HersheyADM

Hershey vs ADM

This page compares Hershey and ADM, examining how their businesses are structured, their financial performance, and the market context in which they operate. It presents neutral, accessible informatio...

Why It's Moving

Hershey

Hershey Raises 2025 Outlook After Strong Third-Quarter Sales and Strategic Growth Moves

  • Third-quarter consolidated net sales rose 6.5% to $3.18 billion, boosted by a 12.1% increase in international segment sales and strong net price realization of about 6 points.
  • Acquisition of Sour Strips provided an estimated 40 basis point contribution to net sales growth for 2025, helping reinforce Hershey’s product portfolio expansion.
  • CEO Kirk Tanner highlighted sustained brand innovation and strategic investments as key drivers behind raising the company’s full-year outlook for both sales and earnings per share.
Sentiment:
πŸƒBullish
ADM

ADM Shares Slip After Q1 Profit Plunges to Five-Year Low Amid Trade and Biofuel Uncertainty

  • Q1 2025 adjusted EPS fell to 70 cents, significantly below prior year and near the low end of guidance, reflecting squeezed trading and crushing margins.
  • Leadership cited external uncertainty around U.S. trade policies and delayed biofuel rules as key factors curbing demand and profitability.
  • Cost reduction initiatives continue, targeting $200–300 million savings in 2025 with restructuring and job cuts to improve operational resilience despite a higher profit 13% growth in the nutrition segment.
Sentiment:
🐻Bearish

Which Baskets Do They Appear In?

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Investment Analysis

Pros

  • Hershey maintains a dominant position in the US confectionery market with strong brand recognition and a diversified product portfolio.
  • The company has demonstrated consistent revenue growth and profitability, supported by a resilient business model in defensive sectors.
  • Hershey offers a reliable dividend yield, providing income stability for investors amid market volatility.

Considerations

  • Hershey faces margin pressure due to rising input costs and inflation, impacting its adjusted gross margin in recent quarters.
  • Consumer spending on discretionary items like confectionery may weaken during economic downturns, affecting sales growth.
  • International exposure remains limited, with most revenue generated from the US, constraining global diversification benefits.
ADM

ADM

ADM

Pros

  • ADM benefits from a diversified agricultural processing business, providing exposure to global food, feed, and biofuels markets.
  • The company has a strong global footprint and extensive supply chain infrastructure, supporting operational scale and resilience.
  • ADM offers a competitive dividend yield and has demonstrated cost management initiatives to maintain profitability in volatile commodity cycles.

Considerations

  • ADM's earnings are highly sensitive to commodity price fluctuations, which can lead to unpredictable financial performance.
  • The company faces margin compression risks from volatile input costs and competitive pressures in agricultural markets.
  • Regulatory and environmental risks, including changing trade policies and sustainability requirements, could impact future operations.

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