Hormel Foods Raises Annual Profit Outlook Despite Third-Quarter Dip

Interim CEO Jeff Ettinger cited solid progress against fiscal objectives, noting that the company remains on track to meet or exceed its long-term earnings growth targets. The quarter was marked by a complex mix of external pressures, including a demanding consumer environment and the impacts of recent portfolio-shaping actions, such as the divestiture of its Brazil-based Ceratti business.

While the Retail segment faced a 9% volume decline, the Foodservice division marked its 12th consecutive quarter of organic net sales growth, anchored by demand for premium proteins and branded pepperoni. Financial results were further complicated by significant discrete items, including a $56 million loss tied to the Brazil exit, a $48 million impairment charge on a minority investment in Indonesia, and a $38 million litigation settlement. Looking ahead, Hormel projects full-year net sales between $12.1 billion and $12.2 billion, with adjusted diluted earnings per share now expected in the range of $1.45 to $1.51.