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Jan 26, 2025
Hormel Q1 2025 Earnings Report
Hormel Foods reported stable top-line results with a slight decline in net sales and profitability.
Key Takeaways
Hormel Foods reported Q1 FY25 net sales of $2.99 billion, with adjusted EPS of $0.35. Operating income declined, impacted by higher input costs and a challenging macroeconomic environment. The company reaffirmed its fiscal 2025 guidance, with continued focus on strategic initiatives.
Net sales of $2.99 billion, a slight decline of 0.3% from last year.
Adjusted diluted earnings per share of $0.35, compared to $0.41 last year.
Operating income of $228 million, with an adjusted figure of $254 million.
Retail and Foodservice segments faced margin pressures, while International showed profit growth.
Revenue by Segment
Forward Guidance
Hormel reaffirmed its FY25 outlook, expecting 1%-3% organic net sales growth and adjusted EPS between $1.58-$1.72.
Positive Outlook
- Strong performance of premium prepared proteins in Foodservice.
- Continued growth in international markets, particularly China.
- Execution of Transform & Modernize initiative expected to bring $100M-$150M in benefits.
- Expansion of SPAM, Applegate, and Hormel Black Label brands.
- Improved operational efficiency and cost management strategies.
Challenges Ahead
- Higher raw material and input costs impacting profitability.
- Continued challenges in the snack nuts category due to prior disruptions.
- Softness in Brazil and lower commodity turkey exports affecting International segment.
- Margin pressure in non-core businesses within Foodservice.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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