Jennie-O Turkey Store profits up 20 percent
Company expects performance to continue to improve as turkey production levels have normalized
Jennie-O Turkey Store’s profits grew 20 percent during the second quarter of fiscal year 2016, the company reported on May 18.
Jennie-O Turkey Store, a subsidiary of Hormel Foods, saw its profits increase on improved product mix and favorable input costs. However, it is still feeling the effects of the highly pathogenic avian influenza outbreak of 2016.
The company reported a 4 percent decrease in sales for the quarter, reflecting the volume shortfalls from the impact of the outbreak. Jennie-O Turkey Store accounted for 18 percent of Hormel Foods’ net sales during the quarter.
James Snee, president and chief operating officer of Hormel Foods, said in a press release that he expects the Jennie-O segment to thrive in upcoming quarters.
“Jennie-O Turkey Store is well-positioned to drive sales and earnings growth as turkey production has returned to normalized levels,” Snee said.
Hormel Foods enjoys record-setting quarter
Hormel Foods achieved net earnings of $215.4 million, up from the $180.2 million in net earnings recorded during the same period one year ago.
The company’s overall sales for the quarter were at $2.3 billion, which is an increase of 1 percent when compared to the second quarter of fiscal year 2015.