Hershey History Financial Report Analysis Company Profile
Financial report analysis of Hershey Foods Corporation, Hershey Foods History
INTRODUCTION
Hershey Foods Corporation is engaged, with its subsidiaries, in the manufacture, distribution and sale of confectionery and grocery products. The Company's principal product groups include confectionery products sold in the form of bar goods, bagged items and boxed items, as well as grocery products in the form of baking ingredients, chocolate drink mixes, peanut butter, dessert toppings and beverages. Hershey Foods manufactures confectionery products in a variety of packaged forms and markets them under more than 50 brands. The different packaged forms include various arrangements of the same bar products, such as boxes, trays and bags, as well as a variety of different sizes and weights of the same bar products, such as snack size, standard, king size, large and giant bars..
The Company also manufactures and/or markets grocery products in the baking, beverage, peanut butter and toppings categories. Principal products in the United States include Hershey's, Reese's and Heath baking pieces, Hershey's chocolate milk mix, Hershey's cocoa, Hershey's Chocolate Shoppe ice cream toppings, Hershey's Hot Cocoa Collection hot cocoa mix, Hershey's syrup and Reese's peanut butter. Hershey's chocolate- and strawberry-flavored milks are produced and sold under license by various dairies throughout the United States, using milk mixes manufactured by the Company.
The Company's products are sold primarily to grocery wholesalers, chain grocery stores, candy distributors, mass merchandisers, chain drug stores, vending companies, wholesale clubs, convenience stores, concessionaires and food distributors by full-time sales representatives, food brokers and part-time retail sales merchandisers throughout the United States, Canada and Mexico. In 2002, sales to Wal-Mart Stores, Inc. and subsidiaries amounted to approximately 21% of Hershey Foods' total net sales.
Hershey Foods manufactures, imports, markets, sells and distributes chocolate products in Brazil under the Hershey's brand name. Additional products in Brazil include IO-IO hazelnut creme items and chocolate and confectionery products sold under the Visconti brand name. In China, Japan, Korea and the Philippines, the Company imports and/or markets selected confectionery and grocery products. It also markets confectionery and grocery products in over 90 countries worldwide.
ANALYSIS OF BALANCE SHEET
ASSETS
Total assets increased $233.1 million, or 7%, as of December 31, 2002, primarily as a result of higher cash and cash equivalents, prepaid expenses and other current assets, and other non-current assets, partially offset by lower deferred income taxes, inventories, property, plant, and equipment, and goodwill.
Current assets increased by $96.1 million, or 8%, principally reflecting increased cash and...