Hormel Foods recently unveiled their fourth quarter and fiscal year (FY) 2018 earnings report. Highlights include:
- A 12 percent dividend increase for shareholders, marking the 53rd consecutive annual increase.
- Record cash flow from operations of $1.24 billion for the FY.
- FY volume of 4.8 billion lbs.
- Record net sales of $9.55 billion for the year.
- Continued growth is being depended on from the Wholly Guacamole, Applegate, Jennie-O, and SPAM product lines.
- The company also highlighted the launch of their Hormel Fired Braised Line and Hormel Bacon 1 offerings.
- During the fourth quarter, Hormel announced expansions for their manufacturing facilities in Nevada, Iowa and Illinois. These expansions are seen as key for continued growth in the company’s pizza toppings and authentic premium Italian meats and sausages lines.
- Refrigerated food volume was down two percent, even though net sales and segment profit were up. The negative results stemmed primarily from organic offerings.
- Volume, net sales and segment profit from the Jennie-O Turkey Store were all down due to lower whole bird volume and sales as shipments were shifted into the prior quarter to minimize cold storage expenses. Segment profit decreased as a result of lower whole bird sales, higher feed costs and increased freight expenses.
- Hormel also completed the acquisition of Columbus Craft Meats, its largest ever at $857 million.
