US food group Hormel Foods has booked a drop in first-half earnings, hurt by costs related to its Skippy acquisition, higher grain costs and weak turkey prices.
In the six months ended 28 April, net profit dropped to US$255.2m. This compared to earnings of $256.3m last year.
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Operating profit dropped 1.4% to $385.1m. Sales, however, climbed 5.4% to $4.27bn.
“We were pleased to deliver sales and volume growth, despite harvest reductions in both our refrigerated foods and Jennie-O Turkey Store operations,” said CEO said Jeffrey Ettinger. “In terms of operating profits, improved results by our specialty foods, grocery products, and international & other segments did not fully offset weaker results by our Jennie-O Turkey Store segment.”
The company maintained its full-year EPS guidance range of $1.93 to $2.03.
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