Hormel Foods Reports Fourth Quarter And Fiscal 2020 Earnings

Rhea-AI Summary

Hormel Foods Corporation (NYSE: HRL) reported its fourth quarter results for fiscal 2020, highlighting a 1% growth in total volume to 4.8 billion lbs. and a 1% increase in net sales to $9.6 billion. However, operating income fell 8% to $1.1 billion, with diluted earnings per share also declining 8% to $1.66. The company faced significant challenges due to COVID-19, resulting in over $80 million in incremental supply chain costs. Despite these setbacks, a 5% increase in dividends was announced, marking the 55th consecutive year of dividend growth.

Positive

• Cash flow from operations increased 22% to $1.1 billion
• Operating free cash flow rose 21% to $0.8 billion
• International sales grew 8%, driven by strong demand in China
• Continued growth in retail brands like SPAM® and SKIPPY®
• Announced a 5% increase in annual dividend to $0.98 per share

Negative

• Operating income decreased 8% to $1.1 billion
• Flat net sales in the fourth quarter, down 3% to $2.4 billion
• Foodservice net sales down 23% for the quarter
• Incremental supply chain costs exceeded $80 million due to COVID-19 challenges

AUSTIN, Minn., Nov. 24, 2020 /PRNewswire/ -- Hormel Foods Corporation (NYSE: HRL), a leading global branded food company, today reported results for the fourth quarter of fiscal 2020. All comparisons are to the fourth quarter of fiscal 2019 unless otherwise noted.

The impact of the Sadler's Smokehouse acquisition (March 2020) is excluded in the presentation of the fourth quarter of fiscal 2020 non-GAAP measures of organic volume and organic net sales. The impact of the CytoSport divestiture last year is excluded from prior year adjusted diluted earnings per share. Operating free cash flow is also presented as a non-GAAP metric.

EXECUTIVE SUMMARY - FISCAL 2020

• Volume of 4.8 billion lbs., up 1%; organic volume¹ up 2%
• Net sales of $9.6 billion, up 1%; organic net sales¹ up 2%
• Operating income of $1.1 billion, down 8%
• Operating margin of 11.5% compared to 12.6% last year
• Diluted earnings per share of $1.66, down 8%; down 2% to adjusted diluted earnings per share¹ last year
• Cash flow from operations of $1.1 billion, up 22%
• Operating free cash flow¹ of $0.8 billion, up 21%

EXECUTIVE SUMMARY - FOURTH QUARTER

• Volume of 1.2 billion lbs., down 2%; organic volume¹ down 3%
• Net sales of $2.4 billion, down 3%; organic net sales¹ down 4%
• Operating margin of 11.4% compared to 12.8% last year
• Effective tax rate of 15.9% compared to 21.0% last year
• Diluted earnings per share of $0.43, down 9% from $0.47

EXECUTIVE COMMENTARY
"I'm proud of how our team overcame multiple challenges to deliver record sales this year," said Jim Snee, chairman of the board, president and chief executive officer. "We grew sales in all four segments, which speaks to the strategic balance we have built into our company. In several of our domestic businesses, strong demand for our products exceeded the available supply. From a bottom-line perspective, our experienced leadership team managed through the incremental supply chain costs we incurred related to the pandemic, which was the largest driver of our earnings decline," Snee said.

"For the quarter, growth in our International segment was incredibly strong, particularly in China, where we drove balanced growth between the retail and foodservice channels. International sales of SPAM^® luncheon meat and SKIPPY^® peanut butter remained robust," Snee said. "We continued to see a high level of growth for many retail and deli brands, including Applegate^®, Columbus^®, Jennie-O^®, Hormel^® Black Label^®, Herdez^® and SKIPPY^®. Consistent with industry trends, our foodservice business showed declines this past quarter. As a leader in the industry, we will continue to support the distributor and operator community during this difficult time."

