Skippy Helps Hormel to Record First Quarter24 February 2014
US - US meat and food processor Hormel Foods has reported an increased operating profit of 20 per cent for the first quarter of the financial year.
The company also recorded record dollar sales of $2.2 billion, which increased by six per cent and volume up by two per cent.
The company reported first quarter net earnings of $153.3 million, up 18 per cent
from net earnings of $129.7 million a year earlier.
Diluted earnings per share for the quarter were $0.57, up 19 per cent compared to $0.48 last year.
Grocery Products operating profit was up by 13 per cent with volume up by 24 per cent and dollar sales up by 20 per cent thanks to the introduction of the sales of SKIPPY products.
Without the SKIPPY range volume sales would have been down by three per cent and dollar sales down by down two per cent.
Refrigerated Foods operating profit rose by 59 per cent despite volume being down by one per cent and dollar sales up by six per cent.
Jennie-O Turkey Store saw operating profit up one per cent with volume flat and dollar sales up by two per cent.
Specialty Foods operating was profit down by 11 per cent withvolume down 10 per cent and dollar sales down 16 per cent.
International and other operating profit rose by 32 per cent with volume up 19 per cent and dollar sales up 24 per cent, again helped by the presence of Skippy products.
“We achieved excellent results in the first quarter, posting an earnings per share increase of 19 per cent over last year, with sales up six per cent. Four of our five segments generated growth in sales and operating profits as we continue to deliver quality products with trusted brands to our customers and consumers,” said Jeffrey M. Ettinger, chairman of the board, president and chief executive officer.
“Our recently acquired SKIPPY peanut butter business was a strong contributor to our Grocery Products segment results this quarter. Our Refrigerated Foods segment benefited from strong demand for our products and positive pork operating margins,” Mr Ettinger added.
“While our Jennie-O Turkey Store segment experienced more favorable feed costs this quarter, the savings were offset by weaker live production performance driven by extreme, sustained cold weather.
“Our International and other segment registered excellent sales and earnings growth led by export sales of our SPAM family of products and SKIPPY peanut butter products. As anticipated, our Specialty Foods team was unable to post increases this quarter as it rebuilds its product portfolio.”
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