US meat marketer Hormel Foods has reported net income of US$33.8m for its fiscal second quarter, compared with $32.7m in the year-ago period.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The result, which was inline with analysts’ estimates, was helped by Hormel’s shift of focus toward branded products and away from the fresh meat business, as improving margins in some areas of its business helped offset the continued glut of meat on the US market.
Hormel’s revenue for the second quarter to 26 April rose 5% to $1bn from $954.6m a year earlier. Operating profit was $67.5m, a rise of 10% compared to the year-ago period.
The company said that although it is too early to make a definite assessment, Hormel does not see any impact from the recently reported case of mad cow disease in Canada. Joel Johnson, Hormel’s chairman and chief executive, said beef is not a major component of the company’s operations. Some analysts have speculated, however, that the case could shift consumer preferences away from beef and towards other meat such as pork or turkey, which would benefit Hormel, reported Dow Jones News Service.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData
