Hormel Foods Reports Third Quarter Results

Rhea-AI Summary

Hormel Foods Corporation (NYSE: HRL) reported its third-quarter fiscal 2020 results, showcasing a record net sales of $2.4 billion, up 4% year-over-year. Volume increased by 4% to 1.2 billion lbs., while diluted earnings per share remained flat at $0.37. Despite a 1% decline in pretax earnings to $259 million and an 11% drop in operating margin, cash flow from operations surged by 59%. The company faced approximately $40 million in incremental supply chain costs due to COVID-19. Outlook remains cautious due to uncertain foodservice recovery but anticipates continued strength in retail.

Positive

• Record net sales of $2.4 billion, up 4%
• Cash flow from operations increased by 59% to $330 million
• Operating free cash flow surged 72% to $242 million
• U.S. retail net sales increased by 19%

Negative

• Pretax earnings decreased by 1% to $259 million
• Operating margin fell from 11.2% to 10.5%
• Jennie-O Turkey Store segment profit down 67% due to manufacturing costs
• Absorbed $40 million in COVID-19 related supply chain costs

AUSTIN, Minn., Aug. 25, 2020 /PRNewswire/ -- Hormel Foods Corporation (NYSE: HRL), a leading global branded food company, today reported results for the third quarter of fiscal 2020. All comparisons are to the third quarter of fiscal 2019 unless otherwise noted.

The impact of the Sadler's Smokehouse acquisition (March 2020) is excluded in the presentation of the third quarter of fiscal 2020 non-GAAP measures of organic volume and organic net sales. Operating free cash flow is also presented as a non-GAAP metric.

EXECUTIVE SUMMARY - THIRD QUARTER

• Volume of 1.2 billion lbs., up 4%; organic volume¹ up 3%
• Record net sales of $2.4 billion, up 4%; organic net sales¹ up 2%
• Pretax earnings of $259 million, down 1%
• Operating margin of 10.5%, compared to 11.2% last year
• Effective tax rate of 21.6%, compared to 23.6% last year
• Net earnings of $203 million, up 2%
• Diluted earnings per share of $0.37, flat to last year
• Cash flow from operations of $330 million, up 59%
• Operating free cash flow¹ of $242 million, up 72%

EXECUTIVE COMMENTARY
"We had an excellent third quarter with strength across our retail and deli businesses, along with a rebound in our foodservice business," said Jim Snee, chairman of the board, president and chief executive officer. "The intentional balance we have built across our portfolio has once again enabled us to generate stable cash flows in a very dynamic time period, even as we absorbed significant incremental costs in our supply chain due to the COVID-19 pandemic."

"The tireless dedication of our entire global team during these extraordinary times embodies our company's purpose of Inspired People. Inspired Food.^TM," Snee said. "I'm proud of our team's unwavering commitment to employee safety and our ability to maintain high levels of performance to deliver record sales this quarter."

OUTLOOK
"We expect the fourth quarter to mirror many of the dynamics we saw in the third quarter, including strength from our retail businesses and the ongoing recovery in our foodservice business," Snee said. "However, the magnitude of additional recovery in the foodservice industry, the performance of the entire food supply chain and the state of the broader economy remain highly uncertain."

"As we begin the fourth quarter, we are actively addressing two areas of our business," Snee said. "First, while we saw an improvement in the third quarter, our foodservice business was still behind last year, which is a trend we expect to continue into the fourth quarter. I'm proud of the work our foodservice teams are doing to find unique solutions to support our distributors and operators. It is also encouraging to see growth from other channels and businesses offset declines in the foodservice channel."

"Second, our plant professionals have done heroic work to meet the high level of demand we are seeing across our business," Snee said. "In most businesses we are producing more product than we ever have, which is quite an accomplishment. However, in some key categories, the ongoing increased demand and impact of COVID-19 in our manufacturing facilities has forced our supply chain to find alternate solutions to increase production, including relying on our network of trusted co-manufacturing partners. In the fourth quarter, we expect factors such as limited labor availability, production inefficiencies due to COVID-19 safety measures and unseasonably low levels of inventory to challenge our ability to meet the increased demand for certain products."

COVID-19 RESPONSE
"We continue to ensure employee safety is our top priority," Snee said. "We are seeing success from 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."

The company's safety procedures continue to meet or exceed CDC and OSHA guidelines, ensuring its operations reflect best practices in the food industry. In addition to numerous safety procedures enacted once the pandemic started, the company has expanded automated temperature screenings, added more staggered production shifts and increased training on COVID-19 best practices.

