Wed, Sep 4, 5:27 PM (132 days ago)
Hormel Foods Corporation's Q3 2024 report shows a 2% decline in net sales to $2,898,443, driven primarily by lower volumes in the Retail and International segments, despite a 7% increase in the Foodservice segment. Segment profit fell 6%, with Retail and Foodservice profits declining, offset by a significant increase in International segment profit due to improved export margins. Earnings before income taxes rose 9% to $225,719, aided by reduced selling, general, and administrative (SG&A) expenses, which decreased by 10.8%. Cash flow from operations increased 18% year-to-date to $858 million, while total assets decreased to $13.1 billion. Hormel repaid $950 million in senior unsecured notes during the period and issued $500 million in new notes. The company remains compliant with all debt covenants and anticipates continued operational impacts from recent storms at its Nebraska facility. Future operations may be affected by ongoing litigation and market conditions, particularly in the pork and turkey sectors. Overall, the financial outlook reflects a cautious but stable trajectory amidst challenges in specific segments.