Edwyn
| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $11,386 | $12,459 | $12,110 | $11,921 | $12,106 |
| Gross Profit | $1,928 | $2,165 | $2,000 | $2,022 | $1,892 |
| Operating Income | $1,123 | $1,313 | $1,072 | $1,068 | $719 |
| Net Income | $909 | $1,000 | $794 | $805 | $478 |
Over the past five years, Hormel Foods Corporation has demonstrated mixed financial performance. Revenue grew from approximately 11,386 million USD in 2021 to a peak of 12,458 million USD in 2022—a growth of roughly 9%—before slightly retreating to around 12,106 million USD by 2025. Similarly, gross profit increased from about 1,928 million USD in 2021 to over 2,164 million USD in 2022 but then fluctuated, ending at 1,892 million USD in 2025. These movements suggest that while the company managed to expand its topline early on, recent years have seen revenue pressures that have impacted profitability. A more pronounced trend is observed in operating and net income. Operating income climbed from around 1,123 million USD in 2021 to 1,313 million USD in 2022, but then experienced a drastic drop—especially in 2025—to roughly 719 million USD, a decline of nearly 33% from the previous year’s figures. Net income followed a similar pattern by peaking at about 1,000 million USD in 2022 and then falling sharply to 478 million USD in 2025, reflecting declines of over 40% relative to prior periods. In the context of the broader packaged-food industry—which faces challenges such as volatile commodity pricing, supply chain disruptions, and evolving consumer preferences—these significant swings in margins could be attributable to increasing operational costs, competitive pricing pressures, or inventory adjustments. Overall, while the company's revenue base remains robust, the compression in profitability in recent years raises caution regarding operational efficiency and cost management, calling for strategic attention to sustain financial health in a competitive market.
This analysis is for informational purposes only and does not constitute financial advice or recommendations for any investment decisions. Please consult with a qualified financial professional for personalized guidance.