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Jan 30, 2022
Hormel Q1 2022 Earnings Report
Hormel Foods reported record first-quarter sales and reaffirmed full-year sales and earnings guidance, delivering sales and earnings growth despite challenging operating conditions.
Key Takeaways
Hormel Foods reported a strong first quarter with record net sales of $3.0 billion, a 24% increase from the previous year. The company reaffirmed its full-year sales and earnings guidance, demonstrating the strength of its balanced business model and exceptional execution in navigating difficult operating conditions.
Record net sales of $3.0 billion, up 24%; organic net sales up 13%.
Operating income of $320 million, up 19%.
Diluted earnings per share of $0.44, up 7% compared to last year.
Cash flow from operations of $384 million, up 87%.
Hormel
Hormel
Forward Guidance
The company reaffirmed its sales and earnings guidance. Expects a favorable demand environment, pricing actions to combat inflationary pressures, and continued growth from specific products.
Positive Outlook
- Favorable demand environment expected.
- Pricing actions to combat inflationary pressures.
- Continued growth from products such as Columbus® charcuterie.
- Continued growth from products such as Applegate® natural and organic meats.
- Continued growth from products such as Planters® snack nuts.
Challenges Ahead
- The operating environment is expected to remain volatile.
- Supply chain will continue to show improvement as labor pressures ease.
- New capacity comes online to support key growth platforms, such as dry sausage.
- New capacity comes online to support key growth platforms, such as pizza toppings.
- New capacity comes online to support key growth platforms, such as bacon.