Hormel Foods has posted a 7% rise in full-year profits after a robust fourth-quarter boosted the US company’s results.
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Hormel booked operating income of US$483.9m for the year to the end of September. Sales rose 8% to $6.2bn, or 6% on an organic basis.
“The strength of the fourth quarter’s results provides good momentum heading into fiscal 2008,” said Jeffrey Ettinger, chairman, president and CEO at Hormel.
Sales rose 7% during the last three months of Hormel’s fiscal 2007 with operating profit also rising by 7%.
Quarterly earnings were driven by Hormel’s Jennie-O Turkey Store business, improved product mix and cost cuts.
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By GlobalDataProfits from Hormel’s grocery division fell 9% during the fourth quarter, despite a 2% rise in sales. Ettinger blamed a “soft quarter” from the company’s Spam and Valley Fresh chunk meats for the fall in earnings. The division posted a 3% rise in profits for the full year.
Profits from the company’s speciality foods business were also down during the fourth quarter – falling 13% – but Ettinger blamed tough comparisons to a year ago. Annual profits from the business were up 27%.
