Hershey (HSY) Risk Factor Changes

The Hershey Company | 2025 Form 10-K | Page 15

We rely extensively on information systems and technology to manage our business and summarize operating results.

We have been subject to cyber attacks, ransomware, and other security breaches, though these incidents historically have not had a significant impact on our business operations.

We, and our third-party service providers, are regularly the target of rapidly evolving cyber threats, including denial of service attacks, ransomware, spyware, misinformation, phishing/smishing/vishing attacks, busin…

The Hershey Company | 2025 Form 10-K | Page 14

Political, economic and/or financial market conditions could negatively impact our financial results.

For example, the European Union’s Deforestation Regulation (“EUDR”) will require the Company to conduct extensive diligence on seven commodities, including cocoa, palm oil and soy, as well as products derived from the…

Changes in governmental laws, regulations and policies, including taxes and tariffs, could increase our costs and liabilities or impact demand for our products.

Additionally, from time to time we implement business realignment activities to support key strategic initiatives designed to maintain sustainable long-term growth.

The Hershey Company | 2025 Form 10-K | Page 13

Some of the risks of operating internationally have negatively affected our financial condition and results of operations, including the imposition of tariffs on U.S.

In 2025, 2024 and 2023, respectively, we derived approximately 12.3%, 12.8% and 12.7% of our net sales from customers located outside of the United States.

Canada.

The Hershey Company | 2025 Form 10-K | Page 12

•Our ability to react to changes in product category and channel consumption;

The Hershey Company | 2025 Form 10-K | Page 11

Although we use forward contracts and commodity futures and options contracts to hedge commodity prices where possible, commodity price increases ultimately result in corresponding increases in our raw material and en…

•Other events beyond our control such as the impacts on the business or supply chain from international conflicts or geopolitical tensions.

•Trade agreements among producing and consuming nations, including tariffs;

The effects and costs of environmental impacts, or any failure to meet related requirements and expectations, could have a negative impact on our reputation, financial condition and results of operations.

The Hershey Company | 2025 Form 10-K | Page 10

Increased focus on the financial impacts of environment and climate change has led to evolving legislative and regulatory efforts to deal with potential causes and adverse impacts of climate change, including regulati…

The Hershey Company | 2025 Form 10-K | Page 9

effectiveness of our internal control over financial reporting could be adversely affected or our ability to assess those controls adequately could be further delayed.

Additionally, in February 2022, Russia invaded Ukraine and this conflict is still ongoing.

Additionally, from time to time we implement business realignment activities to support key strategic initiatives designed to maintain long-term sustainable growth, such as the International Optimization Program, whic…

2021 were important steps in our journey to expand our breadth in snacking, as they should enable us to bring scale and category management capabilities to a key sub-segment of the warehouse snack aisle.

including our ability to forecast, manufacture or facilitate the shipment of our product, record net sales and collect our outstanding receivables.

Additionally, compliance with new and evolving laws, regulations or industry standards relating to AI may require significant investment and resources, and may limit our ability to use AI, which may result in reputati…

Changes in U.S.

In November 2025, we completed the acquisition of LesserEvil, LLC, previously a privately held company that produces and sells organic popcorn and puffed snack products to retailers and distributors in the United Stat…

Furthermore, artificial intelligence (“AI”) technologies have developed rapidly, and our business may be adversely affected if we cannot successfully integrate AI into our business in a timely, cost-effective, and com…