Jennie-O Turkey Store’s profits increased 42 percent during the third quarter of fiscal year 2014, helping its parent company Hormel Foods overcome losses in its other segments. Hormel’s third quarter net income was $138 million, a 21 percent increase when compared to the third quarter of 2013.
Sales for Jennie-O Turkey Store were down 2 percent in terms of volume, but dollar sales were up 4 percent. Increased sales of value-added products, along with strong commodity turkey prices and lower feed costs more than offset lower live production performance and higher fuel expenses as the flocks from the winter moved through Jennie-O’s system during the quarter. Jennie-O ground turkey and deli products contributed to its sales growth over the quarter.
“Our team was able to achieve another quarter of record sales and earnings, with sales up 6 percent and earnings per share up 21 percent versus the same quarter a year ago,” said Jeffrey M. Ettinger, chairman, president and CEO of Hormel Foods.
“Strong demand for pork and turkey, and increased sales of value-added products in our Refrigerated Foods, Jennie-O Turkey Store and International & Other segments more than offset a challenging quarter for our Grocery Products and Specialty Foods segments. Our balanced model continues to support consistent revenue and earnings growth.”
Looking forward, Ettinger expects Jennie-O to continue to thrive through the fourth quarter.“We anticipate a strong finish to the year from our Jennie-O Turkey Store segment, aided by beneficial grain markets and growing value-added sales, and from our Internation & Other and Specialty Foods segments,” he said.