Hormel Foods reports lower earnings despite higher sales as profit drops hit US$56.1M loss
Company reports lower profitability as inflation and discrete costs weigh on results
USA – Hormel Foods Corp. reported stronger revenue for its fourth quarter and full year, yet finished fiscal 2025 with a steep decline in profitability as cost pressures persisted.
For the quarter ending Oct. 25, the company posted a net loss of US$56.1 million, a sharp contrast to the previous year’s US$220 million in profit, with diluted earnings coming in at a loss of 10 cents per share compared to 40 cents per share a year earlier.
Revenue for the quarter ticked up to US$3.2 billion from US$3.1 billion, although volume was largely unchanged at 1.088 billion pounds, slightly below the 1.108 billion pounds shipped in the same period last year.
On a full year basis, sales rose to US$12.1 billion from US$11.92 billion in 2024, reflecting sustained demand across several categories.
Even so, operating income fell to US$719 million from US$1.06 billion a year earlier, signaling broad pressure on margins.
Annual net earnings slid to US$663 million, or 87 cents per share, down from US$805 million, or US$1.47 per share, in the prior fiscal year.
Interim chief executive officer Jeff Ettinger said the company continued to see strong engagement with its brands, but persistent cost inflation and isolated financial impacts weighed on results, prompting actions such as strategic pricing, lower administrative expenses and continued advancement of the Transform and Modernize program.
Retail and foodservice performance
Hormel’s retail division generated US$7.45 billion in sales, up from US$7.37 billion, although volume slipped to 2.87 billion pounds and segment profit dropped to US$425.2 million from US$562.7 million.
In the foodservice unit, revenue reached US$3.94 billion, slightly above last year, but volume decreased to 1.003 billion pounds, with profit weakened by lower margins in Heritage Premium Meats, poultry and pizza toppings, along with higher selling and administrative costs.
The company’s international segment reported sales of US$709 million, up from US$701.5 million in 2024, adding modest growth from overseas markets.
Outlook for 2026
Looking ahead, Hormel said it plans to reshape its earnings trajectory by refining its product mix and improving operational efficiency.
President John Ghingo said the company is focused on expanding margins and delivering consistent, profitable growth through convenience-driven, protein-centered offerings and stronger execution.
For fiscal 2026, Hormel projects net sales between US$12.2 billion and US$12.5 billion and anticipates capital expenditures of US$260 million to US$290 million.
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