"I am optimistic about generating sales and earnings growth in fiscal 2021. Our One Supply Chain team delivered steady production improvements throughout the quarter, and our production capacity for key product lines is structurally higher as we move into next year. The balance we have across the retail, deli, foodservice and international channels gives us confidence in our ability to perform well in many different economic scenarios," Snee said. "This most recent surge of  COVID-19 cases in communities does create a level of uncertainty in a number of areas, notably labor availability, customer demand and raw material markets. Our company has adjusted to these conditions and will continue to invest to meet the needs of our team members, customers, consumers and operators."

STRATEGIC INVESTMENTS
"We opened our new Burke pizza toppings plant expansion this quarter, which will provide much-needed capacity for our pizza toppings business," Snee said. "We are also on track to open our new state-of-the-art dry sausage production facility for Columbus^® charcuterie products during the first half of the year."

"Finally, we are investing in a major capacity expansion for our pepperoni business," Snee said. "Even before the pandemic, we needed more capacity to support our retail and foodservice businesses. This expansion will give us a long runway to continue growing in this important category."

COVID-19 RESPONSE
"As we enter fiscal 2021, we are witnessing another dramatic increase in COVID-19 cases across the nation," Snee said. "Employee safety remains our top priority, and we are doubling down on our awareness initiative, KEEP COVID OUT!, which reinforces the importance of taking preventive measures at our production facilities and in our communities where we work and live."

For the full year, the company absorbed over $80 million in incremental supply chain costs primarily related to lower production volumes, employee bonuses and enhanced safety measures in its production facilities. The company estimates most of the incremental supply chain costs are temporary and can be minimized after the pandemic subsides.

DIVIDENDS
"We announced a five percent increase to our annual dividend, making the new dividend $0.98 per share," Snee said. "This is the 55^th consecutive year in which we've increased our dividend, which is a testament to the strong and consistent performance our company continues to deliver."

Effective Nov. 16, 2020, the company paid its 369^th consecutive quarterly dividend at the annual rate of $0.93 per share.

SEGMENT HIGHLIGHTS – FOURTH QUARTER

Refrigerated Foods

• Volume down 4%; organic volume¹ down 5%
• Net sales down 5%; organic net sales¹ down 7%
• Segment profit down 17%

Retail and deli sales growth from brands such as Applegate^®, Hormel^® Black Label^® and Columbus^®, in addition to the impact from the Sadler's Smokehouse acquisition did not offset a significant decline in foodservice sales. Sales were impacted by production limitations due to the COVID-19 pandemic and lower inventory levels. The decline in segment profit was due to lower foodservice sales, incremental supply chain costs related to the COVID-19 pandemic and a decrease in commodity profits.

Grocery Products

• Volume up 1%
• Net sales down 1%
• Segment profit up 1%

Demand for center store brands remained strong, led by growth from brands such as SKIPPY^®, Herdez^® and Hormel^® Compleats^®. Sales were impacted by lower inventory levels and production limitations related to the COVID-19 pandemic on certain center store products and lower sales for MegaMex foodservice items. Segment profit increased as improved results across the nut butters portfolio more than offset increased freight expense and lower earnings from our MegaMex foodservice business.

Jennie-O Turkey Store

• Volume down 2%
• Net sales down 6%
• Segment profit down 21%

Volume and sales growth of Jennie-O^® lean ground products and whole birds were exceptionally strong. Reduced demand for foodservice and commodity products led to the overall decline in sales. Lower foodservice earnings and increased supply chain costs related to the COVID-19 pandemic drove the significant decline in segment profit.

International & Other

• Volume down 1%
• Net sales up 8%
• Segment profit up 55%

Sales increased due to strong worldwide demand for SPAM^® luncheon meat and growth in China. Results in China were positively impacted by strong demand for branded retail items, such as SKIPPY^® peanut butter, and an accelerating recovery in the foodservice channel. The significant increase in segment profit was due to improved results in China, higher income from our partners in the Philippines, South Korea and Europe, and branded export growth.

