Hormel Foods Achieves Record Second Quarter Earnings
All comparisons are to the second quarter of fiscal 2014.
• Record diluted EPS of $0.67, up 29 percent from $0.52 per share.
• Record dollar sales of $2.3 billion, increased 2 percent; volume up 5 percent.
• Total segment operating profit increased 29 percent.
• Refrigerated Foods segment operating profit up 52 percent; volume up 1 percent; dollar sales down 8 percent.
• Jennie-O Turkey Store segment operating profit up 41 percent; volume up 14 percent; dollar sales up 15 percent.
• Grocery Products segment operating profit up 1 percent; volume up 4 percent; dollar sales up 1 percent. Excluding incremental net sales of MegaMex Foods products, volume down 4 percent and dollar sales down 5 percent.
• Specialty Foods segment operating profit up 11 percent; volume up 17 percent; dollar sales up 32 percent. Excluding incremental sales of CytoSport Holdings, Inc. (“CytoSport”) products, volume down 6 percent and dollar sales down 6 percent.
• International & Other segment operating profit up 2 percent; volume down 3 percent; dollar sales down 7 percent.
The company reported fiscal 2015 second quarter net earnings of $180.2 million, up 29 percent from net earnings of $140.1 million a year earlier. Diluted earnings per share for the quarter were $0.67, up 29 percent compared to $0.52 last year. Sales for the quarter were $2.3 billion, up 2 percent from the same period in fiscal 2014.
“We achieved record second quarter earnings and sales, driving double-digit earnings growth with all five segments delivering increases” said Jeffrey M. Ettinger, chairman of the board, president and chief executive officer.
“Although declining pork markets drove lower pricing and net sales this quarter, Refrigerated Foods increased operating profit by 52 percent with strong sales growth of foodservice and retail value-added products,” commented Ettinger.
“Jennie-O Turkey Store entered the quarter with excellent momentum and drove robust sales and earnings gains, but exited the quarter with substantial supply chain challenges brought on by avian influenza. Grocery Products benefited from input cost relief and growth of our SPAM® family of products, while the export business in our International segment continued to be challenged by port issues and the strong U.S. dollar,” commented Ettinger. “Specialty Foods delivered earnings growth as the team continues to achieve synergies with the recently acquired CytoSport business.”