Hormel Foods: Reports First Quarter 2023 Results

Austin / MN. (hrl) Hormel Foods Corporation, a leading global branded food company, reported results for the first quarter of fiscal 2023. All comparisons are to the first quarter of fiscal 2022 unless otherwise noted. Q1-2023 financial highlights:

Executive Summary First Quarter 2023

  • Net sales of USD 3.0 billion
  • Operating income of USD 289 million
  • Operating margin of 9.7 percent
  • Earnings before income taxes of USD 281 million
  • Effective tax rate of 22.6 percent
  • Diluted net earnings per share of USD 0.40
  • Cash flow from operations of USD 204 million

Executive Commentary

«The operating environment at the beginning of fiscal 2023 remained challenging,» said Jim Snee, chairman of the board, president and chief executive officer. «While many areas of the business performed ahead of last year, our results were disappointing and below our expectations, reflecting the persistent impact from inflationary pressures, supply chain inefficiencies and lower-than-expected sales volumes across our business segments.»

«In general, demand from consumers and operators remains elevated in key categories, and we are delivering balanced growth between volume and price across many parts of our portfolio. Specific to the first quarter, our top-line results were mixed. We continued to see strong demand for many of our center-store, refrigerated, Mexican and premium items at retail. Likewise, solutions-based items in our Foodservice segment had another strong quarter, with volume growth in sliced meats and from brands. These gains, however, were offset by the planned volume declines in commodity pork, continued volume impacts across our turkey supply chain, and lower sales of snack nuts. Our team in China also faced incredibly difficult operating conditions throughout the quarter.»

For additional information please read the Company’s PDF file below (88 KB):

20230307-HORMEL-Q12023.