HORMEL FOODS CORP /DE/ has recently released its 10-Q report. Hormel Foods Corporation develops, processes, and distributes meat, nut, and other food products in the United States and abroad, serving retail, foodservice, convenience store, and commercial customers. Its operations are organized into three segments: Retail, Foodservice, and International, and its portfolio includes refrigerated items, shelf-stable foods, and products sold under brands such as SPAM, SKIPPY, Planters, Jennie-O, Applegate, and Hormel.
In Item 2, management said third-quarter fiscal 2026 diluted earnings per share fell to $0.11 from $0.33 a year earlier, while adjusted diluted EPS rose to $0.37 from $0.35. Net sales declined 2.4% to $2.961 billion from $3.033 billion, and organic net sales fell 1.7% to $2.961 billion from $3.011 billion. Volume dropped 7.4% to 969.1 million pounds from 1.047 billion pounds, with organic volume down 7.1%.
Net earnings attributable to Hormel fell 67.6% to $59.6 million from $183.7 million. Earnings before income taxes dropped 56.4% to $103.2 million from $236.5 million, pressured by a $56 million loss tied to the Brazil divestiture, a $48 million non-cash impairment charge, and a $38 million litigation settlement. The company said the pre-tax impact of nonrecurring expenses and discrete items in the quarter totaled $155 million.
For the first nine months of fiscal 2026, net sales edged up 0.5% to $8.961 billion from $8.920 billion, while organic net sales rose 1.0% to $8.961 billion from $8.870 billion. Net earnings attributable to Hormel fell 25.4% to $398.8 million from $534.3 million, and diluted EPS declined to $0.72 from $0.97. Adjusted diluted EPS increased 5.7% to $1.11 from $1.05.
Cash flow from operations for the first nine months rose 47% to $769 million, driven by improved inventory management and working capital performance. The company ended the quarter with SG&A of $323.5 million, up 25.0% from $258.7 million, though adjusted SG&A fell 11.6% to $216.9 million from $245.2 million. Advertising spending in the quarter was $34 million, down 18%, and was $108 million for the nine-month period, down 10%.
By segment, Retail net sales fell 4.3% to $1.779 billion in the quarter, and segment profit declined 3.7% to $118.1 million. Foodservice net sales rose 1.6% to $1.003 billion, and segment profit increased 2.7% to $144.5 million. International net sales fell 4.7% to $178.7 million, and segment profit swung to a loss of $29.2 million from a profit of $18.9 million a year earlier, reflecting the non-cash impairment of a minority investment in Indonesia.
For the first nine months, Retail net sales declined 2.1% to $5.417 billion and segment profit fell 2.4% to $369.9 million. Foodservice net sales increased 5.1% to $2.998 billion and segment profit climbed 8.7% to $456.8 million. International net sales increased 2.2% to $546.2 million, but segment profit dropped 72.8% to $15.8 million. As a result of these announcements, the company's shares have moved -9.55% on the market, and are now trading at a price of $21.445. For more information, read the company's full 10-Q submission here.
