AUSTIN, Minn. - Hormel Foods Corporation (NYSE: NYSE:HRL), a global branded food company, has expanded its Board of Directors with the election of Debbra Schoneman, the current president of Piper Sandler Companies (NYSE: PIPR). Effective September 21, 2024, Schoneman brings a wealth of expertise in finance and corporate development to the board.
Jim Snee, chairman, president, and CEO of Hormel Foods, expressed enthusiasm for Schoneman's addition, citing her impressive background as an asset for the company's ongoing transformation and growth. Schoneman's new role includes membership in the Audit and Governance Committees of Hormel's Board.
With a tenure of 34 years at Piper Sandler, a prominent investment bank and financial services firm, Schoneman has a robust track record in the industry. She has served as president since 2018, following a stint as the chief financial officer from 2008 to 2017.
Schoneman's experience extends beyond her corporate roles. She has been actively involved in board service across the public, private, and philanthropic sectors, including a directorship at Allina Health, a significant healthcare system, where she also served as chair. Additionally, she is part of the board of trustees for the University of St. Thomas in Minnesota.
Her educational background includes a bachelor's degree from Minnesota State University, Mankato, and an MBA from the University of St. Thomas.
Hormel Foods, headquartered in Austin, Minnesota, operates internationally with over $12 billion in annual revenue. It is known for brands such as Planters, Skippy, and SPAM. The company is recognized for its commitment to corporate responsibility and community service, holding places on the S&P 500 Index and the S&P 500 Dividend Aristocrats.
This announcement is based on a press release statement from Hormel Foods Corporation.
In other recent news, Hormel Foods Corporation has experienced a few key developments. The company reported mixed Q3 results for fiscal 2024, with its retail brands, including Hormel Black Label bacon, Jennie-O turkey, and SPAM luncheon meat, showing sales growth. The Foodservice segment marked its fifth consecutive quarter of above-industry sales growth, while the International segment saw a significant recovery. However, Hormel faced challenges in the turkey market and production disruptions at its Planters facility.
Hormel has updated its fiscal 2024 net sales and earnings guidance, reflecting current market conditions and strategic investments. Goldman Sachs, after reviewing the company's recent financial results, maintained its Sell rating for Hormel Foods, expressing skepticism regarding the sustainability of earnings growth driven by market changes.
In another development, McCormick (NYSE:MKC) & Co. saw a positive shift in sales, marking the first such increase in five months. This was driven by a 1.8% increase in pricing, despite volumes dipping by 0.4%. These are among the recent developments for both companies.
InvestingPro Insights
As Hormel Foods Corporation (NYSE: HRL) welcomes Debbra Schoneman to its Board of Directors, investors may be interested in the company's financial health and market performance. With a market capitalization of $17.27 billion, Hormel stands as a significant player in the branded food industry. The company's commitment to shareholder returns is evident, as reflected by an impressive track record of raising its dividend for 54 consecutive years, an InvestingPro Tip highlighting the company's stability and reliability for income-focused investors.
On the performance front, Hormel's price-to-earnings (P/E) ratio stands at 21.99, with an adjusted P/E ratio for the last twelve months as of Q3 2024 at 20.19. This valuation metric can provide investors with a sense of how the market is currently valuing the company's earnings. Despite a slight decline in revenue growth, down by 1.76% over the last twelve months as of Q3 2024, Hormel maintains a gross profit margin of 16.86%, underscoring the company's ability to manage its cost of goods sold effectively.
Additionally, Hormel's liquidity position remains robust, with liquid assets surpassing short-term obligations—a reassuring sign for investors concerned about the company's financial flexibility. This is complemented by the fact that Hormel operates with a moderate level of debt, which aligns with the InvestingPro Tip that the company's cash flows can sufficiently cover interest payments.
For those seeking further insights and analysis, InvestingPro offers additional tips on Hormel Foods Corporation, which can be accessed at: https://www.investing.com/pro/HRL
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