In the third quarter, the company absorbed approximately $40 million in incremental supply chain costs primarily related to lower production volumes, employee bonuses and enhanced safety measures in its production facilities. On a year-to-date basis, total incremental costs were $60 million, and the range of incremental costs in the fourth quarter is $20-$40 million. The total incremental supply chain costs are anticipated to be $80-$100 million in fiscal 2020.

CORPORATE RESPONSIBILITY
"Being a good corporate citizen is about more than just writing a check to worthwhile causes. It's about making a difference and doing our part every day to lift up our communities and use our size and position as a global branded food company to make a difference through our philanthropic pillars of food security, community support and education," Snee said. "Since the start of the pandemic, we have continued to support our communities by contributing to hunger relief efforts, including donating cash and products to global, national and local hunger-relief organizations."

"Hormel Foods remains committed to supporting equality and education," Snee said. "Through the great work of our Inclusion and Diversity Guiding Coalition, in July we announced employee and corporate donations to three organizations: Minorities in Agriculture, Natural Resources and Related Sciences (MANRRS); the NAACP Legal Defense and Education Fund; and United Negro College Fund (UNCF). In addition, today we separately announced a college assurance program, Inspired Pathways, which will provide full tuition for any child of a Hormel Foods employee to attend community college. I'm very excited to see the difference these programs will make in our communities."

SEGMENT HIGHLIGHTS – THIRD QUARTER

Refrigerated Foods

• Volume up 8%; organic volume¹ up 7%
• Net sales up 5%; organic net sales¹ up 2%
• Segment profit down 11%

Volume and sales increased as strong demand for branded retail and deli products, higher fresh pork commodity sales, and the impact from the Sadler's Smokehouse acquisition more than offset a significant decline in foodservice sales. Improved sales results were driven by value-added brands such as Applegate^®, Hormel^® Black Label^® and Columbus^®. Segment profit declined as a result of lower foodservice sales, incremental COVID-19 related costs and losses on strategic hog hedge positions.

Grocery Products

• Volume up 6%
• Net sales up 7%
• Segment profit up 36%

Volume and sales increased due to strong consumer demand across center store brands, including SPAM^®, SKIPPY^®, Herdez^®, Hormel^® Compleats^®  and Dinty Moore^®. Improved sales and favorable product mix drove the significant increase in segment profit.

Jennie-O Turkey Store

• Volume down 9%
• Net sales down 4%
• Segment profit down 67%

Higher retail sales, led by Jennie-O^® lean ground products, did not offset declines in foodservice, commodity and whole-bird sales. The sharp decline in segment profit was primarily due to higher manufacturing and live production costs attributed to the ongoing impact of three plant pauses on the vertically integrated supply chain. Additionally, the business absorbed incremental COVID-19 related costs.

International & Other

• Volume down 5%
• Net sales up 2%
• Segment profit up 26%

Sales increases in China and branded exports offset lower fresh pork export results. Worldwide demand for SKIPPY^® peanut butter and SPAM^® luncheon meat was exceptionally strong. Segment profit increased due to improved results in China and our partners in the Philippines, South Korea and Europe.

CHANNEL HIGHLIGHTS – THIRD 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-Q. The ongoing COVID-19 pandemic and subsequent changes in consumer behavior drove higher and sustained retail sales in each of the company's segments. The company delivered market share gains in many of its retail categories as consumers purchased branded food products at an accelerated rate through various retail outlets, including traditional, mass, club and discount retailers. The company's investments into e-commerce have led to tremendous demand from both e-commerce retailers and through grocery pickup and delivery. Overall deli channel sales increased even as some categories declined. Foodservice net sales rebounded since the second quarter but still remained well below year-ago levels. International sales decreased primarily due to lower export sales of commodity pork and turkey products in the International & Other and Jennie-O Turkey Store segments, respectively.

• U.S. retail net sales up 19%
• U.S. deli net sales up 4%
• U.S. foodservice net sales down 19%
• International net sales down 2%

SELECTED FINANCIAL DETAILS

Income Statement

• Selling, general and administrative expenses increased slightly compared to the prior year, as higher employee-related expenses were mostly offset by lower advertising investments.
• Advertising investments were $24 million, down 23% to last year.
• Interest and investment income increased during the quarter. Higher investment income offset the additional interest expense from the recent bond issuance.
• Operating margin was 10.5%, compared to 11.2% in fiscal 2019. The decline for the quarter was due to the negative impacts from incremental costs related to the COVID-19 pandemic.
• The effective tax rate was 21.6%, compared to 23.6% last year.

