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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.
Hormel
Hormel
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.