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Apr 26, 2020

Hormel Q2 2020 Earnings Report

Hormel Foods reported second quarter results, demonstrating the value of its balanced business model amidst a rapidly changing environment.

Key Takeaways

Hormel Foods reported a 3% increase in net sales to $2.4 billion and a diluted earnings per share of $0.42, a 19% decrease compared to last year. The company withdrew its full-year sales and earnings guidance due to uncertainty related to the COVID-19 pandemic.

Volume of 1.2 billion lbs., up 4%; organic volume up 7%

Record net sales of $2.4 billion, up 3%; organic net sales up 6%

Pretax earnings of $286 million, down 10%; down 5% to adjusted pretax earnings last year primarily due to lower investment income

Operating free cash flow of $280 million, up 115%

Total Revenue
$2.42B
Previous year: $2.35B
+3.3%
EPS
$0.42
Previous year: $0.46
-8.7%
Gross Profit
$477M
Previous year: $469M
+1.7%
Cash and Equivalents
$606M
Previous year: $639M
-5.2%
Free Cash Flow
$280M
Previous year: $130M
+115.1%
Total Assets
$8.4B
Previous year: $7.94B
+5.8%

Hormel

Hormel

Forward Guidance

Due to the uncertainty created by the COVID-19 pandemic, including potential supply chain interruptions and the foodservice industry's recovery, Hormel Foods is withdrawing its full-year sales and earnings guidance.