Hormel reported Q1 FY2026 net sales of USD 3.0 billion (+1.3%) on volume of 1.0 billion lbs (-3.9%). Net earnings attributable to shareholders were USD 181.8 million (+6.6%), with diluted EPS of USD 0.33 (+6.5%); adjusted diluted EPS was USD 0.34 (-2.9%). Earnings before income taxes were USD 234.3 million (+7.4%) and adjusted earnings before income taxes were USD 238.0 million (-2.4%). Gross profit was USD 469.6 million (-1.2%), with gross margin of 15.5% (from 15.9%). SG&A was USD 241.7 million (-8.1%), or 8.0% of net sales (from 8.8%), while adjusted SG&A was USD 238.4 million (+0.4%), or 7.9% of net sales. By segment in Q1 FY2026, Retail net sales were USD 1.8 billion (-2.2%) with segment profit of USD 96.2 million (-19.3%), reflecting lower sales, higher raw material input costs, and higher logistics expenses; results were impacted by a strategic exit from select non-core private label snack nut items, while priority brands including Jennie-O ground turkey and Planters snack nuts delivered net sales growth. Foodservice net sales were USD 998.2 million (+7.3%) and segment profit was USD 156.5 million (+12.8%), driven primarily by pricing actions and strength in customized solutions, premium prepared proteins and branded pepperoni, including Austin Blues smoked meats and Hormel Fire Braised and Natural Choice meats. International net sales were USD 181.3 million (+7.6%) and segment profit was USD 22.9 million (+9.9%), supported by lower SG&A and growth in China, partially offset by lower export margins, with branded exports led by Spam. Hormel also recorded a USD 23.5 million gain on the sale of its controlling equity interest in Justin’s, and cited USD 27.2 million of pre-tax non-recurring expenses tied to its Transform and Modernize initiative, a corporate restructuring plan and a consulting agreement with a former CEO. Cash flow from operations was USD 349.2 million (+13.0%), aided by a reduction in inventory; cash and cash equivalents ended the quarter at USD 867.9 million. The company noted increased logistics costs amid tighter freight capacity and said tariffs had a minor impact during the quarter.
Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Hormel Foods Corporation published the original content used to generate this news brief via EDGAR, the Electronic Data Gathering, Analysis, and Retrieval system operated by the U.S. Securities and Exchange Commission (Ref. ID: 0000048465-26-000020), on February 26, 2026, and is solely responsible for the information contained therein.
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