Hormel Foods announced that the company achieved record annual sales with growth from all four operating segments.
AUSTIN, Minn., Nov. 24, 2020 /PRNewswire/ -- Hormel Foods Corporation (NYSE: HRL), a leading global branded food company, today reported results for the fourth quarter of fiscal 2020. All comparisons are to the fourth quarter of fiscal 2019 unless otherwise noted.
The impact of the Sadler's Smokehouse acquisition (March 2020) is excluded in the presentation of the fourth quarter of fiscal 2020 non-GAAP measures of organic volume and organic net sales. The impact of the CytoSport divestiture last year is excluded from prior year adjusted diluted earnings per share. Operating free cash flow is also presented as a non-GAAP metric.
EXECUTIVE SUMMARY - FISCAL 2020
- Volume of 4.8 billion lbs., up 1%; organic volume1 up 2%
- Net sales of $9.6 billion, up 1%; organic net sales1 up 2%
- Operating income of $1.1 billion, down 8%
- Operating margin of 11.5% compared to 12.6% last year
- Diluted earnings per share of $1.66, down 8%; down 2% to adjusted diluted earnings per share1 last year
- Cash flow from operations of $1.1 billion, up 22%
- Operating free cash flow1 of $0.8 billion, up 21%
EXECUTIVE SUMMARY - FOURTH QUARTER
- Volume of 1.2 billion lbs., down 2%; organic volume1 down 3%
- Net sales of $2.4 billion, down 3%; organic net sales1 down 4%
- Operating margin of 11.4% compared to 12.8% last year
- Effective tax rate of 15.9% compared to 21.0% last year
- Diluted earnings per share of $0.43, down 9% from $0.47
EXECUTIVE COMMENTARY "I'm proud of how our team overcame multiple challenges to deliver record sales this year," said Jim Snee, chairman of the board, president and chief executive officer. "We grew sales in all four segments, which speaks to the strategic balance we have built into our company. In several of our domestic businesses, strong demand for our products exceeded the available supply. From a bottom-line perspective, our experienced leadership team managed through the incremental supply chain costs we incurred related to the pandemic, which was the largest driver of our earnings decline," Snee said.
The full report may be viewed here.
