HORMEL FOODS REPORTS THIRD QUARTER FISCAL 2025 RESULTS
Hormel Foods (NYSE: HRL) reported third quarter fiscal 2025 results with net sales of $3.03 billion, representing a 6% organic growth. Despite strong top-line performance, the company faced profitability challenges, reporting operating income of $240 million and diluted earnings per share of $0.33 ($0.35 adjusted).
The company experienced significant pressure from rising commodity costs, though partially offset by their Transform and Modernize initiative. Key segment highlights include Retail volume up 5%, Foodservice organic sales up 7%, and International volume growth of 8%. For Q4 2025, Hormel projects net sales between $3.15-3.25 billion and adjusted EPS of $0.38-0.40.
[ "Organic net sales growth of 6% across all segments", "Retail segment volume increased 5% with strong performance from turkey portfolio and SPAM products", "Foodservice segment achieved 7% organic net sales growth", "International segment volume grew 8% driven by China market expansion", "Transform & Modernize initiative delivered value through approximately 90 projects" ]Hormel Foods (NYSE: HRL) ha comunicato i risultati del terzo trimestre fiscale 2025 con ricavi netti di 3,03 miliardi di dollari, pari a una crescita organica del 6%. Nonostante il buon andamento dei ricavi, la redditività è risultata sotto pressione: l'azienda ha riportato un utile operativo di 240 milioni di dollari e un utile diluito per azione di 0,33 dollari (0,35 dollari rettificato).
I costi delle materie prime in aumento hanno creato notevoli pressioni, parzialmente mitigate dall'iniziativa Transform & Modernize. Tra i principali risultati per segmento si evidenziano: volumi Retail in aumento del 5%, vendite organiche Foodservice in crescita del 7% e volumi Internazionali in rialzo dell'8%. Per il quarto trimestre 2025, Hormel prevede ricavi netti tra 3,15 e 3,25 miliardi di dollari e un utile rettificato per azione tra 0,38 e 0,40 dollari.
- Crescita organica delle vendite nette del 6% in tutti i segmenti
- I volumi del segmento Retail sono cresciuti del 5%, trainati dal portafoglio tacchino e dai prodotti SPAM
- Il segmento Foodservice ha registrato una crescita organica delle vendite nette del 7%
- Il segmento Internazionale ha visto un aumento dei volumi dell'8%, spinto dall'espansione in Cina
- L'iniziativa Transform & Modernize ha generato valore attraverso circa 90 progetti
Hormel Foods (NYSE: HRL) presentó los resultados del tercer trimestre fiscal de 2025 con ventas netas de 3.030 millones de dólares, lo que representa un crecimiento orgánico del 6%. A pesar del sólido comportamiento de los ingresos, la rentabilidad se vio afectada: la compañía informó un resultado operativo de 240 millones de dólares y un beneficio diluido por acción de 0,33 dólares (0,35 dólares ajustado).
Los crecientes costos de las materias primas ejercieron una presión significativa, parcialmente compensada por la iniciativa Transform & Modernize. Entre los aspectos destacados por segmento: volumen Retail +5%, ventas orgánicas de Foodservice +7% y crecimiento de volumen internacional del 8%. Para el cuarto trimestre de 2025, Hormel proyecta ventas netas entre 3.150 y 3.250 millones de dólares y un BPA ajustado de 0,38-0,40 dólares.
- Crecimiento orgánico de las ventas netas del 6% en todos los segmentos
- El volumen del segmento Retail aumentó un 5%, con buen desempeño del portafolio de pavo y de los productos SPAM
- El segmento Foodservice alcanzó un crecimiento orgánico de ventas netas del 7%
- El segmento Internacional creció un 8% en volumen, impulsado por la expansión en China
- La iniciativa Transform & Modernize aportó valor mediante aproximadamente 90 proyectos
Hormel Foods (NYSE: HRL)는 2025 회계연도 3분기 실적으로 순매출 30.3억 달러를 보고했으며, 이는 6%의 유기적 성장에 해당합니다. 매출은 양호했지만 수익성은 난관에 직면해 영업이익 2.40억 달러와 주당 희석이익 0.33달러(조정 후 0.35달러)를 기록했습니다.
원자재 비용 상승으로 상당한 압박을 받았으나 Transform & Modernize 이니셔티브로 부분적으로 상쇄되었습니다. 주요 세그먼트 하이라이트는 소매 부문 물량 5% 증가, 푸드서비스 유기적 매출 7% 증가, 국제 부문 물량 8% 증가 등입니다. 2025년 4분기에는 순매출을 31.5억~32.5억 달러, 조정 EPS를 0.38~0.40달러로 전망했습니다.
- 모든 부문에서 6%의 유기적 순매출 성장
- 터키(칠면조) 제품군과 SPAM 제품의 강한 실적으로 소매 부문 물량 5% 증가
- 푸드서비스 부문 유기적 순매출 7% 증가
- 중국 시장 확장에 힘입어 국제 부문 물량 8% 증가
- 약 90개 프로젝트를 통해 Transform & Modernize 이니셔티브가 가치 제공
Hormel Foods (NYSE: HRL) a publié ses résultats du troisième trimestre fiscal 2025 avec des ventes nettes de 3,03 milliards de dollars, soit une croissance organique de 6 %. Malgré de solides revenus, la rentabilité a été mise à l’épreuve : la société a déclaré un résultat d’exploitation de 240 millions de dollars et un bénéfice dilué par action de 0,33 $ (0,35 $ ajusté).
