Core Insights - Hormel Foods Corporation announced the re-appointment of Jeffrey M. Ettinger to its Board of Directors, effective March 21, 2025, highlighting his long-standing commitment to the company and its shareholders [1][2] Company Overview - Hormel Foods is a global branded food company based in Austin, Minnesota, with approximately $12 billion in annual revenue and operations in over 80 countries [5] - The company is recognized for its diverse portfolio of brands, including PLANTERS®, SKIPPY®, SPAM®, and HORMEL® NATURAL CHOICE®, among others [5] - Hormel Foods is a member of the S&P 500 Index and has received various accolades for corporate responsibility and community service [5] Leadership and Governance - Jeffrey M. Ettinger, who previously served as president and CEO of Hormel Foods from 2005 to 2016, will join the board's Governance Committee and CEO Search Committee [2][3] - Ettinger currently chairs The Hormel Foundation, which beneficially owns approximately 46% of Hormel Foods' outstanding common stock [1][3] Community Engagement - As chairman of The Hormel Foundation, Ettinger oversees the distribution of millions of dollars in charitable donations to enhance the quality of life in the Austin, Minnesota community [3][4]

Leadership Advancements - Hormel Foods Corporation announced leadership advancements in its Retail business segment, promoting Scott Weisenbeck to vice president of marketing – Retail and Joe O'Connor to vice president of Emerging Brands – Retail [1][5] - The promotions are aimed at strengthening the company's brands and driving growth, with both leaders expected to bring strategic insights and expertise to their new roles [1][5] Leadership Background - Scott Weisenbeck has been with Hormel Foods since 1992, advancing through various roles including sales representative, brand manager, and most recently assistant vice president of bacon [2] - Joe O'Connor joined Hormel Foods in 2006 and has held several positions, including national category manager and director of sales, before becoming president of Applegate and assistant vice president of Hormel Foods [3] Company Overview - Hormel Foods Corporation is a global branded food company with approximately $12 billion in annual revenue, operating in over 80 countries [4] - The company is known for its diverse portfolio of brands, including PLANTERS®, SKIPPY®, SPAM®, and APPLEGATE®, and has received numerous accolades for corporate responsibility and community service [4]

AUSTIN, Minn., March 10, 2025 /PRNewswire/ -- In a captivating new chapter, MR. PEANUT® and the world-famous PLANTERS® NUTmobile are making their movie debut in Netflix's highly anticipated new film, The Electric State. Ahead of the film's release, The PLANTERS® brand and Netflix created exclusive TV spots featuring MR. PEANUT® in The Electric State. A longtime symbol of the PLANTERS® brand and pop culture, MR. PEANUT® brings a fun charm to the film while staying true to his classic American icon ...

The Foodservice division at Hormel Foods is 'taking heat somewhere sweet' with the launch of its latest trend-forward topping, which debuts at International Pizza Expo later this monthAUSTIN, Minn., March 5, 2025 /PRNewswire/ -- Hot honey has long been a relevant talking point for pizzaiolos, as more and more pizza establishments are incorporating hot honey into their menus and offerings. Hormel Foods, a known innovator in the pizza space, naturally took notice of this increasingly "hot" trend, and the comp ...

Financial Performance & Outlook - The company reaffirmed its fiscal year 2025 net sales expectations to be between $119 billion and $122 billion [5, 32] - The company reaffirmed its adjusted diluted earnings per share expectations for fiscal year 2025 to be between $158 and $172 [5, 32] - The company anticipates organic net sales growth of 1% to 3% in fiscal year 2025 [33] - The company expects incremental benefits from the Transform and Modernize (T&M) initiative in the range of $100 million to $150 million [33] - The company's capital expenditures are projected to be in the range of $275 million to $300 million [33] Segment Performance (Q1 FY25 YoY) - The Retail segment experienced a volume decrease of 4%, a net sales decrease of 1%, and a segment profit decrease of 20% [19] - The Foodservice segment saw organic volume increase by 2% and organic net sales increase by 5%, but segment profit decreased by 8% [28] - The International segment experienced a volume decrease of 7% and a net sales decrease of 2%, but segment profit increased by 4% [29] Strategic Initiatives & Capital Allocation - The company divested a non-core sow operation to reduce commodity exposure and simplify the portfolio [9] - The company announced its 59th consecutive increase to the annual dividend [13, 16] - The company's operating cash flow was $866 million [11]

Hormel Foods (HRL) Q1 2025 Earnings Call February 28, 2025 09:05 AM ET Company Participants Jess Blomberg - Director of IRJim Snee - President and Chief Executive OfficerJacinth Smiley - Executive VP & CFOPeter Galbo - Director - Equity ResearchKen Goldman - Managing DirectorJohn Ghingo - Executive Vice President of RetailHeather Jones - FounderBenjamin Theurer - Managing DirectorPooran Sharma - Managing DirectorMax Gumport - Director - Equity Research Conference Call Participants Rupesh Parikh - Senior Equ ...

