Jeffrey M. Ettinger, chairman of the board, president and chief executive officer at Hormel Foods, offered insights about the company’s recent growth and shared highlights from the year, including:
- Sales growth of 6 percent, ending the year at a record $8.8 billion, with all five business segments registering sales gains;
- Increasing the annual dividend for the 48th consecutive year;
- The success of the SKIPPY® peanut butter acquisition;
- The launch of several successful new products such as Hormel®REV® wraps and the foodservice item, Hormel®Fire Braised™ meats; and
- Showcasing the team finalists of the company’s annual Best of the Best and Sustainability Best of the Best competitions.
“The company’s record year in 2013 is a direct result of our dedicated employees, focusing on innovation and delivering safe, quality and convenient products to customers and consumers,” Ettinger said. “We achieved $8.8 billion in sales, delivered a record earnings per share of $1.95 and increased annual dividends for the 48th consecutive year.”
“We completed the successful integration of the SKIPPY® brand into our Grocery Products and International & Other segments and introduced innovative, new products such as Hormel®REV® wraps and our line of Hormel®Fire Braised™ meats for foodservice operators.” Ettinger added, “We expect to deliver continued sales and earnings growth in fiscal 2014.”
James P. Snee, group vice president and president of Hormel Foods International Corporation, delivered the meeting’s featured presentation. He discussed how the International & Other division is poised to drive accelerated growth for Hormel Foods and showcased the company’s four expatriates living and doing business in international markets.
In his remarks, Snee said, “The goal of Hormel Foods International Corporation is to deliver accelerated growth to the company. The foundation of our SPAM® family of products and well-developed fresh pork exports, plus the SKIPPY® line of products and our focus on China, has us poised to continue our strong performance in 2014 and beyond.”
FY2013 Financial Results
During fiscal year 2013, Hormel Foods:
- Experienced record dollar sales of $8.8 billion, up 6 percent from the previous year;
- Increased net earnings per share by 5 percent over 2012; and
- Delivered both segment profit and sales increases in four of our five segments:
- Grocery Products operating profit up 18 percent; volume up 29 percent; dollar sales up 30 percent.
- Refrigerated Foods operating profit up 2 percent; volume down 4 percent; dollar sales were up 1 percent.
- Jennie-O Turkey Store operating profit down 7 percent; volume up 1 percent; dollar sales up 3 percent.
- Specialty Foods operating profit up 7 percent; volume down 2 percent; dollar sales up 1 percent.
- International & Other operating profit up 43 percent; volume up 19 percent; dollar sales up 23 percent.