La hausse des coûts des matières premières a exercé une forte pression, partiellement compensée par l’initiative Transform & Modernize. Points clés par segment : volume Retail en hausse de 5 %, ventes organiques Foodservice en hausse de 7 % et croissance des volumes internationaux de 8 %. Pour le T4 2025, Hormel prévoit des ventes nettes entre 3,15 et 3,25 milliards de dollars et un BPA ajusté de 0,38–0,40 $.
- Croissance organique des ventes nettes de 6 % sur tous les segments
- Le volume du segment Retail a augmenté de 5 %, porté par le portefeuille dindes et les produits SPAM
- Le segment Foodservice a réalisé une croissance organique des ventes nettes de 7 %
- Le segment International a vu ses volumes croître de 8 %, stimulés par l’expansion en Chine
- L’initiative Transform & Modernize a apporté de la valeur via environ 90 projets
Hormel Foods (NYSE: HRL) meldete die Ergebnisse für das dritte Quartal des Geschäftsjahres 2025 mit Nettoerlösen von 3,03 Milliarden US-Dollar, was einem organischen Wachstum von 6 % entspricht. Trotz starker Umsatzzahlen stand die Profitabilität unter Druck: Das Unternehmen meldete ein Betriebsergebnis von 240 Millionen US-Dollar und ein verwässertes Ergebnis je Aktie von 0,33 US-Dollar (bereinigt 0,35 US-Dollar).
Steigende Rohstoffkosten übten erheblichen Druck aus, wurden jedoch teilweise durch die Transform & Modernize-Initiative ausgeglichen. Wichtige Segment-Highlights: Retail-Volumen +5%, Foodservice organisches Umsatzwachstum +7% und Internationales Volumenwachstum +8%. Für Q4 2025 erwartet Hormel Nettoerlöse zwischen 3,15 und 3,25 Milliarden US-Dollar sowie ein bereinigtes EPS von 0,38–0,40 US-Dollar.
- Organisches Nettoverkaufswachstum von 6 % über alle Segmente
- Retail-Volumen stieg um 5 %, getrieben vom Turkey-Portfolio und SPAM-Produkten
- Foodservice erzielte ein organisches Nettoverkaufswachstum von 7 %
- Internationales Volumen wuchs um 8 %, getragen von der Expansion in China
- Die Transform & Modernize-Initiative lieferte Mehrwert durch rund 90 Projekte
- None.
- Operating income declined due to steep commodity input cost inflation
- Retail segment profit down 4% despite sales growth
- Foodservice segment profit decreased 1%
- International segment profit fell 13% due to competitive pressures in Brazil
- Profit recovery expected to lag into next year with continued near-term pressures
Insights
Strong 6% organic sales growth overshadowed by profit decline due to commodity inflation despite operational improvements.
Hormel delivered impressive 6% organic sales growth to
The most concerning element is the significant divergence between top-line growth and bottom-line results. While sales volumes increased notably in both Retail (
Interim CEO Jeff Ettinger's commentary acknowledges these challenges directly, noting that "profit recovery [will] lag into next year" while they implement "targeted pricing actions" to address commodity inflation. This suggests at least several more quarters of pressure before margins potentially recover.
For Q4, management projects continued sales growth of
Particularly noteworthy is the strong performance in turkey products, SPAM, and pepperoni, which grew significantly even as profits declined. The company also maintained its dividend payments, returning
Hormel's Q3 results reveal the challenging balancing act facing packaged food companies in the current environment. The volume growth across multiple categories is remarkable in a typically slow-growth industry, suggesting Hormel's portfolio remains highly relevant to consumers despite inflationary pressures on household budgets.
The standout performers demonstrate Hormel's diversification strategy is working. Jennie-O turkey gained market share while Hormel pepperoni grew volume over
However, the profit compression reveals a fundamental industry challenge: the lag effect between input cost increases and pricing actions. Food companies typically face a 3-6 month delay before pricing fully offsets commodity inflation. Hormel's international segment suffering a
The partial facility closure mentioned as part of the Transform & Modernize initiative signals management's recognition that structural changes—not just pricing—are needed to address margin challenges. This network optimization should ultimately improve capacity utilization and fixed cost absorption.
Hormel's focus on innovation remains strong with new products like SPAM singles flavors, Wholly guacamole varieties, and Hormel pepperoni brand refresh. These initiatives aim to keep core brands relevant while commanding premium pricing, which will be crucial for margin recovery in coming quarters as commodity costs hopefully stabilize.
