Sector: Consumer Staples|Industry: Packaged Foods|Market Cap: $17.22B|Employees: 20K
Hormel Foods Corporation is a global branded food company that manufactures and distributes a wide array of meat, nut, and other food products. The company's core business model focuses on value-added consumer items, with primary revenue streams from retail, foodservice, and international markets. Hormel has a strong market position with iconic brands and a global presence in over 80 countries.
Net sales increased by 0.9% YoY to $2.997 billion, primarily driven by higher volumes in each segment. This was partially offset by lower sales in the Retail and International segments, indicating mixed performance across different business areas.
Gross profit margin increased from 16.7% to 17.0%, driven by improvements in the Foodservice and Retail segments. Lower logistics expenses on a volume basis and savings from transformation initiatives contributed to the margin expansion.
Selling, general, and administrative (SG&A) expenses increased by 8.3% YoY, driven by higher employee and external expenses. The increase is primarily due to costs associated with the Company's transformation and modernization initiative.