Hormel Foods Reports Third Quarter Results And Updates Full Year Earnings Guidance Range

Rhea-AI Summary

Hormel Foods Corporation (NYSE: HRL) reported its third-quarter results for fiscal 2021, achieving record net sales of $2.9 billion, a 20% increase from the previous year. The volume reached 1.2 billion lbs., with an overall operating income of $207 million, down 17%. Despite inflationary pressures affecting raw materials and labor, the company successfully integrated the Planters® snack nuts business. Guidance for full-year net sales is projected between $11.0 - $11.2 billion, with diluted EPS guidance between $1.65 - $1.69.

Positive

• Record net sales of $2.9 billion, up 20% year-over-year.
• Successful integration of Planters® snack nuts business contributing to growth.
• Net sales up 25% compared to pre-pandemic levels.

Negative

• Operating income down 17%, with margins affected by inflationary pressures.
• Diluted EPS of $0.32, down 14% compared to the previous year.

AUSTIN, Minn., Sept. 2, 2021 /PRNewswire/ -- Hormel Foods Corporation (NYSE: HRL), a leading global branded food company, today reported results for the third quarter of fiscal 2021. All comparisons are to the third quarter of fiscal 2020 unless otherwise noted.

EXECUTIVE SUMMARY - THIRD QUARTER

• Volume of 1.2 billion lbs., up 1%; organic volume¹ down 2%
• Record net sales of $2.9 billion, up 20%; organic net sales¹ up 14%
• Net sales growth from all four segments and all four sales channels
• Net sales up 25% compared to 2019 pre-pandemic levels
• Operating income of $207 million, down 17%; adjusted operating income¹ of $248 million, down 1%
• Operating margin of 7.2%, compared to 10.5% last year; adjusted operating margin¹ of 8.7%
• Effective tax rate of 13.3%, compared to 21.6% last year
• Diluted earnings per share of $0.32, down 14% compared to last year; adjusted diluted earnings per share¹ of $0.39, up 5% compared to last year

EXECUTIVE COMMENTARY
"Our team delivered the highest quarterly net sales result in the company's history, with growth from every segment and all four channels," said Jim Snee, chairman of the board, president and chief executive officer. "This record performance demonstrates the power of our brands and our team's ability to successfully integrate the Planters^® business, which is quite an accomplishment, given the difficult operating conditions again this quarter."

"Our ability to deliver consistent quarter-after-quarter top-line growth during this very dynamic time along with 25 percent sales growth over pre-pandemic levels is directly linked to the tremendous progress we have made in expanding our portfolio to reach consumers when and where they want to eat," Snee said. "Our investments in retail, deli and e-commerce helped carry us through the initial phases of the pandemic last year as consumers shifted to more at-home eating occasions. Today, our leadership positions in foodservice and snacking have fueled an acceleration in growth as consumers pivot to spending more time in restaurants, traveling, and hosting gatherings with family and friends. This balance across consumer eating occasions is just one of the many things that make our company uncommon."

"We saw significant inflationary pressure in almost all areas of our business, including raw materials, packaging, freight, labor and many other inputs during the quarter," Snee said. "We have implemented pricing actions across virtually every brand, which has been our main lever to offset these inflationary pressures. In addition, our experienced management team is taking numerous other strategic actions to offset cost increases, including optimizing promotional activity, improving product mix and rationalizing less efficient products in our portfolio."

"We are managing through industrywide operational challenges, including labor availability, upstream and downstream supply chain disruptions, and highly volatile and inflationary input costs," Snee said. "I am extremely proud of the way our team is navigating through these complexities while never losing sight of the company's long-term strategy for growth."

OUTLOOK
"We expect to deliver record sales again in the fourth quarter, along with improving margins as additional pricing actions go into effect," Snee said. "The combination of a balanced and diversified portfolio, numerous strategic investments and the addition of the Planters^® brand leaves us very optimistic about our future."

	Fiscal 2021 Outlook*
Net Sales Guidance (in billions)	$11.0 - $11.2
Diluted Earnings per Share Guidance	$1.65 - $1.69
*Includes the acquisition of the Planters® snack nuts business

The company issued its full-year net sales and earnings per share guidance ranges to reflect the full impact of the acquisition of the Planters^® snack nuts business. Additionally, the earnings per share guidance range includes the impact of inflationary pressures on the business, which will not be fully offset this fiscal year.

