RSS
Twitter
Linked In
News In
News
Linked In
RSS
https://twitter.com/Agrimoney
http://www.newsnow.co.uk/h/Industry+Sectors/Agriculture

You are viewing 1 of your 2 complimentary articles.

Register now to receive full access.

Already registered?

Login | Join us now

Hormel sales rise, as food group focuses on speciality products

Twitter Linkedin

US food company Hormel reported rising sales and revenues, as it focuses on moving up the value chain, buying up specialist products and selling out of its pork business.

On Monday Hormel announced the sale of its pork bands Farmer John and Saag's brands, along with three hog farms, to Smithfield Foods, for $145m.

Hormel said the deal would free up the company to focus on higher-growth food products.

"While the businesses have performed well, they no longer align with our company's growth strategies," said Jim Snee, Hormel's chief executive, in a statement.

Rising sales, volumes

Hormel has been pursuing a strategy of focusing on specialist and premium food production.

This year, Hormel bought an organic nut butter and snack company Justin's for $286m, while last year the company bought the organic meat company Applegate Farms for $775m.

On Tuesday Hormel reported net sales of $2.63bn, up 9.4% year-on-year, in line with analyst expectations, thanks to rising volumes.

The company reported diluted earnings per share of $0.45, in line with expectations.

Higher returns from the refrigerated foods brand, and the Jenny-O turkey brand, rose thanks to "growth coming from value-added, branded products and improved market conditions", said Mr Snee.

Chinese market sours

But the company struggled with a tougher market in China, where consumer demand has been weaker.

"Our international segment had a tough quarter as the team continues to work through challenging market conditions in China," Mr Snee said.

"High pork raw material costs and soft retail demand continue to weigh on the China meat business."

Sales in the speciality food declined due primarily to the divestiture of some brands this year, and earnings in the segment took a hit from higher advertising.

By William Clarke

Twitter Linkedin
Related Stories

France cuts wheat export hopes, after slowdown in shipments to non-EU buyers

The EU’s top wheat producer lowers hopes for its export recovery, noting strong competition with the likes of Argentine, US supplies for buyers

Hedge funds turn net bullish on ags - ahead of price drop to historic low

Speculators are wrong-footed in soymeal, in which they hike bullish bets just before a price tumble. But they fare better in cotton and cocoa

Evening markets: Brazilian travails send coffee, soybean and sugar futures lower

... while Canada’s crop upgrade sends wheat to a fresh contract low. But cotton spares blushes for ag bull, hitting a seven-month high

Festive staff shortages 'likely' as British growers cut ties with UK supermarkets

Faced with mounting concerns over labour shortages and fears they may not be able to fulfil retailer contracts, some British growers have sought to cut ties with UK supermarkets in favour of companies elsewhere in Europe.
Home | About | RSS | Commodities | Companies | Markets | Legal disclaimer | Privacy policy | Contact

Our Brands: Comtell | Feedinfo | FGInsight

© Agrimoney.com 2017

Agrimoney.com and Agrimoney are trademarks of Agrimoney Ltd
Agrimoney is part of the Briefing Media group
Agrimoney Ltd is registered in England & Wales. Registered number: 09239069