Hormel Foods Announces Record First Quarter Results

SEGMENT OPERATING HIGHLIGHTS – FIRST QUARTER

Grocery Products (18% of Net Sales, 18% of Total Segment Operating Profit)
Grocery Products sales increased 7 percent on the addition of JUSTIN'S® specialty nut butters along with strong sales of WHOLLY GUACAMOLE® dips, SKIPPY® peanut butter products, and HERDEZ® salsa. Non-GAAP¹ adjusted sales² increased 3 percent. Segment profit was up 1 percent. Grocery Products increased advertising to support key brands such as WHOLLY GUACAMOLE® dips and HERDEZ® salsa.

Refrigerated Foods (49% of Net Sales, 48% of Total Segment Operating Profit)
Refrigerated Foods segment profit increased 4 percent driven by solid value-added product growth in our foodservice and retail channels. Sales declined 3 percent, primarily related to the divestiture of the Farmer John business in January 2017. Non-GAAP¹ adjusted sales² decreased 1 percent. Foodservice products such as HORMEL® pepperoni and HORMEL® BACON 1^TM fully cooked bacon, and retail products such as HORMEL GATHERINGS® party trays and HORMEL® NATURAL CHOICE® meats had excellent sales growth this quarter.

Jennie-O Turkey Store (19% of Net Sales, 19% of Total Segment Operating Profit)
Jennie-O Turkey Store sales increased 13 percent and volume increased 22 percent while segment profit decreased 25 percent. Despite volume and sales increases of value-added products, segment profit declined primarily due to lower turkey commodity prices and increased operating expenses. Pricing pressure from competing proteins in the foodservice, deli and retail channels also affected the quarterly results.

Specialty Foods (8% of Net Sales, 8% of Total Segment Operating Profit)
Specialty Foods segment profit was flat and sales declined 19 percent, primarily due to the divestiture of Diamond Crystal Brands in May 2016. Non-GAAP¹ adjusted sales² increased 10 percent.

International & Other (6% of Net Sales, 7% of Total Segment Operating Profit)
International segment profit increased 5 percent while sales decreased 2 percent. Strong fresh pork exports offset declines in branded exports. High pork raw material costs continued to impact the profitability of our China meat business.

OUTLOOK

"We are tempering our full year outlook for the Jennie-O Turkey Store segment given the shortfalls in the first quarter and the expected continuation of pricing pressure due to low commodity turkey prices. Improvements in our other segments are expected to offset some of the earnings headwinds from Jennie-O Turkey Store," Snee said.

The Company is lowering its fiscal 2017 guidance to $1.65 to $1.71 per share due to challenging market conditions in the turkey industry. "The balanced model we have intentionally built in our business will allow us to overcome the challenges at Jennie-O Turkey Store. I remain confident in our team's ability to deliver sales and earnings growth by supporting our brands, innovating, and making strategic investments," Snee said.

DIVIDENDS

Effective February 15, 2016, the company paid its 354^th consecutive quarterly dividend at the annual rate of $0.68.

¹ COMPARISON OF U.S. GAAP TO NON-GAAP FINANCIAL MEASUREMENTS

The non-GAAP adjusted financial measurements are presented to provide investors additional information to facilitate the comparison of past and present operations. The company believes these non-GAAP adjusted financial measurements provide useful information to investors because they are the measurements used to evaluate performance on a comparable year-over-year basis. Non-GAAP measurements are not intended to be a substitute for U.S. GAAP measurements in analyzing financial performance. These non-GAAP measurements are not in accordance with generally accepted accounting principles and may be different from non-GAAP measures used by other companies.

² ADJUSTED FINANCIAL MEASURES

Adjusted net sales and volume excludes the impact from the Justin's, LLC acquisition in May 2016, and the divestitures of the Diamond Crystal Brands business in May 2016, and the Farmer John business in January 2017. The tables below show the calculations to reconcile from the non-GAAP adjusted measures to the GAAP measures in first quarter of fiscal 2016 and the first quarter of fiscal 2017.

Net Sales
				2017				2016
	2017	Justin's	Farmer John	Non-GAAP	2016	DCB	Farmer John	Non-GAAP	Non-GAAP
(in thousands)	Net Sales	Acquisition	Divestiture	Net Sales	Net Sales	Divestiture	Divestiture	Net Sales	% Change
Grocery Products	$417,745	($13,335)		$404,410	$392,218			$392,218	3.1%
Refrigerated Foods	1,123,039		($100,231)	1,022,808	1,162,121		($132,901)	1,029,220	(0.6%)
Jennie-O Turkey Store	420,989			420,989	372,066			372,066	13.1%
Specialty Foods	192,629			192,629	237,779	($62,917)		174,862	10.2%
International & Other	125,825			125,825	128,488			128,488	(2.1%)
Total Net Sales	$2,280,227	($13,335)	($100,231)	$2,166,661	$2,292,672	($62,917)	($132,901)	$2,096,854	3.3%
Tonnage (lbs.)
				2017				2016
	2017	Justin's	Farmer John	Non-GAAP	2016	DCB	Farmer John Werbung Mehr Nachrichten zur Hormel Foods Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 24.04.24 - PR Newswire Fidelity Japan Trust Plc - Transaction in Own Shares 24.04.24 - PR Newswire Oxford Instruments Plc - Holding(s) in Company 24.04.24 - PR Newswire Cohen & Steers Capital Management - Form 8.3 - Tritax Big Box REIT plc Solarboom 2024:    5 Gründe die für diese Aktie sprechen… weiterlesen» Anzeige wo-site-teaser-box-16746_site-teaser-box_2024-04-24_08%253A00%253A00_2024-04-25_09%253A00%253A59