CHANNEL HIGHLIGHTS – FOURTH QUARTER 
In an effort to add an increased level of disclosure and clarity to the nature, timing and uncertainty of our revenue, net sales have been disaggregated into sales channels, which can also be found in the upcoming Form 10-K. The ongoing COVID-19 pandemic and subsequent changes in consumer behavior drove higher retail sales in each of the company's segments. Overall deli channel sales increased even as some categories declined. Foodservice net sales continued to show declines, similar to prior quarters. International sales increased primarily due to sales increases in China.

• U.S. retail net sales up 7%
• U.S. deli net sales up 1%
• U.S. foodservice net sales down 23%
• International net sales up 2%

SELECTED FINANCIAL DETAILS - FISCAL 2020

Income Statement

• Operating margin for the full year was 11.5% compared to 12.6%. The company was negatively impacted by higher operating costs in 2020 due to the impact of the COVID-19 pandemic.
• Selling, general and administrative expenses increased by 5%. The increase was primarily related to one-time adjustments in 2019 related to the CytoSport sale.
• Advertising investments were $124 million compared to $131 million last year.
• The effective tax rate was 18.5% compared to 19.1% last year.
• The fourth quarter and full year of fiscal 2021 contain an extra week as compared to fiscal 2020.

Cash Flow Statement

• Cash flow from operations was $1,128 million, up 22% compared to last year. The increase was primarily due to effective management of working capital.
• The company acquired the Sadler's Smokehouse business for $271 million during the year.
• Dividends paid to shareholders were $487 million. The company paid its 369^th consecutive quarterly dividend on Nov. 16 at the annual rate of $0.93 per share, an 11% increase over the prior year.
• Capital expenditures were $368 million. The company's target for capital expenditures in fiscal 2021 is $350 million. Large projects include a new dry sausage facility in Nebraska, a pepperoni capacity expansion project, Project Orion and many other projects to support growth of branded products.
• Share repurchases totaled $12 million, representing 0.3 million shares purchased.
• Depreciation and amortization expense for the full year was $206 million. Depreciation and amortization expense for fiscal 2021 is expected to be approximately $210 million.

Balance Sheet

• The company is in a strong financial position with ample liquidity, a conservative level of debt and consistent cash flows.
• Cash on hand increased to $1,714 million from $673 million at the beginning of the year primarily due to the cash proceeds from the $1.0 billion debt offering during the year.
• Total long-term debt is $1,304 million compared to $250 million at the beginning of the year.
• Working capital increased to $2,075 million from $1,256 million at the beginning of the year, primarily related to a higher cash balance from the debt offering during the year.

PRESENTATION
A conference call will be webcast at 9 a.m. CST on Nov. 24, 2020. Access is available at www.hormelfoods.com by clicking on "Investors." The call will also be available via telephone by dialing 888-317-6003 and providing the access code 5831860. An audio replay is available by going to www.hormelfoods.com. The webcast replay will be available at noon CST, Nov. 24, 2020, and will remain on the website for one year.

ABOUT HORMEL FOODS - Inspired People. Inspired Food.™
Hormel Foods Corporation, based in Austin, Minn., is a global branded food company with over $9 billion in annual revenue across more than 80 countries worldwide. Its brands include SKIPPY^®, SPAM^®, Hormel^® Natural Choice^®, Applegate^®, Justin's^®, Wholly^®, Hormel^® Black Label^®, Columbus^® and more than 30 other beloved brands. The company is a member of the S&P 500 Index and the S&P 500 Dividend Aristocrats, was named on the "Global 2000 World's Best Employers" list by Forbes magazine for three straight years, is one of Fortune magazine's most admired companies, has appeared on Corporate Responsibility Magazine's "The 100 Best Corporate Citizens" list for 12 years in a row, and has received numerous other awards and accolades for its corporate responsibility and community service efforts. The company lives by its purpose statement - Inspired People. Inspired Food.™ - to bring some of the world's most trusted and iconic brands to tables across the globe. For more information, visit www.hormelfoods.com.