Cash Flow Statement

• Cash flow from operations was $330 million, up 59%. Cash flow from operations was positively impacted by an increase in accounts payable and a reduction in inventory.
• Operating free cash flow¹ was $242 million, up 72%.
• The company paid its 368th consecutive quarterly dividend on Aug. 17, 2020, at the annual rate of $0.93 per share, an 11% increase over the prior year.
• Capital expenditures in the third quarter were $88 million, compared to $67 million last year. The company's target for capital expenditures in fiscal 2020 is $350 million. Large projects include the Burke pizza toppings plant expansion, a new dry sausage facility in Nebraska, Project Orion and other projects to support growth of branded products.
• The company did not repurchase shares during the quarter.
• Depreciation and amortization expense in the third quarter was $50 million, compared to $41 million last year. The full-year expense is expected to be approximately $200 million.

Balance Sheet

• The company remains in a strong financial position with ample liquidity, a conservative level of debt and consistent cash flows.
• Cash on hand increased to $1.7 billion from $0.7 billion at the beginning of the year due to the cash proceeds from the $1.0 billion debt offering during the quarter.
• Total debt is $1.3 billion, up from $0.3 billion at the beginning of the year.
• Working capital increased to $2.0 billion from $1.3 billion at the beginning of the year, primarily related to a higher cash balance from the debt offering during the quarter. Additionally, inventory declined during the quarter due to record sales, and improvements in accounts payable more than offset an increase in accounts receivable.

PRESENTATION
A conference call will be webcast at 9 a.m. CDT on Aug. 25, 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 9237894. An audio replay is available by going to www.hormelfoods.com. The webcast replay will be available at noon CDT, Aug. 25, 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 35-42 in the company's Form 10-Q for the fiscal quarter ended Apr. 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 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)
ORGANIC VOLUME AND NET SALES (NON-GAAP)
	Thirteen Weeks Ended
	July 26, 2020										July 28, 2019
VOLUME (LBS.)	Reported GAAP			Acquisitions			Organic (Non-GAAP)				Reported GAAP			Divestitures			Organic (Non-GAAP)			Organic (Non-GAAP) % Change
Grocery Products	307,198			—			307,198				290,658			—			290,658			5.7
Refrigerated Foods	605,546			(6,795)			598,751				558,531			—			558,531			7.2
Jennie-O Turkey Store	171,313			—			171,313				189,146			—			189,146			(9.4)
International & Other	81,156			—			81,156				85,169			—			85,169			(4.7)
TOTAL	1,165,214			(6,795)			1,158,418				1,123,504			—			1,123,504			3.1
NET SALES
Grocery Products	$	580,798		$	—		$	580,798			$	543,088		$	—		$	543,088		6.9
Refrigerated Foods	1,363,092			(40,388)			1,322,704				1,301,101			—			1,301,101			1.7
Jennie-O Turkey Store	286,805			—			286,805				298,781			—			298,781			(4.0)
International & Other	150,762			—			150,762				147,735			—			147,735			2.0
TOTAL	$	2,381,457		$	(40,388)		$	2,341,069			$	2,290,705		$	—		$	2,290,705		2.2
	Thirty-Nine Weeks Ended
	July 26, 2020										July 28, 2019
VOLUME (LBS.)	Reported GAAP			Acquisitions			Organic (Non-GAAP)				Reported GAAP			Divestitures			Organic (Non-GAAP)			Organic (Non-GAAP) % Change
Grocery Products	963,819			—			963,819				970,003			(69,910)			900,093			7.1
Refrigerated Foods	1,787,698			(10,526)			1,777,172				1,726,682			—			1,726,682			2.9
Jennie-O Turkey Store	577,990			—			577,990				546,916			—			546,916			5.7
International & Other	255,766			—			255,766				256,803			(2,052)			254,751			0.4
TOTAL	3,585,273			(10,526)			3,574,747				3,500,404			(71,962)			3,428,441			4.3
NET SALES
Grocery Products	$	1,804,674		$	—		$	1,804,674			$	1,785,232		$	(130,588)		$	1,654,644		9.1
Refrigerated Foods	3,962,219			(61,999)			3,900,220				3,837,732			—			3,837,732			1.6
Jennie-O Turkey Store	959,988			—			959,988				925,271			—			925,271			3.8
International & Other	461,475			—			461,475				447,569			(3,889)			443,680			4.0
TOTAL	$	7,188,357		$	(61,999)		$	7,126,358			$	6,995,804		$	(134,477)		$	6,861,327		3.9

 

 

