The company also increased its quarterly dividend 5.4%.
Shares of the Austin, Minn., company at last check fell 4.6% to $47.73.
For the quarter ended Oct. 25 the company earned 43 cents a share against 47 cents in the year-earlier quarter.
Revenue dropped 3.2% to $2.42 billion from $2.5 billion.
A survey of analysts by FactSet produced consensus estimates of GAAP net income of 43 cents a share on revenue of $2.59 billion.
"For the quarter, growth in our international segment was incredibly strong, particularly in China, where we drove balanced growth between the retail and foodservice channels," Jim Snee, chairman, president and chief executive, said in a statement.
"International sales of Spam luncheon meat and Skippy peanut butter remained robust," Snee added.
"Consistent with industry trends, our food-service business showed declines this past quarter."
"From a bottom-line perspective, our experienced leadership team managed through the incremental supply chain costs we incurred related to the pandemic, which was the largest driver of our earnings decline," Snee said.
For the full year, the company absorbed over $80 million in incremental supply chain costs primarily related to lower production volumes, employee bonuses and enhanced safety measures in its production facilities.
Hormel estimates most of the incremental supply chain costs are temporary and can be minimized after the pandemic subsides.
Snee said he was optimistic about generating growth in sales and earnings in the next fiscal year.
"This most recent surge of covid-19 cases in communities does create a level of uncertainty in a number of areas, notably labor availability, customer demand and raw material markets," he said.
"Our company has adjusted to these conditions and will continue to invest to meet the needs of our team members, customers, consumers and operators," said Snee.
The dividend is now 24.5 cents a share, up from 23.25 cents. The new dividend is payable Feb. 16 to holders of record Jan. 11.