Company Delivered Strong Top-Line Results; Leadership Aligned on a Clear Mission of Profitable Growth
EXECUTIVE SUMMARY — THIRD QUARTER
- Net sales of
$3.03 billion 6% - Operating income of
$240 million $254 million - Operating margin of
7.9% ; adjusted operating margin1 of8.4% - Earnings before income taxes of
$237 million $251 million - Effective tax rate of
22.3% - Diluted earnings per share of
$0.33 $0.35 - Cash flow from operations of
$157 million
EXECUTIVE COMMENTARY AND FOURTH QUARTER OUTLOOK
"I am honored to rejoin this great company and partner with John Ghingo and the entire leadership team to focus on restoring profitable growth," said Jeff Ettinger, interim chief executive officer. "As I have started to meet with team members across the organization, I am confident in the capabilities of our team and the opportunities for our company.
"The third quarter demonstrated the relevance of our portfolio, evidenced by our strong organic volume and net sales performance across each of our segments," said Ettinger. "Our earnings results, however, were disappointing, and we fell short of our expectations. The steep rise in commodity input costs affecting our industry was the largest contributor to our shortfall. This inflation was partially mitigated by our Transform and Modernize (T&M) initiative.
"Regarding the fourth quarter, we expect continued net sales growth supported by our leading positions in the marketplace. To address commodity inflation, we are taking targeted pricing actions. We expect profit recovery to lag into next year, with the near-term pressures we experienced in the third quarter persisting through the fourth quarter.
"We are confident in our portfolio's ability to continue delivering impressive top-line results, despite today's dynamic consumer environment, and we are committed to translating that performance into improved earnings," said Ettinger. "Our entire team is aligned on a clear mission: build on our top-line momentum, urgently return bottom-line growth, and deliver long-term, sustainable value."
Fourth Quarter | |
Net Sales | |
Organic Net Sales1 Growth Rate | |
Diluted Earnings per Share | |
Adj. Diluted Earnings per Share1 |
PROGRESS EXECUTING STRATEGIC PRIORITIES – Q3 HIGHLIGHTS
"I am proud of the top-line momentum we built in the third quarter," said John Ghingo, president. "The gap between this performance and our profitability is not the outcome we were aiming for and certainly overshadows several bright spots across the business. Still, we advanced our key priorities during the quarter, which positions us well for the sustained health of our company."
Drive focus and growth in our Retail business
- Jennie-O® lean ground turkey delivered another impressive quarter of results, fueled by sustained consumer demand and expanded distribution. The brand advanced its category leadership, capturing incremental dollar share.2
- The team leveraged the iconic equity of the SPAM® brand through partnerships with customers on significant summer programs, the kickoff of a high-impact limited-time-only design, and the launch of new SPAM® singles flavors: bacon, and hot and spicy.
Expand leadership in Foodservice
- In a highly competitive pizza toppings landscape, Hormel® premium pepperoni grew volume by over
20% in the quarter.3 - As customers seek solutions, they consistently turned to Hormel Foods and our high-performing direct selling team – recognized for the 24th consecutive year by Selling Power as one of the best companies to sell for,4 a testament to the value we consistently deliver.
Aggressively develop our global presence
- Our in-country
China team serves as a key engine of innovation for the segment, with recent innovation continuing to perform well. Meat-snacking innovation delivered strong performance, and the team strategically launched Skippy® cones into a new channel, further accelerating distribution growth globally.
Execute our enterprise entertaining & snacking vision
- The Planters® brand made notable progress this quarter, with a focus on closing distribution gaps, strengthening brand equity and investing in innovation – highlighted by the launch of the limited-time bar nuts variety to reengage consumers and drive excitement for summer snacking. These actions enabled the brand to reach year-over-year dollar sales growth at the end of the quarter,5 while growing household penetration.6
- The launch of the Wholly® guacamole chili lime variety brought a bold, customizable twist to refrigerated dips, elevating summer snacking and entertaining with the craveable flavor fusion of chili lime seasoning and America's No. 1 branded refrigerated guacamole.2
Continue to transform & modernize our Company
- As anticipated, the T&M initiative delivered another impactful quarter, with approximately 90 projects contributing measurable value and earnings to the enterprise.
- Through the T&M initiative, the team continued the work of optimizing our manufacturing network. This included the strategic decision to partially close one facility and reallocate production volume to other locations within our broader network, aimed at enhancing operational efficiency and long-term scalability.
- Hormel® pepperoni underwent a brand renovation, with modernized packaging, the debut of the "Boldly Irresistible" campaign, and the launch of new flavors to drive consumer engagement and accelerate growth. As the No.1 retail pepperoni brand,2 this strategic refresh positions the brand for continued category leadership and long-term relevance.
SEGMENT HIGHLIGHTS – THIRD QUARTER
Retail
- Volume up
5% - Net sales up
5% - Segment profit down
4%
Net sales growth was wide ranging in the Retail segment in the third quarter of fiscal 2025. Meaningful volume and net sales contributions came from the turkey portfolio, Planters® snack nuts and the SPAM® family of products. Other brands which grew volume and net sales in the quarter include Wholly® guacamole, Hormel® Black Label® bacon, Hormel® chili, and Gatherings® party trays. Retail segment profit declined in the third quarter of fiscal 2025, as robust top-line growth was more than offset by input cost pressures and higher selling, general and administrative expenses.
