Hormel Foods International Sales: Still a Growth Engine?

Hormel Foods Corporation’s HRL international business remains an important part of its growth. However, in the fourth quarter of fiscal 2025, the International segment delivered mixed results. Although International net sales fell 6% year over year, the performance varied widely by region and product, shaping the segment’s overall direction.

Despite the downturn, not all regions underperformed. China remained a notable area of strength, with management pointing to ongoing volume and net sales growth for SPAM luncheon meat and refrigerated products. This performance reflects sustained brand relevance and growing demand for convenient protein options in urban markets, reinforcing China’s role as a long-term demand driver within Hormel Foods’ international portfolio.

However, these gains were more than offset by weakness elsewhere. Fresh pork exports declined meaningfully, reflecting both market softness and trade-related pressures. In Brazil, competitive intensity weighed on volumes and pricing, limiting HRL’s ability to translate brand strength into top-line expansion. As a result, the International segment’s volumes fell 8% in the quarter, reflecting the sensitivity of HRL’s overseas business to regional market dynamics. Profitability trends further complicated the picture. On an adjusted basis, profitability declined due to elevated commodity input costs and ongoing softness in Brazil.

Overall, Hormel Foods’ international operations continue to present targeted growth opportunities alongside near-term challenges. While performance remains highly market-specific, the company’s established brands, particularly in higher-growth regions like China, provide a foundation for longer-term expansion.

Hormel Foods’ Zacks Rank & Share Price Performance

Shares of this Zacks Rank #2 (Buy) company have gained 1.8% in the past month compared with the broader Consumer Staples sector and the S&P 500 index’s growth of 2% and 1.1%, respectively. HRL has outperformed the industry’s decline of 0.3% during the same period.

HRL Stock's Past Month Performance

Is Hormel Foods a Value Play Stock?

Hormel Foods currently trades at a forward 12-month P/E ratio of 16.52 compared with the industry average of 12.98. This valuation places the stock at a premium relative to peers, indicating broader market expectations around its business stability and ability to navigate current cost and demand dynamics.

HRL Valuation Picture

Other Stocks to Consider

United Natural Foods, Inc. UNFI distributes natural, organic, specialty, produce and conventional grocery and non-food products in the United States and Canada. At present, United Natural flaunts a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus estimate for United Natural’s current fiscal-year sales and earnings implies growth of 1.4% and 197.2%, respectively, from the year-ago figures. UNFI delivered a trailing four-quarter earnings surprise of 52.1%, on average.

Mama's Creations, Inc. MAMA manufactures and markets fresh deli-prepared foods in the United States. At present, MAMA sports a Zacks Rank of 1. Mama's Creations delivered a trailing four-quarter earnings surprise of 133.3%, on average.

The consensus estimate for Mama's Creations’ current fiscal-year sales and earnings implies growth of 39.9% and 44.4%, respectively, from the year-ago figures. 

McCormick & Company, Incorporated MKC manufactures, markets and distributes spices, seasoning mixes, condiments and other flavorful products to the food industry. It holds a Zacks Rank #2 at present. McCormick delivered a trailing four-quarter earnings surprise of 2.2%, on average. 

The Zacks Consensus Estimate for McCormick’s current fiscal-year sales and earnings implies growth of 1.6% and 2.4%, respectively, from the year-ago figures.

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This article originally published on Zacks Investment Research (zacks.com).

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