Hormel Foods Q3 2025 Earnings: Strong Sales, But Commodity Inflation Hits Profits! скачать в хорошем качестве

Hormel Foods Q3 2025 Earnings: Strong Sales, But Commodity Inflation Hits Profits!

*Hormel Foods Q3 2025 Earnings: Strong Sales, But Commodity Inflation Hits Profits! (HRL Stock Update)* Dive deep into *Hormel Foods' fiscal Q3 2025 earnings call* (ended July 27, 2025)! In this detailed summary, we break down the latest financial results for **HRL**, a global branded food company, featuring insights from Interim CEO Jeff Ettinger, President John Ghingo, and CFO Jacinth Smiley. *Key Takeaways from Hormel's Q3 2025 Performance:* *Strong Top-Line Growth:* Hormel Foods reported *net sales of $3.03 billion* with **organic net sales up 6%**, driven by broad-based contributions across all three segments (Retail, Foodservice, International). **Organic volume grew 4%**. *Profitability Pressures:* Despite sales momentum, *gross profit was "relatively flat year-over-year"* due to *higher-than-expected input costs* and *severe commodity increases**, particularly across **pork bellies (up ~30%), pork cutout (up 10%), and pork trim (up 20%)**. Total raw material cost inflation was about **400 basis points* in Q3. Adjusted EPS for Q3 was **$0.35**. *Transform & Modernize (T&M) Initiative Delivers:* The T&M initiative continued to perform, delivering *incremental bottom-line benefits from approximately 90 projects* in Q3. Management expects to finish near the **high end of the $100 million to $150 million benefit range for fiscal 2025**. *Brand Performance Highlights:* **Jennie-O ground turkey volume increased 13%**, outpacing the category and gaining market share. *Planters brand returned to year-over-year growth* in distribution, household penetration, and dollar sales, supported by innovation like Nut Duos and flavored cashews, though profitability lagged. **SPAM brand delivered strong volume and net sales growth**. *Hormel Pepperoni saw 20% year-over-year volume growth in foodservice* and underwent a brand renovation. Wholly Guacamole, Hormel Black Label Bacon, Hormel Chili, and Gatherings party trays also contributed to volume and net sales growth. *Foodservice Challenges:* *Industry traffic "remained soft, with overall visits slightly down year-over-year,"* and recovery did not materialize as expected, especially in convenience stores. *Strategic Pricing & Outlook:* Hormel implemented *targeted inflation-based pricing actions* in Q3 (notably in turkey), with additional pricing under evaluation due to persistently elevated commodity markets. The impact is expected to be felt partially in Q4 and more substantially in fiscal 2026. *Inventory & Cash Flow:* Cash flow from operations was *$150 million* ($157 million reported in earnings release), impacted by *intentional seasonal inventory builds* (e.g., Skippy back-to-school products) and elevated commodity markets. *Dividend & Financial Health:* Hormel paid *$159 million in dividends* in Q3, marking the **388th consecutive quarterly dividend payment**, and maintained a strong balance sheet with a net debt leverage ratio within its 1.5x-2x target. Management emphasized a clear mission to **build on top-line momentum and urgently return to bottom-line growth**. They will provide **holistic 2026 guidance on the fiscal Q4 earnings call**. Learn more about Hormel Foods' financial performance, strategic priorities, and outlook for the rest of fiscal 2025! *#HormelFoods #HRL #EarningsCall #Q32025 #StockMarket #CommodityPrices #Inflation #FoodIndustry #InvestorUpdate #ProfitGrowth #JennieO #SPAM #Planters #TransformAndModernize #Foodservice #Retail #International #DividendAristocrat* ---