Hormel Foods on February 19 reported a strong first quarter for fiscal year 2015, anchored by the success of its subsidiary, Jennie-O Turkey Store. The Jennie-O Turkey Store segment saw its operating profit increase 56 percent, with volume up 9 percent and dollar sales improving 10 percent.
Overall, Hormel’s profits rose 21 percent when compared to the first quarter of fiscal year 2014, while achieving record sales of $2.4 billion, an improvement of 7 percent.
“We are off to an excellent start to our fiscal year with double-digit earnings growth and record sales in the first quarter,” said Jeffrey M. Ettinger, Hormel Foods chairman of the board, president and chief executive officer. “Jennie-O Turkey Store increased operating profit by 56 percent, with strong value-added product sales growth, robust turkey markets, and favorable input costs.”
While Ettinger was pleased with the performance of Jennie-O Turkey Store during the first quarter, he was also cautious when looking forward to the remaining three quarters.“We expect our Refrigerated Foods, Jennie-O Turkey Store, and International value-added businesses to continue to drive results throughout the year, benefitting from strong demand and lower input costs. Jennie-O Turkey Store will likely experience less favorable commodity meat markets offsetting some of those gains as the year progresses,” said Ettinger.