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Jul 30, 2023

Hormel Q3 2023 Earnings Report

Hormel Foods reported third quarter fiscal 2023 results, with volume growth in each segment and progress on key initiatives.

Key Takeaways

Hormel Foods reported Q3 2023 results with net sales of $3.0 billion and operating income of $217 million, impacted by a $70 million adverse arbitration ruling. Adjusted net earnings per share were in line with last year.

Volume grew across all segments.

Adjusted net earnings per share were in line with the previous year.

Progress was made in reducing inventory and building momentum in the Planters snack nuts business.

The Foodservice segment delivered another quarter of strong bottom-line growth.

Total Revenue
$2.96B
Previous year: $3.03B
-2.3%
EPS
$0.4
Previous year: $0.4
+0.0%
Gross Profit
$498M
Previous year: $506M
-1.6%
Cash and Equivalents
$669M
Previous year: $850M
-21.3%
Free Cash Flow
$239M
Previous year: $125M
+91.1%
Total Assets
$13.4B
Previous year: $13.1B
+2.2%

Hormel

Hormel

Forward Guidance

The Company expects modest volume growth in the fourth quarter, with net sales between $3.1 billion and $3.6 billion. Full-year net sales are expected to be down (4)% to flat. Fourth quarter diluted net earnings per share are expected to be down from last year.

Positive Outlook

  • Growth from the Foodservice segment
  • Continued recovery in turkey
  • Improved fill rates in key categories

Challenges Ahead

  • Continued weakness in the International segment
  • Lower Retail segment results