PLANTERS® INTEGRATION UPDATE
In June 2021, the company closed on the acquisition of the Planters^® snack nuts business. Since closing, the company has successfully integrated numerous functions. During the third quarter, the company recognized in excess of $40 million in acquisition costs and accounting adjustments related to the acquisition.

CHANNEL HIGHLIGHTS – THIRD QUARTER
In an effort to add an increased level of disclosure and clarity to sales trends compared to the prior year and pre-pandemic levels, net sales have been disaggregated into sales channels. Demand for the company's retail items remained elevated, as exhibited by growth compared to the prior year and double-digit growth over fiscal 2019. Foodservice sales continued to exceed pre-pandemic levels and accelerated compared to the second quarter of fiscal 2021. Deli channel sales increased due to growth from branded grab-and-go and prepared foods items. International sales increased due to strong growth from branded and fresh pork exports, and growth from China and Brazil. The company benefited from pricing actions across many categories and the contributions from the Planters^® snack nuts business during the quarter.

		Thirteen Weeks Ended
		July 25, 2021 compared to July 26, 2020			July 25, 2021 compared to July 28, 2019
Net Sales Percent Change (%)
U.S. Retail		9			31
U.S. Foodservice		45			17
U.S. Deli		12			16
International		36			33
Total		20			25

SEGMENT HIGHLIGHTS – THIRD QUARTER

Refrigerated Foods

• Volume down 2%; organic volume¹ down 3%
• Net sales up 19%; organic net sales¹ up 18%
• Segment profit flat

Net sales increased due to strong results from the foodservice, retail and deli businesses, and elevated pricing across most categories. The recovery in foodservice continued to accelerate, with net sales exceeding both last-year and pre-pandemic levels in almost every category. Retail and deli sales increased due primarily to growth from Hormel^® Black Label^® bacon, Columbus^® grab-and-go items, Hormel^® refrigerated entrees and Hormel^® Gatherings^® party trays. The decline in volume was due to lower shipments of commodity pork. Higher earnings from the foodservice business, numerous pricing actions and increased commodity profits fully offset significantly higher raw material costs and increased freight expenses. Volume, net sales and segment profit were negatively impacted by production constraints due to labor shortages.

Grocery Products

• Volume up 4%; organic volume¹ down 6%
• Net sales up 20%; organic net sales¹ flat
• Segment profit up 1%

Volume and net sales increased due to the inclusion of the Planters^® snack nuts business. On an organic basis, sales growth from brands such as SPAM^®, Hormel^® Compleats^® and Wholly^® overcame the impact of lower contract manufacturing sales. Segment profit increased due to strong results from the MegaMex joint venture and the contribution from the Planters^® snack nuts business. These benefits were offset by higher input costs, and higher manufacturing and logistics costs. Volume, net sales and segment profit were negatively impacted by production constraints due to labor shortages.

Jennie-O Turkey Store

• Volume up 9%
• Net sales up 22%
• Segment profit down 17%

Volume and net sales increased due to improved foodservice, whole bird and commodity shipments. Sales of Jennie-O^® lean ground turkey increased due to pricing actions implemented in prior quarters and remain meaningfully above pre-pandemic levels. Segment profit was lower due to the impact of significantly higher feed costs and an increase in freight expenses.

International & Other

• Volume up 2%; organic volume¹ up 1%
• Net sales up 26%; organic net sales¹ up 24%
• Segment profit up 18%

Strong sales growth from SPAM^® luncheon meat, a recovery in foodservice exports, continued strong results in China and improved performance in Brazil led to record net sales during the quarter. In addition to higher sales, the improvement in segment profit was driven by higher branded and fresh pork export margins.

SELECTED FINANCIAL DETAILS
Income Statement

• Selling, general and administrative expenses were up 25% compared to the prior year due to one-time acquisition costs and accounting adjustments related to the acquisition of the Planters^® snack nuts business. Adjusted selling, general and administrative expenses¹ as a percent of net sales decreased compared to last year.
• Advertising spend was $31 million compared to $24 million in the prior year.
• Interest expense increased due to additional debt issuance related to the acquisition of the Planters^® snack nuts business.
• Operating margin was 7.2% compared to 10.5% in fiscal 2020. The decline was due to one-time transaction and integration expenses related to the Planters^® acquisition. Adjusted operating margin¹ was 8.7%. Higher raw material costs were the primary driver to lower margins during the quarter.
• The effective tax rate was 13.3% compared to 21.6% last year. The decrease in tax rate was due primarily to a large volume of stock option exercises and a one-time foreign tax benefit.

