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Apr 27
Hormel Q2 2025 Earnings Report
Hormel Foods reported solid top-line growth and delivered second quarter results in line with expectations.
Key Takeaways
Hormel Foods reported net sales of $2.90 billion for the second quarter of fiscal 2025, a 0.4% increase year-over-year. Diluted earnings per share were $0.33, down from $0.34 in the prior year. Adjusted diluted earnings per share were $0.35. The company narrowed its fiscal 2025 net sales and earnings outlook.
Net sales for the second quarter were $2.90 billion, a 0.4% increase compared to the prior year.
Diluted earnings per share for the second quarter were $0.33, a decrease from $0.34 in the same period last year.
Adjusted diluted earnings per share for the second quarter were $0.35.
The company narrowed its fiscal 2025 outlook for net sales, diluted earnings per share, and adjusted diluted earnings per share.
Hormel
Hormel
Hormel Revenue by Segment
Revenue by Segment
Retail Revenue
CapyFin.comFoodservice Revenue
CapyFin.comInternational Revenue
CapyFin.com Forward Guidance
For fiscal year 2025, Hormel Foods is narrowing its outlook for organic net sales growth, diluted earnings per share, and adjusted diluted earnings per share. The company reaffirmed its outlook for year-over-year Transform and Modernize benefits.
Positive Outlook
- Narrowing organic net sales growth outlook to 2% to 3%.
- Narrowing diluted earnings per share expectations to $1.49 to $1.59.
- Narrowing adjusted diluted earnings per share expectations to $1.58 to $1.68.
- Reaffirming outlook of year over year T&M benefits in the range of $100 million to $150 million.
- Expects strong second half growth led by consumer-focused, protein-centric products.
Challenges Ahead
- Outlook for diluted earnings per share was narrowed from a previous range of $1.49 - $1.63.
- Outlook for adjusted diluted earnings per share was narrowed from a previous range of $1.58 - $1.72.
- Anticipates advertising investments to significantly increase in the second half of fiscal 2025 compared to the prior year.
- Fiscal 2025 effective tax rate expected to be between 22.0% and 23.0%.
- Target for capital expenditures in fiscal 2025 remains $275 million to $300 million.
Revenue & Expenses
Visualization of income flow from segment revenue to net income