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Hormel Foods Corp. reported sales and earnings declines for Q2 2023 compared to the prior year period, driven in part by lower results in China, according to an earnings report.
Highlights include:
- Net sales fell from $3.03 billion in Q3 2022 to $2.96 billion in the quarter ending July 31, 2023. Net sales declined as a result of lower branded export sales and lower results in China.
- Net earnings fell from $218.8 million to $162.6 million in the comparative quarters.
- Retail sales fell 1.7% from $1.92 billion to $1.89 billion while profits fell 7.3% from $163 million to $151.1 million.
- Foodservice sales fell 2.9% from $917.6 million to $890.9 million while profits fell 13.6% from $128.8 million to $136.3 million.
- International sales fell 6% from $192.2 million to $180.6 million while profits fell 50% from $24.5 million to $12.2 million.
- Diluted EPS fell from 40 cents to 30 cents.
- Adjusted diluted EPS was 40 cents.
Shares traded today at $38.57 against a 52-week range of $37.78 to $49.73.
The $2.96 billion in quarterly revenue missed analyst expectations by $90 million while the non-GAAP EPS of 40 cents missed expectations by one cent, according to Seeking Alpha.
“In an increasingly dynamic and competitive environment, we grew volume across all our segments, delivered adjusted net earnings per share in line with last year and made further progress addressing the near-term challenges impacting the business,” Jim Snee, chairman of the board, president and CEO, said in a press release.
