Hormel Foods (HRL) FY2017 results: revenue $9.2 billion, down 3.7% on the year
Hormel Foods Corp. (HRL) reported revenue of $9.2 billion for fiscal 2017, the year ended 29 October 2017, down 3.7% on the year before. Net income was $847 million, down 4.9%, and diluted earnings per share $1.57. The figures are the company's own, from the 10-K it filed with the SEC on 20 December 2017.
Revenue
$9.2 billion
-3.7% on the year
FY2010FY2017
Operating margin
13.9%
13.9% a year earlier
FY2010FY2017
Net income
$847 million
-4.9% on the year
FY2010FY2017
Diluted EPS
$1.57
-4.3% on the year
FY2010FY2017
this yearthe year beforeHover a bar for its figure.
The year in brief
Income statement (profit and loss)
$ million
FY2017
FY2016
FY2015
On the year
Last 8 years
Revenue
9,168
9,523
9,264
-3.7%
Cost of revenue
7,164
7,365
7,455
-2.7%
Gross profit
1,997
2,158
1,809
-7.5%
Gross margin
21.8%
22.7%
19.5%
Research and development
34.2
34.7
32.0
-1.4%
Selling, general and administrative
759
872
744
-12.9%
Operating income
1,277
1,324
1,067
-3.6%
Operating margin
13.9%
13.9%
11.5%
Interest expense
12.7
12.9
13.1
-1.5%
Pre-tax income
1,279
1,317
1,057
-2.9%
Income tax
432
427
370
+1.1%
Effective tax rate
33.7%
32.4%
35.0%
Net income
847
890
686
-4.9%
Net margin
9.2%
9.3%
7.4%
Diluted EPS
$1.57
$1.64
$1.27
-4.3%
$ million except per share. Read moreFree cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.
Cash flow
$ million
FY2017
FY2016
FY2015
On the year
Last 8 years
Operating cash flow
1,034
1,040
992
-0.6%
Capital expenditure
221
256
144
-13.4%
Free cash flow
813
784
848
+3.6%
Free cash flow margin
8.9%
8.2%
9.2%
Cash from investing
-587
-409
-901
Cash from financing
-419
-557
-70.6
Depreciation and amortisation
131
132
133
-0.8%
Share-based compensation
15.6
17.8
15.7
-12.6%
Buybacks
94.5
87.9
24.9
+7.5%
Dividends paid
346
296
251
+16.7%
Dividend per share
$0.68
$0.58
$0.50
+17.2%
Diluted shares, weighted
539m
542m
541m
-0.6%
Balance sheet
$ million
FY2017
FY2016
FY2015
On the year
Last 8 years
Shareholders' equity
4,936
4,448
3,998
+11.0%
Non-controlling interest
3.8
3.4
3.2
+11.5%
Short-term borrowings
0.0
n/a
n/a
Debt
250
250
435
0.0%
Other liabilities
1,786
2,275
1,703
-21.5%
Total liabilities and equity
6,976
6,976
6,140
0.0%
Fixed assets
1,203
1,105
1,012
+8.8%
Goodwill
2,120
1,834
1,699
+15.6%
Intangible assets
1,027
903
827
+13.7%
Cash and equivalents
444
415
347
+7.0%
Receivables
618
591
606
+4.6%
Inventory
921
986
993
-6.6%
Other assets
642
1,141
655
-43.7%
Total assets
6,976
6,976
6,140
0.0%
10-K for the year ended 29 October 2017, filed 20 December 2017: the filing.