By Mehr Bedi

(Reuters). Hershey Co (NYSE) has raised its annual profits and sales projections on Thursday. The company posted better than expected results and was able to benefit from the strong demand for chocolates during “biggest Halloween ever”.

Reese’s Peanut Butter Cups, KitKat chocolates, and other products saw increased demand after last year’s pandemic that curtailed trick or treating events.

Michele Buck, Chief Executive Officer stated that sales and selling through were both strong as we enter the last days of Halloween. She also said she expects this strength to continue into the holidays season with more family gatherings.

According to the company, category sales for early and middle-season increased 18% and 12% respectively compared to last year and 2019, and trick-or-treat participation is expected to return to pre-pandemic levels.

A National Retail Federation survey shows that Halloween-related merchandise will see consumer spending rise to $10.14 trillion this year, from the current $8.05 Billion in 2020.

Hershey, like other food manufacturers, has increased its prices to compensate for rising freight costs due to disruptions in global supply chains triggered by the pandemic.

A chocolate producer stated that higher demand would offset increased costs.

Hershey predicts that net sales in 2021 will grow by 8% to 9 percent, which is more than the growth rate of between 6% to 8%.

The adjusted earnings per share are expected to be between $6.98-$7.11, which is higher than its $6.79-$6.92 forecast.

According to data from Refinitiv IBES, net sales increased 6.3% to $2.34 Billion in the third quarter compared to estimates of $2.33 Billion.

Hershey beat estimates by earning $2.10 per share on an adjusted basis.