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INVESTOR CONTACT : Nathan Annis ( 507 ) 437-5248 ir@hormel.com MEDIA CONTACT : Media Relations ( 507 ) 437-5345 media@hormel.com HORMEL FOODS REPORTS THIRD QUARTER RESULTS AND UPDATES FULL YEAR EARNINGS GUIDANCE RANGE The company delivers all - time record sales during the quarter . AUSTIN , Minn . ( Sept. 2 , 2021 ) – Hormel Foods Corporation ( NYSE : HRL ) , a leading global branded food company , today reported results for the third quarter of fiscal 2021. All comparisons are to the third quarter of fiscal 2020 unless otherwise noted . EXECUTIVE SUMMARY - THIRD QUARTER • • • • • • • • Volume of 1.2 billion lbs . , up 1 % ; organic volume down 2 % Record net sales of $ 2.9 billion , up 20 % ; organic net sales¹ up 14 % Net sales growth from all four segments and all four sales channels Net sales up 25 % compared to 2019 pre - pandemic levels Operating income of $ 207 million , down 17 % ; adjusted operating income of $ 248 million , down 1 % Operating margin of 7.2 % , compared to 10.5 % last year ; adjusted operating margin¹ of 8.7 % Effective tax rate of 13.3 % , compared to 21.6 % last year Diluted earnings per share of $ 0.32 , down 14 % compared to last year ; adjusted diluted earnings per share of $ 0.39 , up 5 % compared to last year EXECUTIVE COMMENTARY " Our team delivered the highest quarterly net sales result in the company's history , with growth from every segment and all four channels , " said Jim Snee , chairman of the board , president and chief executive officer . " This record performance demonstrates the power of our brands and our team's ability to successfully integrate the Planters® business , which is quite an accomplishment , given the difficult operating conditions again this quarter . " " Our ability to deliver consistent quarter - after - quarter top - line growth during this very dynamic time along with 25 percent sales growth over pre - pandemic levels is directly linked to the tremendous progress we have made in expanding our portfolio to reach consumers when and where they want to eat , " Snee said . " Our investments in retail , deli and e - commerce helped carry us through the initial phases of the pandemic last year as consumers shifted to more at - home eating occasions . Today , our leadership positions in foodservice and snacking have fueled an acceleration in growth as consumers pivot to spending more time in restaurants , traveling , and hosting gatherings with family and friends . This balance across consumer eating occasions is just one of the many things that make our company uncommon . " " We saw significant inflationary pressure in almost all areas of our business , including raw materials , packaging , freight , labor and many other inputs during the quarter , " Snee said . " We have implemented pricing actions across virtually every brand , which has been our main lever to offset these inflationary pressures . In addition , our experienced management team is taking numerous other strategic actions to offset cost increases , including optimizing promotional activity , improving product mix and rationalizing less efficient products in our portfolio . " " We are managing through industrywide operational challenges , including labor availability , upstream and downstream supply chain disruptions , and highly volatile and inflationary input costs , " Snee said . " I am 1