Vending

Hormel Foods lifts Q2 2022 sales, earnings

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June 3, 2022

Hormel Foods Inc. lifted its sales and earnings for Q2 2022 against the prior year period, according to an earnings release. Highlights include:

• Net sales rose 9.6% from $2.6 billion in Q2 2021 to $3.1 billion for the quarter ending May 1, 2022.
• Net earnings rose from $227.9 million to $261.7 million in the comparative quarters.
• Net earnings per share rose from 42 cents to 48 cents on both a basic and diluted basis.
• Grocery products rose 7.1% from $628.2 million to $873.5 million.
• Refrigerated foods rose 10.7% from $1.45 billion to $1.64 billion.
• Jennie-O Turkey Store rose 16% from $351.2 million to $407.4 million.
• International and "other" business fell 3.4% from $173.8 million to $171.4 million.

Net sales increased due to strong results from the foodservice businesses and from retail products such as Columbus grab-and-go charcuterie, Applegate natural and organic meats, Hormel Square Table refrigerated entrees and Hormel Gatherings party trays.

Strategic pricing actions across the portfolio and the inclusion of the Planters snack nuts business also contributed to growth.

Shares traded at $45.76 Thursday against a 52-week range of $40.48-$55.11.

The $3.1 billion in quarterly revenue beat analyst expectations by $30 million while the GAAP EPS of 48 cents beat expectations by one cent, according to Seeking Alpha.

"We delivered strong top- and bottom-line growth during the quarter, leveraging our balanced business model, leading brands and experienced management team," Jim Snee, chairman of the board, president and chief executive officer, said in the press release. "The second quarter marked our sixth consecutive quarter of record sales, and we achieved earnings growth for the third consecutive quarter."

The company sustained its 2022 outlook from $11.7 billion to $12.5 billion and updated its diluted earnings per share from $1.87-$2.03 to $1.87-$1.97.