Hormel Q1 2025 Earnings Report
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.
Hormel Revenue
Hormel EPS
Hormel Revenue by Segment
Hormel Revenue by Geographic Location
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.
- Expected macroeconomic challenges influencing consumer demand.
Revenue & Expenses
Visualization of income flow from segment revenue to net income