If you are considering investing in the food processing industry, then there are some large multinational companies that dominate the sector. The reason for the presence of many such large players is the fact that the food industry is a mature and old industry. Growth rates are not the highest. The ability of companies to create new niche categories and use their competitive advantages counts more. One company worth watching closely is Hormel Foods. It is a Fortune 500 business with close to 19,000 employees and operations in multiple countries. The company earns $9 billion in annual revenues and has a host of category-leading brands under its belt. If you are evaluating food stocks 2021 for longer-term investments, then large and diversified businesses like Hormel Foods should be on your list.
Hormel Foods Q22021 Earnings Release
Back in May 2021, Hormel Foods had announced its second-quarter 2021 earnings numbers. Net sales were up from $2.4 billion in Q22020 to $2.6 billion. The refrigerated foods and international segments were the best performers, with revenue growth in excess of 16% year-on-year. The grocery products segment saw revenues drop by 8%, while the Jennie-O Turkey Store segment saw modest revenue growth of 2.4%. The net earnings per share on a diluted basis were flat. It came in at $0.42 per share, the same number as achieved in the second quarter of 2020. Management believed that a rebound in the foodservice business was a key driver of revenue growth. Hormel also grew its e-commerce revenue by double digits. Overall, the company is well-placed to continue its positive business performance. It is among the top food stocks that investors can shortlist.
Hormel Foods’ stock last traded at $47.26 as of 26th July 2021. The stock was down over 1% over the preceding 30 days. Over a 10-year period, the stock price has risen by over 200%, reflecting the gradual yet steady growth of the food industry.