Spam sales hit record high for seventh consecutive year in 2021, says Hormel Foods CEO

Canned meat sales spam continues to grow, hitting a record high for the seventh consecutive year in fiscal 2021 for parent company Hormel Foods, CEO Jim Snee told CNBC’s Jim Cramer on Thursday.

“It’s amazing. We had to announce a new capability that we’re going to bring online in 2023 to meet demand, so spam is as strong as it ever was,” Snee said in an interview. on “Mad Money”.

The chief executive’s appearance comes after the Minnesota-based company released its fourth-quarter and full-year results. Hormel’s quarterly revenue of $ 3.45 billion beat Wall Street forecast by $ 3.22 billion. Earnings per share of 51 cents topped estimates by 1 cent.

Hormel shares jumped 4.7% on Thursday to close at $ 44.80 as investors applauded the results. The title is down nearly 4% since the start of the year.

For the year, Hormel achieved net sales of $ 11.4 billion, up 19% from fiscal 2020. In June, the company completed the acquisition of the Planters snack portfolio and, so far, Snee said it was performing “up to our expectations.” . ”

Snee said he was incredibly satisfied with the company’s results, given the difficult operating environment during the pandemic. Regarding inflation, Snee said Hormel has seen some moderation in the cost of its material inputs.

“But when you think of the labor increases we’ve had, the increase in our packaging, other supplies, shipping the product… I mean inflation is real. It’s important, “Snee said. “It is passed on in the form of higher prices.”

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