Hormel Foods Achieves Record Fourth Quarter and Full Year Results

Hormel Foods Corp. reported on Nov. 25 that the company had a record performance for the fiscal year 2014 fourth quarter and full year. All comparisons are to the fourth quarter or full year of fiscal 2013.

Fourth quarter results showed record diluted earnings per share (EPS) of $0.63, up 9% from $0.58 per share; segment operating profit increased 9%; record dollar sales of $2.5 billion, increased 9%; volume up 3%. The Grocery Products segment operating profit was down 21%, while volume was down 5% and dollar sales were down 3%. Refrigerated Foods segment posted an operating profit up 10%, though volume up only 1%, but dollar sales showed a 9% increase. Jennie-O Turkey Store’s operating profit was up 45%, with volume up 7% and dollar sales up 11%.

Specialty Foods’ operating profit was down 14%, with volume up 15% (volume down 7% excluding sales of CytoSport Holdings Inc. [“CytoSport”] products); dollar sales up 31% (dollar sales down 4% excluding sales of CytoSport products). CytoSport acquisition-related charges, including transaction costs and inventory adjustment to fair market value, were approximately $9.3 million. “International and Other” operating profits were up 3%, thanks to volume and dollar sales up 6% and 13%, respectively.

For the fiscal year, there was a record diluted EPS of $2.23, up 14% from diluted EPS of $1.95. Segment operating profit was up 16%, thanks to record dollar sales of $9.3 billion, up 6%. Volume was up 1%.

The Grocery Products segment operating profit was down 9% and volume was up 3%, with dollar sales up 3%. Refrigerated Foods had an operating profit up 45%, with dollar sales up 9% though volume was flat. Jennie-O Turkey Store’s operating profit was up 23% on flat volume, but dollar sales up 4%.

Specialty Foods’ operating profit was down 20%, with volume down 5% (volume down 10% excluding sales of CytoSport products) and dollar sales down 3% (dollar sales down 11% excluding sales of CytoSport products).

International & Other operating profit was up 19%, volume up 15% and dollar sales up 19%.

The company reported fiscal 2014 fourth quarter net earnings of $171.3 million, up 9% from net earnings of $157.3 million a year earlier. Diluted earnings per share for the quarter were $0.63, up 9% compared to $0.58 last year. Sales for the quarter were $2.5 billion, up 9% from the same period in fiscal 2013.

For the year ending Oct. 26, net earnings were a record $602.7 million, up 15% from net earnings of $526.2 million last year. Diluted net earnings per share were $2.23, up 14% from diluted net earnings per share of $1.95 last year. Sales for the year ending Oct. 26 totaled a record $9.3 billion, up 6% from last year.

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