Hershey on Thursday announced the sale of two of its international businesses as it continues to shift its efforts to U.S. snacking.
Hershey has been focusing on broadening its snacks business, including its recent acquisition of Skinny Pop parent Amplify Brands for $1.6 billion. Those efforts came after previous attempts at expanding internationally stumbled.
The chocolate company said it has sold Shanghai Golden Monkey, the Chinese candy company it bought in 2014, as well Tyrrells, the U.K. chip business it acquired through its purchase of Skinny Pop parent Amplify for $1.6 billion.
Shanghai Golden Monkey Food Joint Stock in China, meant to be a launching pad for Hershey in the region, faltered when the founder left early on and the chocolate market dipped.
Now, with the global confectionery market dominated by players like Nestle, Mars and Mondelez, it’s tough to cobble together an international platform.
“We’ve identified the U.S. as our No. 1 priority,” Hershey CEO Michele Buck previously told CNBC.
Still, Hershey on Thursday stressed it continues to support its international business, even if not top priority. Sales for its global business increased in the second quarter 3.1 percent to $191.7 million. The segmented recorded $16.6 million in net income, up from $8.4 million the year prior.
More broadly on Thursday, Hershey topped Wall Street’s estimates for both quarterly sales and profit.
Hershey also said it recorded impairment charges on both its Tyrrells and Shanghai Golden Monkey businesses during the quarter.
Shares were up more than 6 percent in trading midday Thursday.
— With assistance by Lauren Hirsch