FORWARD-LOOKING STATEMENTS
This news release contains forward-looking information based on management's current views and assumptions. Actual events may differ materially. Please refer to the cautionary statements regarding "Risk Factors" and "Forward-Looking Statements" that appear on pages 34-41 in the company's Form 10-Q for the fiscal quarter ended Jul. 26, 2020, which can be accessed at hormelfoods.com in the "Investors" section.

Note: Due to rounding, numbers presented throughout this news release may not sum precisely to the totals provided, and percentages may not precisely reflect the absolute figures.

¹ COMPARISON OF U.S. GAAP TO NON-GAAP FINANCIAL MEASUREMENTS
The non-GAAP adjusted financial measurement of adjusted diluted earnings per share is presented to provide investors with additional information to facilitate the comparison of past and present operations. Adjusted diluted earnings per share excludes the impact associated with the divestiture of the CytoSport business in fiscal 2019.

The non-GAAP adjusted financial measurements of organic net sales and organic volume are presented to provide investors with additional information to facilitate the comparison of past and present operations. Organic net sales and organic volume are defined as net sales and volume, excluding the impact of acquisitions and divestitures. Organic net sales and organic volume exclude the impacts of the Sadler's Smokehouse acquisition (March 2020) in the Refrigerated Foods segment and the CytoSport divestiture (April 2019) in the Grocery Products, and International & Other segments.

The company defines the non-GAAP adjusted financial measurement of operating free cash flow as cash provided by or used in operating activities from continuing operations (a GAAP measure) less capital expenditures. The company views operating free cash flow as an important measure, because it is one factor in evaluating the amount of cash available for discretionary investments.

The company believes these non-GAAP financial measurements provide useful information to investors, because they are the measurements used to evaluate performance on a comparable year-over-year basis. Non-GAAP measurements are not intended to be a substitute for U.S. GAAP measurements in analyzing financial performance. These non-GAAP measurements are not in accordance with generally accepted accounting principles and may be different from non-GAAP measures used by other companies.

The tables below show the calculations to reconcile from the GAAP measures to the non-GAAP adjusted measures.

RECONCILIATION OF NON-GAAP MEASURES
(In thousands, except per share amounts)
ADJUSTED EARNINGS (NON-GAAP)
	Fifty-Two Weeks Ended
	October 25, 2020				October 27, 2019
	GAAP Earnings				GAAP Earnings				CytoSport Business Impact				Non-GAAP Adjusted Earnings				% Change
TOTAL SEGMENT PROFIT	$	1,166,782			$	1,214,735			$	(26,808)			$	1,187,927			(1.8)
Net unallocated expense	52,307				5,362				16,469				21,831				139.6
Noncontrolling interest	272				342				—				342				(20.5)
EARNINGS BEFORE INCOME TAX	$	1,114,747			$	1,209,715			$	(43,277)			$	1,166,438			(4.4)
Provision for income taxes	206,393				230,567				12,656				243,223				(15.1)
NET EARNINGS	$	908,354			$	979,148			$	(55,933)			$	923,215			(1.6)
Less: Net earnings attributable to noncontrolling interest	272				342				—				342				(20.4)
NET EARNINGS ATTRIBUTABLE TO HORMEL FOODS CORPORATION	$	908,082			$	978,806			$	(55,933)			$	922,873			(1.6)
DILUTED EARNINGS PER SHARE	$	1.66			$	1.80			$	(0.10)			$	1.70			(2.4)

 

OPERATING FREE CASH FLOW (NON-GAAP)
	Thirteen  Weeks Ended											Fifty-Two Weeks Ended
	October 25, 2020				October 27, 2019				% Change			October 25, 2020				October 27, 2019				% Change
Net cash provided by operating activities	$	249,938			$	350,084						$	1,128,024			$	922,996
Purchases of property and equipment	(140,671)				(139,607)							(367,501)				(293,838)
TOTAL	$	109,267			$	210,477			(48.1)	%		$	760,523			$	629,158			20.9	%

