Hanover Foods FY 2020 Annual Report

Hanover Foods is a classic Oddball that has been written about on this blog a number of times over the years: the original posts (parts 1 and 2) back in 2012, and an update in 2013, their quarterly results this June, and the recent obituary of John Alan Warehime.

It has been a year since we last looked at Hanover Foods Corp's FY 2019 results, and now the FY 2020 annual report has arrived in the mail.

At a share price of $75 for the HNFSA (non-voting) share class, the market capitalization of the company (with 715,205 common shares outstanding) is now about $54 million, compared with net current assets of $126 million ($176 per share), and a book value of $245 million ($342 per share).

Hanover's results improved from FY 2019 to FY 2020. Their revenue went from $395 million to $401 million, but more impressively gross profit grew from $32 million to $41 million. Meanwhile, SG&A shrank by $2 million, with the result that operating profit went from just over breakeven to $12 million.

We'll have more about Hanover Foods in the upcoming November Issue of the Oddball Stocks Newsletter.


  1. Without being able to hear detail from management, I have a hard time understanding what leads to the variability in the CGS. However, I do take encouragement from the Selling and Admin expense reductions. I can't post a chart here, but the recent reduction in Selling expenses - $13.6mm and $13.2mm in '19 and '20 respectively, versus an average ('14-'18) of $16.5mm seems significant. Similarly, Admin expenses over last two years were $17.9mm and $16.2mm versus an average ('14-'18) of $18.3mm. I don't think this happens by accident. On the flip side, Cap Ex: $36mm spent in last 2 years. Versus a total of $36mm over the previous 5 years ('14-'18 inclusive).

  2. We own 400 shares for some reason, somewhere at a third of book, suggests to me this should be cheap and buy more, coupled with a pretty good report, although without a management comment, or really any idea of what they are up to or seeing, it is hard to see this beyond the value trap it appears to be. Things I'd love to know, how much float on the exchange is really out there? I have shares in another company, I know much better that management thinks is less than 1000 shares so when that price fluctuates down (or up) the President just laughs it off . Here at Hanover, they are still paying 125 for ESOP stock, albeit a rather inconsequential amount in 2019, a few even converted.........so IDK, a liquidity event should happen in my lifetime......but like a lot of these companies, management seems to have no cares in the world in that regard, just wished the big picture would be shared.....considering they do own a lot of the company, always perplexing.......there are companies like CAOX, QUCT to pull some out of thin air that majority owners are so wealthy, there is and will be no motivation to ever undo the structures (entity) as they will never need the money, and I undid one of my own that after it was over and we got our 56% in cash, it was like why did I do that? No what do we buy, bought a ranch but then what? In retrospect a big mistake.....a COVID neutral company too.....so very hard to replace some of these companies so if owners are well heeled and not wheelers and dealers.....going to be a long hold, just wish the 1.whatever dividend was a little higher