Hormel Foods Corporation announced its second-quarter fiscal 2025 results, reporting comparable net sales of $2.90 billion and a 1% increase in organic net sales. However, diluted earnings per share for the quarter decreased to $0.33, with adjusted diluted EPS at $0.35. The company's segment profit for the quarter was mixed, with Retail profit up 4% but Foodservice and International profits down 6% and 21% respectively.
The company narrowed its full-year fiscal 2025 organic net sales growth outlook to a range of 2% to 3% and adjusted diluted EPS expectations to $1.58 to $1.68. This adjustment reflects ongoing pressures from commodity costs, turkey market dynamics, and the anticipated impact of tariffs. Management expressed confidence in a strong second-half earnings ramp, driven by accelerating Transform and Modernize (T&M) benefits.
Operationally, Hormel Foods commenced operations at its new distribution center in the Memphis, Tennessee, metro-area, designed to enhance service and distribution capacity. The company also announced the closure of a California dry sausage production facility, with production moving to other internal facilities, as part of its network optimization efforts to control costs and improve efficiency.
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