Hormel Foods has booked a jump in first-quarter sales and earnings, boosted by the acquisition of the Skippy peanut butter brand.
The company said today (20 February) that sales in the three months to 26 January increased 6% to US$2.24bn.
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Top line gains were driven by the contribution of Skippy, which Hormel acquired from Nestle last year. Skippy boosted revenue in the grocery and international divisions, which rose 20.2% and 24.2% respectively. This more than offset a 16% decline at the group’s specialty foods unit.
Operating profit increased 20.4%, climbing from $203.5m to $245m in the quarter. Net earnings rose to $153.5m up from $129.7m in the comparable period of last year, an increase of 18%.
Jeffrey Ettinger, chairman, president and CEO commented: “”Our recently acquired Skippy peanut butter business was a strong contributor to our grocery products segment results this quarter. Our refrigerated foods segment benefited from strong demand for our products and positive pork operating margins.”
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By GlobalData
