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Jan 28, 2024
Hormel Q1 2024 Earnings Report
Hormel Foods reported strong Q1 2024 results, driven by volume growth across all segments and progress in transformation and modernization initiatives.
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.
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.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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