Hormel Foods Corp Reports 2.5% Rise in Q2 Sales

By Tamara Parker • Thursday, May 28 16:09 • Permanent Link

HORMEL FOODS CORP /DE/ has recently released its 10-Q report. Hormel Foods Corporation develops, processes, and distributes meat, nuts, and other food products to foodservice, convenience store, and commercial customers in the United States and abroad. Its operations are organized into Retail, Foodservice, and International segments, and its portfolio includes both refrigerated and shelf-stable products sold under brands such as HORMEL, SPAM, SKIPPY, JENNIE-O, APPLEGATE, and PLANTERS.

In the second quarter of fiscal 2026, net sales rose 2.5% to $2.973 billion from $2.899 billion a year earlier, while organic net sales increased 3.3% to $2.973 billion. Volume fell 1.2% to 987.9 million pounds, but gross profit climbed 7.0% to $518.5 million and gross margin improved to 17.4% from 16.7%.

Diluted earnings per share declined 12.1% to $0.29, while adjusted diluted earnings per share increased 14.3% to $0.40. Net earnings attributable to Hormel Foods fell 12.5% to $157.5 million.

For the first six months of fiscal 2026, net sales increased 1.9% to $6.000 billion and organic net sales rose 2.4% to $6.000 billion. Volume decreased 2.6% to 2.002 billion pounds, gross profit increased 3.0% to $988.1 million, and diluted earnings per share slipped 3.1% to $0.62.

Cash flow from operations reached $528 million in the first half, up 44% from the prior year. The company said the increase was primarily tied to the impact of an inventory build in the second quarter of fiscal 2025.

SG&A rose 26.7% in the quarter to $318.6 million, or 10.7% of net sales, from $251.4 million, or 8.7%, a year earlier. Adjusted SG&A increased 2.4% to $243.4 million, with the company pointing to higher legal-related expenses; adjusted SG&A as a percent of net sales was flat at 8.2%.

Segment profit increased 13.5% in Retail to $155.6 million, 10.8% in Foodservice to $155.8 million, and 20.3% in International to $22.1 million. Retail net sales were essentially flat at $1.790 billion, Foodservice net sales rose 6.4% to $996.7 million, and International net sales increased 4.3% to $186.2 million.

For the first six months, Retail net sales declined 1.0% to $3.637 billion and segment profit fell 1.7% to $251.8 million. Foodservice net sales increased 6.9% to $1.995 billion and segment profit rose 11.8% to $312.3 million. International net sales climbed 5.9% to $367.5 million and segment profit advanced 14.8% to $45.0 million.

Earnings before income taxes fell 10.6% in the quarter to $206.1 million, pressured by a $61 million loss on the sale of the whole-bird turkey business. Net unallocated expense rose to $127.4 million from $65.4 million a year earlier. The effective tax rate increased to 23.6% from 22.0%. The market has reacted to these announcements by moving the company's shares 13.64% to a price of $23.82. Check out the company's full 10-Q submission here.

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