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Hormel Foods Reports Record Fourth Quarter Sales and Earnings With Double-Digit Sales Growth From Every Segment


Austin, Minn.

The company issues earnings guidance with sales and earnings growth expected from all four segments.

Hormel Foods Corporation (NYSE: HRL), a leading global branded food company, today reported results for the fourth quarter of fiscal 2021. The fourth quarter and full year of 2021 contain an extra week as compared to the prior year. All comparisons are to the fourth quarter of fiscal 2020 unless otherwise noted.


  • Volume of 1.4 billion lbs., up 14%; organic volume1 up 8%
  • Record net sales of $3.5 billion, up 43%; organic net sales1 up 32%
  • Operating income of $358 million, up 29%
  • Operating margin of 10.4% compared to 11.4% last year
  • Effective tax rate of 20.0% compared to 15.9% last year
  • Record diluted earnings per share of $0.51, up 19% from $0.43
  • Record cash flow from operations of $564 million, up 126%


  • Volume of 4.9 billion lbs., up 3%; organic volume1 up 1%
  • Record net sales of $11.4 billion, up 19%; organic net sales1 up 14%
  • Operating income of $1.1 billion, up 2%
  • Operating margin of 9.9% compared to 11.5% last year
  • Effective tax rate of 19.3% compared to 18.5% last year
  • Diluted earnings per share of $1.66, in line with last year
  • Adjusted diluted earnings per share1 of $1.73, up 4%
  • Cash flow from operations of $1.0 billion, down 11%


“We delivered record sales and earnings this quarter with growth from every segment and channel,” said Jim Snee, chairman of the board, president and chief executive officer. “I’m extremely proud of how the entire team overcame numerous challenges to post these extraordinary results,” Snee said. “This quarter further demonstrates the value of our long-term strategy, the pricing power of our brands and our effective execution in the marketplace.”

“For the second consecutive quarter, we delivered the highest quarterly net sales in our company’s history,” Snee said. “Impressive contributions were made by brands including Applegate®, Columbus®, Fontanini®, Hormel® Bacon 1™, Jennie-O®, Planters®, SPAM® and many other brands across all our businesses. We posted incredible sales growth of 72% in the foodservice channel, or 33% compared to pre-pandemic levels, which is a result of our differentiated portfolio, dedicated direct sales team and our commitment to the industry throughout the pandemic. Additionally, we continue to drive strong double-digit sales growth in the retail, deli and international channels, led by the strength of our global brands.”

“As expected, all four segments delivered margin improvement compared to the third quarter,” Snee said. “I credit our experienced management team for successfully executing numerous pricing actions across our portfolio, improving promotional effectiveness and managing to a more profitable mix. Our One Supply Chain team also made significant progress in increasing production throughput and, once again, our production professionals have done heroic work to produce high quality products for our customers. Finally, this quarter marked the seventh consecutive quarter of record profits for our International & Other segment, as we continue to execute our strategy to become a more global company.”


“During the past decade, we have made a series of thoughtful decisions to transform Hormel Foods into a global branded food company,” Snee said. “Our transformation has been marked by numerous strategic acquisitions and divestitures, deliberate shifts away from commodity products to consumer- and operator-focused products and purposefully integrating areas of our company through initiatives such as One Supply Chain and Project Orion. Our success today is a result of these efforts.”

Planters® Snack Nuts Business Integration

“The integration of the Planters® snack nuts business has been very successful, and the business is performing at the high end of our expectations,” Snee said. “We anticipate this strength to continue into fiscal 2022 as we launch many new innovative items, refresh the brand and packaging, and further integrate the business into our company. As expected, this acquisition has made a positive impact on our presence in the snacking and entertaining category, and in the convenience store channel.”

Jennie-O Turkey Store Transformation

“Turkey and the Jennie-O® brand play an important role in our diversification and growth strategy,” Snee said. “To further enhance the growth and profitability for this business, we are embarking on a series of actions to create a more efficient, innovative and demand-oriented turkey portfolio. Our actions are consistent with our long-term strategy to increase our focus on branded value-added products that are aligned with the changing needs of today’s customers, consumers and operators, while decreasing our exposure to commodity volatility.”

