Jennie-O Turkey Store’s 4th quarter helps Hormel boost earnings
Hormel Foods reports 19 percent increase in net earnings for fourth quarter of 2013
Hormel Foods saw its net earnings reach $157.3 million in the fourth quarter, a 19 percent increase from the net earnings achieved in the fourth quarter of 2012. Hormel Foods, the parent company of the Jennie-O Turkey Store, also experienced a 5 percent increase in earnings for the 2013 fiscal year at $526.2 million.
Hormel Foods on November 26 announced its financial results for the quarter and year ending October 27.
The Jennie-O Turkey Store accounted for 20 percent of Hormel's net sales and 27 percent of its total segment operating profit. Jennie-O delivered strong results for the quarter, with profits up 25 percent. The growth was driven by continued sales growth of value-added products and improved efficiencies throughout the supply chain. Jennie-O Turkey Store fourth quarter sales were up 7 percent in 2013, led by sales of fresh turkey chubs, turkey breakfast sausage and turkey bacon.
"We achieved excellent results in the fourth quarter with earnings per share growth of 18 percent and sales up 7 percent. We delivered both segment profit and sales increases in four of our five segments. We are pleased with our team's ability to drive earnings growth through our on-going efforts to improve operational efficiencies and focus on expanding our value-added franchises, providing strong momentum heading into fiscal 2014," said Jeffrey M. Ettinger, chairman of the board, president and chief executive officer of Hormel Foods.
"In looking at the full year, we enjoyed sales growth of 6 percent, ending the year at a record $8.8 billion. We grew earnings per share by 5 percent, finishing at record earnings of $1.95 per share, at the upper end of our adjusted guidance range."