Hormel Foods forecast annual sales and profit below estimates, hurt by slowing demand for its snacking and meat products, including its Jennie-O Turkey brand.
Hormel also posted fourth-quarter results in line with Wall Street expectations.
Jennie-O Turkey is one of Hormel's key brands, contributing about 12% to sales in 2022. However, demand for turkey, which is more expensive than chicken or pork, has taken a hit as consumers keep a tight grip on their wallets.
"Considerable volume declines in turkey exports resulted in lower volumes compared to the prior year," Hormel said in a statement.
Price Hikes
In recent quarters, price hikes have weakened volume growth for salty snacks across the US, hurting sales of companies like Hormel, Campbell's and PepsiCo.
Hormel has flagged a hit from a production disruption which has been ongoing since the last quarter at its facility in Suffolk, Virginia, due to a food safety issue. This has lowered production of its Planters snack nuts.
The company expects fiscal year 2025 sales between $11.9 billion (€11.3 billion) and $12.2 billion (€11.6 billion), compared with analysts' expectation of 12.23 billion, according to data compiled by LSEG.
Hormel also expects adjusted profit of $1.58 to $1.72 per share, the mid-point of which is below estimates of $1.68 per share.
Excluding one-off items, the company earned 42 cents per share in the fourth quarter while sales fell 2% to $3.14 billion (€2.97 billion).
Sales in Hormel's international segment rose 1%, benefiting from growing demand in China after several quarters of weakness.
In May, the company beat market expectations for second-quarter profit and raised the lower end of its full-year earnings.
