Apr 25, 2021

Hormel Q2 2021 Earnings Report

Hormel Foods reported record sales in the first half of the year and reaffirmed its full-year earnings guidance.

Key Takeaways

Hormel Foods reported record net sales of $2.6 billion, up 8% compared to last year. The company reaffirmed its full year earnings per share guidance of $1.70 to $1.82. Strong foodservice sales, continued elevated demand in the retail, deli and international channels, and improved supply chain performance contributed to the record results.

Volume of 1.2 billion lbs., down 3%.

Record net sales of $2.6 billion, up 8%.

Pretax earnings of $293 million, up 2%.

Operating margin of 11.1%, compared to 12.1% last year.

Total Revenue
$2.61B
Previous year: $2.42B
+7.6%
EPS
$0.42
Previous year: $0.42
+0.0%
Gross Profit
$476M
Previous year: $477M
-0.2%
Cash and Equivalents
$1.48B
Previous year: $606M
+144.9%
Free Cash Flow
$110M
Previous year: $280M
-60.5%
Total Assets
$9.89B
Previous year: $8.4B
+17.8%

Hormel

Hormel

Hormel Revenue by Segment

Forward Guidance

The company is increasing its full year sales guidance range and reaffirming its earnings per share guidance range of $1.70 to $1.82 per share, both of which exclude the expected impact of the Planters® snack nuts business.

Positive Outlook

  • Very positive outlook on the foodservice industry.
  • Continue to see elevated demand in the retail.
  • Continue to see elevated demand deli and international channels.
  • Continue to offset margin pressure with price actions.
  • Continue to offset margin pressure with supply chain improvements.

Challenges Ahead

  • As we enter this inflationary period, we will continue to offset margin pressure with price actions and supply chain improvements.
  • Our experienced management team has a proven ability to navigate and grow our business in volatile market conditions.

Revenue & Expenses

Visualization of income flow from segment revenue to net income