OPERATING FREE CASH FLOW (NON-GAAP)
	Thirteen Weeks Ended											Thirty-Nine Weeks Ended
	July 26,  2020				July 28,  2019				% Change			July 26,  2020				July 28,  2019				% Change
Net cash provided by operating activities	$	329,797			$	207,319						$	878,086			$	572,912
Purchases of property/equipment	(88,267)				(66,610)							(226,830)				(154,231)
Operating free cash flow	$	241,530			$	140,709			71.7			$	651,256			$	418,681			55.5

 

 

HORMEL FOODS CORPORATION SEGMENT DATA (Unaudited) (In thousands)
		Thirteen Weeks Ended
		July 26,  2020				July 28,  2019				% Change
NET SALES
Grocery Products		$	580,798			$	543,088			6.9
Refrigerated Foods		1,363,092				1,301,101				4.8
Jennie-O Turkey Store		286,805				298,781				(4.0)
International & Other		150,762				147,735				2.0
TOTAL		$	2,381,457			$	2,290,705			4.0
SEGMENT PROFIT
Grocery Products		$	80,169			$	58,778			36.4
Refrigerated Foods		152,822				171,795				(11.0)
Jennie-O Turkey Store		7,069				21,278				(66.8)
International & Other		23,620				18,755				25.9
TOTAL SEGMENT PROFIT		263,679				270,606				(2.6)
Net unallocated expense		4,457				9,584				(53.5)
Noncontrolling interest		141				(22)				(744.6)
EARNINGS BEFORE INCOME TAX		$	259,364			$	261,000			(0.6)
		Thirty-Nine Weeks Ended
		July 26,  2020				July 28,  2019				% Change
NET SALES
Grocery Products		$	1,804,674			$	1,785,232			1.1
Refrigerated Foods		3,962,219				3,837,732				3.2
Jennie-O Turkey Store		959,988				925,271				3.8
International & Other		461,475				447,569				3.1
TOTAL		$	7,188,357			$	6,995,804			2.8
SEGMENT PROFIT
Grocery Products		$	276,367			$	258,574			6.9
Refrigerated Foods		451,596				492,476				(8.3)
Jennie-O Turkey Store		72,968				76,931				(5.2)
International & Other		66,735				58,058				14.9
TOTAL SEGMENT PROFIT		867,666				886,039				(2.1)
Net unallocated expense		31,754				297				10,570.7
Noncontrolling interest		103				279				(63.3)
EARNINGS BEFORE INCOME TAX		$	836,014			$	886,021			(5.6)

 

 

HORMEL FOODS CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In thousands, except per share amounts)
		Thirteen Weeks Ended								Thirty-Nine Weeks Ended
		July 26,  2020				July 28,  2019				July 26,  2020				July 28,  2019
Net sales		$	2,381,457			$	2,290,705			$	7,188,357			$	6,995,804
Cost of products sold		1,959,032				1,857,263				5,820,158				5,604,879
GROSS PROFIT		422,426				433,442				1,368,198				1,390,925
Selling, general and administrative		181,085				180,169				570,518				543,789
Equity in earnings of affiliates		8,235				3,384				25,843				28,133
OPERATING INCOME		249,576				256,657				823,523				875,269
Interest and investment income (expense)		15,513				7,556				25,289				25,727
Interest expense		(5,724)				(3,213)				(12,798)				(14,975)
EARNINGS BEFORE INCOME TAXES		259,364				261,000				836,014				886,021
Provision for income taxes		56,103				61,573				162,186				162,439
(effective tax rate)		21.6		%		23.6		%		19.4		%		18.3		%
NET EARNINGS		203,260				199,427				673,828				723,582
Less: Net earnings (loss) attributable to noncontrolling interest		141				(22)				103				279
NET EARNINGS ATTRIBUTABLE TO HORMEL FOODS CORPORATION		$	203,119			$	199,449			$	673,726			$	723,303
NET EARNINGS PER SHARE
Basic		$	0.38			$	0.37			$	1.25			$	1.35
Diluted		$	0.37			$	0.37			$	1.23			$	1.33
WEIGHTED-AVERAGE SHARES OUTSTANDING
Basic		539,108				534,188				537,434				534,721
Diluted		547,149				543,678				546,112				545,709
Dividends declared per share		$	0.2325			$	0.2100			$	0.6975			$	0.6300

 

 