Cash Flow Statement

• Cash flow from operations was $77 million, down 77%. The decrease was primarily related to an increase in inventory due to significantly higher raw material costs.
• The company paid its 372nd consecutive quarterly dividend on Aug. 16, 2021, at the annual rate of $0.98 per share, a 5% increase over the prior year. This marks the 93rd consecutive year of uninterrupted dividend payments.
• Capital expenditures in the third quarter were $54 million compared to $88 million last year. The company's target for capital expenditures in fiscal 2021 is $260 million. Large projects include a pepperoni capacity expansion in Nebraska and numerous other projects to support growth of branded products.
• No shares were repurchased during the quarter.
• Depreciation and amortization expense in the third quarter was $59 million compared to $50 million last year. The full-year expense is expected to be approximately $210 million.

Balance Sheet

• The acquisition of the Planters^® snack nuts business was financed through a combination of cash on hand of $1.1 billion and long-term debt of $2.3 billion.
• Cash on hand decreased to $0.3 billion from $1.7 billion at the beginning of the year.
• Total debt increased to $3.3 billion from $1.3 billion at the beginning of the year.
• Including treasury locks, weighted average cost of debt is 1.6%.
• Working capital decreased to $1.4 billion from $2.1 billion at the beginning of the year.

PRESENTATION
A conference call will be webcast at 8 a.m. CDT on Sept. 2, 2021. 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 3284028. An audio replay is available by going to www.hormelfoods.com. The webcast replay will be available at noon CDT, Sept. 2, 2021, 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 Planters^®, 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 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, 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 "Forward-Looking Statements" and "Risk Factors" that appear on pages 28-35 in the company's Form 10-Q for the fiscal quarter ended Apr. 25, 2021, 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 adjusted operating income, adjusted operating margin, adjusted selling, general and administrative expenses, and adjusted diluted earnings per share are presented to provide investors with additional information to facilitate the comparison of past and present operations. Adjusted operating income, adjusted operating margin, adjusted selling, general and administrative expenses, and adjusted diluted earnings per share exclude the impact of the acquisition-related expenses and accounting adjustments related to the acquisition of the Planters^® snack nuts business. The tax impact was calculated using the effective tax rate for the quarter in which the expenses and accounting adjustments were incurred.

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 acquisition of the Planters^® snack nuts business (June 2021) in the Grocery Products, Refrigerated Foods and International & Other segments and the Sadler's Smokehouse acquisition (March 2020) in the Refrigerated Foods segment.

