Hormel Foods Breaks Records for Third Quarter 2016; Raises Full Year Guidance

Hormel Foods has released another record-breaking financial report for Q3 2016, this being the thirteenth consecutive quarter of record earnings. The company’s net earnings hit a high of $195.7 million, up 33 percent from net earnings of $146.9 million in Q3 2015.

“We are pleased to announce exceptional results this quarter with three of our five segments delivering volume, sales, and earnings growth,” said Jeffrey M. Ettinger, Chairman of the Board and Chief Executive Officer, noting that the thirteenth consecutive record quarter was a testament to the company’s business model. “Excellent results in Refrigerated Foods were driven by the addition of the Applegate business, foodservice sales of OLD SMOKEHOUSE® bacon, HORMEL® BACON 1™ fully cooked bacon, and HORMEL® FIRE BRAISED™ meats, and retail sales of HORMEL® NATURAL CHOICE® meats.”

Ettinger also added that the company’s Jennie-O Turkey Store posted strong double-digit sales and earnings increases, as well as strong showings from SPAM®, SKIPPY®, and MUSCLE MILK® brands.

Other highlights from Hormel’s financial report include:

• Record diluted earnings per share of $0.36, up 33 percent from $0.27 per share.
• Record net earnings of $195.7 million, up 33 percent from net earnings of $146.9 million. 
• Record dollar sales of $2.3 billion, up 5 percent; volume up 1 percent.
• Refrigerated Foods operating profit up 24 percent; volume up 3 percent; dollar sales up 9 percent.
• Jennie-O Turkey Store operating profit up 59 percent; volume up 29 percent; dollar sales up 20 percent. 
• International & Other operating profit up 5 percent; volume up 10 percent; dollar sales up 5 percent.
• Grocery Products operating profit flat; volume up 1 percent; dollar sales up 3 percent.
• Specialty Foods operating profit down 13 percent; volume down 32 percent; dollar sales down 25 percent.

Will Hormel continue its upward climb towards record growth? Keep checking in with Deli Market News for more.