Foodservice
- Volume down
4% ; organic volume1 up2% - Net sales up
3% ; organic net sales1 up7% - Segment profit down
1%
Organic volume1 and organic net sales1 growth were broad-based in the Foodservice segment in the third quarter of fiscal 2025, with significant contributions from the customized solutions business, Planters® snack nuts and the Jennie-O® turkey portfolio. Other branded products, such as Hormel® pepperoni, Hormel® Fire Braised™ meats and Café H® globally inspired proteins, delivered strong volume and net sales growth. Segment profit decreased for the third quarter of fiscal 2025 as meaningful net sales growth was more than offset by the rise in commodity input costs and margin pressures, primarily in non-core businesses. The Foodservice segment continued to benefit from an extensive range of solutions-based products, its direct-selling organization and a diverse channel presence during the third quarter.
International
- Volume up
8% - Net sales up
6% - Segment profit down
13%
Strong volume and net sales performance in the International segment was driven by growth across the
SELECTED FINANCIAL DETAILS – THIRD QUARTER FISCAL 2025
- Advertising investments were
$41 million $40 million - The effective tax rate was
22.3% , compared to21.7% last year, primarily due to decreased benefits from the purchase of federal transferable energy credits compared to the prior year. The effective tax rate for fiscal 2025 is expected to be approximately22.0% . - Capital expenditures were
$72 million $65 million $300 million - Depreciation and amortization expense was
$65 million $260 million - The Company returned approximately
$159 million
PRESENTATION
A conference call will be webcast at 8 a.m. CT on Aug 28, 2025. Access is available at hormelfoods.com by clicking on "Investors." The call will also be available via telephone by dialing 800-549-8228 (toll-free) or 646-564-2877 (international) and providing the conference ID 56462. An audio replay is available at hormelfoods.com. The webcast replay will be available at noon CT, Aug 28, 2025, and will remain on the website for one year.
ABOUT HORMEL FOODS - Inspired People. Inspired Food.™
Hormel Foods Corporation, based in
FORWARD-LOOKING STATEMENTS
This press release contains "forward-looking" information within the meaning of the federal securities laws. The "forward-looking" information may include statements concerning the Company's outlook for the future as well as other statements of beliefs, future plans, strategies, or anticipated events and similar expressions concerning matters that are not historical facts. Words or phrases such as "should result," "believe," "intend," "plan," "are expected to," "targeted," "will continue," "will approximate," "is anticipated," "estimate," "project," or similar expressions are intended to identify forward-looking statements. Such statements are subject to certain risks and uncertainties that could cause actual results to differ materially from historical earnings and those anticipated or projected, which factors include, but are not limited to, risks related to the deterioration of economic conditions; risks associated with acquisitions, joint ventures, equity investments, and divestitures; risks and uncertainties associated with intangible assets, including any future goodwill or intangible assets impairment charges; the risk of disruption of operations, including at owned facilities, co-manufacturers, suppliers, logistics providers, customers, or other third-party service providers; the risk that the Company may fail to realize anticipated cost savings or operating profit improvements associated with strategic initiatives, including the Transform and Modernize initiative; risk of loss of a significant contract or unfavorable changes in the Company's relationships with significant customers; risk of the Company's inability to protect information technology (IT) systems against, or effectively respond to, cyber attacks, security breaches or other IT interruptions, against or involving the Company's IT systems or those of others with whom it does business; risk of the Company's failure to timely replace legacy technologies; deterioration of labor relations or labor availability or increases to labor costs; general risks of the food industry, including those related to food safety, such as costs resulting from food contamination, product recalls, the remediation of food safety events at its facilities, including the production disruption at the
Note: Due to rounding, numbers presented throughout this press release may not sum precisely to the totals provided, and percentages may not precisely reflect the absolute figures.
