Vending

Hormel Foods reports record 2022 sales

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November 30, 2022

Hormel Foods Corp. finished fiscal 2022 nearly 10% above 2021 despite a Q4 decline caused by a shorter quarter, according to an earnings release. Highlights include:

Net sales fell 5%, from $3.45 billion in Q4 2021 to $3.28 billion for the quarter ending Oct. 30, 2022. Organic net sales rose 2%, excluding the impact of an additional week last year.
Net earnings fell from $281.75 million to $280 million in the comparative quarters.
Net EPS fell from 52 cents to 51 cents on a basic basis and were flat at 51 cents on a diluted basis.
Net sales for refrigerated foods declined 7% with organic net sales comparable to last year due to the impact from an additional week in the fourth quarter of last year and lower commodity sales. A decline in segment profit was also driven by lower commodity profitability and higher operational, logistics and raw material costs.
Grocery product net sales rose 3% for the quarter with organic sales up 11% due to strong demand for Skippy peanut butter and the impact of pricing actions across the Mexican and simple-meals portfolios. Organic volume and net sales gains were led by the Spam, Skippy, Wholly, Herdez and Dinty Moore brands. Segment profit declined, as pricing actions did not offset the impact from continued inflationary pressures.
Full year net sales rose 9% from $11.37 billion to a record $12.5 billion, while organic net sales rose 6%, excluding the partial-year impact of the Planters snack nuts business and an additional week last year.
Net sales growth for the year was driven by the company's U.S. channels, which benefited from elevated demand for many of its retail and value-added foodservice brands, pricing actions to mitigate inflationary pressures and the full-year contribution of the Planters snack nuts business. Sales for the international channel declined, primarily due to lower export sales.
Full year net earnings rose from $909.1 million to $1 billion.
Full year EPS rose from $1.68 to $1.84 on a basic basis and from $1.66 to $1.82 on a diluted basis.

On Nov. 15, the company paid its 377th consecutive quarterly dividend at the annual rate of $1.04 per share.

The company also announced its 57th consecutive annual yearly increase to its annual dividend to $1.10 per share.

Shares traded today at $46.43 against a 52-week range of $41.56-$55.11.

The $3.28 billion in quarterly revenue missed analyst expectations by $50 million, while the GAAP EPS of 51 cents beat expectations by 2 cents, according to Seeking Alpha.

"We achieved all-time record sales and double-digit profit growth in fiscal 2022," Jim Snee, chairman of the board, president and chief executive officer, said in the press release. "In addition to delivering year-over-year growth, our team successfully integrated the Planters business, made progress on our six strategic priorities, showed tremendous resolve in overcoming a challenging operating environment and laid the groundwork for the next step in our evolution as a global branded company, the Go Forward initiative."

The company expects 2023 net sales to grow 1% to 3%, reaching a range from $12.6 billion to $12.9 billion.