Hanover Foods FY 2021 Annual Report

The Hanover Foods annual report for 2021 came in last week.

At a share price of $63 for the HNFSA (non-voting) share class, the market capitalization of the company (with 706,846 common shares outstanding) is now about $45 million, compared with net current assets of $101 million ($144 per share), and a book value of $241 million ($341 per share).

That is 45% of current assets (net of all liabilities) and 19% of book value.

Hanover's earnings were not as good in FY 2021 as in FY 2020. Their revenue declined from $401 million to $369 million, and gross profit declined from $41 million to $28 million. On the plus side, SG&A expense shrank by $3.8 million, with the result that operating profit was still $2.4 million.

Hanover bought back stock last year: 8,329 of the voting (class B) shares for $1,304,000, which was $156.56 per share. Those trade more expensive than the class A shares, but the $156.56 is still more than double the recent trading price $71 of the B shares. (The share classes have the same economic interest.) This is the first time we have seen Hanover repurchase a significant amount of stock.

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

Our past posts on Hanover Foods:

The annual report for the most recent fiscal year (2021) that ended May 30, 2021:

Hanover Foods Corp 2021 Annual Report by Nate Tobik on Scribd


  1. the latest valuation at the end of 2020 is just under $140 per share for the Class A shares per the notes in the annual report.

  2. With everyone and their uncle running a PE fund these days, it's a wonder this hasn't been taken out yet.

    It's cheap because management doesn't care about their shareholders, but if it were taken private, that'd cease to be an issue for the new owners.