END NOTES
1 | Non-GAAP measure. Organic volume and organic net sales exclude the impact of the sale of Hormel Health Labs, LLC in the Foodservice segment in the fourth quarter of fiscal 2024. Adjusted performance measures exclude nonrecurring impacts of the Company's Transform and Modernize initiative, loss on sale of business, and legal matters. See Appendix: Non-GAAP Measures to this press release for more information. |
2 | Circana Total US MULO+; Latest 13 Weeks Ended 7/13/2025. |
3 | Internal data. |
4 | Selling Power magazine's 60 Best Companies to Sell for 2025 list. |
5 | Circana Total US MULO+; Latest 4 Weeks Ended 7/13/2025. |
6 | Circana Scan Panel, Total US – All Outlets, Latest 4 Weeks Ended 7/13/2025. |
HORMEL FOODS CORPORATION | ||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
In thousands, except per share amounts | ||||||||
Unaudited | ||||||||
Quarter Ended | Nine Months Ended | |||||||
July 27, 2025 | July 28, 2024 | July 27, 2025 | July 28, 2024 | |||||
Net Sales | ||||||||
Cost of Products Sold | 2,545,567 | 2,410,075 | 7,473,524 | 7,281,798 | ||||
Gross Profit | 487,309 | 488,369 | 1,446,975 | 1,500,908 | ||||
Selling, General, and Administrative | 258,713 | 259,653 | 773,158 | 766,707 | ||||
Equity in Earnings of Affiliates | 11,153 | 7,977 | 42,614 | 39,250 | ||||
Operating Income | 239,748 | 236,693 | 716,430 | 773,452 | ||||
Interest and Investment Income | 16,227 | 10,484 | 27,084 | 43,416 | ||||
Interest Expense | 19,461 | 21,459 | 58,438 | 61,464 | ||||
Earnings Before Income Taxes | 236,514 | 225,719 | 685,076 | 755,404 | ||||
Provision for Income Taxes | 52,818 | 48,984 | 151,107 | 170,733 | ||||
Effective Tax Rate | 22.3 % | 21.7 % | 22.1 % | 22.6 % | ||||
Net Earnings | 183,696 | 176,735 | 533,968 | 584,671 | ||||
Less: Net Earnings (Loss) Attributable | (46) | 34 | (366) | (170) | ||||
Net Earnings Attributable to Hormel | $ 183,742 | $ 176,701 | $ 534,334 | $ 584,842 | ||||
Net Earnings Per Share | ||||||||
Basic | $ 0.33 | $ 0.32 | $ 0.97 | $ 1.07 | ||||
Diluted | $ 0.33 | $ 0.32 | $ 0.97 | $ 1.07 | ||||
Weighted-average Shares Outstanding | ||||||||
Basic | 550,408 | 548,685 | 550,048 | 547,858 | ||||
Diluted | 550,723 | 549,266 | 550,396 | 548,624 | ||||
Dividends Declared Per Share | $ 0.2900 | $ 0.2825 | $ 0.8700 | $ 0.8475 | ||||
HORMEL FOODS CORPORATION | ||||
CONSOLIDATED CONDENSED STATEMENTS OF FINANCIAL POSITION | ||||
In thousands | ||||
Unaudited | ||||
July 27, 2025 | October 27, 2024 | |||
Assets | ||||
Cash and Cash Equivalents | $ 599,189 | $ 741,881 | ||
Short-term Marketable Securities | 31,480 | 24,742 | ||
Accounts Receivable | 764,338 | 817,908 | ||
Inventories | 1,821,860 | 1,576,300 | ||
Taxes Receivable | 50,559 | 50,380 | ||
Prepaid Expenses and Other Current Assets | 55,064 | 35,265 | ||
Total Current Assets | 3,322,490 | 3,246,476 | ||
Goodwill | 4,923,218 | 4,923,487 | ||
Intangible Assets | 1,721,487 | 1,732,705 | ||
Pension Assets | 192,123 | 205,964 | ||
Investments in Affiliates | 698,632 | 719,481 | ||
Other Assets | 426,068 | 411,889 | ||
Net Property, Plant, and Equipment | 2,212,709 | 2,194,728 | ||
Total Assets | $ 13,496,726 | $ 13,434,729 | ||
Liabilities and Shareholders' Investment | ||||
Accounts Payable & Accrued Expenses | $ 766,788 | $ 801,984 | ||
Accrued Marketing Expenses | 117,328 | 108,156 | ||
Employee-related Expenses | 251,860 | 283,490 | ||
Interest and Dividends Payable | 174,361 | 175,941 | ||
Taxes Payable | 28,454 | 21,916 | ||
Current Maturities of Long-term Debt | 6,740 | 7,813 | ||
Total Current Liabilities | 1,345,531 | 1,399,299 | ||
Long-term Debt Less Current Maturities | 2,850,165 | 2,850,944 | ||
Pension and Post-retirement Benefits | 386,554 | 379,891 | ||
Deferred Income Taxes | 595,066 | 589,366 | ||
Other Long-term Liabilities | 226,316 | 211,219 | ||
Accumulated Other Comprehensive Loss | (275,006) | (263,331) | ||
Other Shareholders' Investment | 8,368,098 | 8,267,342 | ||
Total Liabilities and Shareholders' Investment | $ 13,496,726 | $ 13,434,729 | ||
HORMEL FOODS CORPORATION | ||||||||
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS | ||||||||
In thousands | ||||||||
Unaudited | ||||||||
Quarter Ended | Nine Months Ended | |||||||
July 27, 2025 | July 28, 2024 | July 27, 2025 | July 28, 2024 | |||||
Operating Activities | ||||||||
Net Earnings | $ 183,696 | $ 176,735 | $ 533,968 | $ 584,671 | ||||
Depreciation and Amortization | 64,692 | 63,658 | 194,527 | 191,354 | ||||
Decrease (Increase) in Working Capital | (95,844) | (34,834) | (255,011) | 43,777 | ||||
Other | 4,154 | 12,431 | 48,860 | 38,315 | ||||
