Hormel Foods Reduces Annual Projections Amidst Declining Pork Prices and Weak China Demand

Hormel Foods announced a cut in its yearly revenue and profit predictions after its quarterly results fell short due to decreasing pork and turkey prices and reduced demand in China. Despite previously increasing prices to mitigate rising costs, Hormel found itself slashing prices, notably for raw bacon, to align with the market, impacting its profits both internationally and in the U.S. retail sectors. Tyson Foods, a competitor, similarly missed its third-quarter expectations and is considering selling its poultry business in China to manage costs. Hormel’s share value declined by about 3% in pre-market trading. Profits from its international operations saw a 50% drop year-on-year, with sluggish demand in China being a significant factor. Adjustments to its annual earnings per share and net sales projections were also made, and its operating margin dropped to 7.3%.