Hormel Foods Corporation (HRL) has reported 2.08 percent fall in profit for the quarter ended Apr. 30, 2017. The company has earned $210.93 million, or $0.39 a share in the quarter, compared with $215.40 million, or $0.40 a share for the same period last year. Revenue during the quarter dropped 4.91 percent to $2,187.31 million from $2,300.24 million in the previous year period. Gross margin for the quarter contracted 62 basis points over the previous year period to 22.26 percent. Total expenses were 85.55 percent of quarterly revenues, down from 85.92 percent for the same period last year. This has led to an improvement of 37 basis points in operating margin to 14.45 percent.
Operating income for the quarter was $316.03 million, compared with $323.82 million in the previous year period.
“Despite ongoing challenges in the turkey industry, our balanced model allowed us to deliver earnings within two percent of last years results," said Jim Snee, president and chief executive officer. “Three segments delivered earnings growth, margin expansion, and adjusted volume and sales growth this quarter."
For fiscal year 2017, the company expects diluted earnings per share to be in the range of $1.65 to $1.71.
Operating cash flow drops significantlyHormel Foods Corporation has generated cash of $261.16 million from operating activities during the first half, down 36.17 percent or $147.98 million, when compared with the last year period. Cash flow from investing activities was $62.80 million for the first half as against cash outgo of $84.96 million in the last year period.
The company has spent $186.51 million cash to carry out financing activities during the first six months as against cash outgo of $289.41 million in the last year period.
Cash and cash equivalents stood at $548.90 million as on Apr. 30, 2017, up 44.49 percent or $169.02 million from $379.88 million on Apr. 24, 2016.
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