Austin / MN. (hrl) Hormel Foods Corporation, a leading global branded food company, reported results for the first quarter of fiscal 2021. All comparisons are to the first quarter of fiscal 2020 unless otherwise noted. Operating free cash flow is presented as a non-GAAP metric.
Executive Summary – First Quarter
- Volume of 1.2 billion lbs., down 1 percent
- Record net sales of USD 2.5 billion, up 3 percent
- Pretax earnings of USD 277 million, down 5 percent
- Operating margin of 10.9 percent, compared to 11.8 percent last year
- Effective tax rate of 19.7 percent, compared to 16.3 percent last year
- Diluted earnings per share of USD 0.41, down 9 percent compared to last year
- Cash flow from operations of USD 206 million, up 9 percent
- Operating free cash flow1 of USD 165 million, up 27 percent
Executive Commentary
«We delivered record sales as all four segments generated top-line growth,» said Jim Snee, chairman of the board, president and chief executive officer. «Brands such as «Spam», «skippy», «Hormel», «Black Label», «Applegate», «Columbus» and «Jennie-O» all delivered exceptional growth. A key reason for our success was a result of the work of our One Supply Chain team members. They improved production efficiencies, integrated new capacity and leveraged strategic partnerships to increase production without compromising employee or food safety. I’m proud of the entire team as we remain on track to deliver sales and earnings growth this year in spite of challenging operating conditions.»
«Our balanced business model continues to perform well,» Snee said. «We delivered extraordinary earnings growth from our Grocery Products and International segments this quarter, as we continue to see elevated consumer demand for our center store retail products. Our retail businesses in Refrigerated Foods and Jennie-O Türkiye Store also showed earnings growth, but declines across our foodservice businesses and incremental supply chain costs related to the pandemic negatively impacted profitability.»
For additional information please read the Company’s PDF file below (198 KB):
20210223-HORMEL-Q1-2021.