Hormel Foods Corp. (NYSE: HRL), a leading global branded food company, reported results for the second quarter of fiscal 2021.
KEY POINTS
- Volume of 1.2 billion lbs., down 3%.
- Record net sales of $2.6 billion, up 8%.
- Pretax earnings of $293 million, up 2%.
- Operating margin of 11.1%, compared with 12.1% last year.
- Effective tax rate of 22.1%, compared with 20.6% last year.
- Diluted earnings per share of $0.42, flat compared with last year.
"We were able to achieve these record results through strong foodservice sales, continued elevated demand in the retail, deli and international channels, and improved supply chain performance," said Hormel chairman, president and chief executive Jim Snee.
"We anticipated rapid demand changes in our foodservice business, and our team delivered, with sales exceeding 2019 pre-pandemic levels," Snee added. "The investments we have made over the years to build a world-class foodservice business, including an experienced direct sales force and portfolio of products that solve for customer challenges, give us a competitive advantage as the industry recovery accelerates."
In addition to foodservice growth, Snee cited demand in Hormel's retail and deli channels, elevated compared to pre-pandemic levels, especially from such brands as SPAM, Jennie-O, Hormel Gatherings, Hormel Black Label, Applegate, Columbus, Herdez and Wholly.
"Finally, our international business has never been stronger, with double-digit growth coming from our China business and branded exports," Snee said.
See full news release at PR Newswire.
PLANTERS ACQUISITION UPDATE
In February 2021, the Hormel entered into a definitive agreement to acquire the Planters snack nuts business. The company expects to close the transaction in June 2021.
