Reported Q: Q1 2025 Rev YoY: -0.3% EPS YoY: -22.5% Move: -0.64%
Hormel Foods Corporation
HRL
$24.93 -0.64%
Exchange NYSE Sector Consumer Defensive Industry Packaged Foods
Q1 2025
Published: Feb 27, 2025

Company Status Snapshot

Fast view of the latest quarter outcome for HRL

Reported

Report Date

Feb 27, 2025

Quarter Q1 2025

Revenue

2.99B

YoY: -0.3%

EPS

0.31

YoY: -22.5%

Market Move

-0.64%

Previous quarter: Q4 2024

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Earnings Highlights

  • Revenue of $2.99B down 0.3% year-over-year
  • EPS of $0.31 decreased by 22.5% from previous year
  • Gross margin of 15.9%
  • Net income of 170.58M
  • ""We grew organic net sales 1% in the first quarter, which is encouraging given the dynamic consumer environment."" - Jim Snee
HRL
Company HRL

Executive Summary

Hormel Foods reported QQ1 2025 net sales of $3.0 billion, up 1% on an organic basis, led by strength in the value-added portfolio across Retail, Foodservice, and International segments. Gross margin declined to 15.9%, pressured by Planters brand recovery, higher input costs (pork, beef, nuts) and supply chain headwinds from bird illnesses, with operating margin at 7.64% and net income of $170.6 million ($0.31 per diluted share). Management reaffirmed full-year guidance of 1% to 3% organic net sales growth and adjusted diluted EPS of $1.58 to $1.72, signaling a constructive but cautious tone given near-term turkey dynamics. The company continues to invest in brands (advertising expense ~ $43 million in Q1) and in Transform and Modernize (T&M), targeting $100–$150 million in additional benefits in 2025 and a path to long-term earnings growth through a growth flywheel. Planters recovery is a core near-term driver in retail, with broad-based growth anticipated in other segments in the second half. Management highlighted an ongoing CEO succession process with emphasis on rigor and internal/external candidate evaluation, while remaining focused on executing the strategic initiatives that underpin the 2025 and 2026 targets despite near-term margin pressures from turkey dynamics.

Key Performance Indicators

Revenue
Decreasing
2.99B
QoQ: -4.76% | YoY: -0.27%
Gross Profit
Decreasing
475.23M
15.90% margin
QoQ: -8.82% | YoY: -6.59%
Operating Income
Decreasing
228.33M
QoQ: -22.46% | YoY: -19.73%
Net Income
Decreasing
170.58M
QoQ: -22.53% | YoY: -22.06%
EPS
Decreasing
0.31
QoQ: -22.50% | YoY: -22.50%

Revenue Trend

Margin Analysis

Historical Earnings Comparison

PeriodRevenue ($M)EPS ($)YoY GrowthReport
Q1 2025 2,988.81 0.31 -0.3% View
Q4 2024 3,138.09 0.40 -1.9% View
Q3 2024 2,898.44 0.32 -9.4% View
Q2 2024 2,887.35 0.34 -2.6% View
Q1 2024 2,996.91 0.40 +0.7% View