Hormel Foods Corp. (HRL) said, in the fourth quarter, the company delivered earnings per share comparable with record results last year, which included an additional week of sales. Pretax earnings were $357 million, up 1% from a year ago. Organic net sales were up 2%, excluding the impact of an additional week last year. Organic volume and organic net sales growth were led by center-store grocery portfolio as well as another solid performance from foodservice businesses, the company stated. Looking forward, Hormel Foods expects to operate in a volatile, complex and high-cost environment again in fiscal 2023.
“We enter the new fiscal year well-positioned in the retail, foodservice and international channels, and expect to drive top-line growth. We anticipate earnings growth to be driven by our Foodservice and International segments, and improvements across the supply chain,” said Jim Snee, CEO.
Fourth quarter earnings per share was $0.51, flat with last year. On average, 11 analysts polled by Thomson Reuters expected the company to report profit per share of $0.50, for the quarter. Analysts’ estimates typically exclude special items. Net earnings to Hormel Foods was $279.88 million compared to $281.74 million.
Fourth quarter net sales were $3.28 billion, down 5% from last year. Analysts on average had estimated $3.38 billion in revenue.
Fiscal 2022 earnings per share was $1.82, up 10% from last year; or up 5% compared to adjusted earnings per share of $1.73 last year. Net sales were $12.5 billion, up 9%. Organic net sales were up 6%, excluding the partial-year impact of the Planters snack nuts business and an additional week last year.
“We achieved all-time record sales and double-digit profit growth in fiscal 2022,” said Jim Snee.
The company’s cash on hand increased to $982 million from $614 million at the beginning of the year. Total long-term debt was $3.3 billion, unchanged from the beginning of the year.
For fiscal 2023, the company expects: earnings per share in a range of $1.83 – $1.93; and net sales in a range of $12.6 – $12.9 billion. Analysts expect the company to report profit per share of $2.0 on revenue of $13.01 billion.
Shares of Hormel Foods were down 7% in pre-market trade on Wednesday.
For more earnings news, earnings calendar, and earnings for stocks, visit rttnews.com.
Source: Read Full Article