A robust product portfolio and $75 million in operating income benefit from its Transform and Modernize Initiative helped boost Hormel Foods Corporation’s fourth quarter and full-year fiscal 2024 results. The business also assisted in offsetting a drop in whole bird turkey commodity markets and a temporary plant shutdown in Virginia.

For fiscal 2024, the company reported net sales of $11.9 billion, an operating income of $1.1 billion and record cash flow from operations at $1.3 billion.

In Q4, Hormel’s net sales were $3.1 billion, with an operating income of $294 million (adjusted to $308 million) and $409 million in cash flow.

“Fiscal 2024 demonstrated solid execution of our strategy, the power of our portfolio and the resilience of our team,” said Jim Snee, chairman of the board, president and chief executive officer.

“Across our business segments, we reinvested in our brands, expanded our market presence and introduced innovative solutions to drive impactful results. In retail, our flagship and rising brands, such as Hormel Black Label, Jennie-O, SPAM and Applegate, delivered strong growth and expanded households. Our foodservice segment again achieved above-industry growth, highlighting the differentiated value and relevant offerings our dedicated team brings to the industry. As expected, our international results reflect a solid recovery, and we remain well positioned to continue expanding our global presence.”

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“The combination of underlying business strength and the capture of $75 million in operating income benefit from our Transform and Modernize (T&M) initiative helped to offset a dynamic consumer environment, the steep decline in whole bird turkey commodity markets, and the production disruption at our Suffolk, Virginia, facility,” Snee said.

“We delivered a record year of operating cash flow, enabling us to return a record amount of cash to our shareholders in the form of dividends. The focus on our value-added portfolio, innovation and T&M initiative has positioned us well for sustainable growth and enhanced shareholder value.”

In late November, Hormel’s Board of Directors announced a 3% increase to the annual dividend to shareholders, marking the 59th consecutive annual dividend increase. The annual dividend on the common stock of the corporation was raised to $1.16 per share from $1.13 per share.

The Feb. 18, 2025 payment will be the 386th consecutive quarterly dividend paid by the company. Since becoming a public company in 1928, Hormel Foods Corporation has paid a regular quarterly dividend without interruption.

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Fiscal 2025 outlook

“As we enter fiscal 2025, we are in a strong position to deliver quality earnings growth, further expand our market presence, and accelerate the impact of our T&M initiative,” Snee said. “We expect each of our three segments to deliver top line growth as we continue to lead on-trend categories, increase brand investments and drive innovation in the marketplace.”

In fiscal 2025, the company expects net sales of $11.9 billion to $12.2 billion; organic net sales growth of 1% to 3%; and an operating income in the range of $1.13 to $1.23 billion.