Hormel Foods closed a great year with a record quarter, propelling the Austin, Minnesota-based company to annual profit of $ 909 million on revenue of $ 11.4 billion.
“For the second consecutive quarter, we achieved the highest quarterly net sales in our company’s history,” Hormel chief executive Jim Snee said in a press release Thursday morning, with increased demand for consumers, higher prices and a rebound in sales of school restaurants and cafeterias. the company’s brands.
Even without the acquisition of Planters for $ 3.3 billion this year, Hormel recorded double-digit sales growth in the fiscal year ended Oct. 31 compared to 2020.
Organic net sales for the year – which do not include planters – were up 14%. Total sales increased 19% from the previous year.
The company’s chilled products and brands, including Black Label bacon, Hormel pepperoni and Columbus artisan meats, led the company with $ 6.3 billion in sales, a 20% increase from 2020. Groceries, such as spam, Skippy peanut butter and planters, jumped 17.8% to $ 2.8 billion.
Sales of Jennie-O turkeys rose 12% to nearly $ 1.5 billion, despite sales of whole birds declining following a pandemic-mitigated Thanksgiving 2020.
Hormel announced Thursday that it will be closing the Jennie-O plant on Benson Avenue in Willmar, Minn., Where Jennie-O is based.
No layoffs have been announced as approximately 200 employees “will move to Willmar’s newer and larger facility, and production will be consolidated at several other facilities,” the company said in a press release. The plant should close before the end of spring.
“Turkey and the Jennie-O brand play an important role in our strategy for diversification and growth,” said Snee. “To further improve the growth and profitability of this business, we are launching a series of actions to create a more efficient, innovative and demand-driven portfolio of turkeys. “
In the fourth quarter, Hormel made $ 281 million in profit on sales of $ 3.5 billion.
The company ended the year with $ 614 million in cash.
Hormel plans to “refresh” the Planters brand and packaging over the coming year as it seeks to continue growing sales. The company forecasts sales of $ 11.7 billion to $ 12.5 billion in fiscal 2022.
“The momentum we have gained in the third and fourth quarters gives us confidence as we approach fiscal 2022, and we expect all four segments to generate sales and earnings growth,” said Snee .