Consumer-branded meat and food group Hormel Foods posted a drop in net income for its third quarter as a result of lower earnings from its Jennie-O Turkey and refrigerated foods divisions.
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For the period to 27 July, net income was down 9.5% from US$57.3m to $51.9m.
Operating income was also down 2% from $94.03m to $95.5m.
The company’s Jennie-O Turkey Store business saw its operating profit decline 61% to $8.1m, despite an 11% increase in sales.
Hormel said price increases were not “adequate” enough to offset the $53m increase in feed and fuel input costs incurred at the division during the quarter.
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By GlobalDataOperating profit from Hormel’s refrigerated foods business fell 1% to $36.3m due to higher input costs, despite an 8% rise in sales.
Despite lower profits, Hormel’s group net sales were up from $1.52bn to $1.67bn.
“We continue to generate strong top-line growth in both dollar sales and volume across all five of our operating segments,” said Jeffrey Ettinger, chairman of the board, president and CEO.
