Hormel Foods Achieves Record Second Quarter Results And Raises Fiscal 2016 Guidance
All comparisons are to the second 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 $0.40, up 21 percent from $0.33 per share.
• Dollar sales of $2.3 billion, up 1 percent; volume down 1 percent.
• Grocery Products operating profit up 21 percent; volume down 1 percent; dollar sales up 1 percent.
• Refrigerated Foods operating profit up 13 percent; volume up 3 percent; dollar sales up 7 percent.
• Jennie-O Turkey Store operating profit up 20 percent; volume down 5 percent; dollar sales down 4 percent.
• Specialty Foods operating profit up 74 percent; volume down 2 percent; dollar sales down 5 percent.
• International & Other operating profit down 33 percent; volume down 13 percent; dollar sales down 17 percent.
The company reported fiscal 2016 second quarter record net earnings of $215.4 million, up 20 percent from net earnings of $180.2 million last year. Diluted earnings per share for the quarter were $0.40, up 21 percent from $0.33 last year. Sales for the quarter were $2.3 billion, up 1 percent from last year.
“Hormel Foods delivered strong results this quarter, our twelfth consecutive quarter of record earnings, with four of five segments achieving double-digit increases in operating profits,” said Jeffrey M. Ettinger, chairman of the board and chief executive officer. “Excellent results in Refrigerated Foods and Grocery Products were driven by favorable pork operating margins and solid growth posted by value-added products such as HORMEL® NATURAL CHOICE® meats, HORMEL® pepperoni, HORMEL GATHERINGS® party trays, SKIPPY® peanut butter, HORMEL® chili and WHOLLY GUACAMOLE® dips. Specialty Foods has significantly enhanced its margin delivery through efficiency gains and increased branded sales, and continues to focus on innovation, highlighted by the recent launch of MUSCLE MILK® protein smoothies. Specialty Foods also finalized the sale of Diamond Crystal Brands in May,” commented Ettinger. “Jennie-O Turkey Store generated an impressive earnings performance despite lingering effects of turkey supply constraints, while International was challenged by weak exports and high pork costs in China.”