Branded food company Hormel Foods Corp. is reporting results for the second quarter of fiscal 2025, which ended April 27, 2025. All comparisons are to the comparable period of fiscal 2024, unless otherwise noted. For the second quarter, Hormel Foods reached net sales of $2.9 billion, with organic net sales up 1%. For fiscal year 2025, the company is narrowing its organic net sales growth outlook to 2-3%.

“We achieved solid organic top-line growth and delivered second quarter results in line with our expectations,” said Jim Snee, president and chief executive officer. “We anticipate strong second half growth led by our range of consumer-focused, protein-centric products. Notably, we expect meaningful contributions from our turkey portfolio ... growth from our leading positions in the marketplace and ongoing benefits from our Transform and Modernize initiative. In the face of a dynamic environment, we remain confident in our portfolio, our strategy and our team.”

The Applegate brand performed well in the second quarter, as consumption growth outpaced the total edible category (Nielsen) while also gaining households (Circana). According to Circana, the Jennie-O ground turkey business experienced strong retail sales growth relative to 2024 and remains positioned to grow in today’s environment as demand for lean, high-protein offerings continues to rise. Hormel's Mexican foods portfolio delivered strong year-over-year growth in the second quarter.

For the second quarter, Hormel Foods retail volume was down 7%, while segment profit was up 4%. Net sales were flat, as high-single-digit growth from both the Hormel Foods Mexican portfolio and value-added turkey products was primarily offset by the impacts of promotional timing. Two-thirds of the retail segment’s volume decline in the quarter was due to lower commodity shipments and contract manufacturing. Retail segment profit increased in the second quarter of fiscal 2025 primarily due to benefits from operational efficiencies as part of the T&M initiative and favorable selling, as well as general and administrative expenses.

For its foodservice business, Hormel Foods volume for the second quarter was down 7%, with organic volume down 1%. Net sales were flat, while organic net sales were up 4%. Segment profit was down 6%.

Organic net sales growth was broad-based in the foodservice segment in the second quarter of fiscal 2025, with notable contributions from the customized solutions business and the turkey portfolio. Branded products such as Jennie-O, Hormel Fire Braised meats and Café H globally inspired proteins delivered another quarter of strong volume and net sales growth. Several categories achieved volume growth in the second quarter of fiscal 2025, despite industry softness. Volume growth in these categories was more than offset by the impact of reduced commodity shipments. Segment profit decreased for the second quarter of fiscal 2025 as higher net sales were more than offset by margin pressures, primarily in non-core businesses. The foodservice segment continued to benefit from an extensive range of solutions-based products, its direct-selling organization and a diverse channel presence during the second quarter.

For its international business in the second quarter, Hormel Foods volume was up 9%, with net sales up 7%. Segment profit was down 21%. 

Double-digit volume and net sales growth in exports and robust growth in the China market drove top-line performance in the international segment in the second quarter of fiscal 2025. Strong shipments within the refrigerated portfolio, primarily of bacon and pepperoni, made the largest contribution to export growth. Hormel's in-country China business continued to benefit from top-line momentum in both the retail and foodservice channels, supported by product launches. International segment profit decreased in the second quarter of fiscal 2025 as meaningful net sales growth was primarily offset by a temporary shift in export customer mix and softness in Brazil.

Capital expenditures for second quarter fiscal were $75 million, compared to $60 million last year. The largest projects in the quarter were related to capacity expansions for Hormel Fire Braised products, Applegate products and investments in data and technology. ThecCompany’s target for capital expenditures in fiscal 2025 remains $275 million to $300 million.

The company returned approximately $159 million to stockholders during the quarter through dividends.

Source: Hormel Foods Corp.