Hormel Foods: Reports Second Quarter 2024 Results

Austin / MN. (hrl) Hormel Foods Corporation, a leading global branded food company, reported results for the second quarter of fiscal 2024, ended April 28. All comparisons are to Q2-2023, unless otherwise noted.

Executive Summary First Half 2024

• Volume of 2.16 billion lbs., comparable to last year
• Net sales of USD 5.88 billion, compared to USD 5.95 billion
• Operating income of USD 537 million, compared to USD 585 million; adjusted operating income1 of USD 571 million
• Operating margin of 9.1 percent, compared to 9.8 percent last year; adjusted operating margin1 of 9.7 percent
• Earnings before income taxes of USD 530 million, down 5 percent; adjusted earnings before income taxes of USD 564 million, up 1 percent
• Effective tax rate of 23.0 percent, compared to 22.4 percent
• Diluted net earnings per share of USD 0.74, compared to USD 0.79; adjusted diluted net earnings per share of USD 0.79
• Year-to-date cash flow from operations of USD 640 million, up 55 percent

Executive Summary Second Quarter 2024

• Volume of 1.06 billion lbs., compared to 1.10 billion lbs.
• Net sales of USD 2.89 billion, compared to USD 2.98 billion
• Operating income of USD 252 million, compared to USD 296 million; adjusted operating income1 of USD 276 million
• Operating margin of 8.7 percent, compared to 9.9 percent last year; adjusted operating margin1 of 9.6 percent
• Earnings before income taxes of USD 244 million, down 12 percent; adjusted earnings before income taxes1 of USD 268 million, down 4 percent
• Effective tax rate of 22.5 percent, compared to 22.1 percent
• Diluted net earnings per share of USD 0.34, compared to USD 0.40; adjusted diluted net earnings per share1 of USD 0.38
• Quarter-to-date cash flow from operations of USD 236 million, up 13 percent

Executive Commentary

«We delivered a strong first half, with consecutive quarters of better-than-expected earnings, a significant improvement in operating cash flows, continued Foodservice strength, recovery in our International business and stable volumes across our business,» said Jim Snee, chairman of the board, president and CEO. «Importantly, we made further progress on our strategic initiatives, and we remain on track to deliver on our commitments to improve our business and drive long-term shareholder returns and growth.»

«To reflect our solid first-half performance and our expectations for continued growth from our Foodservice and International segments, ongoing improvements across our supply chain, and further benefits from our transform and modernize initiative, we are updating our full-year earnings outlook,” Snee said. “Our team remains focused on growing operating income, driving savings through our transform and modernize initiative, and capturing incremental value from our investments.»

For additional information please read the Company’s PDF file below (155 KB):

20240531-HORMEL-Q22024.