Hormel Q4 2023 Earnings Report
Key Takeaways
Hormel Foods reported Q4 2023 results with net sales of $3.2 billion and diluted net earnings per share of $0.36. The Foodservice segment delivered strong results, while the Retail and International segments faced pressure. The company is investing in transformation to accelerate growth as a global branded food company.
Net sales were $3.2 billion.
Operating income was $270 million.
Diluted net earnings per share were $0.36.
Foodservice segment delivered outstanding results.
Hormel
Hormel
Forward Guidance
For fiscal 2024, the Company expects net sales growth of 1% to 3% and diluted net earnings per share to be $1.43 to $1.57 and adjusted diluted net earnings per share to be $1.51 to $1.65. Earnings are expected to decline in the first half of the year but grow in the back half.
Positive Outlook
- Volume growth in key categories
- Higher brand support and innovation
- Benefit from incremental pricing actions
- Current assumptions for raw material input costs
- Segment profit growth from all three segments in the back half of the year
Challenges Ahead
- Lower turkey markets
- Lower volumes in the Retail segment
- Softness in its China business
- Slowing consumer demand
- Inflationary pressures