Hormel Foods Corp

Latest Results (11.11.2025):

Hormel Foods Corp reported its third quarter fiscal 2025 results, demonstrating strong top-line performance with net sales of $3.03 billion and a 6% organic net sales increase. Despite this robust revenue performance, the company experienced margin pressures due to rising commodity input costs, resulting in earnings that fell short of expectations. The leadership remains committed to building on their sales momentum and addressing near-term challenges, with a fourth quarter outlook that reflects competitive pricing adjustments in an inflationary environment.

Strong Top-Line Growth

The company achieved net sales of $3.03 billion with organic net sales up 6%, supported by solid performances across its key segments. Hormel Foods Corp’s report highlights strong consumer demand driving sales, particularly in the Retail segment with notable contributions from brands such as SPAM®, Jennie-O®, and Planters®.

Operating and Earnings Performance

For Q3 fiscal 2025, Hormel Foods Corp reported an operating income of $240 million and an adjusted operating income of $254 million, translating to operating margins of 7.9% and 8.4%, respectively. Earnings before income taxes stood at $237 million, with adjusted earnings at $251 million. Diluted earnings per share were $0.33 (adjusted at $0.35), and cash flow from operations reached $157 million.

Segment Highlights

The Retail segment, while showing a 5% increase in net sales and volume, faced a 4% decline in segment profit due to higher input costs and increased selling expenses. In Foodservice, net sales grew by 3% (organic growth of 7%), although profit was down 1%, and the International segment posted a 6% increase in net sales with an 8% volume gain but a 13% drop in segment profit.

Strategic Initiatives and Future Outlook

Hormel Foods Corp is actively implementing its Transform and Modernize initiative, optimizing its manufacturing network and refreshing key brands such as Hormel® pepperoni. Looking ahead to the fourth quarter of fiscal 2025, the company expects net sales between $3.15 and $3.25 billion and anticipates diluted earnings per share in the range of $0.36 to $0.38 (adjusted EPS between $0.38 and $0.40), while continuing to address challenges from commodity cost inflation.