- Hormel Foods (NYSE:HRL) reports organic volume up 2% and organic sales up 4% in Q1.
- Revenue by segment: Grocery Products: $540.63M (-10.9%); Refrigerated Foods: $1.35B (+5.7%); Jennie-O Turkey Store: $330.13M (+2.8%); International & Other: $161.89M (+5.4%).
- Gross profit rate dropped 110 bps to 19.6%.
- SG&A expense rate flat at 8.2%.
- Operating margin rate fell 120 bps to 11.8%.
- The company did not repurchase shares during the quarter.
- The acquisition of Sadler's Smokehouse is expected to be neutral to slightly negative to FY2020 earnings.
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FY2020 Guidance: Net sales: $9.50B to $10.3B; Diluted EPS: $1.69 to $ 1.83; Tax rate: 20.5% and 22.5%; D&A expense: ~$200M; Capex: $360M.
- Previously: Hormel Foods EPS misses by $0.01, beats on revenue (Feb. 20)
- Previously: Hormel Foods acquires smokehouse business (Feb. 20)