Hormel Foods Reports Volume Increases Across All Segments in Q1 Earnings

March 1, 2024
Better-than-expected performance in retail, foodservice and international business units drive strong results for the processor in the first quarter of fiscal 2024.

Hormel Foods Corp. reported volume increases year-over-year across all segments in its reported results for the first quarter of fiscal 2024.

Volume was up 4% to 1.1 billion pounds, and net sales rose 1% to $3 billion overall in Q1 compared to last year’s first quarter. Jim Snee, chairman of the board, president and CEO, said the strong results were driven by better-than-expected performance in each business segment.

“We are especially encouraged by broad-based volume growth across our businesses, reflecting the strength of our leading brands, robust demand for our foodservice products and momentum in our Planters® snack nuts business,” he added. Snee added that the company is reaffirming its expectations for full-year net sales growth of 1-3% and earnings per share estimates, taking into account a significant year-over-year decline in whole bird turkey markets, the report said.

The Retail business unit saw volume increase 2%, driven by value-added meats, global flavors, emerging brands and bacon. Net sales and profit declined (2% and 3%, respectively), but Skippy peanut butter, Planters snack nuts, Wholly dips, Herdez salsas and sauces, La Victoria salsas, Jennie-O ground turkey, Hormel Square Table entrees and Hormel pepperoni each grew volume and net sales during the quarter.

In Foodservice, Hormel saw increases in volume (8%), net sales (9%) and profit (10%), with pepperoni, Jennie-O turkey, Hormel Bacon 1 cooked bacon, Austin Blues smoked meats and Café H proteins, as well as Heritage Premium Meats, leading the way.

Finally, the International business unit saw volume jump 11%, and it eeked out a 1% profit gain despite net sales falling 3% year-over-year for the quarter. The company said higher commodity exports drove volume gains, but lower branded export sales and lower sales in China led to the net sales decline.

These volume increases build on positive signs that started emerging toward the end of calendar year 2023 for some food companies, but these positive signs (J.M. Smucker Co. also reported volume gains in its recent earnings report) could help ease the abundance of caution with which the food industry is approaching 2024, as noted in our 2024 Food & Beverage Industry Outlook story from January.

Stay tuned, and keep an eye on those volume reports!

About the Author

Andy Hanacek | Senior Editor

Andy Hanacek has covered meat, poultry, bakery and snack foods as a B2B editor for nearly 20 years, and has toured hundreds of processing plants and food companies, sharing stories of innovation and technological advancement throughout the food supply chain. In 2018, he won a Folio:Eddie Award for his unique "From the Editor's Desk" video blogs, and he has brought home additional awards from Folio and ASBPE over the years. In addition, Hanacek led the Meat Industry Hall of Fame for several years and was vice president of communications for We R Food Safety, a food safety software and consulting company.

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