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Hormel Foods' First Quarter Fiscal 2026 Results Overview

On February 26, 2026, Hormel Foods Corporation, a leading global food company, announced its financial results for the first quarter of fiscal 2026, which concluded on January 25, 2026. The company reported net sales of $3.03 billion, reflecting a 2% growth in organic net sales compared to the previous fiscal year.

Financial Highlights

Hormel Foods demonstrated robust financial performance in terms of profitability and sales.

• - Net Sales: $3.03 billion
• - Diluted Earnings per Share (EPS): $0.33; adjusted diluted EPS was slightly higher at $0.34.
• - Operating Income: $244 million, with an operating margin standing at 8.0%, while the adjusted operating margin was at 8.2%.
• - Cash Flow from Operations: Reached $349 million during the quarter.

Interim CEO Jeff Ettinger expressed satisfaction with the results, emphasizing the importance of their protein-centric portfolio amidst ongoing business initiatives.

Segment Performance

The company's performance varied across its operational segments:

Retail Segment

• - Volume: Down by 6% with a decrease in organic volume.
• - Net Sales: Down 2%, impacted by the exit from certain non-core products.
• - Segment Profit: Decreased by 19% due to elevated raw materials costs.

Foodservice Segment

• - Volume: Remained flat, while net sales grew by 7%.
• - Segment Profit: Increased by 13%, driven by consistent demand and effective pricing strategies.
• - The ten consecutive quarters of growth in organic net sales signal strong ongoing performance in this area.

International Segment

• - Volume: Grew by 1%, and net sales increased by 8%.
• - Key drivers included stronger performance in China and branded exports, particularly SPAM® products.
• - Segment profit improved by 10%, benefitting from lower operating expenses.

Guidance for Fiscal 2026

Hormel reaffirmed its fiscal year outlook:

• - Net Sales: Expected between $12.2 - $12.5 billion, anticipating organic net sales growth of 1-4%.
• - Earnings per Share Guidance: Adjusted diluted EPS anticipated in the range of $1.43 - $1.51, indicating continued financial health and growth potential.
• - Plans for further operational efficiency and strategic sales, including the planned sale of their whole-bird turkey business, are underway to better focus on core operations and high-margin categories.

Strategic Initiatives

Hormel is positioning itself for future growth through portfolio refinement and operational improvements. The recent sale of a majority stake in the Justin's® brand reflects their strategic focus on core offerings that resonate with consumer demand.

Summary

Overall, Hormel Foods' solid first-quarter performance reflects effective management strategies amidst a challenging market environment. The emphasis on value-added products aligns with evolving consumer trends, setting the stage for a positive year ahead.

To learn more about Hormel Foods Corporation and their latest financial updates, visit Hormel Foods' Investor Relations.