Jennie-O Turkey profits, sales jump in third quarter

Jennie-O Turkey Store’s operating profit increased 59 percent during the third quarter of fiscal year 2016, while its sales increased by 20 percent.

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Andrea Gantz
Andrea Gantz

Jennie-O Turkey Store’s operating profit increased 59 percent during the third quarter of fiscal year 2016, while its sales increased by 20 percent.

Recovery from avian influenza outbreak

The strong quarter is largely attributable to the company’s recovery from the avian influenza outbreak of 2015, said James Snee, president and chief operating officer of Hormel Foods, the parent company of Jennie-O Turkey Store.

“Production volumes returned to normalized levels during the quarter, which enabled the foodservice and deli teams to deliver strong volume sales,” Snee said during a quarterly conference call on August 18. “Our retail division at Jennie-O Turkey Store continues to gain back distribution that was curtailed during the outbreak last year.”

Snee said he expects Hormel Foods to have a strong finish to fiscal year 2016, led by value-added sales in its Refrigerated Foods, Jennie-O Turkey Store and International divisions.

Jennie-O Turkey Store financial figures

In releasing its financial results Hormel Foods reported the operating profit went from $35.4 million during the third quarter of fiscal year 2015 to $56.1 million during the most recent quarter.  Its net sales for the quarter were $404 million, up from the $336.5 million reported during the third quarter of 2015.

Snee added that the company also saw a “nice retail sales growth” for Jennie-O Turkey bacon.

Hormel Foods’ third quarter ended on July 24.

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