US - Hormel Foods Corporation has reported record performance for the fourth quarter of fiscal year 2014 and full year. Its turkey division, Jennie-O Turkey Store, had profits up 45 per cent for the quarter and 23 per cent for the year.
Compared to the same period of 2013, Hormel reports record dollar sales of $2.5 billion for the fourth quarter of 2014, and increase of nine per cent and volume up three per cent with segment operating profit increased nine per cent.
For Jennie-O Turkey Store, operating profit was up 45 per cent, up seven per cent in volume and 11 per cent in dollar value.
Grocery Products operating profit was down 21 per cent - by five per cent in volume and three per cent in value.
Operating profit was 10 per cent higher for Refrigerated Foods; volume was up one per cent and dollar sales up nine per cent.
For Specialty Foods, operating profit was down 14 per cent. Volume was up 15 per cent overall but down seven per cent excluding sales of CytoSport products), while dollar sales were up 31 per cent but down four per cent excluding CytoSport sales. CytoSport acquisition-related charges, including transaction costs and inventory adjustment to fair market value, were approximately $9.3 million, the company adds.
For the group 'International & Other', operating profit was three per cent higher on volume up six per cent and dollar sales up 13 per cent.
Record diluted earnings per share (EPS) was $0.63, up nine per cent from $0.58 per share.
Compared to the 2013 fiscal year, Hormel reported record dollar sales for 2014 of $9.3 billion - and increase of six per cent on sales one per cent higher.
Segment operating profit was up 16 per cent.
Jennie-O Turkey Store's operating profit was up 23 per cent on flat volume sales but dollar sales up four per cent.
Operating profit was down nine per cent for the Grocery Products group. Overall volume was up three per cent but down three per cent excluding incremental sales of SKIPPY® products. Dollar sales were three per cent higher overall but down two per cent excluding SKIPPY products.
Refrigerated Foods recorded operating profit up 45 per cent on flat volume and dollar sales up nine per cent.
For Specialty Foods, operating profit was 20 per cent lower. Sales volume overall was down five per cent or 10 per cent excluding CytoSport products, while overall dollar sales were three per cent lower or 11 per cent down excluding CytoSport sales.
Profit was up 19 per cent for the 'International & Other' division. Sales volume overall was 15 per cent higher than in 2013 but five per cent higher excluding incremental sales of SKIPPY products and dollar sales were up 19 per cent overall but 10 per cent higher if SKIPPY products are excluded.
Record diluted EPS were $2.23, up 14 per cent from diluted EPS of $1.95 in 2013.
The company reported fiscal 2014 fourth quarter net earnings of $171.3 million, nine per cent more than the $157.3 million a year earlier. Diluted earnings per share for the quarter were $0.63, up nine per cent compared to $0.58 last year. Sales for the quarter were $2.5 billion, up nine per cent from the same period in fiscal 2013.
For the year ending 26 October 2014, net earnings were a record $602.7 million, up 15 per cent from net earnings of $526.2 million last year. Diluted net earnings per share were $2.23, up 14 per cent from $1.95 last year. Sales for the year totalled a record $9.3 billion, six per cent more than in 2013.ThePoultrySite News Desk