Hormel Foods Q2 Sales Dip Slightly, Earnings Decline
Ticker: HRL · Form: 10-Q · Filed: May 30, 2024 · CIK: 48465
Sentiment: neutral
Topics: earnings, financials, food-industry
TL;DR
Hormel's Q2 sales down slightly to $3B, earnings took a hit. Watch out.
AI Summary
Hormel Foods Corp. reported its second quarter results for the fiscal year ending April 28, 2024. The company's net sales for the quarter were $3.0 billion, a slight decrease compared to the previous year. Net earnings also saw a decline, impacting overall financial performance for the period.
Why It Matters
This filing provides insight into Hormel Foods' recent financial health, which can influence investor confidence and consumer purchasing decisions for its well-known brands.
Risk Assessment
Risk Level: medium — The slight decrease in sales and decline in earnings suggest potential headwinds for Hormel Foods, warranting a medium risk assessment.
Key Numbers
- $3.0B — Net Sales (Second quarter fiscal year 2024)
Key Players & Entities
- HORMEL FOODS CORP /DE/ (company) — Filer
- 20240428 (date) — End of reporting period
- 20240530 (date) — Filing date
- $3.0 billion (dollar_amount) — Net sales for the quarter
FAQ
What were Hormel Foods' net sales for the second quarter of fiscal year 2024?
Hormel Foods reported net sales of $3.0 billion for the second quarter of fiscal year 2024.
What is the fiscal year end for Hormel Foods?
Hormel Foods' fiscal year ends on October 27th.
When was this 10-Q filing submitted to the SEC?
This 10-Q filing was submitted on May 30, 2024.
What is the primary business of Hormel Foods?
Hormel Foods is primarily involved in meat packing plants, as indicated by its Standard Industrial Classification code.
What was the previous name of Hormel Foods?
The former name of Hormel Foods was HORMEL GEO A & CO, with a date of name change on July 3, 1992.
Filing Stats: 4,514 words · 18 min read · ~15 pages · Grade level 17.9 · Accepted 2024-05-30 13:23:19
Key Financial Figures
- $0.01465 — ange on which registered Common Stock $0.01465 par value HRL New York Stock Exchange
- $0.01 — ue 548,305,384 Common Stock Nonvoting $0.01 par value 0 Table of Contents TABLE
Filing Documents
- hrl-20240428.htm (10-Q) — 1457KB
- hrlq22024ex311ceosoxcertif.htm (EX-31.1) — 10KB
- hrlq22024ex312cfosoxcertif.htm (EX-31.2) — 11KB
- hrlq22024ex321.htm (EX-32.1) — 6KB
- hrl-20240428_g1.jpg (GRAPHIC) — 7KB
- 0000048465-24-000032.txt ( ) — 7582KB
- hrl-20240428.xsd (EX-101.SCH) — 42KB
- hrl-20240428_cal.xml (EX-101.CAL) — 82KB
- hrl-20240428_def.xml (EX-101.DEF) — 281KB
- hrl-20240428_lab.xml (EX-101.LAB) — 601KB
- hrl-20240428_pre.xml (EX-101.PRE) — 436KB
- hrl-20240428_htm.xml (XML) — 1198KB
- FINANCIAL INFORMATION
PART I - FINANCIAL INFORMATION 3 Item 1.
Financial Statements
Financial Statements 3 Consolidated Statements of Operations 3 Consolidated Statements of Comprehensive Income 4 Consolidated Condensed Statements of Financial Position 5 Consolidated Statements of Changes in Shareholders ' Investment 6 Consolidated Condensed Statements of Cash Flows 8 Notes to the Consolidated Financial Statements 9 Item 2.
Management's Discussion and Analysis of Financial Condition and Results of Operations
Management's Discussion and Analysis of Financial Condition and Results of Operations 22 Results of Operations 22 Overview 22 Consolidated Results 22 Segment Results 24 Related Party Transactions 26 Non-GAAP Measures 26 Liquidity and Capital Resources 28 Critical Accounting Estimates 30
Forward-looking Statements
Forward-looking Statements 30 Item 3.
Quantitative and Qualitative Disclosures About Market Risk
Quantitative and Qualitative Disclosures About Market Risk 31 Item 4.
Controls and Procedures
Controls and Procedures 32
- OTHER INFORMATION
PART II - OTHER INFORMATION 32 Item 1.
Legal Proceedings
Legal Proceedings 32 Item 1A.
Risk Factors
Risk Factors 33 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 33 Item 3. Defaults Upon Senior Securities 33 Item 4. Mine Safety Disclosures 33 Item 5. Other Information 34 Item 6. Exhibits 34
SIGNATURES
SIGNATURES 35 2 Table of Contents
– FINANCIAL INFORMATION
PART I – FINANCIAL INFORMATION
FINANCIAL STATEMENTS
Item 1. FINANCIAL STATEMENTS HORMEL FOODS CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS Unaudited Quarter Ended Six Months Ended In thousands, except per share amounts April 28, 2024 April 30, 2023 April 28, 2024 April 30, 2023 Net Sales $ 2,887,352 $ 2,977,639 $ 5,884,263 $ 5,948,632 Cost of Products Sold 2,383,546 2,486,220 4,871,723 4,961,263 Gross Profit 503,806 491,419 1,012,539 987,369 Selling, General, and Administrative 266,668 212,492 507,054 434,548 Equity in Earnings of Affiliates 15,182 16,870 31,273 32,429 Operating Income 252,320 295,798 536,758 585,250 Interest and Investment Income 13,497 1,365 32,932 11,461 Interest Expense 21,679 18,323 40,005 36,670 Earnings Before Income Taxes 244,139 278,839 529,685 560,041 Provision for Income Taxes 54,931 61,624 121,749 125,175 Net Earnings 189,207 217,215 407,936 434,866 Less: Net Earnings (Loss) Attributable to Noncontrolling Interest ( 70 ) ( 24 ) ( 204 ) ( 92 ) Net Earnings Attributable to Hormel Foods Corporation $ 189,278 $ 217,239 $ 408,140 $ 434,958 Net Earnings Per Share Basic $ 0.35 $ 0.40 $ 0.75 $ 0.80 Diluted $ 0.34 $ 0.40 $ 0.74 $ 0.79 Weighted-average Shares Outstanding Basic 547,868 546,424 547,444 546,404 Diluted 548,685 549,013 548,303 549,522 See Notes to the Consolidated Financial Statements 3 Table of Contents HORMEL FOODS CORPORATION CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Unaudited Quarter Ended Six Months Ended In thousands April 28, 2024 April 30, 2023 April 28, 2024 April 30, 2023 Net Earnings $ 189,207 $ 217,215 $ 407,936 $ 434,866 Other Comprehensive Income (Loss), Net of Tax: Foreign Currency Translation ( 19,315 ) 22,887 ( 7,856 ) 37,934 Pension and Other Benefits 2,068 2,183 4,197 5,173 Derivatives and Hedging 11,998 ( 19,063 ) 17,205 ( 33,577 ) Equity Method Investments ( 6,444 ) 1,408 ( 3,561 ) 1,408 Total Other Comprehensive Income (Loss) ( 11,693 ) 7,416 9,985 10,938 Comprehensive Income 177,515 224,631 4