As a result, the company expects to close the Benson Avenue facility, located in Willmar, Minn., in the first half of fiscal 2022. Team members will transition to the newer and larger facility in Willmar, and production will be consolidated into multiple other facilities. The company will also continue to integrate Jennie-O Turkey Store business functions more deeply into the broader Hormel Foods organization.

Pork Supply Chain Optimization

“We have signed a new five-year raw material supply agreement with our supplier in Fremont, Neb. This agreement further optimizes our pork supply chain while matching raw material supply with the needs of our value-added businesses,” Snee said. “This action is another step in our strategy to diversify away from commodity business, increase flexibility in our pork supply chain and decrease earnings volatility.”

The new agreement will result in a reduced supply of commodity fresh pork, which was previously sold at low- or negative-margins. The company expects a $350 million sales reduction in fiscal 2022. The contract will be effective at the start of calendar year 2022.


“The momentum we gained in the third and fourth quarters gives us confidence heading into fiscal 2022, and we expect all four segments to deliver sales and earnings growth,” Snee said. “Strength in the Planters® snack nuts business and organic growth in each segment will drive growth in excess of our long-term growth goals.”

“The operating environment remains complex, but continued strong demand across all businesses, improved production throughput and the impact of our pricing actions will be key drivers to growth next year. Our guidance is also supported by the strategic investments we have made, including significant capacity expansions for pizza toppings, dry sausage and bacon.”

Fiscal 2022 Outlook*
Net Sales Guidance (in billions) $11.7 – $12.5
Diluted Earnings per Share Guidance $1.87 – $2.03
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* The company’s guidance includes a full year of the Planters® snack nuts business, the impact of the Jennie-O Turkey Store transformation initiatives, the new pork raw material supply agreement, and 52 weeks compared to 53 weeks in fiscal 2021.


“We recently announced a 6% increase to our annual dividend to $1.04 per share, representing the 56th consecutive year in which we’ve increased our dividend,” Snee said. “Our commitment to deliver consistent dividend growth has never been stronger.”

Effective Nov. 15, 2021, the company paid its 373rd consecutive quarterly dividend at the annual rate of $0.98 per share.


Refrigerated Foods

  • Volume up 15%; organic volume1 up 13%
  • Net sales up 44%; organic net sales1 up 41%
  • Segment profit up 25%

The continued recovery in the foodservice industry, numerous pricing actions and strong demand led to significant net sales growth. The foodservice business delivered volume and net sales gains in every category compared to last year. Retail and deli net sales benefited from higher pricing and continued elevated demand for products such as Columbus® grab-and-go items, Hormel Gatherings® party trays, Hormel® Black Label® bacon, Hormel® pepperoni and Applegate® natural and organic meats. Segment profit increased primarily due to higher foodservice sales. Higher pricing across the portfolio helped mitigate inflationary pressure. Volume, net sales and segment profit continue to be constrained by production labor shortages and supply chain disruptions.

Grocery Products

  • Volume up 27%; organic volume1 up 9%
  • Net sales up 56%; organic net sales1 up 18%
  • Segment profit up 36%

Net sales increased significantly due to the inclusion of the Planters® snack nuts business, higher pricing and organic volume growth from the simple meals and Mexican foods portfolios. Brands such as SPAM®, Hormel® Compleats®, Wholly® and SKIPPY® also contributed to the strong results. Segment profit benefited from improved sales and the addition of the Planters® snack nuts business. Higher pricing across the portfolio helped mitigate inflationary pressure. Volume, net sales and segment profit continue to be constrained by production labor shortages and supply chain disruptions.

Jennie-O Turkey Store

  • Volume up 1%
  • Net sales up 23%
  • Segment profit down 7%

Volume and sales increased as the continued recovery in foodservice, strong demand for Jennie-O® retail items and higher prices across the portfolio more than offset the negative impact from whole bird shipments earlier in the year. Segment profit declined due to higher feed costs and freight expenses.

