Hormel improves Q1 net sales and earnings

March 1, 2022

Hormel Foods Corp. today reported record net sales of $3 billion, up 24%, for its first quarter of 2022. The branded food giant said its organic net sales rose 13% in the first quartered over 2021's organic net sales for the same period.

First-quarter highlights

  • Volume of 1.2 billion lbs., up 2%; organic volume down 4%.
  • Operating income of $320 million, up 19%.
  • Operating margin of 10.5%, compared with 10.9% last year.
  • Pretax earnings of $309 million, up 11%.
  • Effective tax rate of 22.4%, compared with 19.7% last year.
  • Diluted earnings per share of $0.44, up 7% compared with last year.
  • Cash flow from operations of $384 million, up 87%.

"We continue to benefit from the strength of our brands and our strategy to meet consumers when and where they want to eat," Hormel president and chief executive Jim Snee. "Our foodservice businesses had another outstanding quarter, indicating the value of our direct selling organization and differentiated product portfolio.

"We also delivered another quarter of growth at retail," Snee continued, "led by strong performances from brands such as Columbus, Wholly, Applegate, Hormel Gatherings and Spam, and the contribution of the Planters  business."

During the first quarter, Hormel said it completed the supply chain integration of its Planters and Corn Nuts businesses. Snee said the company will soon introduce such new innovations as Planters Sweet & Spicy Dry Roasted peanuts, along refresh the branding and packaging.

Related

Keurig
Keurig 2021
Management

Keurig Dr Pepper reports full year 2021 results and delivery of three-year merger commitments

Feb. 24, 2022
The company delivers high single-digit revenue growth and double-digit EPS growth in 2021 and affirms guidance for 2022.
Hormel Foods Corp.
Hormel Foods Logo
Management

Hormel Foods reports record Q4 sales and earnings with double-digit sales growth from all segment

Dec. 10, 2021
"For the second consecutive quarter, we delivered the highest quarterly net sales in our company's history," said Jim Snee, chairman of the board, president and chief executive...