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 for the first quarter were $2,988.8 million, nearly unchanged from $2,996.9 million in the prior year. However, organic net sales increased by 0.6%, indicating some underlying growth. This suggests that the company is facing challenges in translating volume growth into revenue growth.
Earnings before income taxes decreased from $285.5 million to $218.1 million, a 23.6% decline. This decrease was attributed to higher cost of products sold and higher selling, general, and administrative (SG&A) expenses, offsetting the impact of higher organic net sales.
Diluted earnings per share decreased from $0.40 to $0.31, a 22.5% decline. This decrease is consistent with the decrease in earnings before income taxes and indicates a decline in profitability.