All comparisons are to the first quarter of fiscal 2015. All earnings per share measures have been adjusted to reflect the two-for-one stock split distributed on February 9, 2016.
• Record diluted earnings per share of $0.43, up 23 percent from non-GAAP1 adjusted diluted EPS2 of $0.35. 2015 GAAP EPS were $0.32.
• Dollar sales of $2.3 billion, down 4 percent; volume down 3 percent.
• Grocery Products operating profit up 26 percent as compared to 2015 non-GAAP1 adjusted segment operating profit2; volume down 5 percent; dollar sales down 4 percent. Operating profit up 58 percent as compared to 2015 GAAP operating profit.
• Refrigerated Foods operating profit up 65 percent; volume up 5 percent; dollar sales up 2 percent.
• Jennie-O Turkey Store operating profit down 2 percent; volume down 23 percent; dollar sales down 15 percent. Decreases reflect the substantial impact of the avian influenza outbreak, as flocks lost in 2015 created large volume shortfalls in operations and sales.
• Specialty Foods operating profit up 44 percent; volume down 4 percent; dollar sales down 10 percent.
• International & Other operating profit up 1 percent as compared to 2015 non-GAAP1 adjusted segment operating profit2; volume up 4 percent; dollar sales down 7 percent. Operating profit up 69 percent as compared to 2015 GAAP operating profit.
The company reported fiscal 2016 first quarter record net earnings of $235.1 million, up 25 percent from non-GAAP1 adjusted net earnings2 of $187.3 million last year. 2015 GAAP net earnings were $171.7 million. Diluted earnings per share for the quarter were $0.43, up 23 percent from non-GAAP1 adjusted diluted earnings per share2 of $0.35 last year. 2015 GAAP diluted earnings per share were $0.32. Sales for the quarter were $2.3 billion, down 4 percent from last year.
“We are pleased to report a double-digit earnings increase for the quarter, with four of our five segments posting earnings growth,” said Jeffrey M. Ettinger, chairman of the board and chief executive officer. “This marks our eleventh consecutive quarter of achieving record earnings results.”
“Our commitment to investing in the sustained growth of the business is evident in our results. Our business performance continues to be influenced by our company-wide spirit of innovation, increased brand support, prudent capital investment, and portfolio-expanding acquisitions,” commented Ettinger. “While sales were muted this quarter by turkey supply constraints and lower pricing due to declining pork markets, we enjoyed strong performance from many great products across our portfolio, such as HORMEL GATHERINGS® party trays, APPLEGATE® natural breakfast sausage, HORMEL® FIRE BRAISEDTM meats, MUSCLE MILK® PRO SERIES protein beverages, and WHOLLY GUACAMOLE® refrigerated dips.”