US confectionery giant Hershey saw its profits increase in 2012 - and cheered the market by upping its guidance for earnings this year.

In the 12 months to the end of December, the company earned US$660.9m, a 5% increase on 2011, it reported today (31 January). Net sales increased 9.3% to $6.64bn.

The company raised its earnings per share forecast to $3.47-$3.56, adding that cost savings and commodity deflation had given the company the flexibility to make increased investments. The company also backed its sales outlook of 5-7% growth, driven primarily by volume.

Shares in Hershey were up 1.98% at $79.83 at 12.44 ET.