Feb 27 (Reuters) - Skippy peanut butter maker Hormel

Foods ( HRL ) on Thursday missed first-quarter profit estimates,

hurt by higher input costs and the persistent effects of a

supply issue at its Planters brand's distribution facility from

last year.

Hormel Foods ( HRL ), which sells snacking and packaged meat

products, has also taken a hit due to lower whole turkey prices

and increased advertising expenses.

The company has been struggling to boost demand for its

turkey products as consumers preferred affordable meat

alternatives such as beef and chicken amid high inflation.

Meanwhile, demand for certain packaged products suffered

as the company kept the prices elevated to protect its margins

from inflated input costs.

Hormel's Planters nut brand faced a supply disruption at

its Suffolk, Virginia-based distribution facility due to an

unspecified food safety issue last April, which continued to

impact the company's margins in the first quarter.

"As anticipated, the first quarter was pressured as we

continued to recover from the snack nuts supply disruption and

lapped a full year of whole bird turkey market compression," CEO

Jim Snee said.

The company's selling, general and administrative costs rose

about 7% to $475.232 million in the quarter ended January 26

from a year ago.

Hormel earned 35 cents per share on an adjusted basis in the

first quarter, missing analysts' average estimate of 38 cents,

according to data compiled by LSEG.

Its first-quarter sales came in at $2.99 billion, compared

with estimates of $2.94 billion.

The company reaffirmed its full-year adjusted earnings

forecast of $1.58 to $1.72 per share.

It expects its annual net sales to be between $11.9 billion

and $12.2 billion, as previously projected.

In contrast, larger peer Tyson Foods ( TSN ) earlier this

month raised its annual sales forecast on the back of strong

demand for its beef and chicken products.