Net Cash Provided by (Used in) | 156,698 | 217,990 | 522,345 | 858,117 | ||||
Investing Activities | ||||||||
Net Sale (Purchase) of Securities | (1,434) | (607) | (6,170) | (6,106) | ||||
Proceeds from Sale of Business | — | — | 13,139 | — | ||||
Purchases of Property, Plant, and | (72,194) | (65,481) | (219,444) | (172,656) | ||||
Proceeds from (Purchases of) Affiliates | (584) | (6,231) | (3,283) | (6,681) | ||||
Other | 7,890 | 8,136 | 10,767 | 8,544 | ||||
Net Cash Provided by (Used in) | (66,323) | (64,183) | (204,991) | (176,899) | ||||
Financing Activities | ||||||||
Proceeds from Long-term Debt | — | — | — | 497,765 | ||||
Repayments of Long-term Debt and | (2,005) | (952,277) | (6,250) | (956,797) | ||||
Dividends Paid on Common Stock | (159,467) | (154,943) | (473,692) | (459,978) | ||||
Other | (1,784) | 6,325 | 24,057 | 39,187 | ||||
Net Cash Provided by (Used in) | (163,256) | (1,100,895) | (455,884) | (879,823) | ||||
Effect of Exchange Rate Changes on | 2,381 | (1,806) | (4,161) | (453) | ||||
Increase (Decrease) in Cash and Cash | (70,499) | (948,893) | (142,692) | (199,057) | ||||
Cash and Cash Equivalents at Beginning | 669,688 | 1,486,368 | 741,881 | 736,532 | ||||
Cash and Cash Equivalents at End of | $ 599,189 | $ 537,476 | $ 599,189 | $ 537,476 | ||||
HORMEL FOODS CORPORATION | ||||||||||||
SEGMENT DATA | ||||||||||||
In thousands | ||||||||||||
Unaudited | ||||||||||||
Quarter Ended | Nine Months Ended | |||||||||||
July 27, | July 28, | % | July 27, | July 28, | % | |||||||
Volume (lbs.) | ||||||||||||
Retail | 712,912 | 680,214 | 4.8 | 2,127,075 | 2,170,621 | (2.0) | ||||||
Foodservice | 248,540 | 259,947 | (4.4) | 734,988 | 777,785 | (5.5) | ||||||
International | 85,138 | 78,529 | 8.4 | 239,225 | 231,681 | 3.3 | ||||||
Total Volume (lbs.) | 1,046,590 | 1,018,690 | 2.7 | 3,101,288 | 3,180,087 | (2.5) | ||||||
Net Sales | ||||||||||||
Retail | $ 1,858,434 | $ 1,767,251 | 5.2 | $ 5,532,401 | $ 5,467,078 | 1.2 | ||||||
Foodservice | 986,976 | 954,021 | 3.5 | 2,853,603 | 2,799,110 | 1.9 | ||||||
International | 187,466 | 177,171 | 5.8 | 534,495 | 516,517 | 3.5 | ||||||
Total Net Sales | $ 3,032,876 | $ 2,898,443 | 4.6 | $ 8,920,499 | $ 8,782,706 | 1.6 | ||||||
Segment Profit | ||||||||||||
Retail | $ 122,566 | $ 127,932 | (4.2) | $ 378,847 | $ 409,836 | (7.6) | ||||||
Foodservice | 140,711 | 142,487 | (1.2) | 420,170 | 441,952 | (4.9) | ||||||
International | 18,941 | 21,792 | (13.1) | 58,193 | 65,026 | (10.5) | ||||||
Total Segment Profit | 282,218 | 292,211 | (3.4) | 857,210 | 916,814 | (6.5) | ||||||
Net Unallocated Expense | 45,658 | 66,526 | (31.4) | 171,769 | 161,239 | 6.5 | ||||||
Noncontrolling Interest | (46) | 34 | (234.1) | (366) | (170) | (114.7) | ||||||
Earnings Before | $ 236,514 | $ 225,719 | 4.8 | $ 685,076 | $ 755,404 | (9.3) | ||||||
APPENDIX: NON-GAAP MEASURES
This press release includes measures of financial performance that are not defined by
Transform and Modernize (T&M) Initiative
In the fourth quarter of fiscal 2023, the Company announced a multi-year T&M initiative. In presenting non-GAAP measures, the Company adjusts for (i.e., excludes) expenses for this initiative that are non-recurring, which are primarily project-based external consulting fees and expenses related to supply chain and portfolio optimization (e.g., asset write-offs, severance, or relocation-related costs). The Company believes that non-recurring costs associated with the T&M initiative are not reflective of the Company's ongoing operating cost structure; therefore, the Company is excluding these discrete costs. The Company does not adjust for (i.e., does not exclude) certain costs related to the T&M initiative that are expected to continue after the project ends, such as software license fees and internal employee expenses, because those costs are considered ongoing in nature as a component of normal operating costs. The Company also does not adjust for savings realized through the T&M initiative as these are considered ongoing in nature and reflective of expected future operating performance.
Loss on Sale of Business
In the first quarter of fiscal 2025, the Company sold Mountain Prairie, LLC, a non-core sow operation, resulting in a loss on the sale. The Company believes the one-time detriment from the sale, including transaction costs, is not reflective of the Company's ongoing operating cost structure, is not indicative of the Company's core operating performance, and is not meaningful when comparing the Company's operating performance against that of prior periods. Thus, the Company has adjusted for (i.e. excluded) the loss.
