Hormel Foods, the US firm, saw rising demand for meat – and the lower cost of selling it – drive a leap in first-quarter operating profit.
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Operating profit climbed almost 25% to US$161.3m as lower pork costs and higher sales of sandwich meats boosted earnings.
Revenue was up 8% to $1.6bn in the three months to 27 January, a rise of 5% once the contribution from recent acquisitions was stripped out.
Hormel chairman, president and CEO Jeffrey Ettinger said the company had “ample reason to be proud” of its results.
“Our success with adding value to our products and improving the product mix, along with our balanced business model, should allow us to continue to be successful in spite of volatility in the commodity markets,” Ettinger said.
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By GlobalDataInternationally, Hormel said it had “another strong quarter” with earnings up 39%. Hormel’s business outside the US contributes a small proportion of sales and earnings but the company noted its “strong export sales” during the period.
