Hormel Foods Corporation (HRL) has reported a 6.50 percent rise in profit for the quarter ended Jul. 26, 2015. The company has earned $146.94 million, or $0.54 a share in the quarter, compared with $137.98 million, or $0.51 a share for the same period last year. Revenue during the quarter dropped 4.22 percent to $2,188.59 million from $2,284.95 million in the previous year period. Gross margin for the quarter expanded 278 basis points over the previous year period to 18.71 percent. Total expenses were 89.44 percent of quarterly revenues, down from 90.61 percent for the same period last year. This has led to an improvement of 117 basis points in operating margin to 10.56 percent.
Operating income for the quarter was $231.16 million, compared with $214.50 million in the previous year period.
"Our balanced business model prevailed once again this quarter, as we were able to overcome the significant challenge of avian influenza in our Jennie-O Turkey Store segment to deliver record earnings and volume sales," said Jeffrey M. Ettinger, chairman of the board, president and chief executive officer.
For financial year 2015, the company forecasts diluted earnings per share to be in the range of $2.52 to $2.58. For financial year 2015, the company forecasts diluted earnings per share to be in the range of $2.57 to $2.63 on adjusted basis.
Operating cash flow improves significantly
Hormel Foods Corporation has generated cash of $690.24 million from operating activities during the nine month period, up 75.03 percent or $295.88 million, when compared with the last year period.
The company has spent $846.69 million cash to meet investing activities during the nine month period as against cash outgo of $144.23 million in the last year period.
Cash flow from financing activities was $173.93 million for the nine month period as against cash outgo of $152.12 million in the last year period.
Cash and cash equivalents stood at $349.17 million as on Jul. 26, 2015, down 34.24 percent or $181.81 million from $530.98 million on Jul. 27, 2014.
Working capital drops significantly
Hormel Foods Corporation has witnessed a decline in the working capital over the last year. It stood at $758.67 million as at Jul. 26, 2015, down 48.03 percent or $701.27 million from $1,459.94 million on Jul. 27, 2014. Current ratio was at 1.61 as on Jul. 26, 2015, down from 2.86 on Jul. 27, 2014.
Days sales outstanding went up to 23 days for the quarter compared with 21 days for the same period last year.
Days inventory outstanding has decreased to 25 days for the quarter compared with 50 days for the previous year period.
Debt remains stable
Long-term debt remained stable at $250 million as on Jul. 26, 2015, when compared with the last year. Total debt was 4.10 percent of total assets as on Jul. 26, 2015, compared with 4.82 percent on Jul. 27, 2014. Debt to equity ratio was almost stable at 0.06 as on Jul. 26, 2015, when compared with the last year. Interest coverage ratio improved to 73.88 for the quarter from 68.64 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