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 FINANCIAL MEASUREMENTS (NON-GAAP)
	Thirteen Weeks Ended
	July 25, 2021										July 26, 2020
	Reported GAAP			Acquisition   costs and adjustments			Non-GAAP				Reported GAAP				Non-GAAP % Change
Net Sales	$	2,863,670		$	—		$	2,863,670			$	2,381,457			20.2
Cost of Products Sold	2,440,322			(12,900)			2,427,422				1,959,032				23.9
Gross Profit	423,348			12,900			436,248				422,426				3.3
Selling, General and Administrative	226,284			(27,462)			198,822				181,085				9.8
Equity in Earnings of Affiliates	10,420			—			10,420				8,235				26.5
Operating Income	207,484			40,362			247,846				249,576				(0.7)
Interest and Investment Income (Expense)	8,457			—			8,457				15,513				(45.5)
Interest Expense	(11,703)			—			(11,703)				(5,724)				104.5
Earnings Before Income Taxes	204,238			40,362			244,600				259,364				(5.7)
Provision for Income Taxes	27,164			5,368			32,532				56,103				(42.0)
Net Earnings	177,074			34,994			212,068				203,260				4.3
Less: Net Earnings Attributable to Noncontrolling Interest	157			—			157				141				11.3
Net Earnings Attributable to Hormel Foods Corporation	$	176,917		$	34,994		$	211,911			$	203,119			4.3
Diluted Net Earnings Per Share	$	0.32		$	0.06		$	0.39			$	0.37			5.4
Operating Margin (% of Net Sales)	7.2						8.7				10.5
	Thirty-Nine Weeks Ended
	July 25, 2021										July 26, 2020
	Reported GAAP			Acquisition   costs and adjustments			Non-GAAP				Reported GAAP				Non-GAAP % Change
Net Sales	$	7,931,438		$	—		$	7,931,438			$	7,188,357			10.3
Cost of Products Sold	6,581,613			(12,900)			6,568,713				5,820,158				12.9
Gross Profit	1,349,825			12,900			1,362,725				1,368,198				(0.4)
Selling, General and Administrative	622,630			(30,303)			592,327				570,518				3.8
Equity in Earnings of Affiliates	37,722			—			37,722				25,843				46.0
Operating Income	764,917			43,203			808,120				823,523				(1.9)
Interest and Investment Income (Expense)	36,740			—			36,740				25,289				45.3
Interest Expense	(27,718)			—			(27,718)				(12,798)				116.6
Earnings Before Income Taxes	773,940			43,203			817,143				836,014				(2.3)
Provision for Income Taxes	146,549			5,975			152,524				162,186				(6.0)
Net Earnings	627,390			37,228			664,618				673,828				(1.4)
Less: Net Earnings Attributable to Noncontrolling Interest	290			—			290				103				181.6
Net Earnings Attributable to Hormel Foods Corporation	$	627,101		$	37,228		$	664,329			$	673,726			(1.4)
Diluted Net Earnings Per Share	$	1.15		$	0.06		$	1.21			$	1.23			(1.6)
Operating Margin (% of Net Sales)	9.6						10.2				11.5

 

ORGANIC VOLUME AND NET SALES (NON-GAAP)
	Thirteen Weeks Ended
	July 25, 2021										July 26, 2020
Volume (lbs.)	Reported GAAP			Acquisitions			Organic (Non-GAAP)				Reported GAAP				Non-GAAP % Change
Grocery Products	319,216			(30,124)			289,092				307,198				(5.9)
Refrigerated Foods	591,143			(5,784)			585,359				605,546				(3.3)
Jennie-O Turkey Store	187,220			—			187,220				171,313				9.3
International & Other	83,055			(1,001)			82,054				81,156				1.1
Total	1,180,634			(36,909)			1,143,725				1,165,214				(1.8)
Net Sales
Grocery Products	$	698,584		$	(117,681)		$	580,903			$	580,798			—
Refrigerated Foods	1,624,641			(21,002)			1,603,639				1,363,092				17.6
Jennie-O Turkey Store	350,897			—			350,897				286,805				22.3
International & Other	189,548			(2,657)			186,891				150,762				24.0
Total	$	2,863,670		$	(141,340)		$	2,722,330			$	2,381,457			14.3
	Thirty-Nine Weeks Ended
	July 25, 2021										July 26, 2020
Volume (lbs.)	Reported GAAP			Acquisitions			Organic (Non-GAAP)				Reported GAAP				Non-GAAP % Change
Grocery Products	937,345			(30,124)			907,221				963,819				(5.9)
Refrigerated Foods	1,779,729			(11,950)			1,767,779				1,787,698				(1.1)
Jennie-O Turkey Store	583,413			—			583,413				577,990				0.9
International & Other	252,801			(1,001)			251,800				255,766				(1.6)
Total	3,553,288			(43,075)			3,510,214				3,585,273				(2.1)
Net Sales
Grocery Products	$	1,904,415		$	(117,681)		$	1,786,734			$	1,804,674			(1.0)
Refrigerated Foods	4,445,099			(56,026)			4,389,073				3,962,219				10.8
Jennie-O Turkey Store	1,035,397			—			1,035,397				959,988				7.9
International & Other	546,528			(2,657)			543,871				461,475				17.9
Total	$	7,931,438		$	(176,364)		$	7,755,075			$	7,188,357			7.9

 

