Hormel Foods Reports Solid Q2 2025 Results: Net Sales at $5.89B, Operating Income at $477M, and Segment Profit Variations Across Divisions

Reuters
May 29, 2025
Hormel Foods Reports Solid Q2 2025 Results: Net Sales at $5.89B, Operating Income at $477M, and Segment Profit Variations Across Divisions

Hormel Foods Corporation reported its second quarter fiscal 2025 results, showing net sales of $2.90 billion, an organic net sales increase of 1% compared to the same period in fiscal 2024. The company achieved an operating income of $248 million, with adjusted operating income reaching $265 million. Earnings before income taxes were $230 million, and adjusted earnings before income taxes were $247 million. The effective tax rate for the quarter was 22.0%. Diluted earnings per share stood at $0.33, with adjusted diluted earnings per share at $0.35. Cash flow from operations was reported at $56 million for the quarter. For the first half of fiscal 2025, Hormel recorded net sales of $5.89 billion, marking a 1% increase in organic net sales. Operating income was $477 million, with adjusted operating income at $519 million. The effective tax rate was 21.9%, and cash flow from operations totaled $366 million. Looking ahead, Hormel Foods has narrowed its fiscal 2025 organic net sales growth outlook to 2% to 3%, and its diluted earnings per share expectations to a range of $1.49 to $1.59. The company's adjusted diluted earnings per share forecast is between $1.58 and $1.68. Hormel also reaffirms its expectation of year-over-year benefits from its Transform and Modernize initiative, estimating these to be in the range of $100 million. Hormel Foods' management expressed confidence in their strategy and product portfolio, highlighting expected contributions from their turkey portfolio, the Planters® brand, and other consumer-focused, protein-centric products.

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