Hormel Foods Achieves Record Second Quarter Earnings

May 20, 2015

AUSTIN, Minn.--(BUSINESS WIRE)--Hormel Foods Corporation (NYSE:HRL) today reported record performance for the fiscal year 2015 second quarter. All comparisons are to the second quarter of fiscal 2014.

Second Quarter

  • Record diluted EPS of $0.67, up 29 percent from $0.52 per share.
  • Record dollar sales of $2.3 billion, increased 2 percent; volume up 5 percent.
  • Total segment operating profit increased 29 percent.
  • Refrigerated Foods segment operating profit up 52 percent; volume up 1 percent; dollar sales down 8 percent.
  • Jennie-O Turkey Store segment operating profit up 41 percent; volume up 14 percent; dollar sales up 15 percent.
  • Grocery Products segment operating profit up 1 percent; volume up 4 percent; dollar sales up 1 percent. Excluding incremental net sales of MegaMex Foods products, volume down 4 percent and dollar sales down 5 percent.
  • Specialty Foods segment operating profit up 11 percent; volume up 17 percent; dollar sales up 32 percent. Excluding incremental sales of CytoSport Holdings, Inc. (“CytoSport”) products, volume down 6 percent and dollar sales down 6 percent.
  • International & Other segment operating profit up 2 percent; volume down 3 percent; dollar sales down 7 percent.

The company reported fiscal 2015 second quarter net earnings of $180.2 million, up 29 percent from net earnings of $140.1 million a year earlier. Diluted earnings per share for the quarter were $0.67, up 29 percent compared to $0.52 last year. Sales for the quarter were $2.3 billion, up 2 percent from the same period in fiscal 2014.

Specialty Foods posted an 11 percent increase in segment profits despite a $4.5 million charge due to the closure of its CytoSport production facility in Benicia, California. Segment sales increased 32 percent, largely attributable to the addition of MUSCLE MILK® protein nutrition product sales. View the full report here.