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INVESTOR CONTACT : Nathan Annis ( 507 ) 437-5248 ir@hormel.com HORMEL FOODS REPORTS SECOND QUARTER RESULTS AND REAFFIRMS FULL YEAR EARNINGS GUIDANCE MEDIA CONTACT : Media Relations ( 507 ) 437-5345 media@hormel.com The company delivers record first half sales and increases full year sales guidance AUSTIN , Minn . ( May 20 , 2021 ) - Hormel Foods Corporation ( NYSE : HRL ) , a leading global branded food company , today reported results for the second quarter of fiscal 2021. All comparisons are to the second quarter of fiscal 2020 unless otherwise noted . EXECUTIVE SUMMARY - SECOND QUARTER Volume of 1.2 billion lbs . , down 3 % Record net sales of $ 2.6 billion , up 8 % Pretax earnings of $ 293 million , up 2 % Operating margin of 11.1 % , compared to 12.1 % last year Effective tax rate of 22.1 % , compared to 20.6 % last year Diluted earnings per share of $ 0.42 , flat compared to last year EXECUTIVE COMMENTARY " Once again , our balanced business model has proven to be a winning formula as our team delivered record sales in the first half and is on pace to deliver a second consecutive year of record sales , " said Jim Snee , chairman of the board , president and chief executive officer . " We were able to achieve these record results through strong foodservice sales , continued elevated demand in the retail , deli and international channels , and improved supply chain performance . " " We anticipated rapid demand changes in our foodservice business , and our team delivered , with sales exceeding 2019 pre - pandemic levels , " Snee said . " The investments we have made over the years to build a world - class foodservice business , including an experienced direct sales force and portfolio of products that solve for customer challenges , give us a competitive advantage as the industry recovery accelerates . " " In addition to foodservice growth , demand in our retail and deli channels remains elevated compared to pre - pandemic levels , especially from brands such as SPAM® , Jennie - O® , Hormel® Gatherings , Hormel® Black Label® , Applegate® , Columbus® , Herdez® and Wholly® , " Snee said . " Finally , our international business has never been stronger , with double - digit growth coming from our China business and branded exports . " " The supply chain progress we have made in a difficult operating environment is impressive , and our production team members deserve credit for our record results , " Snee said . " Further , we are now benefiting from strategic actions we took before the pandemic to increase production capacity , especially for the pizza toppings and dry sausage categories . " OUTLOOK Ⓡ " We are increasing our full year sales guidance range and reaffirming our earnings per share guidance range of $ 1.70 to $ 1.82 per share , both of which exclude the expected impact of the Planters snack nuts business , " Snee said . " We have a very positive outlook on the foodservice industry and continue to see elevated demand in the retail , deli and international channels . As we enter this inflationary period , we will 1