Hormel Foods reported record performance for the fiscal year 2014 fourth quarter and full year, with both periods ending October 26. Strong results from Hormel’s Refrigerated Foods and Jennie-O Turkey Store segments highlighted the company’s financial success in FY 2014.
The company reported fiscal 2014 fourth quarter net earnings of $171.3 million, up 9 percent from net earnings of $157.3 million a year earlier. Diluted earnings per share for the quarter were $0.63, up 9 percent compared to $0.58 last year. Sales for the quarter were $2.5 billion, up 9 percent from the same period in fiscal 2013. Quarterly operating profit for the Refrigerated Foods segment went up 10 percent, with dollar sales up 9 percent. Jennie-O Turkey Store’s operating profit climbed 45 percent for the quarter, with dollar sales up 11 percent.
For the year, net earnings were a record $602.7 million, up 15 percent from net earnings of $526.2 million in 2013. Diluted net earnings per share were $2.23, up 14 percent from diluted net earnings per share of $1.95 last year. Sales for the year totaled a record $9.3 billion, up 6 percent from last year. The Refrigerated Foods segment saw its operating profit grow 45 percent for the year, while dollar sales were up 9 percent. Jennie-O Turkey Store’s operating profit was up 23 percent for the year, with dollar sales up 9 percent.
“We enjoyed a strong finish to the year, delivering record fourth quarter sales and earnings,” said Jeffrey M. Ettinger, Hormel Foods’ chairman of the board, president and CEO. “Our Refrigerated Foods and Jennie-O Turkey Store segments were able to capitalize on growth of value-added sales and higher meat commodity markets to lead the way.”
“We hit the nine billion dollar mark in annual sales for the first time in our company’s history, fueled by our branded, value-added product portfolios. We closed the year with record earnings per share of $2.23, a penny above the midpoint of our full year earnings guidance issued last November,” commented Ettinger. “Our Refrigerated Foods, Jennie-O Turkey Store, and International segments each delivered double-digit segment operating profit growth this year.”Ettinger added that high meat input costs and related pricing hampered growth of certain brands in the company’s Grocery Products segment, which experienced a 21 percent decline in profit and 3 percent drop in sales.