"Transform and Modernize is on track, delivering value and helping to return the company to its historical earnings trajectory. There is a growth mindset embedded in our culture… we are fueling investments back into the business to drive growth and deliver shareholder returns."
— Jim Snee
03Detailed Report
0J5Z.L
Company 0J5Z.L
Period
Q4 2024
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedMay 31, 2026
Swipe to view all report sections
Executive Summary
- Hormel Foods delivered a solid fourth quarter and a record full-year operating cash flow of $1.3 billion in fiscal 2024, underpinning a dividend of $1.16 per share for fiscal 2025 and the company’s continued capital discipline. Q4 2024 net sales were $3.139 billion, with operating income of $294.48 million and net income of $220.20 million, translating to diluted EPS of $0.40 and an annualized run rate of $1.47 per share on a GAAP basis (adjusted $1.58). For the year, net sales reached about $11.9 billion and operating income was about $1.1 billion, with an adjusted operating margin of 9.6%.
Key Performance Indicators
Revenue
Increasing
3.14B
QoQ: 0.00% | YoY: 8.68%
Gross Profit
Increasing
521.23M
16.61% margin
QoQ: 0.00% | YoY: 3.60%
Operating Income
Increasing
294.48M
QoQ: 0.00% | YoY: 18.64%
Net Income
Increasing
220.20M
QoQ: 0.00% | YoY: 16.34%
EPS
Increasing
0.40
QoQ: 0.00% | YoY: 14.29%
Revenue Trend
Margin Analysis
Financial Highlights
- Revenue (Q4 2024): $3.139B; YoY revenue growth: +8.68% (four-quarter metric). - Gross margin (Q4 2024): 16.6%; full-year gross margin: 17%. - Operating margin (GAAP, Q4 2024): 9.38%; Adjusted operating margin: 9.6% (FY2024). - Net income (Q4 2024): $220.20M; Net income margin: 7.02%. - EPS (GAAP): $0.40; Adjusted EPS: $0.58 for the year; Weighted average shares: ~549M. - Free cash flow (FY2024): $324.84M; Cash from operations: $408.62M; Cash at year-end: $741.88M; Net debt: $2.1169B; Debt/EBITDA: within 1.5x–2x target. - Dividend: $1.16 per share for fiscal 2025; 59th consecutive year of dividend increases; payout ratio (GAAP) around 70.4%. - Capital expenditure guidance for 2025: $275M–$300M; Advertising investments: $163M in 2024; plan for double-digit advertising increases in 2025. - Transform and Modernize (T&M): Year-1 benefits of $75M in operating income; expected annualized benefits of $100–$150M in FY2025; total expected spend through 2026 ~ $250M.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
3.14B
8.68%
0.00%
Gross Profit
521.23M
3.60%
0.00%
Operating Income
294.48M
18.64%
0.00%
Net Income
220.20M
16.34%
0.00%
EPS
0.40
14.29%
0.00%
Key Financial Ratios
Gross Profit Margin
Weak
16.60%
Gross profit margin is below industry norms, profitability concerns
Operating Profit Margin
Fair
9.38%
Operating margin is moderate, room for improvement in cost management
Net Profit Margin
Fair
7.02%
Net profit margin is moderate, room for improvement in cost management
Return on Assets
Weak
1.64%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
2.75%
Return on equity suggests inefficient capital allocation
Current Ratio
Healthy
2.32
Current ratio shows adequate liquidity to meet short-term obligations
Debt to Equity
Moderate
0.36
Debt-to-equity indicates balanced capital structure with manageable debt
P/E Ratio
Fair Value
19.28x
P/E ratio in line with market averages
Price to Book
Fair Value
2.12x
Price-to-book ratio reasonable for profitable companies
Management Insights Available for Members
Get exclusive access to management commentary, earnings call quotes, and forward guidance from company leadership.