(Reuters) – Skippy peanut butter maker Hormel Foods topped market expectations for first-quarter sales and profit on Thursday, helped by resilient demand for its high-priced meat products and ready-to-eat meals.
Overall volumes of Hormel Foods grew 4% in the quarter, for products like Chi-Chi’s salsa, Hormel Natural Choice bacon among others, as more consumers preferred cooking meals at home.
Shares of Austin, Minnesota-based company, which fell nearly 30% last year, were up about 6% in premarket trading.
Earlier this month, larger rival Tyson Foods, also reported a rise in sales with steady demand for its pork business.
For the first-quarter, Hormel Foods posted net sales of $3 billion, compared with analysts’ average estimate of $2.91 billion, according to LSEG data.
A significant price hike in previous quarters and higher sales helped the Spam brand of canned meats owner to shield its margins from rising raw material input costs.
The company posted adjusted profit of 41 cents per share for the quarter ended Jan. 28, compared with analysts’ estimates of 33 cents per share.
However, the Jennie-O turkey brand owner reaffirms its annual sales and profit forecast, reflecting a significant year-over-year decline in whole bird turkey markets.
(Reporting by Anuja Bharat Mistry in Bengaluru; Editing by Tasim Zahid)
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