Hormel Foods is seeing the good and the bad of the return to normalcy, with Its foodservice business roaring back but its grocery products business down from pandemic panic-buying levels.
The foodservice business, which Hormel had been expanding under relatively new Chairman and CEO James Snee, grew 28% in the company's second quarter ended this April 25, compared to the second quarter of 2020. But it was only 1% above Q2 2019 levels.
Sales at the center-of-store grocery products division were down 14% in volume and 8% in net sales this year compared to last. However, that business "remains elevated compared to pre-pandemic levels," Snee said.
Earnings per share were even with last year's second quarter. Total sales were $2.6 billion for the quarter, up 7.6%, and just over $5 billion for six months, up 5.4%.
"Our balanced business model has proven to be a winning formula as our team delivered record sales in the first half and is on pace to deliver a second consecutive year of record sales," said Snee, chairman of the board, president and chief executive officer. "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."
Snee also increased the company's full year sales guidance range and reaffirmed its earnings per share guidance range of $1.70 to $1.82 per share.
Hormel is in the process of acquiring the Planters peanut business from Kraft Heinz.
