Hormel Foods Reports Record Sales and Double-Digit Earnings Growth In Fiscal 2022; Expects Continued Sales And Earnings Growth In Fiscal 2023

Hormel Foods Corporation (NYSE: HRL), a Fortune 500 leading global branded food company, today reported results for the fourth quarter of fiscal 2022. The fourth quarter and full year of 2022 reflect one fewer week compared to the prior year. All comparisons are to the fourth quarter of fiscal 2021 unless otherwise noted.


  • Record net sales of $12.5 billion, up 9%; organic net sales1 up 6%, excluding the partial-year impact of the Planters® snack nuts business and an additional week last year
  • Operating income of $1.3 billion, up 17%; up 13% compared to adjusted operating income1 of $1.2 billion last year
  • Operating margin of 10.5% compared to 9.9% last year and compared to adjusted operating margin1 of 10.2% last year
  • Pretax earnings of $1.3 billion, up 13%; up 9% compared to adjusted pretax earnings1 of $1.2 billion last year
  • Effective tax rate of 21.7% compared to 19.3% last year
  • Diluted earnings per share of $1.82, up 10%; up 5% compared to adjusted diluted earnings per share1 of $1.73 last year
  • Cash flow from operations of $1.1 billion, up 13%


  • Net sales of $3.3 billion, down 5%; organic net sales1 up 2%, excluding the impact of an additional week last year
  • Operating income of $367 million, up 3%
  • Operating margin of 11.2% compared to 10.4% last year
  • Pretax earnings of $357 million, up 1%
  • Effective tax rate of 21.7% compared to 20.0% last year
  • Diluted earnings per share of $0.51, comparable to $0.51 last year
  • Cash flow from operations of $372 million, down 34%


“We achieved all-time record sales and double-digit profit growth in fiscal 2022,” said Jim Snee, chairman of the board, president and chief executive officer. “In addition to delivering year-over-year growth, our team successfully integrated the Planters® business, made progress on our six strategic priorities, showed tremendous resolve in overcoming a challenging operating environment, and laid the groundwork for the next step in our evolution as a global branded company, the Go Forward (GoFWD) initiative.”

“In the fourth quarter, our team delivered diluted earnings per share comparable with record results last year, which included an additional week of sales,” Snee said. “These results further demonstrate that our brands remain healthy, and the strategic investments we have made are enabling growth. Organic volume and organic net sales growth were led by our center-store grocery portfolio as well as another solid performance from our foodservice businesses. We saw volume and sales2 growth from many retail brands and products in market, including Hormel® Black Label® bacon, SKIPPY® peanut butter products, SPAM® products, Hormel® chili, Hormel Gatherings® party trays and Lloyds® meats. Segment profit growth was due to the Jennie-O Turkey Store segment, as the team effectively managed limited turkey supply and maximized operational performance. We also made progress across our supply chain to increase production capabilities and restore inventories on key product lines.”


The company transitioned to three operating segments – Retail, Foodservice and International – and began operating under the new model on Oct. 31, 2022. As part of the transition, implementation activities in the first quarter are expected to include:

  • Adopting a new organizational design, management structures and accountabilities;
  • Continuing the work to fully integrate Jennie-O Turkey Store into the company’s One Supply Chain and new operating segments; and
  • Standing up the Brand Fuel Center of Excellence, which will house enterprise-wide brand management expertise, e-commerce capabilities, insights-led innovation and analytical support to further enable data-driven decisions.

“The deliberate and thoughtful steps we have taken thus far are all about creating the Hormel Foods of the future,” Snee said. “We are excited for the additional collaboration, capabilities and value we will realize from this transition and are increasingly confident in our ability to drive long-term sustainable growth.”

Changes to the company’s operating segments have no impact on historical consolidated results of operations, financial position or cash flows. The company will provide recast financial information for fiscal years 2021 and 2022 in February 2023. Earnings will be reported under this structure beginning with the release of fiscal 2023 first quarter results in early March.


“We enter the new fiscal year well-positioned in the retail, foodservice and international channels, and expect to drive top-line growth,” Snee said. “We believe higher levels of brand investment, increased production capacity and our initial GoFWD actions further support this expectation. We anticipate earnings growth to be driven by our Foodservice and International segments, and improvements across the supply chain.”

“We expect to operate in a volatile, complex and high-cost environment again in fiscal 2023,” Snee said. “We have benefited from our balanced business model, which is not heavily dependent on any one channel, protein, input or product category. Our long-term strategy to meet consumers where they want to eat, with a broad portfolio of trusted brands and products, will continue to be a key differentiator for our business, helping to drive growth for our customers and operators.”

Fiscal 2023 Outlook* Comparison vs Fiscal 2022
Net Sales $12.6 – $12.9 billion +1 – 3%
Diluted Earnings per Share $1.83 – $1.93 +1 – 6%
Effective Tax Rate 21.0 – 23.0% 21.7%
Depreciation and Amortization ~$285 million +8%
Capital Expenditures ~$350 million +25%

* The company’s guidance reflects the estimated impact of higher pension expense and higher feed costs for the turkey business.


