Hormel Foods Reports Record First Quarter Results
February 20, 2014
All comparisons are to the first quarter of fiscal 2013.
- Record diluted EPS of $0.57, up 19 percent from $0.48 per share
- Segment operating profit increased 20 percent
- Record dollar sales of $2.2 billion, increased 6 percent; volume up 2 percent
- Grocery Products operating profit up 13 percent; volume up 24 percent (volume down 3 percent excluding sales of SKIPPY® products); dollar sales up 20 percent (dollar sales down 2 percent excluding sales of SKIPPY® products)
- Refrigerated Foods operating profit up 59 percent; volume down 1 percent; dollar sales up 6 percent
- Jennie-O Turkey Store operating profit up 1 percent; volume flat; dollar sales up 2 percent
- Specialty Foods operating profit down 11 percent; volume down 10 percent; dollar sales down 16 percent
- International & Other operating profit up 32 percent; volume up 19 percent (volume up 6 percent excluding sales of SKIPPY® products); dollar sales up 24 percent (dollar sales up 12 percent excluding sales of SKIPPY® products)
The company reported fiscal 2014 first quarter net earnings of $153.3 million, up 18 percent from net earnings of $129.7 million a year earlier. Diluted earnings per share for the quarter were $0.57, up 19 percent compared to $0.48 last year. Sales for the quarter were $2.2 billion, up 6 percent from the same period in fiscal 2013.
“We achieved excellent results in the first quarter, posting an earnings per share increase of 19 percent over last year, with sales up 6 percent. Four of our five segments generated growth in sales and operating profits as we continue to deliver quality products with trusted brands to our customers and consumers,” said Jeffrey M. Ettinger, chairman of the board, president and chief executive officer.
“Our recently acquired SKIPPY® peanut butter business was a strong contributor to our Grocery Products segment results this quarter. Our Refrigerated Foods segment benefited from strong demand for our products and positive pork operating margins,” commented Ettinger. “While our Jennie-O Turkey Store segment experienced more favorable feed costs this quarter, the savings were offset by weaker live production performance driven by extreme, sustained cold weather. Our International & Other segment registered excellent sales and earnings growth led by export sales of our SPAM® family of products and SKIPPY® peanut butter products. As anticipated, our Specialty Foods team was unable to post increases this quarter as it rebuilds its product