Legal Matters
From time to time, the Company incurs expenses related to discrete legal matters that the Company believes are not indicative of the Company's core operating performance, do not reflect expected future operating costs, and are not meaningful when comparing the Company's operating performance against that of prior periods. The Company adjusts for (i.e., excludes) these expenses.
Litigation Settlements
In fiscal 2025 and 2024, the Company entered into settlement agreements with certain plaintiffs in its pending antitrust litigation.
Organic Volume and Organic Net Sales
The non-GAAP measures of organic volume and organic net sales are presented to provide investors with additional information to facilitate the comparison of past and present operations. Organic volume and organic net sales exclude the impact of the sale of Hormel Health Labs, LLC in the Foodservice segment in the fourth quarter of fiscal 2024.
The tables below show the calculations to reconcile from the GAAP measures to the non-GAAP measures presented in this press release. The tax impacts were calculated using the effective tax rate for the quarter in which the transactions occurred.
HORMEL FOODS CORPORATION | |||||||
RECONCILIATION OF NON-GAAP MEASURES | |||||||
Unaudited | |||||||
Quarter Ended | Nine Months Ended | ||||||
In thousands, except per share amounts | July 27, | July 28, | July 27, | July 28, | |||
Cost of Products Sold (GAAP) | $ 2,545,567 | $ 2,410,075 | |||||
Transform and Modernize Initiative(1) | (1,010) | (1,226) | (3,973) | (4,646) | |||
Adjusted Cost of Products Sold (Non-GAAP) | $ 2,544,557 | $ 2,408,848 | |||||
SG&A (GAAP) | $ 258,713 | $ 259,653 | $ 773,158 | $ 766,707 | |||
Transform and Modernize Initiative(2) | (13,485) | (12,280) | (41,228) | (31,016) | |||
Loss on Sale of Business | — | — | (11,324) | — | |||
Litigation Settlements | — | (17,000) | (240) | (28,750) | |||
Adjusted SG&A (Non-GAAP) | $ 245,228 | $ 230,373 | $ 720,366 | $ 706,941 | |||
Operating Income (GAAP) | $ 239,748 | $ 236,693 | $ 716,430 | $ 773,452 | |||
Transform and Modernize Initiative(1)(2) | 14,496 | 13,506 | 45,202 | 35,663 | |||
Loss on Sale of Business | — | — | 11,324 | — | |||
Litigation Settlements | — | 17,000 | 240 | 28,750 | |||
Adjusted Operating Income (Non-GAAP) | $ 254,244 | $ 267,200 | $ 773,196 | $ 837,864 | |||
Earnings Before Income Taxes (GAAP) | $ 236,514 | $ 225,719 | $ 685,076 | $ 755,404 | |||
Transform and Modernize Initiative(1)(2) | 14,496 | 13,506 | 45,202 | 35,663 | |||
Loss on Sale of Business | — | — | 11,324 | — | |||
Litigation Settlements | — | 17,000 | 240 | 28,750 | |||
Adjusted Earnings Before Income Taxes (Non- | $ 251,010 | $ 256,225 | $ 741,842 | $ 819,816 | |||
Provision for Income Taxes (GAAP) | $ 52,818 | $ 48,984 | $ 151,107 | $ 170,733 | |||
Transform and Modernize Initiative(1)(2) | 3,233 | 2,931 | 9,960 | 8,009 | |||
Loss on Sale of Business | — | — | 2,469 | — | |||
Litigation Settlements | — | 3,689 | 52 | 6,333 | |||
Adjusted Provision for Income Taxes (Non-GAAP) | $ 56,051 | $ 55,603 | $ 163,588 | $ 185,074 | |||
Net Earnings Attributable to Hormel Foods | $ 183,742 | $ 176,701 | $ 534,334 | $ 584,842 | |||
Transform and Modernize Initiative(1)(2) | 11,263 | 10,575 | 35,242 | 27,654 | |||
Loss on Sale of Business | — | — | 8,855 | — | |||
Litigation Settlements | — | 13,311 | 188 | 22,417 | |||
Adjusted Net Earnings Attributable to Hormel | $ 195,005 | $ 200,588 | $ 578,620 | $ 634,913 | |||
Diluted Earnings Per Share (GAAP) | $ 0.33 | $ 0.32 | $ 0.97 | $ 1.07 | |||
Transform and Modernize Initiative(1)(2) | 0.02 | 0.02 | 0.06 | 0.05 | |||
Loss on Sale of Business | — | — | 0.02 | — | |||
Litigation Settlements | — | 0.02 | — | 0.04 | |||
Adjusted Diluted Earnings Per Share (Non-GAAP) | $ 0.35 | $ 0.37 | $ 1.05 | $ 1.16 | |||
SG&A as a Percent of Net Sales (GAAP) | 8.5 % | 9.0 % | 8.7 % | 8.7 % | |||
Transform and Modernize Initiative(2) | (0.4) | (0.4) | (0.5) | (0.4) | |||
Loss on Sale of Business | — | — | (0.1) | — | |||
Litigation Settlements | — | (0.6) | — | (0.3) | |||
