Solid results for Hormel Foods in the third quarter of 2024

Hormel Foods has reported better-than-expected earnings for the third quarter of fiscal year 2024. Chairman of the Board, President, and CEO James Snee cited a healthy core business driven by growth in both the retail and foodservice segments, along with positive developments in the international business. In retail, brands such as Hormel Black Label Bacon, Jennie-O Turkey, and Skippy Peanut Butter performed exceptionally well. The foodservice business also experienced above-average sales thanks to a broadly diversified customer base and value-oriented portfolio offerings. A significant boost came from the international segment, which saw an impressive segment profit increase of 78% compared to the previous year. Particularly noteworthy is the performance of proprietary brand exports, including the popular SPAM Luncheon Meat and Skippy Peanut Butter, which are expanding in markets such as South Korea. Despite production disruptions at the Planters facility in Virginia that impacted delivery rates, the company remains optimistic about overcoming these challenges and achieving its business goals. Transformation and modernization initiatives are showing initial successes and are expected to further bear fruit in the second half of the year. Hormel Foods updated its full-year revenue forecast to $11.8 billion to $12.1 billion and anticipates diluted net earnings per share between $1.45 and $1.51. The company remains confident in executing its clear and achievable plans for fiscal year 2024. Concluding the conference, James Snee emphasized the importance of key role changes: Deanna Brady will retire after nearly three decades with the company, while John Gingo will return to lead the retail group. Following James Snee's presentation, CFO Jacinth Smiley delved into the numbers for the third quarter: Revenue was $2.9 billion, and operating income before taxes increased by 9% to $226 million. Cash flow from operating activities rose 18% year-to-date to $858 million, giving the company leeway for further investments in the business and dividends.