Hormel Foods achieves record first quarter earnings

Hormel Foods Corporation (NYSE: HRL) today reported record performance for the fiscal year 2015 first quarter. All comparisons are to the first quarter of fiscal 2014.

SUMMARY

• Record dollar sales of $2.4 billion, increased 7 percent; volume up 3 percent.
• Record non-GAAP¹ adjusted diluted EPS² of $0.69, up 21 percent from $0.57 per share, excluding previously announced, nonrecurring charges. Record GAAP diluted EPS of $0.64.
• Total non-GAAP¹ adjusted segment operating profit² increased 18 percent; GAAP total segment operating profit up 10 percent.
• Refrigerated Foods segment operating profit up 19 percent; volume down 3 percent; dollar sales up 1 percent.
• Jennie-O Turkey Store segment operating profit up 56 percent; volume up 9 percent; dollar sales up 10 percent.
• Grocery Products non-GAAP¹ adjusted segment operating profit² down 8 percent (Grocery Products GAAP segment operating profit down 27 percent including nonrecurring charges relating to closure of the Stockton, California, manufacturing facility); volume up 1 percent; dollar sales up 2 percent. Excluding net sales of MegaMex Foods products not included in the prior year, volume down 5 percent and dollar sales down 2 percent.
• Specialty Foods segment operating profit down 13 percent; volume up 17 percent; dollar sales up 34 percent. Excluding incremental sales of CytoSport Holdings, Inc. (“CytoSport”) products, volume down 2 percent and dollar sales up 3 percent.
• International & Other non-GAAP¹ adjusted segment operating profit² up 6 percent (International & Other GAAP segment operating profit down 36 percent including nonrecurring charges related to the exit from international joint venture businesses); volume up 12 percent; dollar sales up 17 percent. Excluding incremental sales of SKIPPY^® peanut butter, volume up 7 percent and dollar sales up 12 percent.

Excluding nonrecurring charges, the company reported fiscal 2015 first quarter non-GAAP¹ adjusted net earnings² of $187.3 million, up 22 percent from net earnings of $153.3 million a year earlier. Non-GAAP¹ adjusted diluted earnings per share² for the quarter were $0.69, up 21 percent compared to $0.57 last year.

On a GAAP basis, the company reported fiscal 2015 first quarter net earnings of $171.7 million, up 12 percent from net earnings of $153.3 million a year earlier. Diluted earnings per share for the quarter were $0.64 this year compared to $0.57 per share last year.

Sales for the quarter were $2.4 billion, up 7 percent from the same period in fiscal 2014.

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