 

ORGANIC VOLUME AND NET SALES (NON-GAAP)
	Thirteen Weeks Ended
	October 25, 2020										October 27, 2019
VOLUME (LBS.)	Reported GAAP			Acquisitions			Organic (Non-GAAP)				Reported GAAP			Divestitures			Organic (Non-GAAP)				Non-GAAP % Change
Grocery Products	317,743			—			317,743				313,489			—			313,489				1.4
Refrigerated Foods	572,873			(4,772)			568,101				598,474			—			598,474				(5.1)
Jennie-O Turkey Store	237,435			—			237,435				242,421			—			242,421				(2.1)
International & Other	81,383			—			81,383				82,493			—			82,493				(1.3)
TOTAL	1,209,434			(4,772)			1,204,662				1,236,877			—			1,236,877				(2.6)
NET SALES
Grocery Products	$	580,617		$	—		$	580,617			$	584,085		$	—		$	584,085			(0.6)
Refrigerated Foods	1,308,842			(27,364)			1,281,478				1,373,009			—			1,373,009				(6.7)
Jennie-O Turkey Store	373,471			—			373,471				398,512			—			398,512				(6.3)
International & Other	157,175			—			157,175				145,907			—			145,907				7.7
TOTAL	$	2,420,105		$	(27,364)		$	2,392,741			$	2,501,513		$	—		$	2,501,513			(4.3)

 

	Fifty-Two Weeks Ended
	October 25, 2020										October 27, 2019
VOLUME (LBS.)	Reported GAAP			Acquisitions			Organic (Non-GAAP)				Reported GAAP			Divestitures			Organic (Non-GAAP)				Non-GAAP % Change
Grocery Products	1,281,562			—			1,281,562				1,283,492			(69,910)			1,213,582				5.6
Refrigerated Foods	2,360,571			(15,298)			2,345,273				2,325,156			—			2,325,156				0.9
Jennie-O Turkey Store	815,425			—			815,425				789,337			—			789,337				3.3
International & Other	337,149			—			337,149				339,296			(2,052)			337,244				—
TOTAL	4,794,707			(15,298)			4,779,409				4,737,281			(71,962)			4,665,319				2.4
NET SALES
Grocery Products	$	2,385,291		$	—		$	2,385,291			$	2,369,317		$	(130,588)		$	2,238,729			6.5
Refrigerated Foods	5,271,061			(89,363)			5,181,698				5,210,741			—			5,210,741				(0.6)
Jennie-O Turkey Store	1,333,459			—			1,333,459				1,323,783			—			1,323,783				0.7
International & Other	618,650			—			618,650				593,476			(3,889)			589,587				4.9
TOTAL	$	9,608,462		$	(89,363)		$	9,519,099			$	9,497,317		$	(134,477)		$	9,362,840			1.7

 

HORMEL FOODS CORPORATION
SEGMENT DATA
(Unaudited) (In thousands)
		Thirteen Weeks Ended
		October 25, 2020				October 27, 2019				% Change
NET SALES
Grocery Products		$	580,617			$	584,085			(0.6)
Refrigerated Foods		1,308,842				1,373,009				(4.7)
Jennie-O Turkey Store		373,471				398,512				(6.3)
International & Other		157,175				145,907				7.7
TOTAL		$	2,420,105			$	2,501,513			(3.3)
SEGMENT PROFIT
Grocery Products		$	81,642			$	80,923			0.9
Refrigerated Foods		157,810				189,287				(16.6)
Jennie-O Turkey Store		32,618				41,031				(20.5)
International & Other		27,047				17,455				55.0
TOTAL SEGMENT PROFIT		299,116				328,696				(9.0)
Net unallocated expense		20,553				5,065				305.8
Noncontrolling interest		169				63				172.2
EARNINGS BEFORE INCOME TAX		$	278,732			$	323,694			(13.9)

 

