Jennie-O Turkey Store profit, sales up by double digits
Strong performance from Jennie-O helps parent company Hormel Foods achieve net earnings increase of 30 percent
Jennie-O Turkey Store recorded a strong performance during the fourth quarter of fiscal year 2016 achieving double-digit improvements in operating profit, volume and dollar sales.
Rebounding well from the avian influenza outbreak of 2015, Jennie-O Turkey Store saw its operating profit up by 26 percent, its volume up by 32 percent and its dollar sales up 29 percent.
Jennie-O Turkey Store was one of three of parent company Hormel Foods’ business segments to deliver such growth.
“Refrigerated Foods and Jennie-O Turkey Store both had excellent quarters with growth coming from value-added, branded products and improved market conditions,” Hormel Foods President and CEO Jim Snee said in a press release.
Hormel Foods quarterly results
As a whole, Hormel Foods in the fourth quarter achieved record net earnings of $244 million, which was a 30 percent improvement over the fourth quarter of fiscal year 2015. The company also saw record dollar sales of $2.6 billion, an improvement of 9 percent. Its volume was also up 9 percent.
“We had a strong finish to fiscal 2016, achieving record earnings for the fourteenth consecutive quarter,” said Snee.
Hormel Foods did experience some struggles, as Snee said sales within its Specialty Foods segment declined, primarily due to the divestiture of Diamond Crystal Brands in May. Earnings also were affected by increased advertising and challenging market conditions in China.