"For the second consecutive quarter, we delivered the highest quarterly net sales in our company's history," said Jim Snee, chairman of the board, president and chief executive of Hormel Foods Corp. The Austin, MN-based global branded food company this week reported results for its fourth quarter of fiscal 2021 and full year.
"Impressive contributions were made by brands including Applegate, Columbus, Fontanini, Hormel Bacon, Jennie-O, Planters, SPAM and many other brands across all our businesses," Snee added.
"We posted incredible sales growth of 72% in the foodservice channel, or 33% compared with pre-pandemic levels, which is a result of our differentiated portfolio, dedicated direct sales team and our commitment to the industry throughout the pandemic," he continued. "Additionally, we continue to drive strong double-digit sales growth in the retail, deli and international channels, led by the strength of our global brands."
Hormel fourth-quarter highlights
- Volume of 1.4 billion lbs., up 14%; organic volume up 8%.
- Record net sales of $3.5 billion, up 43%; organic net sales up 32%.
- Operating income of $358 million, up 29%.
- Operating margin of 10.4%, compared with 11.4% last year.
- Effective tax rate of 20%, compared with 15.9% last year.
- Record diluted earnings per share of $0.51, up 19% from $0.43.
- Record cash flow from operations of $564 million, up 126%.
Hormel fiscal 2021 summary
- Volume of 4.9 billion lbs., up 3%; organic volume up 1%.
- Record net sales of $11.4 billion, up 19%; organic net sales up 14%.
- Operating income of $1.1 billion, up 2%.
- Operating margin of 9.9%, compared with 11.5% last year.
- Effective tax rate of 19.3%, compared with 18.5% last year.
- Diluted earnings per share of $1.66, in line with last year.
- Adjusted diluted earnings per share of $1.73, up 4%.
- Cash flow from operations of $1.0 billion, down 11%.
Snee reported that the integration of the Planters snack nuts business, purchased from Kraft Heinz earlier this year, has been "very successful." He said the company will launch "many new innovative items" and refresh the brand's packaging.
The Planters acquisition is expected to improve Hormel's presence in the snacking and entertaining categories, as well as in the convenience channel, which includes vending, micro markets and pantry service.