		Fifty-Two Weeks Ended
		October 25, 2020				October 27, 2019				% Change
NET SALES
Grocery Products		$	2,385,291			$	2,369,317			0.7
Refrigerated Foods		5,271,061				5,210,741				1.2
Jennie-O Turkey Store		1,333,459				1,323,783				0.7
International & Other		618,650				593,476				4.2
TOTAL		$	9,608,462			$	9,497,317			1.2
SEGMENT PROFIT
Grocery Products		$	358,008			$	339,497			5.5
Refrigerated Foods		609,406				681,763				(10.6)
Jennie-O Turkey Store		105,585				117,962				(10.5)
International & Other		93,782				75,513				24.2
TOTAL SEGMENT PROFIT		1,166,782				1,214,735				(3.9)
Net unallocated expense		52,307				5,362				875.5
Noncontrolling interest		272				342				(20.4)
EARNINGS BEFORE INCOME TAX		$	1,114,747			$	1,209,715			(7.9)

 

HORMEL FOODS CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited) (In thousands, except per share amounts)
		Thirteen Weeks Ended								Fifty-Two Weeks Ended
		October 25, 2020				October 27, 2019				October 25, 2020				October 27, 2019
Net sales		$	2,420,105			$	2,501,513			$	9,608,462			$	9,497,317
Cost of products sold		1,962,340				2,007,790				7,782,498				7,612,669
GROSS PROFIT		457,765				493,723				1,825,963				1,884,648
Selling, general and administrative		190,797				183,795				761,315				727,584
Equity in earnings of affiliates		9,729				11,068				35,572				39,201
OPERATING INCOME		276,697				320,996				1,100,220				1,196,265
Interest & investment income		10,306				5,793				35,596				31,520
Interest expense		(8,270)				(3,095)				(21,069)				(18,070)
EARNINGS BEFORE INCOME TAXES		278,732				323,694				1,114,747				1,209,715
Provision for income taxes		44,207				68,128				206,393				230,567
(effective tax rate)		15.9		%		21.0		%		18.5		%		19.1		%
NET EARNINGS		234,526				255,566				908,354				979,148
Less: net earnings attributable to noncontrolling interest		169				63				272				342
NET EARNINGS ATTRIBUTABLE TO HORMEL FOODS CORPORATION		$	234,356			$	255,503			$	908,082			$	978,806
NET EARNINGS PER SHARE
Basic		$	0.43			$	0.48			$	1.69			$	1.83
Diluted		$	0.43			$	0.47			$	1.66			$	1.80
WEIGHTED AVG. SHARES OUTSTANDING
Basic		539,726				534,151				538,007				534,578
Diluted		548,029				543,802				546,592				545,232
Dividends declared per share		$	0.2325			$	0.2100			$	0.9300			$	0.8400

 

HORMEL FOODS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(Unaudited) (In thousands)
		October 25, 2020				October 27, 2019
ASSETS
Cash and cash equivalents		$	1,714,309			$	672,901
Short-term marketable securities		17,338				14,736
Accounts receivable		702,419				574,396
Inventories		1,072,762				1,042,362
Income taxes receivable		41,449				19,924
Prepaid expenses		18,349				22,637
Other current assets		12,438				14,457
TOTAL CURRENT ASSETS		3,579,063				2,361,413
Goodwill		2,612,727				2,481,645
Other intangibles		1,076,285				1,033,862
Pension assets		183,232				135,915
Investments in and receivables from affiliates		308,372				289,157
Other assets		250,382				177,901
Property, plant & equipment, net		1,898,222				1,629,111
TOTAL ASSETS		$	9,908,282			$	8,109,004
LIABILITIES AND SHAREHOLDERS' INVESTMENT
Accounts payable		$	644,609			$	590,033
Accrued expenses		59,136				62,031
Accrued worker's compensation		25,070				24,272
Accrued marketing		108,502				96,305
Employee-related expenses		252,845				213,515
Taxes payable		22,480				6,208
Interest and dividends payable		132,632				112,685
Current maturities of long-term debt		258,691				—
TOTAL CURRENT LIABILITIES		1,503,965				1,105,049
Long-term debt, less current maturities		1,044,936				250,000
Pension and post-retirement benefits		552,878				536,490
Other long-term liabilities		157,399				115,356
Deferred income taxes		218,779				176,574
Accumulated other comprehensive loss		(395,250)				(399,500)
Other shareholder's investment		6,825,576				6,325,035
TOTAL LIAB. & SHAREHOLDERS' INVESTMENT		$	9,908,282			$	8,109,004