HORMEL FOODS CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Unaudited) (In thousands)
		July 26,  2020				October 27,  2019
ASSETS
Cash and cash equivalents		$	1,729,368			$	672,901
Short-term marketable securities		17,564				14,736
Accounts receivable		648,991				574,396
Inventories		982,355				1,042,362
Income taxes receivable		572				19,924
Prepaid expenses		16,968				22,637
Other current assets		13,956				14,457
TOTAL CURRENT ASSETS		3,409,774				2,361,413
Goodwill		2,615,690				2,481,645
Other intangibles		1,080,546				1,033,862
Pension assets		153,865				135,915
Investments in and receivables from affiliates		298,638				289,157
Other assets		241,947				177,901
Property, plant and equipment, net		1,800,012				1,629,111
TOTAL ASSETS		$	9,600,472			$	8,109,004
LIABILITIES AND SHAREHOLDERS' INVESTMENT
Accounts payable		$	537,535			$	590,033
Accrued expenses		61,079				62,031
Accrued workers' compensation		28,305				24,272
Accrued marketing		147,071				96,305
Employee-related expenses		214,394				213,515
Taxes payable		49,731				6,208
Interest and dividends payable		130,248				112,685
Current maturities of long-term debt		258,688				—
TOTAL CURRENT LIABILITIES		1,427,051				1,105,049
Long-term debt, less current maturities		1,046,821				250,000
Pension and post-retirement benefits		545,988				536,490
Other long-term liabilities		138,543				115,356
Deferred income taxes		170,322				176,574
Accumulated other comprehensive loss		(431,882)				(399,500)
Other shareholders' investment		6,703,629				6,325,035
TOTAL LIABILITIES & SHAREHOLDERS' INVESTMENT		$	9,600,472			$	8,109,004

 

 

HORMEL FOODS CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In thousands)
		Thirteen Weeks Ended								Thirty-Nine Weeks Ended
		July 26,  2020				July 28,  2019				July 26,  2020				July 28,  2019
OPERATING ACTIVITIES
Net earnings		$	203,260			$	199,427			$	673,828			$	723,582
Depreciation and amortization		49,857				41,472				149,774				122,215
Decrease (increase) in working capital		82,926				(39,758)				45,862				(206,245)
Other		(6,247)				6,178				8,621				(66,640)
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES		329,797				207,319				878,086				572,912
INVESTING ACTIVITIES
Net (purchase) sale of securities		(651)				(7,220)				(2,642)				(13,884)
Proceeds from sale of business		—				—				—				473,885
Acquisitions of businesses/intangibles		(1,911)				—				(270,789)				—
Purchases of property/equipment		(88,267)				(66,610)				(226,830)				(154,231)
Proceeds from sales of property/equipment		344				5,091				1,466				36,258
Increase in investments, equity in affiliates, and other assets		7,580				(1,147)				(7,244)				12,913
NET CASH (USED IN) PROVIDED BY INVESTING ACTIVITIES		(82,905)				(69,886)				(506,040)				354,941
FINANCING ACTIVITIES
Proceeds from long-term debt		992,381				—				992,381				—
Repayments of long-term debt and finance leases		(2,152)				—				(6,221)				(374,840)
Dividends paid on common stock		(125,253)				(112,684)				(362,003)				(324,971)
Share repurchase		—				(106,624)				(12,360)				(174,246)
Other		7,747				3,830				72,195				48,107
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES		872,723				(215,478)				683,992				(825,950)
Effect of exchange rate changes on cash		3,680				(1,083)				428				(840)
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		1,123,294				(79,128)				1,056,466				101,063
Cash and cash equivalents at beginning of period		606,073				639,327				672,901				459,136
CASH AND CASH EQUIVALENTS AT END OF QUARTER		$	1,729,368			$	560,199			$	1,729,368			$	560,199

 

 

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

 

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SOURCE Hormel Foods Corporation

FAQ

What are the key financial highlights from Hormel Foods' Q3 2020 results?

Hormel Foods reported record net sales of $2.4 billion, a 4% increase. Volume rose 4% to 1.2 billion lbs. Cash flow from operations increased by 59%.

How did COVID-19 impact Hormel Foods' supply chain costs?

Hormel Foods absorbed approximately $40 million in incremental supply chain costs during Q3 2020 due to COVID-19.

What is the outlook for Hormel Foods for the fourth quarter?

Hormel Foods anticipates continued strength in retail but acknowledges uncertainty in foodservice recovery and supply chain challenges.

What was Hormel Foods' diluted earnings per share for Q3 2020?

Diluted earnings per share for Hormel Foods remained flat at $0.37 for the third quarter of fiscal 2020.

What changes occurred in the segment profits for Hormel Foods?

Segment profit for Jennie-O Turkey Store dropped 67%, while grocery products saw an increase of 36%.