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Jan 24, 2021
Hormel Q1 2021 Earnings Report
Hormel Foods reported record sales driven by growth from all four segments.
Key Takeaways
Hormel Foods Corporation reported record net sales of $2.5 billion, up 3%, driven by growth from all four segments. Diluted earnings per share were $0.41, down 9% compared to last year. The company set its full year earnings per share guidance at $1.70 to $1.82, which does not include the expected impact from the acquisition of the Planters snack nuts business.
Record net sales of $2.5 billion, up 3%.
Diluted earnings per share of $0.41, down 9% compared to last year.
Operating margin of 10.9%, compared to 11.8% last year.
The company expects a recovery in its foodservice business.
Hormel
Hormel
Forward Guidance
The company set its full year earnings per share guidance at $1.70 to $1.82 per share, which does not include the expected impact from the acquisition of the Planters snack nuts business.
Positive Outlook
- Retail and deli teams have momentum going into the second quarter.
- The International segment is poised to have a record year led by the continued strength in our China business, branded exports and our global partnerships.
- The strides we have made in our global e-commerce business are also expected to continue to pay off this year and into the future.
- We expect continued improvement throughout our supply chain as labor availability improves
- We expect a recovery in our foodservice business, given the acceleration in shipments during recent weeks.
Challenges Ahead
- Some of our retail businesses, especially Grocery Products, have very difficult comparisons due to the extremely high levels of demand we experienced last year
- Pandemic-related expenses begin to subside.
- Jennie-O Turkey Store is proactively taking price increases across all categories in order to offset rapidly increasing grain costs.
- Continued escalation in grain prices will require additional actions.
- Employee safety remains our top priority as a company.