Hormel Q1 2024 Earnings Report
Key Takeaways
Hormel Foods delivered strong first-quarter results with volume growth across all segments. The company reaffirms its full-year net sales and earnings expectations, anticipating continued growth in Foodservice, improvements in the International business, and impacts from pricing and innovation in Retail.
Volume increased by 4% to 1.1 billion lbs.
Net sales increased by 1% to $3.0 billion.
Operating income decreased by 2% to $284 million, while adjusted operating income increased by 2% to $295 million.
Diluted net earnings per share were comparable to last year at $0.40, with adjusted diluted net earnings per share at $0.41.
Hormel
Hormel
Forward Guidance
The Company is reaffirming its net sales growth outlook of 1% to 3% and diluted net earnings per share and adjusted diluted net earnings per share expectations of $1.43 to $1.57, and $1.51 to $1.65, respectively.
Positive Outlook
- Volume growth in key categories
- Higher brand support and innovation
- Impacts from incremental pricing actions
- Current assumptions for raw material input costs
- Modest benefit to net earnings from its transformation and modernization initiative.
Challenges Ahead
- Diluted net earnings per share and adjusted diluted net earnings per share are expected to decline year over year in the second quarter.
- The full-year outlook reflects a significant year-over-year decline in whole bird turkey markets.
- Nonrecurring costs associated with the Company's transformation and modernization initiative.
- Deterioration of economic conditions
- Fluctuations in commodity prices and availability of raw materials