Hormel Raises Earnings Outlook Amid Strong Performance From Jennie O-Turkey
19 Aug 2016 –-- Profits at Jennie-O Turkey jumped 59 percent helping Hormel Foods raise its earnings expectations for the year.
The US food maker said it now expects that its earnings will rise from $1.60 to $1.64 a share, which is up from its previous guidance of between $1.56 to $1.60 following strong third quarter results.
Chief executive Jeffrey Ettinger said its third quarter results marked its 13th consecutive quarter of record earnings.
Ettinger said: "We are pleased to announce exceptional results this quarter with three of our five segments delivering volume, sales and earnings growth. This is also our thirteenth consecutive quarter of record earnings which is a testament to our balanced business model.”
“Excellent results in Refrigerated Foods were driven by the addition of “Excellent results in Refrigerated Foods were driven by the Applegate business, foodservice sales of Old smokehouse bacon, Hormel Bacon fully cooked bacon, and Hormel fire braised meats, and retail sales of Hormel natural choice meats.”
“Jennie-O Turkey Store also returned to growth, posting strong double-digit sales and earnings increases."
Overall, sales came in at $2.3bn in the 13 weeks ending July 24 while profits were reported at $475,000, up from $409,000 the year previous.
Growth in food-service and retail products helped drive sales in refrigerated foods.
Across the grocery division, sales were up three percent while profits were up 59 percent across the Jennie-O Turkey Store segment while sales were up 20 percent helped by the recovery from last year's bird flu.
But sales were down 25 percent across Hormel's speciality-foods division, although its Muscle Milk brand did perform well.
Across its international division, sales were up five percent, aided by exports of spam products.
Looking ahead, James P Snee, president and chief operating officer, said: “As a result of another excellent quarter we are increasing our 2016 annual guidance to $1.60 to $1.64 per share from $1.56 to $1.60 per share. We expect to show sales and earnings growth in fiscal 2017.”