International & Other

  • Volume down 4%; organic volume1 down 6%
  • Net sales up 28%; organic net sales1 up 24%
  • Segment profit up 16%

Net sales growth was broad-based, driven by strong demand and higher prices for branded exports and improved results in China. Fresh pork exports declined due to labor shortages. All areas of the business delivered growth in segment profits, led by higher export margins and China.


Demand across all the company’s channels remained elevated, as exhibited by double-digit growth compared to the prior year and compared to fiscal 2019. The company benefited from increased volume and pricing actions across many categories and contributions from the Planters® snack nuts business.

Net Sales % change Fourth Quarter Ended​ October 31, 2021 compared to October 25, 2020 Fourth Quarter Ended October 31, 2021 compared to October 27, 2019 Year Ended​ October 31, 2021 compared to October 25, 2020 Year Ended​ October 31, 2021 compared to October 27, 2019
U.S. Retail 34 44 14 25
U.S. Foodservice 72 33 30 10
U.S. Deli 24 26 12 16
International 34 37 22 29
Total 43 38 19 20
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Income Statement

  • Operating margin for the full year was 9.9% compared to 11.5% for the previous year. The company was negatively impacted by inflationary pressure on raw materials, freight and operational expenses. Pricing actions to combat these pressures were effective in the back half of the year.
  • Selling, general and administrative expenses as a percentage of net sales were 7.5% compared to 7.9%. The impact from record net sales and strategic cost management drove the decline. Additionally, fiscal 2021 selling, general and administrative expenses include $30.3 million in one-time expenses related to the the Planters® snack nuts business acquisition.
  • Advertising investments were $139 million compared to $124 million last year.
  • The effective tax rate was 19.3% compared to 18.5% last year. The company expects the effective tax rate in fiscal 2022 to be between 20.5 and 22.5%.

Cash Flow Statement

  • Cash flow from operations was $1.0 billion, down 11% compared to last year. The decrease was primarily due to higher inventory values caused by inflation in raw materials and supplies.
  • The company acquired the Planters® snack nuts business for $3.4 billion during the year.
  • Dividends paid to shareholders were $523 million. The company paid its 373rd consecutive quarterly dividend on Nov. 15 at the annual rate of $0.98 per share, a 5% increase over the prior year.
  • Capital expenditures were $232 million. The company’s target for capital expenditures in fiscal 2022 is $310 million. Large projects in fiscal 2022 include the completion of the pepperoni capacity expansion project, an expansion for our SPAM® family of products, and many other projects to support growth of branded products.
  • Share repurchases totaled $20 million, representing 0.5 million shares purchased.
  • Depreciation and amortization expense for the full year was $228 million. Depreciation and amortization expense for fiscal 2022 is expected to be approximately $250 million.

Balance Sheet

  • The acquisition of the Planters® snack nuts business was financed through a combination of cash on hand of $1.1 billion and long-term debt of $2.3 billion.
  • The company is in a strong financial position with ample liquidity, a conservative level of debt and consistent cash flows.
  • Cash on hand decreased to $614 million from $1,714 million at the beginning of the year.
  • Total long-term debt is $3.3 billion compared to $1.3 billion at the beginning of the year.
  • Working capital decreased to $1.5 billion from $2.1 billion at the beginning of the year.


A conference call will be webcast at 8 a.m. CST on Dec. 9, 2021. Access is available at by clicking on “Investors.” The call will also be available via telephone by dialing 888-317-6003 and providing the access code 1422051. An audio replay is available by going to The webcast replay will be available at noon CST, Dec. 9, 2021, and will remain on the website for one year.

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About Hormel Foods – Inspired People. Inspired Food.

