The Hershey Company faces risks from fluctuating commodity prices (especially cocoa), increased supply chain costs, potential recession, changing consumer behavior, and geopolitical uncertainty (Russia-Ukraine conflict). Higher raw material and energy costs, along with potential sales volume declines due to pricing elasticity, are also significant concerns. The company's international operations and business realignment activities also present risks.
Financial Upside
The company has a strong liquidity position, with $615 million in cash and cash equivalents. They have existing sources of liquidity and access to capital markets to meet short- and long-term needs. The company's share repurchase programs and potential cost savings from business realignment initiatives could also contribute to financial upside.
