Hershey (NYSE:HSY) has been on a strategic mission to drive revenue/earnings growth by adapting to changing consumer snacking trends and cost controls. In March 2017, the company announced that it would cut about 15 percent of its workforce as part of a cost-savings program to increase profit margins. At such time, the company reiterated its 2017 earnings estimates and identified its new cost-savings program by the name "Margin for Growth," which aims to improve its overall operating profit margin through supply chain optimization, a streamlined operating model and decreased administrative expenses, with savings primarily being achieved in 2018-19. The company also saw such program as providing flexibility and funds to deliver on its financial objectives. HSY anticipates that the program will result in total cumulative pre-tax charges of $375 million to $425 million. With such efforts, HSY is seeking the appropriate level of innovation, marketing plans and consumer and customer expertise to drive net sales growth, especially in its North America confectionery/snacks business. The is also making investments to grow its core confectionery business and expand its breadth by capturing new usage opportunities and participating in trending product categories.