Hormel Foods Corporation, based in Austin, Minn., is a global branded food company with over $10 billion in annual revenues across 75 countries worldwide. Its brands include Planters®, SKIPPY®, SPAM®, Hormel® Natural Choice®, Applegate®, Justin’s®, Columbus®, Wholly®, Hormel® Black Label® and more than 30 other beloved brands. The company is a member of the S&P 500 Index and the S&P 500 Dividend Aristocrats, was named on the “Global 2000 World’s Best Employers” list by Forbes magazine for three years, is one of Fortune magazine’s most admired companies, has appeared on Corporate Responsibility Magazine’s “The 100 Best Corporate Citizens” list for the 12 years, and has received numerous other awards and accolades for its corporate responsibility and community service efforts. The company lives by its purpose statement — Inspired People. Inspired Food.™ — to bring some of the world’s most trusted and iconic brands to tables across the globe. For more information, visit and


This news release contains “forward-looking” information within the meaning of the federal securities laws. The “forward-looking” information may include statements concerning the Company’s outlook for the future as well as other statements of beliefs, future plans, strategies, or anticipated events and similar expressions concerning matters that are not historical facts. Words or phrases such as “should result,” “believe,” “intend,” “plan,” “are expected to,” “targeted,” “will continue,” “will approximate,” “is anticipated,” “estimate,” “project,” or similar expressions are intended to identify forward-looking statements. Such statements are subject to certain risks and uncertainties that could cause actual results to differ materially from historical earnings and those anticipated or projected, which factors include, but are not limited to, risks related to the deterioration of economic conditions; the uncertain and rapidly changing COVID-19 pandemic; risks associated with acquisitions and divestitures; potential disruption of operations at co-manufacturers, suppliers, logistics providers, customers, or other third party service providers; risk of loss of a material contract; the Company’s inability to protect information technology systems against, or effectively respond to, cyber attacks or security breaches; deterioration of labor relations, labor availability or increases to labor costs; general risks of the food industry, including food contamination; outbreaks of disease among livestock and poultry flocks; fluctuations in commodity prices and availability of raw materials and other inputs; fluctuations in market demand for the Company’s products; risks of litigation; potential sanctions and compliance costs arising from government regulation; compliance with stringent environmental regulation and potential environmental litigation; and risks arising from the Company’s foreign operations. Please refer to the cautionary statements regarding “Risk Factors” and “Forward-Looking Statements” that appear in our most recent Annual Report on Form 10-K and Quarterly reports on Form 10-Q, which can be accessed at in the “Investors” section, for additional information. In making these statements, the Company is not undertaking, and specifically declines to undertake, any obligation to address or update each or any factor in future filings or communications regarding the Company’s business or results. Though the Company has attempted to list comprehensively these important cautionary risk factors, the Company wishes to caution investors and others that other factors may in the future prove to be important in affecting the Company’s business or results of operations. The Company cautions readers not to place undue reliance on forward-looking statements, which represent current views as of the date made.

Note: Due to rounding, numbers presented throughout this news release may not sum precisely to the totals provided, and percentages may not precisely reflect the absolute figures.


The non-GAAP adjusted financial measurements of adjusted operating income, adjusted operating margin, adjusted selling, general and administrative expenses, and adjusted diluted earnings per share are presented to provide investors with additional information to facilitate the comparison of past and present operations. These measurements exclude the impact of the acquisition-related expenses and accounting adjustments related to the acquisition of the Planters® snack nuts business. The tax impact was calculated using the effective tax rate for the quarter in which the expenses and accounting adjustments were incurred.

The non-GAAP adjusted financial measurements of organic net sales and organic volume are presented to provide investors with additional information to facilitate the comparison of past and present operations. Organic net sales and organic volume are defined as net sales and volume, excluding the impact of acquisitions and divestitures. Organic net sales and organic volume exclude the impacts of the acquisition of the Planters® snack nuts business (June 2021) in the Grocery Products, Refrigerated Foods and International & Other segments and the Sadler’s Smokehouse acquisition (March 2020) in the Refrigerated Foods segment.

The company believes these non-GAAP financial measurements provide useful information to investors because they are the measurements used to evaluate performance on a comparable year-over-year basis. Non-GAAP measurements are not intended to be a substitute for U.S. GAAP measurements in analyzing financial performance. These non-GAAP measurements are not in accordance with generally accepted accounting principles and may be different from non-GAAP measures used by other companies.