Hormel Foods today (22 February) recorded a double-digit increase in quarterly sales and earnings due to an “excellent” performance by its Jennie-O Turkey Store and refrigerated foods divisions.
The company recorded a 33.8% increase in net income today (22 February) to reach US$148.8m during its first quarter ended 30 January.
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For the quarter, net sales were up 11.2% to reach $1.9bn, while sales volumes increased 4%.
The company said that its Jennie-O Turkey Store had an “outstanding quarter”, with segment operating profit growing 122% due to better commodity meat prices and improved efficiencies in the supply chain, combined with a 14% increase in sales.
Its refrigerated foods division also recorded a “strong” first quarter, with operating profit increasing 37% on the same quarter last year due to “favourable spreads between hog costs and primal values”. The segment also recorded a 13% increase in sales over the quarter.
However, operating profit in the group’s grocery products and speciality foods segments declined over the quarter due to increased commodity costs.
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By GlobalDataOperating profit in the grocery products division fell 10%, despite sales growing 6%. Meanwhile, operating profit in the speciality foods division fell 12%, while sales grew 2% as higher sales of sugar and blended products were partially offset by lower sales of contract manufacturing and sugar substitute products.
Click here for the company’s full earnings statement. Check back tomorrow for further insight into the company’s plans following its presentation at CAGNY.
