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Jan 26, 2020
Hormel Q1 2020 Earnings Report
Hormel Foods Corporation reported first quarter results and maintained fiscal year 2020 earnings guidance.
Key Takeaways
Hormel Foods reported a 1% increase in net sales to $2.4 billion and a 2% increase in diluted earnings per share to $0.45. The company reaffirmed its fiscal year 2020 earnings guidance of $1.69 to $1.83 per share.
Volume of 1.2 billion lbs., down 1%; organic volume up 2%
Net sales of $2.4 billion, up 1%; organic net sales up 4%
Pretax earnings of $290 million, down 5% primarily due to the divestiture of CytoSport
Diluted earnings per share of $0.45, up 2%
Hormel
Hormel
Forward Guidance
We are reaffirming our fiscal 2020 sales and earnings guidance. We have strong fundamentals in Refrigerated Foods and clear momentum at Jennie-O Turkey Store. We expect both segments to contribute meaningfully to our growth this year. While many Grocery Products brands, such as SPAM®, Wholly® and Herdez®, are performing well, we have additional work to do on the SKIPPY® spreads and Hormel® chili businesses. Our International team continues to manage through African swine fever, tariffs and the uncertainty caused by the recent outbreak of coronavirus in China.
Positive Outlook
- Strong fundamentals in Refrigerated Foods
- Clear momentum at Jennie-O Turkey Store
- Refrigerated Foods expected to contribute meaningfully to growth
- Jennie-O Turkey Store expected to contribute meaningfully to growth
- SPAM® brand is performing well
Challenges Ahead
- Additional work to do on the SKIPPY® spreads business
- Additional work to do on the Hormel® chili businesses
- International team continues to manage through African swine fever
- International team continues to manage through tariffs
- Uncertainty caused by the recent outbreak of coronavirus in China