“Last week, we announced the 57th consecutive yearly increase to our annual dividend to $1.10 per share,” Snee said. “We remain steadfast in our commitment to deliver consistent dividend growth and return cash to our shareholders.”

Effective Nov. 15, 2022, the company paid its 377th consecutive quarterly dividend at the annual rate of $1.04 per share.


Net sales growth for the year was driven by the company’s U.S. channels, which benefited from elevated demand for many of its leading retail and value-added foodservice brands, pricing actions to mitigate inflationary pressures and the full-year contribution of the Planters® snack nuts business. Sales for the international channel declined, primarily due to lower export sales. The fourth quarter and full year of 2022 reflect one fewer week compared to the prior year.

Net Sales Percent Change (%) Fourth Quarter Fiscal Year
U.S. Retail (6) 7
U.S. Foodservice (1) 20
International (10) (7)
Total Net Sales Percent Change (%) (5) 9


Note: The fourth quarter of fiscal 2022 reflects one fewer week compared to the prior year.

Refrigerated Foods

  • Volume down 19%; organic volume1 down 13%
  • Net sales down 7%; organic net sales1 comparable to last year
  • Segment profit down 15%

Products such as Hormel® Natural Choice® meats, Hormel® Bacon 1™ fully cooked bacon, Hormel® Fire Braised™ flame-seared meats, Hormel Gatherings® party trays and Applegate® breaded chicken grew volume and sales for the quarter. Overall net sales declined due to the impact from an additional week in the fourth quarter of last year and lower commodity sales. Consistent with the company’s long-term strategy to better align resources to value-added growth, the overall decline in volume was primarily due to lower commodity sales resulting from the company’s new pork supply agreement. The decline in segment profit was driven by lower commodity profitability and higher operational, logistics and raw material costs.

Grocery Products

  • Volume down 4%; organic volume1 up 4%
  • Net sales up 3%; organic net sales1 up 11%
  • Segment profit down 8%

Net sales increased due to strong demand for SKIPPY® peanut butter and the impact of pricing actions across the Mexican and simple-meals portfolios. Organic volume and net sales gains were led by the SPAM®, SKIPPY®, WHOLLY®, Herdez® and Dinty Moore® brands. Segment profit declined, as pricing actions did not offset the impact from continued inflationary pressures.

Jennie-O Turkey Store

  • Volume down 32%; organic volume1 down 27%
  • Net sales down 15%; organic net sales1 down 8%
  • Segment profit up 149%

As anticipated, volume and sales declined as a result of the supply impacts on the company’s vertically integrated supply chain from highly pathogenic avian influenza (HPAI). Segment profit growth was primarily due to higher commodity prices and improved value-added mix.

International & Other

  • Volume comparable to last year; organic volume1 up 8%
  • Net sales down 2%; organic net sales1 up 6%
  • Segment profit down 4%

Volume and net sales growth from the SPAM® and SKIPPY® brands and the multinational businesses were offset by lower fresh pork and refrigerated export sales. Fresh pork sales declined as a result of the company’s new pork supply agreement. Segment profit growth in China did not overcome declines in the export business and elevated logistics expenses.


Income Statement

  • Operating margin for the full year was 10.5%. This compares to 9.9% and 10.2% on an adjusted basis1 for the previous year. The company continued to be negatively impacted by broad-based inflationary pressures and announced numerous pricing actions throughout the year to combat these pressures.
  • Selling, general and administrative expenses as a percentage of net sales were 7.1%. This compares to 7.5% and 7.2% on an adjusted basis1 last year. The decline is a result of record net sales and disciplined cost management.
  • Advertising investments were $157 million compared to $139 million last year. All business segments increased investment compared to the prior year.
  • The effective tax rate was 21.7% compared to 19.3% last year. Last year’s rate included the benefit of one-time state tax discrete items.

Cash Flow Statement

  • Cash flow from operations was $1.1 billion, up 13% compared to last year.
  • Dividends paid to shareholders were a record $558 million.
  • Capital expenditures were $279 million compared to $232 million last year. Large projects in fiscal 2022 included the completion of pepperoni and bacon capacity-expansion projects, an expansion for our SPAM® family of products to be opened in the first half of fiscal 2023, and many other projects to support growth of branded products and increase automation. Capital expenditures are expected to be $350 million in fiscal 2023, which includes a recently approved investment to support the company’s growth in China.
  • The company did not repurchase shares during fiscal 2022. The company has the capacity to repurchase approximately 4 million shares under its current authorization.
  • Depreciation and amortization expense for the full year was $263 million.

Balance Sheet

  • The company is in a strong financial position with ample liquidity, a conservative level of debt and consistent cash flows.
  • Cash on hand increased to $982 million from $614 million at the beginning of the year.
  • Total long-term debt is $3.3 billion, unchanged from the beginning of the year.


A conference call will be webcast at 8 a.m. CST on Nov. 30, 2022. Access is available at www.hormelfoods.com by clicking on “Investors.” The call will also be available via telephone by dialing 888-317-6003 and providing the access code 7127801. An audio replay is available by going to www.hormelfoods.com. The webcast replay will be available at noon CST, Nov. 30, 2022, and will remain on the website for one year.