HORMEL FOODS CORPORATION
SEGMENT DATA
Unaudited
In thousands
		Thirteen Weeks Ended
		July 25, 2021				July 26, 2020				% Change
Net Sales
Grocery Products		$	698,584			$	580,798			20.3
Refrigerated Foods		1,624,641				1,363,092				19.2
Jennie-O Turkey Store		350,897				286,805				22.3
International & Other		189,548				150,762				25.7
Total		$	2,863,670			$	2,381,457			20.2
Segment Profit
Grocery Products		$	80,791			$	80,169			0.8
Refrigerated Foods		153,216				152,822				0.3
Jennie-O Turkey Store		5,874				7,069				(16.9)
International & Other		27,915				23,620				18.2
Total Segment Profit		267,796				263,679				1.6
Net Unallocated Expense		63,715				4,457				1,329.6
Noncontrolling Interest		157				141				11.1
Earnings Before Income Taxes		$	204,238			$	259,364			(21.3)

		Thirty-Nine Weeks Ended
		July 25, 2021				July 26, 2020				% Change
Net Sales
Grocery Products		$	1,904,415			$	1,804,674			5.5
Refrigerated Foods		4,445,099				3,962,219				12.2
Jennie-O Turkey Store		1,035,397				959,988				7.9
International & Other		546,528				461,475				18.4
Total		$	7,931,438			$	7,188,357			10.3
Segment Profit
Grocery Products		$	270,963			$	276,367			(2.0)
Refrigerated Foods		467,740				451,596				3.6
Jennie-O Turkey Store		45,514				72,968				(37.6)
International & Other		84,600				66,735				26.8
Total Segment Profit		868,817				867,666				0.1
Net Unallocated Expense		95,166				31,754				199.7
Noncontrolling Interest		290				103				182.2
Earnings Before Income Taxes		$	773,940			$	836,014			(7.4)

 

HORMEL FOODS CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited
In thousands, except per share amounts
		Thirteen Weeks Ended								Thirty-Nine Weeks Ended
		July 25, 2021				July 26, 2020				July 25, 2021				July 26, 2020
Net Sales		$	2,863,670			$	2,381,457			$	7,931,438			$	7,188,357
Cost of Products Sold		2,440,322				1,959,032				6,581,613				5,820,158
Gross Profit		423,348				422,426				1,349,825				1,368,198
Selling, General and Administrative		226,284				181,085				622,630				570,518
Equity in Earnings of Affiliates		10,420				8,235				37,722				25,843
Operating Income		207,484				249,576				764,917				823,523
Interest and Investment Income (Expense)		8,457				15,513				36,740				25,289
Interest Expense		(11,703)				(5,724)				(27,718)				(12,798)
Earnings Before Income Taxes		204,238				259,364				773,940				836,014
Provision for Income Taxes		27,164				56,103				146,549				162,186
Effective Tax Rate		13.3		%		21.6		%		18.9		%		19.4		%
Net Earnings		177,074				203,260				627,390				673,828
Less: Net Earnings (Loss) Attributable to Noncontrolling Interest		157				141				290				103
Net Earnings Attributable to Hormel Foods Corporation		$	176,917			$	203,119			$	627,101			$	673,726
Net Earnings Per Share
Basic		$	0.33			$	0.38			$	1.16			$	1.25
Diluted		$	0.32			$	0.37			$	1.15			$	1.23
Weighted-average Shares Outstanding
Basic		541,746				539,108				540,618				537,434
Diluted		548,072				547,149				547,684				546,112
Dividends Declared per Share		$	0.2450			$	0.2325			$	0.7350			$	0.6975

 

