Hormel Foods (HRL) FY2018 results: revenue $9.5 billion, up 4.1% on the year
Hormel Foods Corp. (HRL) reported revenue of $9.5 billion for fiscal 2018, the year ended 28 October 2018, up 4.1% on the year before. Net income was $1.0 billion, up 19.5%, and diluted earnings per share $1.86. The figures are the company's own, from the 10-K it filed with the SEC on 7 December 2018.
Revenue
$9.5 billion
+4.1% on the year
FY2011FY2018
Operating margin
12.4%
13.9% a year earlier
FY2011FY2018
Net income
$1.0 billion
+19.5% on the year
FY2011FY2018
Diluted EPS
$1.86
+18.5% on the year
FY2011FY2018
this yearthe year beforeHover a bar for its figure.
The year in brief
Income statement (profit and loss)
$ million
FY2018
FY2017
FY2016
On the year
Last 8 years
Revenue
9,546
9,168
9,523
+4.1%
Cost of revenue
7,566
7,164
7,365
+5.6%
Gross profit
1,979
1,997
2,158
-0.9%
Gross margin
20.7%
21.8%
22.7%
Research and development
33.8
34.2
34.7
-1.2%
Selling, general and administrative
841
759
872
+10.8%
Operating income
1,180
1,277
1,324
-7.6%
Operating margin
12.4%
13.9%
13.9%
Interest expense
26.5
12.7
12.9
+108.9%
Pre-tax income
1,181
1,279
1,317
-7.6%
Income tax
169
432
427
-60.9%
Effective tax rate
14.3%
33.7%
32.4%
Net income
1,012
847
890
+19.5%
Net margin
10.6%
9.2%
9.3%
Diluted EPS
$1.86
$1.57
$1.64
+18.5%
$ 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
FY2018
FY2017
FY2016
On the year
Last 8 years
Operating cash flow
1,242
1,034
1,040
+20.1%
Capital expenditure
390
221
256
+76.1%
Free cash flow
852
813
784
+4.9%
Free cash flow margin
8.9%
8.9%
8.2%
Cash from investing
-1,235
-587
-409
Cash from financing
11.6
-419
-557
Depreciation and amortisation
162
131
132
+23.6%
Share-based compensation
20.6
15.6
17.8
+32.1%
Buybacks
46.9
94.5
87.9
-50.4%
Dividends paid
388
346
296
+12.2%
Dividend per share
$0.75
$0.68
$0.58
+10.3%
Diluted shares, weighted
544m
539m
542m
+0.9%
Balance sheet
$ million
FY2018
FY2017
FY2016
On the year
Last 8 years
Shareholders' equity
5,601
4,936
4,448
+13.5%
Non-controlling interest
4.0
3.8
3.4
+5.7%
Short-term borrowings
n/a
0.0
n/a
Debt
625
250
250
+149.9%
Other liabilities
1,913
1,786
2,275
+7.1%
Total liabilities and equity
8,142
6,976
6,976
+16.7%
Fixed assets
1,513
1,203
1,105
+25.7%
Goodwill
2,714
2,120
1,834
+28.0%
Intangible assets
1,207
1,027
903
+17.5%
Investments
0.0
n/a
n/a
Cash and equivalents
459
444
415
+3.4%
Receivables
600
618
591
-2.9%
Inventory
964
921
986
+4.6%
Other assets
685
642
1,141
+6.7%
Total assets
8,142
6,976
6,976
+16.7%
10-K for the year ended 28 October 2018, filed 7 December 2018: the filing.