- Hormel's food business missed earnings and revenue estimates due to lower demand and a weak Chinese market.
- The large food processor reported lower earnings. volumes and sales of its retail division, and international sales were negatively affected by weakness in China.
- Hormel shares fell to their lowest level in more than eight years.
A decline in volume and sales at its retail division as well as lower demand in China hurt Hormel Foods' (HRL) results. Shares fell to their lowest level in more than eight years.
The maker of spam, Skippy Peanut Butter and Other Processed Foods reported earnings of 42 cents per share in the fourth quarter of fiscal 2023, with revenue down 2.6% from the same period last year, at $3.2 billion. Both estimates missed.
Retail division volume fell by 3% year-over-year, and sales in the retail segment fell 4%, driven by “the decline in convenient meals and proteins, as well as food verticals.” snacks and entertainment.
International sales fell 12%, which Hormel blamed on “continued weakness in China and declining brand export demand.”
CEO Jim Snee said that the company continues to “navigate a dynamic operating environment characterized by slowing consumer demand, inflationary pressures and headwinds in our Turkey business.”
Hormel expects a profit for fiscal 2024 in the range of $1.51 to $1.65 per share, below analyst forecasts. forecasts. The company said it expects first-half profit to fall due to lower volumes in its retail segment, weak demand in China and the impact of the decline turkey markets.
Hormel Foods stock is heavenly& #39;lowest since August 2015.
Do you have a tip for Investopedia journalists? Please email us at firstname.lastname@example.org