Vending

Hormel Foods reports record results for Q3 2022

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September 1, 2022

Hormel Foods Corp. delivered its seventh consecutive quarter of record sales and fourth consecutive quarter of earnings growth in Q3, boosted by both retail and foodservice sales, according to an earnings release.

Highlights include:

• Net sales rose 6% from $2.86 billion in Q3 2021 to $3.03 billion for the quarter ending July 31, 2022.
• Net earnings rose 3.2% from$177 million to $218.8 million in the comparative quarters.
• Diluted net earnings per share rose from 32 cents to 40 cents.
• Demand across the company's U.S. channels remained elevated for center store items at retail and value-added foodservice products. 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 lower export sales.
• Refrigerated foods sales rose 2% while profit rose 6%. Net sales increased due to continued strong results from the foodservice businesses, growth from many retail products, strategic pricing actions across the portfolio and the inclusion of the Planters snack nuts business in the convenience channel. Retail products such as Applegate natural and organic meats, Hormel Gatherings party trays, Hormel Natural Choice sliced meats, Hormel Square Table entrees and Lloyd's barbeque grew volume and sales for the quarter.
• Foodservice growth was driven by elevated demand for brands such as Austin Blues, Hormel Natural Choice, Hormel Bacon 1, Café H and Old Smokehouse.
• Grocery product net sales rose 25% while segment profit fell 5%. Grocery product sales were led by strong demand across the nut butters, Mexican and simple meals portfolios and from the inclusion of the Planters snack nuts business. Organic sales gains were led by products such as Skippy spreads, Wholly Guacamole, Hormel chili, Dinty Moore beef stew and Mary Kitchen hash. Segment profit declined due to the impact from continued inflationary pressures and lower results from MegaMex.

Shares traded at $47.29 today against a 52-week range of $40.18-$55.11.

The $3.03 billion in quarterly revenue beat analyst expectations by $30 million, while the GAAP EPS of 40 cents missed expectations by one cent, according to Seeking Alpha.

"In the current environment, delivering seven straight quarters of record sales and four consecutive quarters of earnings growth is a notable achievement and speaks to the effectiveness of our strategy and the importance of our brands in uncertain times," Jim Snee, chairman of the board, president and CEO, said in a press release.

The company also disclosed the following senior leadership appointments:

• Deanna Brady, who currently oversees refrigerated foods, will be executive vice president of retail.
• Mark Ourada, group vice president of foodservice, will oversee foodservice.
• Swen Neufeldt will continue to lead the company's international business as group vice president and president of international.