HORMEL FOODS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
Unaudited
In thousands
		July 25, 2021				October 25, 2020
Assets
Cash and Cash Equivalents		$	291,363			$	1,714,309
Short-term Marketable Securities		18,372				17,338
Accounts Receivable		896,008				702,419
Inventories		1,426,738				1,072,762
Income Taxes Receivable		16,408				41,449
Prepaid Expenses		26,250				18,349
Other Current Assets		13,534				12,438
Total Current Assets		2,688,672				3,579,063
Goodwill		4,907,073				2,612,727
Other Intangibles		1,863,713				1,076,285
Pension Assets		203,093				183,232
Investments In and Receivables From Affiliates		304,417				308,372
Other Assets		298,071				250,382
Net Property, Plant and Equipment		2,067,141				1,898,222
Total Assets		$	12,332,182			$	9,908,282
Liabilities and Shareholders' Investment
Accounts Payable		$	654,162			$	644,609
Accrued Expenses		51,108				59,136
Accrued Workers Compensation		29,278				25,070
Accrued Marketing Expenses		133,925				108,502
Employee Related Expenses		216,065				252,845
Taxes Payable		17,453				22,480
Interest and Dividends Payable		140,469				132,632
Current Maturities of Long-term Debt		8,732				258,691
Total Current Liabilities		1,251,191				1,503,965
Long-term Debt - Less Current Maturities		3,316,262				1,044,936
Pension and Post-retirement Benefits		559,958				552,878
Other Long-term Liabilities		174,473				157,399
Deferred Income Taxes		236,566				218,779
Accumulated Other Comprehensive Loss		(317,528)				(395,250)
Other Shareholders' Investment		7,111,259				6,825,576
Total Liabilities and Shareholders' Investment		$	12,332,182			$	9,908,282

 

HORMEL FOODS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Unaudited
In thousands
		Thirteen Weeks Ended								Thirty-Nine Weeks Ended
		July 25, 2021				July 26, 2020				July 25, 2021				July 26, 2020
Operating Activities
Net Earnings		$	177,074			$	203,260			$	627,390			$	673,828
Depreciation and Amortization		59,183				49,857				162,490				149,774
Decrease (Increase) in Working Capital		(160,219)				82,926				(350,602)				45,862
Other		489				(6,247)				(1,491)				8,621
Net Cash Provided by (Used in) Operating Activities		76,527				329,797				437,786				878,086
Investing Activities
Net (Purchase) Sale of Securities		(583)				(651)				(1,304)				(2,642)
Acquisitions of Businesses/Intangibles		(3,396,246)				(1,911)				(3,396,246)				(270,789)
Purchases of Property and Equipment		(53,817)				(88,267)				(139,361)				(226,830)
Proceeds From Sales of Property and Equipment		257				344				1,910				1,466
Decrease (Increase) in Investments, Equity in Affiliates, and Other Assets		7,325				7,580				4,683				(7,244)
Net Cash Provided by (Used in) Investing Activities		(3,443,064)				(82,905)				(3,530,320)				(506,040)
Financing Activities
Proceeds from Long-term Debt		2,276,292				992,381				2,276,292				992,381
Repayments of Long-term Debt and Finance Leases		(2,175)				(2,152)				(256,535)				(6,221)
Dividends Paid on Common Stock		(132,419)				(125,253)				(390,206)				(362,003)
Share Repurchase		—				—				(9,653)				(12,360)
Other		30,666				7,747				44,007				72,195
Net Cash Provided by (Used in) Financing Activities		2,172,364				872,723				1,663,905				683,992
Effect of Exchange Rate Changes on Cash		1,003				3,680				5,683				428
Increase (Decrease) in Cash and Cash Equivalents		(1,193,170)				1,123,294				(1,422,946)				1,056,466
Cash and Cash Equivalents at Beginning of Period		1,484,533				606,073				1,714,309				672,901
Cash and Cash Equivalents at End of Quarter		$	291,363			$	1,729,368			$	291,363			$	1,729,368

 

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

MEDIA CONTACT: Media Relations (507) 437-5345 media@hormel.com

 

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SOURCE Hormel Foods Corporation

FAQ

What were Hormel Foods' net sales for the third quarter of fiscal 2021?

Hormel Foods reported record net sales of $2.9 billion for the third quarter of fiscal 2021.

How did Hormel Foods perform in terms of diluted earnings per share in Q3 2021?

The diluted earnings per share for Hormel Foods in Q3 2021 were $0.32, a decrease of 14% compared to the previous year.

What is Hormel Foods' sales guidance for fiscal 2021?

Hormel Foods has guided for net sales to be between $11.0 billion and $11.2 billion for fiscal 2021.

What challenges did Hormel Foods face in the third quarter of 2021?

Hormel Foods faced inflationary pressures on raw materials, labor shortages, and supply chain disruptions.

What is the impact of the Planters® acquisition on Hormel Foods?

The acquisition of Planters® has contributed positively to Hormel Foods' growth and net sales, despite incurring $40 million in costs associated with integration.