By Dean Seal
Hormel Foods recorded a smaller profit in the fiscal first quarter as volume declines ate into sales and costs rose.
The maker of Spam and Skippy peanut butter posted a profit of $170.6 million, or 31 cents a share, for the quarter ended Jan. 26, compared with $217.9 million, or 40 cents a share, in the same period a year earlier.
Stripping out one-time items, adjusted earnings were 35 cents a share. Analysts had been looking for 38 cents a share.
Sales edged down slightly year-over-year to $2.99 billion, about $42 million higher than analysts had projected, according to FactSet.
Chief Executive Jim Snee said Hormel continues to work through a recovery in its snack nuts business from a supply disruption last year
Volumes were down across Hormel's retail, foodservice and international segments. Earnings from the retail and foodservice units were down on higher costs, though the international business managed to grow its segment profit thanks to higher export margins and growth in China.
Hormel is standing by its forecast for $11.9 billion to $12.2 billion in sales for fiscal 2025 and lowered its profit guidance by 2 cents a share to $1.49 to $1.63 a share. Adjusted earnings are still on track to hit $1.58 to $1.72 a share, the company said.
Write to Dean Seal at dean.seal@wsj.com
(END) Dow Jones Newswires
February 27, 2025 06:54 ET (11:54 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
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