Hormel Foods Announces Record Third Quarter Results And Reaffirms Fiscal 2018 Earnings Guidance
Source Hormel Foods Corporation
AUSTIN, Minn., Aug. 23, 2018 /PRNewswire/ -- Hormel Foods Corporation (NYSE : HRL ), a leading global branded food company, reported results for the third quarter of fiscal 2018. All comparisons are to the third quarter of fiscal 2017 unless otherwise noted.
EXECUTIVE SUMMARY
- Record diluted earnings per share of $0.39, up 15% from 2017 EPS of $0.34
- Fiscal 2018 earnings guidance reaffirmed at $1.81 to $1.95 per share
- Record net sales of $2.4 billion, up 7%; organic net sales1 flat
- Volume of 1.2 billion lbs., up 5%; organic volume1 up 1%
- Operating margin of 11.1% compared to 12.7% last year
- Effective tax rate of 18.4% compared to 34.3% last year
- Year-to-date cash flow from operations of $743 million, up 40% compared to last year
COMMENTARY
"We reported record sales and earnings for the quarter and remain on track to deliver our full year earnings guidance range amid volatility due to tariffs and broader industry dynamics," said Jim Snee, chairman of the board, president, and chief executive officer. "We continue to execute on our strategic initiatives while investing in growth for the future."
"Grocery Products and International delivered solid results this quarter," Snee said. "Refrigerated Foods' branded value-added strategy was able to offset a dramatic decline in commodity profits. We also saw a strong increase in value-added sales at Jennie-O Turkey Store."
"We increased our advertising investment this quarter and those investments are paying off with growth from brands such as Skippy®, Natural Choice®, Jennie-O®, Applegate®, Wholly Guacamole® and Herdez®," Snee said. "I'm also pleased to report our recent strategic acquisitions of Columbus Craft Meats, Fontanini, and Ceratti are on track with expectations."
