hershey vs kraft

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Horizontal Analysis of Kraft vs Hershey:

Horizontal Analysis of Kraft vs Hershey

Growth in Cash Accounts:

Growth in Cash Accounts Kraft saw growth of 69% Hershey's saw growth of 584%

Sales Growth:

Sales Growth Hersheys - 7% Sales Increase 104% Profit Increase (2007-2009) Kraft- 13.3% Sales Increase 10.7% Profit Increase (2007-2009)

Cost of Sales:

Cost of Sales Hershey's cost of sales increased 2% from 2007 to 2008 and decreased 4% from 2008 to 2009. Kraft’s cost of sales increased 18.7% from 2007 to 2008 and saw a decrease of 8.2% from 2008 to 2009. Both companies cost of sales was kept below 68% of revenues

Hershey’s Change in Expenses:

Hershey’s Change in Expenses Selling, Marketing and Administrative expenses grew 20% from 2007 to 2008 and increased at a slower rate of 13% from 2008 to 2009 Business Impairment losses decreased 70% from 2007 to 2009 Interest Expense decreased 24% from 2007 to 2009

Income:

Income Kraft’s Operating Income 2007: $4,178,000,000 2008: $3,843,000,000 2009: $5,524,000,000 Hershey’s Net Income 2007: $214,154,000 2008: $311,405,000 2009: $435,994,000

Conclusion:

Conclusion Both are increasing earnings, at different rates. Both companies have cut their Costs of Sales. Hershey’s earns more profit per sales dollar. Hershey’s is increasing shareholder wealth as shown by their income margin’s large growth from 2007 to 2008.

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