Hormel Foods Corp. today announced record net sales of $3 billion, up 24%, for its first quarter of 2022. The branded grocery giant said its organic net sales increased 13% in the first quarter compared to 2021 organic net sales for the same period.
First Quarter Highlights
- Volume of 1.2 billion pounds, up 2%; organic volume down 4%.
- Operating income of $320 million, up 19%.
- Operating margin of 10.5%, compared to 10.9% last year.
- Pre-tax profit of $309 million, up 11%.
- Effective tax rate of 22.4%, compared to 19.7% last year.
- Diluted earnings per share of $0.44, up 7% from last year.
- Operating cash flow of $384 million, up 87%.
“We continue to benefit from the strength of our brands and our strategy to meet consumers when and where they want to eat,” said Jim Snee, President and CEO of Hormel. “Our restaurant businesses had another outstanding quarter, which speaks to the value of our direct selling organization and our differentiated product portfolio.
“We also delivered another quarter of growth in retail,” Snee continued, “thanks to strong performances from brands such as Columbus, Wholly, Applegate, Hormel Gatherings and Spam, and contribution from the Planters business. “.
During the first quarter, Hormel said it completed the supply chain integration of its Planters and Corn Nuts businesses. Snee said the company will soon introduce new innovations such as Planters Sweet & Spicy Dry Roasted Peanuts, while refreshing the brand and packaging.