Hormel Foods Corporation (NYSE:HRL) reported quarterly earnings before Thursday’s opening bell.
The Austin, Minn.-based food manufacturer, said results reflect the divestiture of the CytoSport business.
Net sales were $2.3 billion, down 3%; organic net sales proved to be flat. Pretax earnings were $261 million, up 1%. Hormel also declared fiscal 2019 earnings guidance were reaffirmed at $1.71 to $1.85 per share
Sales increased on strong demand for food service items such as Hormel® Bacon 1™ cooked bacon, Old Smokehouse® premium raw bacon and Hormel® Fire BraisedTM products.
Retail sales of Hormel® Black Label® convenience bacon and Columbus® branded deli items also contributed to overall growth. Volume declined slightly for the quarter, attributed to price increases on value-added items.
Said CEO Jim Snee, "We delivered earnings in line with our expectations this quarter as our experienced management team reacted quickly and appropriately to rapidly changing market conditions.Disciplined pricing, strategic promotional activity, effective advertising and insight-led innovation all played a positive role in our performance."
Snee added. "While we have yet to see sustained higher pork prices due to African swine fever, we have seen input cost volatility and are expecting further volatility."
Shares gained $1.09, or 2.7%, to $42.08
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