Jennie-O Turkey Store saw its profit increase 54% on a year-over-year basis for the second quarter of fiscal year 2020, while the Hormel Foods subsidiary’s volumes increased 19% and net sales rose 12%.
For the quarter, the company reported a segment profit of $27.4 million, and net sales of $343.1 million.
While the COVID-19 pandemic hurt Jennie-O Turkey Store’s sales at the foodservice level, the strength of “retail, whole bird and commodity sales more than offset declines in foodservice,” Hormel Foods Chairman, President and CEO Jim Snee said during a quarterly earnings call on May 21.
During previous quarters, Snee reported that the sales and marketing team had been working hard to regain lost distribution when confidence in Jennie-O products declined after two Salmonella-related product recalls in late 2018. That marketing work carried over into the most recent quarter, which ended on April 26.
“The Jennie-O sales and marketing group made excellent progress regaining distribution prior to the pandemic, which put them in a strong position to succeed,” said Snee. “During the quarter, Jennie-O lean ground turkey sales increased by double-digits.”
The company also reported that improved operational and live production performance helped lift Jennie-O’s profitability during the quarter.
Because workers tested positive for COVID-19, Jennie-O Turkey Store recently suspended operations at three of its facilities – two in Willmar, Minnesota, and another in Melrose, Minnesota. That downtime occurred mostly in the third quarter, as the decision to suspend operations at the two Willmar plants was announced with only two days remaining in the second quarter, and the Melrose facility was not idled until after the conclusion of the quarter.
All three of those plants have since returned to production.
Jennie-O Turkey Store, according to the WATTAgNet Top Poultry Companies Database, is the third largest turkey producer in the United States, having slaughtered 1.23 billion pounds of live turkeys in 2019.
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