Vending

Hormel Foods boosts Q1 2022 sales, earnings

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March 2, 2022

Hormel Foods Corp. improved its Q1 2022 sales and earnings, fueled by post pandemic demand, according to an earnings release. Highlights included:

Net sales for Q1 2022 ending Jan. 30, 2022 rose 24% from $2.46 billion in Q1 2021 to $3.04 billion. U.S. retail sales rose 17%, U.S. foodservice sales rose 51% while international sales fell 3%.
Net earnings rose from $222.3 million to $239.6 million in the comparative quarters.
Basic and diluted earnings per share both rose from 41 cents to 44 cents.
Net sales for refrigerated foods rose 19% while organic net sales rose 17% and segment profit rose 15%.
Net sales for grocery products rose 48%, while organic net sales rose 7% and segment profit rose 8%.
Net sales for Jennie-O-Turkey store rose 15% while segment profit rose 62%.
International net sales fell 3% while organic net sales fell 6% and segment profit fell 19%.

Demand across all the company's U.S. domestic channels remained elevated, as exhibited by strong growth compared to the prior year and compared to pre-pandemic levels.

The company benefited from pricing actions to offset inflationary pressures across many categories and contributions from the Planters snack nuts business.

Sales for the international channel declined, primarily due to demand softness in China caused by COVID-related restrictions and current export logistics challenges.

Shares traded at $49.54 today against a 52-week range of $40.48-$50.74.

The $3.04 billion in quarterly revenue beat analyst expectations by $120 million, while the GAAP EPS of 44 cents was in line with expectations, according to Seeking Alpha.

"Our foodservice businesses had another outstanding quarter, indicating the value of our direct selling organization and differentiated product portfolio," Jim Snee, chairman of the board, president and chief executive officer, said in the press release. "We also delivered another quarter of growth at retail, led by strong performances from brands such as Columbus, Wholly, Applegate, Hormel Gatherings and Spam, and the contribution of the Planters business. We continue to support our brands with increased advertising across each business segment during the quarter to support our leading positions in the marketplace."

The company expects 2022 net sales between $11.7 billion to $12.5 billion, with diluted EPS between $1.87 and $2.03.

For an update on how the coronavirus pandemic is affecting convenience services, click here.