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Apr 30, 2023

Hormel Q2 2023 Earnings Report

Hormel Foods reported second quarter fiscal 2023 results, reaffirming full-year net sales and earnings guidance and announcing progress on key initiatives.

Key Takeaways

Hormel Foods reported net sales of $3.0 billion and operating income of $296 million. The company reaffirmed its full-year net sales and earnings guidance, expecting net sales growth of 1% to 3% and diluted net earnings per share of $1.70 to $1.82.

Net sales reached $3.0 billion.

Operating income amounted to $296 million with an operating margin of 9.9%.

Diluted net earnings per share were reported at $0.40.

The company reaffirms full-year net sales and earnings guidance and announces progress on key initiatives.

Total Revenue
$2.98B
Previous year: $3.1B
-3.9%
EPS
$0.4
Previous year: $0.48
-16.7%
Gross Profit
$491M
Previous year: $553M
-11.2%
Cash and Equivalents
$580M
Previous year: $862M
-32.6%
Free Cash Flow
$155M
Previous year: $115M
+34.6%
Total Assets
$13.3B
Previous year: $13.1B
+1.5%

Hormel

Hormel

Forward Guidance

The Company is reaffirming its previously communicated sales and earnings guidance ranges for the full year. For fiscal 2023, the Company expects net sales growth of 1% to 3% compared to the prior year and full-year diluted net earnings per share to be $1.70 to $1.82.

Positive Outlook

  • Expects sales and earnings growth in the back half of the year.
  • Anticipates continued growth from our Foodservice segment and an inflection in our International segment to be the primary drivers for growth.
  • All of our businesses are expected to benefit from higher turkey volumes and improved fill rates in key categories, such as bacon, pepperoni, snack nuts, and for our SPAM® family of products.
  • Coupled with the progress we have made on GoFWD — including standing up Brand Fuel, restructuring our sales teams and resourcing our marketing teams to better support our leading brands — we remain confident in our growth outlook as we continue to meet the needs of our customers, consumers and operators in this dynamic environment.
  • We are also focused on a number of projects aimed at reducing costs and complexity to improve our margin structure.