Aug 27 (Reuters) - Hormel Foods cut its annual sales forecast on Thursday, weighed down by declines in the retail segment and weak demand for private-label snack nuts amid a pressured consumer environment.
Consumer demand across the packaged-food industry has remained subdued, with broader inflationary pressure and higher living costs squeezing consumer wallets.
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Shares of the Minnesota-based firm were down 1% in premarket trading.
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"The results reflected the impacts of portfolio-shaping actions, lower commodity-based pricing in portions of the business and a consumer environment that remains under pressure," CEO-elect John Ghingo said.
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Earlier this week, Hormel appointed former Tyson Foods executive Ash Bhumbla as CFO, effective in September, following the appointment of company veteran Ghingo as chief executive officer last month.
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Its retail segment, Hormel's biggest revenue generator, reported a 4% decline in sales, while volumes fell 9%.
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The maker of Skippy peanut butter forecast fiscal 2026 net sales of $12.1 billion to $12.2 billion, compared with its prior forecast of $12.2 billion to $12.5 billion, and narrowed its range for organic sales growth expectation to 1% to 2%, from 1% to 4% previously.
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The company's third-quarter revenue fell 2.4% to $2.96 billion, missing analysts' estimate of $3.04 billion, hurt by weaker demand in its retail and international businesses.
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During the quarter, Hormel completed the divestiture of its Brazilian business under the CERATTI brand as part of efforts to streamline its portfolio and focus on higher-growth markets.
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Hormel raised its full-year adjusted earnings per share forecast to between $1.45 and $1.51, from $1.43 to $1.51.
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The company's quarterly adjusted net income per share was 37 cents, compared with expectations of 35 cents, according to data compiled by LSEG.
Reporting by Sanskriti Shekhar in Bengaluru; Editing by Maju Samuel
Source: Reuters