Hormel Foods Corporation reported first-quarter fiscal 2025 net sales of $2.99 billion, which were comparable to the prior year, with organic net sales increasing by 1%. The company's diluted earnings per share for the quarter were $0.31, while adjusted diluted earnings per share stood at $0.35, missing analyst estimates of $0.38 per share. Operating income was $228 million, with an adjusted operating income of $254 million.
The company's profit was impacted by higher input costs and persistent supply chain issues at its Planters brand's distribution facility. Hormel Foods reaffirmed its organic net sales growth outlook of 1% to 3% for fiscal year 2025. It also updated its diluted earnings per share expectations to $1.49 to $1.63, solely to account for a $0.02 loss on the sale of a non-core sow operation.
Hormel Foods continues to expect $100 million to $150 million in incremental benefits from its Transform and Modernize initiative in fiscal 2025. The company noted strong performance in flagship brands like SPAM®, Applegate®, and Hormel® Black Label®, and broad-based growth in its Foodservice segment. The International segment also saw growth in China and exports, despite softness in Brazil.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.