a 9.9% increase in sales to $2.46 billion. Gains were driven by sales growth and gross margin expansion, which more than offset higher brand and capability investments, Hershey said.

“Everyday chocolate sales growth slowed in the third quarter as elasticity increased, as expected,” Ms. Buck said in prepared remarks issued Oct. 26. “We continue to plan for more historical price elasticity in Q4 and 2024. The category has also been impacted by distribution and merchandising reductions at a key retailer over the past several months. Given Hershey’s high share of merchandising and strong gains over the past several years, we have been disproportionately impacted by this change. We are actively partnering to develop solutions that enable our retailers to meet their goals while also capitalizing on the incrementality and expandable nature of our high-margin category to optimize results in 2024.

“As we exit the year, we expect confection retail trends to improve as consumers prioritize seasonal traditions and in-store seasonal merchandising levels remain comparable to prior year.”

Ms. Buck said Hershey sweets retail sales grew nearly 9% in the third quarter behind favorable category trends and strong innovation. Meanwhile, Hershey gum and mint products sales grew nearly 12% in the quarter.

Within its North America Salty Snacks segment, income totaled $57.4 million, up 29% from the same period a year ago. Sales in the segment rose nearly 26% to $345.2 million, driven by volume and price realization.

“Our teams did an excellent job building inventory in the quarter to prepare for our October ERP transition and a fantastic job with implementation,” Ms. Buck said. “The new system is now up and running, and we are successfully taking and shipping orders.

“Dot’s Pretzels had a terrific quarter, driven by strong category growth and share gains in both measured and non-measured channels. After a successful test over the past several months, Dot’s secured permanent distribution in a club retailer, helping drive overall retail sales growth of 36% in the quarter.

“While the pretzel category is performing well, the ready-to-eat popcorn and puff categories slowed considerably in the third quarter as back-to-school multipack purchases were muted and consumers shifted to more filling salty snacks. SkinnyPop and Pirate's Booty were both impacted by these category trends.”

Looking ahead to 2024, Ms. Buck said Hershey has a “robust pipeline of innovation,” which is set to kick off with the launch of Reese’s Caramel.

“Our recent technology and capacity investments in our largest brand will enable us to bring the top category flavors together in a unique way that only Reese can deliver,” she said. “Product testing indicates strong trial and repeat interest, and our customers are excited to partner with us to bring it to life in stores with incremental merchandising.”

Ms. Buck also said Hershey intends to lean into its presence in channels where consumers are increasing trips, including dollar, club and discount stores.