 

HORMEL FOODS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited) (In thousands)
		Thirteen Weeks Ended								Fifty-Two Weeks Ended
		October 25, 2020				October 27, 2019				October 25, 2020				October 27, 2019
OPERATING ACTIVITIES
Net earnings		$	234,526			$	255,566			$	908,354			$	979,148
Depreciation and amortization		56,007				42,994				205,781				165,209
(Increase) decrease in working capital		(74,876)				(9,303)				(29,013)				(215,548)
Other		34,282				60,827				42,902				(5,813)
NET CASH PROVIDED BY OPERATING ACTIVITIES		249,938				350,084				1,128,024				922,996
INVESTING ACTIVITIES
Net (purchase) sale of securities		53				(612)				(2,589)				(14,496)
Proceeds from sale of business		—				5,921				—				479,806
Acquisitions of businesses and intangibles		—				—				(270,789)				—
Purchases of property and equipment		(140,671)				(139,607)				(367,501)				(293,838)
Proceeds from sales of property and equipment		450				1,144				1,916				37,402
(Increase) decrease in investments, equity in affiliates, and other assets		(10,109)				(1,634)				(17,352)				11,279
NET CASH PROVIDED BY (USED IN)  INVESTING ACTIVITIES		(150,276)				(134,788)				(656,316)				220,153
FINANCING ACTIVITIES
Proceeds from long-term debt		—				—				992,381				—
Repayments of long-term debt and finance leases		(2,147)				—				(8,368)				(374,840)
Dividends paid on common stock		(125,373)				(112,082)				(487,376)				(437,053)
Share repurchase		—				—				(12,360)				(174,246)
Other		9,700				11,788				81,895				59,895
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES		(117,820)				(100,294)				566,172				(926,244)
Effect of exchange rate changes on cash		3,098				(2,300)				3,526				(3,140)
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		(15,060)				112,702				1,041,407				213,765
Cash and cash equivalents at beginning of period		1,729,368				560,199				672,901				459,136
CASH AND CASH EQUIVALENTS AT END OF YEAR		$	1,714,309			$	672,901			$	1,714,309			$	672,901

 

INVESTOR CONTACT:	MEDIA CONTACT:
Nathan Annis	(507) 437-5345
(507) 437-5248	media@hormel.com
ir@hormel.com

 

View original content to download multimedia:http://www.prnewswire.com/news-releases/hormel-foods-reports-fourth-quarter-and-fiscal-2020-earnings-301179417.html

SOURCE Hormel Foods Corporation

FAQ

What were Hormel Foods' earnings for the fourth quarter of 2020?

Hormel Foods reported diluted earnings per share of $0.43 for the fourth quarter of 2020, a decline of 9% from $0.47 in the previous year.

How did Hormel Foods perform in fiscal 2020?

Hormel Foods achieved net sales of $9.6 billion for fiscal 2020, representing a 1% increase compared to fiscal 2019.

What is the future outlook for Hormel Foods in fiscal 2021?

The company is optimistic about growth in fiscal 2021, citing improvements in production capacity and strong demand across its product lines.

Why did Hormel Foods' operating income decline in 2020?

The decline in operating income was primarily due to COVID-19 related supply chain costs and lower foodservice sales.

What dividend increase did Hormel Foods announce?

Hormel Foods announced a 5% increase in its annual dividend, raising it to $0.98 per share.