AUSTIN, Minn., May 24, 2018 -- Hormel Foods Corporation, a leading global branded food company, today reported results for the second quarter of fiscal 2018. All comparisons are to the second quarter of fiscal 2017 unless otherwise noted.
EXECUTIVE SUMMARY
- Record diluted earnings per share of $0.44, up 13% from 2017 EPS of $0.39
- Fiscal 2018 earnings guidance reaffirmed at $1.81 to $1.95 per share
- Record net sales of $2.3 billion, up 7%; Organic net sales1 flat
- Volume of 1.2 billion lbs., up 3%; Organic volume1 down 1%
- Operating margin of 13.1% compared to 14.4% last year
- Effective tax rate of 20.0% compared to 33.2% last year
- Year-to-date cash flow from operations of $443 million, up 58% compared to last year
COMMENTARY
"Our team delivered record earnings per share of $0.44 which was in line with our expectation and keeps us on track to maintain our full year earnings guidance," said Jim Snee, chairman of the board, president, and chief executive officer. "We were particularly pleased with the bottom-line performance from Refrigerated Foods as our experienced team grew our value-added profits while navigating through volatile markets. Our balanced business model helped mitigate higher freight costs and a difficult commodity environment."
"We delivered record sales led by our Refrigerated Foods and International segments. Strong top-line growth from brands such as Hormel® Natural Choice® and Hormel® Bacon 1TM and international sales of products such as Skippy®peanut butter was complemented by the strategic acquisitions of Fontanini, Columbus Craft Meats, and Ceratti," Snee said. "Our core center store portfolio of brands such as SPAM®, Dinty Moore®, and Herdez® also showed strong growth this quarter."
