Vending

Hormel Foods reports record Q4 results

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December 9, 2021

Hormel Foods Corp. reported record fourth quarter sales due to the inclusion of the Planters snack nuts business, higher pricing and organic volume growth from the simple meals and Mexican foods portfolios, according to an earnings release.

The company's net sales jumped 42.8% from $2.42 billion in Q4 2020 to $3.45 billion in the quarter ending Oct. 31, 2021. Full year sales rose 18.5% from $9.6 billion in 2020 to $11.4 billion in 2021.

Earnings before income taxes jumped 26.4% from $278.7 million to $352.2 million for the comparative fourth quarters.

Earnings before income taxes rose 1% from $1.11 billion to $1.22 billion from 2020 to 2021.

Basic net earnings per share rose from 43 cents to 52 cents for the comparative quarters while diluted net earnings rose from 43 cents to 51 cents.

Basic net EPS dipped from $1.69 to $1.68 from full year 2020 to 2021, while diluted EPS remained level at $1.66.

Higher pricing across the portfolio helped mitigate inflationary pressure. Volume, net sales and segment profit continue to be constrained by production labor shortages and supply chain disruptions.

International net sales growth was broad-based, driven by strong demand and higher prices for branded exports and improved results in China. Fresh pork exports declined due to labor shortages. All areas of the business delivered growth in segment profits, led by higher export margins and China.

The $3.45 billion in quarterly revenue beat analyst expectations by $230 million, while the GAAP EPS of 51 cents beat expectations by one cent, according to Seeking Alpha.

Shares traded at $44.55 today against a 52-week range of $40.48-$50.86.

"For the second consecutive quarter, we delivered the highest quarterly net sales in our company's history," Jim Snee, chairman of the board, president and chief executive officer, said in the press release. "We delivered record sales and earnings this quarter with growth from every segment and channel."