Overview

• U.S. confectionery maker's Q2 net sales declined 1% yr/yr

• Q2 net earnings per share fell 22% yr/yr

• Company cites timing of seasonal sales, higher input costs, and increased trade promotions for declines

Outlook

• Company expects lower cocoa and chocolate costs in second half 2026 and into 2027

Result Drivers

• SALES TIMING - Co said timing of seasonal sales between Q2 and Q3 negatively affected Q2 results

• HIGHER INPUT COSTS - Gross profit margins were hurt by higher cocoa, chocolate, energy, and packaging costs

• INCREASED TRADE PROMOTIONS - Higher trade promotions and advertising reduced reported net sales

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q2 EPS		$0.18

Reuters Recommended Reads

• July 21 - Chocolate maker Lindt may cut prices in some countries to stimulate growth

• July 21 - Snacks maker Utz Brands to be taken private in $2.9 billion deal

• July 23 - Indonesia's Q2 cocoa grinding up 30% q/q, industry ministry says

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.