Hormel Foods Celebrates Record Year and Highlights Refrigerated Foods Success at Annual Shareholder Meeting
January 27, 2016 | By Business Wire News
AUSTIN, Minn.
During its annual shareholder meeting in Austin, Minn., Hormel Foods Corporation (NYSE:HRL) celebrated a record fiscal year in 2015, and highlighted the company’s Refrigerated Foods segment.
Jeffrey M. Ettinger, chairman of the board and chief executive officer at Hormel Foods, spoke about the company’s continued growth and success for the year. “The results we achieved in 2015 were strong,” Ettinger said. “We reported record bottom line results, with adjusted net earnings* up 19 percent over last year and all five segments registering earnings growth. Additionally, we raised our annual dividend by 16 percent to $1.16 per share, marking the 50th consecutive year we have increased our dividend.”
James P. Snee, president and chief operating officer at Hormel Foods, highlighted the company’s key reasons for past success and how it will continue to grow in the future. “For 125 years, we have been focused on continuous improvement, and it has been a critical component for our success.”
“Additionally, our broad portfolio is a clear strength for Hormel Foods. Our strong brands connect with consumers across the entire demographic spectrum, and there is still tremendous potential for us to increase household penetration in almost all categories.”
Thomas R. Day, group vice president, Refrigerated Foods, delivered the meeting’s feature presentation. Day discussed how the segment has delivered solid performance with its core offerings and how the addition of the Applegate® brand will add to the group. “We identified the opportunity for continued growth within Refrigerated Foods was in the natural and organic market. We believe that through the Applegate® products, we are able to offer consumers the choices they’re asking for with the number one brand in the natural and organic meats category.”
A video of the meeting can be viewed at hormelfoods.com under the Press Releases section at http://www.hormelfoods.com/Newsroom/Press-Releases.
*Adjusted Financial Measures
Adjusted net earnings exclude charges relating to the closure of the Stockton, California, manufacturing facility, the exit from international joint venture businesses, the goodwill impairment charge associated with the Diamond Crystal Brands business and an adjustment to the contingent consideration accrual for CytoSport in fiscal 2015. The tables below show the calculations to reconcile from the non-GAAP adjusted measures to the GAAP measures for the full year.
|
Full Year |
|||||||||||||||||||||||
| (In thousands, | 2015 Non- | Diamond | CytoSport | ||||||||||||||||||||
| except per share | GAAP | Stockton | International | Crystal | Contingent | ||||||||||||||||||
| amounts) | Adjusted | Plant | Business | Brands | Consideration | 2015 GAAP | |||||||||||||||||
| Earnings | Closure | Exit | Impairment | Adjustment | Earnings | ||||||||||||||||||
|
Total segment operating profit |
$ | 1,134,082 | $ | (10,526 | ) | $ | (9,546 | ) | $ | (21,537 | ) | $ | 8,870 | $ | 1,101,343 | ||||||||
|
General corporate expense |
(35,199 | ) | (35,199 | ) | |||||||||||||||||||
|
Net interest & investment expense |
(10,177 | ) | (10,177 | ) | |||||||||||||||||||
|
Earnings before income taxes |
1,088,706 |
(10,526 |
) |
(9,546 | ) | (21,537 | ) | 8,870 | 1,055,967 | ||||||||||||||
|
Income taxes |
(374,334 | ) | 3,685 | 770 | (369,879 | ) | |||||||||||||||||
|
Net earnings attributable to Hormel Foods Corporation |
$ | 714,372 | $ | (6,841 | ) | $ | (8,776 | ) | $ | (21,537 | ) | $ | 8,870 | $ | 686,088 | ||||||||
|
Diluted net earnings per share* |
$ |
2.64 |
$ |
(0.03 |
) |
$ |
(0.03 |
) |
$ |
(0.08 |
) |
$ |
0.03 |
$ |
2.54 |
||||||||
| *Earnings per share does not sum across due to rounding |
About Hormel Foods
Hormel Foods Corporation, based in Austin, Minn., is a multinational manufacturer and marketer of consumer-branded food and meat products, many of which are among the best known and trusted in the food industry. Hormel Foods, which leverages its extensive expertise, innovation and high competencies in pork and turkey processing and marketing to bring branded, value-added products to the global marketplace, will celebrate its 125th anniversary in 2016. The company is a member of the Standard & Poor’s (S&P) 500 Index, S&P 500 Dividend Aristocrats, and was named one of “The 100 Best Corporate Citizens” by Corporate Responsibility Magazine for the seventh year in a row. Hormel Foods also received a perfect score on the 2016 Human Rights Campaign Corporate Equality Index, was recognized on the 2015 Best for Vets Employers List by Military Times, and was named one of the 2015 40 Best Companies for Leaders by Chief Executive magazine. The company enjoys a strong reputation among consumers, retail grocers, foodservice and industrial customers for products highly regarded for quality, taste, nutrition, convenience and value. For more information, visit http://www.hormelfoods.com and http://2014csr.hormelfoods.com/.
Forward-Looking Statements
This news release contains forward-looking information based on management’s current views and assumptions. Actual events may differ materially. Please refer to the cautionary statement regarding Forward-Looking Statements and Risk Factors that appear on pages 26-30 in the company’s Annual Report for the fiscal year ended October 25, 2015, which can be accessed at www.hormelfoods.com under “Investors-SEC Filings.”
View source version on businesswire.com: http://www.businesswire.com/news/home/20160127005451/en/
Hormel Foods Corporation
Richard M. Williamson
media@hormel.com
