Hormel Sales Up Across the Board

Sept. 8, 2021
Hormel Foods enjoyed increased sales in its third fiscal quarter, but its overall results were dragged down by integrating the Planters acquisition.

Hormel Foods enjoyed increased sales in its third fiscal quarter, but its overall results were dragged down by integrating the Planters acquisition.

Hormel’s foodservice business saw a 45% increase over the same quarter of last year. Much of this was due to restaurants opening up as pandemic vaccines became available. However, the business was up 17% compared with the third quarter of 2019, before the pandemic. Company management attributed this to the difficulty restaurants are currently having in hiring and retaining staff; this increased the attractiveness of Hormel foodservice products that are premade or otherwise time-saving.

Retail products had a good run, too, with sales up 9% over last year, when the pandemic was in full swing and consumers were stocking their pantries. Retail sales were up 16% over the pre-pandemic third quarter of 2019.

However, net income, at $177 million, was down 13% from the same quarter last year. Hormel lowered expectations for full-year earnings to $1.65 to $1.69 per share, down from a previous forecast of $1.70 to $1.82. Management attributed much of that to expenses incurred in the $2.79 billion purchase of the Planters nuts and snacks line from Kraft Heinz early this year.