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Chick-News.com Poultry Industry News, Comments and more by Simon M. Shane

Hormel Releases Q2 Results Including Jennie-O Turkey Store

05/24/2021

On May 20th Hormel Foods, parent company of Jennie-O Turkey Store, released results for the second quarter of Fiscal 2021 ending April 25th.  For the period, Hormel earned $227.9 million on revenue of $2,607 million with an EPS of $0.42.  Comparable figures for the second quarter of Fiscal 2020 ending April 26th were net earnings of $227.7 million on revenue of $2,423 million with an EPS of $0.42.

 

The Jennie-O Turkey Store segment earned $12.7 million on revenue of $351.2 million.  For the second quarter of Fiscal 2020, Jennie-O Turkey Store posted an operating profit of $27.4 million on revenue of $343.1 million.  Comparing the two consecutive quarters, volume was down three percent, sales were 2.1 percent higher but segment contribution was lower by 53.6 percent.  CEO Jim Snee attributed the lower contribution generated by Jennie-O to higher feed costs.  The increase in sales was attributed to partial recovery of food service.

 

In commenting on results for Q2, Snee noted “We were able to achieve these record results through strong food service sales, continued elevated demand in retail, deli, and international channels, and improved supply chain performance.”  He added, “We anticipated rapid demand changes in our food service business and our team delivered with sales exceeding 2019 pre-pandemic levels.  The investments we have made over the years to build a world-class food service business, including an experienced direct sales force and portfolio of products that sold for customer challenges, give us a competitive advantage as the industry recovery accelerates.”

 

In common with other poultry producers, Snee noted the impact of inflation and stated that the company will continue to offset margin pressure with price actions and supply chain improvements. In contrast to other turkey companies that publish results, Jennie-O Turkey Store is profitable despite inflationary pressures and the impact of Covid on food service.


 
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