May 01, 2022

Hormel Q2 2022 Earnings Report

Hormel Foods reported record sales and double-digit earnings growth, driven by strong demand and strategic pricing actions.

Key Takeaways

Hormel Foods reported strong top- and bottom-line growth in the second quarter of fiscal 2022, with record net sales of $3.1 billion, up 19%, and diluted earnings per share of $0.48, up 14%. The company reaffirms its full-year sales expectations and narrows its earnings guidance range.

Achieved record net sales of $3.1 billion, up 19%; organic net sales up 10%.

Operating income increased to $335 million, up 16%.

Diluted earnings per share grew to $0.48, up 14% compared to last year.

The company successfully completed the integration of all aspects of the Planters® snack nuts business during the second quarter.

Total Revenue
$3.1B
Previous year: $2.61B
+18.8%
EPS
$0.48
Previous year: $0.42
+14.3%
Gross Profit
$553M
Previous year: $476M
+16.2%
Cash and Equivalents
$862M
Previous year: $1.48B
-42.0%
Free Cash Flow
$115M
Previous year: $110M
+4.1%
Total Assets
$13.1B
Previous year: $9.89B
+32.7%

Hormel

Hormel

Hormel Revenue by Segment

Forward Guidance

Hormel Foods reaffirms its sales expectations and narrows its earnings guidance range.

Positive Outlook

  • Robust demand for brands across retail, foodservice and international channels
  • Improvements in supply chain
  • Investments in capacity
  • Strategic pricing actions
  • Expect a strong finish to the year from our Refrigerated Foods business.

Challenges Ahead

  • Navigating the impact of HPAI on the Jennie-O Turkey Store supply chain
  • External factors affecting the International & Other segment
  • Current export logistics challenges
  • COVID-related lockdowns in China
  • Anticipate large supply gaps in the Jennie-O Turkey Store vertically integrated supply chain, caused by flock losses to date

Revenue & Expenses

Visualization of income flow from segment revenue to net income