Hormel Foods Lowers Profit Forecast Amid Multiple Challenges

Published 1 days agoHRL

Hormel Foods Lowers Profit Forecast Amid Multiple Challenges

Hormel Foods has revised its annual profit forecast downward, citing ongoing supply chain disruptions and weak retail demand. The company is struggling with reduced shipments of raw materials like beef and nuts, as well as decreased production from third-party manufacturers. Additionally, sales volumes in both the retail and food service divisions fell by 7% during the second quarter, Reuters reported.

The decline in consumer spending, exacerbated by economic concerns linked to U.S. President Donald Trump's tariff policies, has further impacted Hormel's sales. Despite these challenges, there is some positive news as the Planters brand is recovering, showing significant improvement in the market performance during the first quarter, according to Food Business News.

In its revised financial outlook, Hormel anticipates slightly higher annual organic net sales growth of 2% to 3%, up from the previous 1% to 3% forecast. However, the company has lowered its expectations for adjusted earnings per share to a range between $1.58 and $1.68, compared to the earlier estimate of $1.58 to $1.72.

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