Adjusted SG&A as a Percent of Net Sales (Non- | 8.1 % | 7.9 % | 8.1 % | 8.0 % | |||
Operating Margin (GAAP) | 7.9 % | 8.2 % | 8.0 % | 8.8 % | |||
Transform and Modernize Initiative(1)(2) | 0.5 | 0.5 | 0.5 | 0.4 | |||
Loss on Sale of Business | — | — | 0.1 | — | |||
Litigation Settlements | — | 0.6 | — | 0.3 | |||
Adjusted Operating Margin (Non-GAAP) | 8.4 % | 9.2 % | 8.7 % | 9.5 % | |||
(1) | Comprised primarily of equipment relocation expenses, severance, and asset write-offs related to supply chain and portfolio optimization. |
(2) | Comprised primarily of project-based external consulting fees. |
ORGANIC VOLUME AND ORGANIC NET SALES (NON-GAAP) | |||||||
Quarter Ended | |||||||
July 27, 2025 | July 28, 2024 | ||||||
In thousands | GAAP | GAAP | Divestiture | Non-GAAP | Non-GAAP % Change | ||
Volume (lbs.) | |||||||
Retail | 712,912 | 680,214 | — | 680,214 | 4.8 | ||
Foodservice | 248,540 | 259,947 | (16,507) | 243,440 | 2.1 | ||
International | 85,138 | 78,529 | — | 78,529 | 8.4 | ||
Total Volume (lbs.) | 1,046,590 | 1,018,690 | (16,507) | 1,002,183 | 4.4 | ||
Net Sales | |||||||
Retail | $ 1,858,434 | $ 1,767,251 | $ — | $ 1,767,251 | 5.2 | ||
Foodservice | 986,976 | 954,021 | (28,683) | 925,338 | 6.7 | ||
International | 187,466 | 177,171 | — | 177,171 | 5.8 | ||
Total Net Sales | $ 3,032,876 | $ 2,898,443 | $ (28,683) | $ 2,869,760 | 5.7 | ||
Nine Months Ended | |||||||
July 27, 2025 | July 28, 2024 | ||||||
In thousands | GAAP | GAAP | Divestiture | Non-GAAP | Non-GAAP % Change | ||
Volume (lbs.) | |||||||
Retail | 2,127,075 | 2,170,621 | — | 2,170,621 | (2.0) | ||
Foodservice | 734,988 | 777,785 | (49,023) | 728,763 | 0.9 | ||
International | 239,225 | 231,681 | — | 231,681 | 3.3 | ||
Total Volume (lbs.) | 3,101,288 | 3,180,087 | (49,023) | 3,131,065 | (1.0) | ||
Net Sales | |||||||
Retail | $ 5,532,401 | $ 5,467,078 | $ — | $ 5,467,078 | 1.2 | ||
Foodservice | 2,853,603 | 2,799,110 | (83,792) | 2,715,318 | 5.1 | ||
International | 534,495 | 516,517 | — | 516,517 | 3.5 | ||
Total Net Sales | $ 8,920,499 | $ 8,782,706 | $ (83,792) | $ 8,698,914 | 2.5 | ||
Forward-looking GAAP to Non-GAAP Measures
Our fiscal 2025 outlook for adjusted operating income and diluted earnings per share are non-GAAP measures that exclude, or have otherwise been adjusted for, items impacting comparability, including estimated charges associated with the T&M initiative and the loss on the sale of Mountain Prairie, LLC. The Company's strategic investments in the T&M initiative are expected to cease at the end of the investment period. The Company believes the one-time detriment from the sale, including transaction costs, is not reflective of the Company's ongoing operating cost structure. These items are not expected to recur in the foreseeable future and are not considered representative of the Company's underlying operating performance.
The tables below show the calculation to reconcile from the estimated fiscal 2025 GAAP measure to the estimated non-GAAP adjusted measure.
Fiscal 2025 Outlook | |||||||
In millions | Revised | Previous | |||||
Operating Income (GAAP) | $ 982 | - | $ 996 | $ 1,118 | - | $ 1,185 | |
Transform and Modernize Initiative | 61 | - | 63 | 46 | - | 52 | |
Loss on Sale of Business | 11 | - | 11 | 11 | - | 11 | |
Adjusted Operating Income (Non-GAAP) | $ 1,054 | - | $ 1,070 | $ 1,175 | - | $ 1,248 | |
Fiscal 2025 Outlook | |||
Revised | Previous | ||
Diluted Earnings per Share (GAAP) | |||
Transform and Modernize Initiative | |||
Loss on Sale of Business | |||
Adjusted Diluted Earnings per Share (Non-GAAP) | |||
INVESTOR CONTACT: | MEDIA CONTACT: |
Jess Blomberg | Media Relations |
View original content to download multimedia:https://www.prnewswire.com/news-releases/hormel-foods-reports-third-quarter-fiscal-2025-results-302540491.html
SOURCE Hormel Foods Corporation
FAQ
What were Hormel Foods (HRL) Q3 2025 earnings per share?
What is Hormel's revenue guidance for Q4 2025?
How did Hormel's different segments perform in Q3 2025?
What is impacting Hormel's profitability in 2025?
What is Hormel's earnings outlook for Q4 2025?
