Vending

Hormel Foods sales, earnings dip for Q4, FY 2023

Image: Adobe

November 29, 2023

Hormel Foods Corp. reported sales and earnings declines for Q4 and FY 2023, according to an earnings report.

Highlights include:

• Net sales fell from $3.28 billion in Q4 2022 to $3.19 billion in the quarter ending Oct. 29, 2023 on a GAAP basis. Non-GAAP sales fell 2.6% to $3.2 billion.
• Net earnings on a GAAP basis fell from $280 billion to $195.5 billion in the comparative quarters.
• Diluted EPS fell from 51 cents to 36 cents on a GAAP basis.
• Diluted EPS fell 17.2% to 42 cents on a non-GAAP basis.
• The retail segment saw a volume decrease of 3% and a net sales decline of 4%, with segment profit down by 40% and adjusted segment profit down by 26%.
• The foodservice segment experienced a volume increase of 5%, net sales growth of 2%, and a segment profit increase of 13%.
• The international segment faced challenges with a volume increase of 5% but a net sales decrease of 12% and a 67% drop in segment profit.
• Full-year net sales fell from $12.45 billion to $12.11 billion on a GAAP basis.
• Full-year net earnings fell from $1 billion to $792.9 million on a GAAP basis.
• Full-year diluted EPS fell from $1.82 to $1.45 on a GAAP basis.

Shares traded today at $30.54 against a 52-week range of $30.25 to $48.19.

The non-GAAP EPS missed analyst expectations by $70 million and the non-GAAP EPS of 42 cents missed expectations by 3 cents, according to Seeking Alpha.

"In fiscal 2023, we achieved our second consecutive year of net sales in excess of $12 billion, continued to reinvest in the growth of our leading brands, drove strong operating cash flows of $1 billion and returned a record amount of cash to our shareholders in the form of dividends," Jim Snee, president, board chairman and CEO, said in the press release.

Looking forward, the company anticipates net sales growth of 1% to 3% for fiscal 2024, with diluted net earnings per share projected to be between $1.43 and $1.57 and adjusted diluted net earnings per share expected to be $1.51 to $1.65.