Hormel Lifts Sales Outlook, Faces Margin Pressures

Hormel Foods reported second-quarter fiscal 2025 revenue of $2.90 billion and adjusted earnings per share of $0.35, meeting or slightly exceeding analyst expectations, despite declining sales volumes attributed to supply chain issues and softer demand. The company narrowed its full-year adjusted profit outlook to $1.58-$1.68 per share and raised annual sales guidance to $12.0-$12.2 billion amid ongoing operational challenges and margin pressures, particularly in non-core segments. Retail segment profits improved through operational efficiencies despite flat sales and lower volumes, while Foodservice and International segments experienced margin and profit declines. Applegate and Planters brands continued to show strong momentum, with double-digit growth in the Mexican foods portfolio. Hormel paid its 387th consecutive quarterly dividend, reinforcing its status as a 'Dividend Aristocrat.' Management expects stronger growth in the year's second half, driven by protein-centric products and ongoing modernization efforts.