Financial Data and Key Metrics Changes - Net sales for Q1 2025 were $3 billion, reflecting a 1% organic increase compared to the previous year [35] - Gross profit margin was reported at 15.9%, impacted by margin pressures related to the Planters recovery and higher commodity input costs [36][41] - Diluted earnings per share (EPS) for Q1 2025 were $0.31, with adjusted diluted EPS at $0.35 [38] - Operating cash flow was $309 million, with capital expenditures of $72 million focused on value-added capacity [39] Business Line Data and Key Metrics Changes - The food service segment led top-line growth, driven by strong performance in premium prepared proteins, turkey, and breakfast sausage categories [25][35] - Retail segment growth was supported by flagship brands like Spam, Applegate, and Hormel Black Label Bacon, with overall volume and net sales increasing [12][13][35] - The international segment saw growth from branded exports, particularly in China, with a focus on snacking strategies [27][28] Market Data and Key Metrics Changes - The Planters brand experienced significant sequential recovery, contributing to the retail segment's performance [18][35] - The turkey supply chain faced pressures due to bird illnesses, impacting pricing and supply dynamics [71][72] - The demand for ground turkey is increasing, particularly among consumers seeking lean protein options [74][76] Company Strategy and Development Direction - The company is focused on its Transform and Modernize initiative, aiming to generate growth through investments in people, processes, and technology [29][31] - A multi-brand marketing strategy is being implemented to enhance retail presence and drive consumer engagement [20][22] - The company anticipates broad-based growth in food service and continued international expansion, particularly in China [46][47] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving fiscal 2025 goals, citing strong performance in value-added businesses and a recovery in the Planters brand [32][47] - The company expects mid-single-digit growth in food service and high single-digit growth in the international segment for the second quarter [42][46] - Management acknowledged challenges in the turkey supply chain but remains optimistic about long-term growth prospects [44][72] Other Important Information - The company is committed to dividend growth, having paid its 386th consecutive quarterly dividend at an annual rate of $1.16 per share, a 3% increase from the previous year [40] - The upcoming retirement of the Group Vice President of Food Service was noted, with a succession plan in place [24][25] Q&A Session Summary Question: EPS cadence and confidence in ramping EPS in the second half - Management highlighted strong performance in the value-added business and expected favorable year-over-year comparisons in the second half, despite near-term pressures [54][56] Question: Turkey supply chain pressures and pricing acceptance - Management clarified that strategic pricing actions are being taken across the turkey complex, with a focus on value-added products [70][72] Question: Timing of CEO retirement announcement - Management explained that the timing allows for a thorough search for a successor while ensuring continuity in executing the Transform and Modernize initiatives [81][84] Question: Planters brand distribution recovery - Management confirmed that distribution is improving, with inventory levels ramping back up and advertising efforts increasing [145]

Financial Performance - The Company reported diluted earnings per share of $0.31 for Q1 fiscal 2025, down 23% from the previous year, with adjusted diluted earnings per share at $0.35, a decrease of 14.6%[96]. - Net sales for Q1 fiscal 2025 were $2,988,813, a slight decline of 0.3% compared to $2,996,911 in Q1 fiscal 2024, while organic net sales increased by 0.6%[98]. - Total segment profit decreased by 12.8% to $278,818 in Q1 fiscal 2025, with declines in both Retail and Foodservice segments offsetting growth in the International segment[112]. - Retail segment profit fell by 20.3% to $119,147, impacted by lower sales and higher raw material costs, despite growth from key brands like SPAM and Applegate[113]. - Foodservice segment net sales increased by 1.9% to $930,185, driven by strong performance in premium prepared proteins, although segment profit decreased by 7.6%[115]. - In the first quarter of fiscal 2025, net sales decreased by 2.4% to $168,495,000 compared to $172,552,000 in the same quarter of fiscal 2024[118]. - Volume decreased by 6.9% to 74,569,000 lbs from 80,135,000 lbs year-over-year[118]. - Segment profit increased by 4.1% to $20,845,000, driven by improved export margins and growth in China[118]. - Total net sales for the quarter were $2,988,813,000, a slight decrease of 0.6% compared to $2,996,911,000 in the previous year[133]. - Adjusted diluted earnings per share decreased to $0.35 from $0.41 year-over-year[131]. Cash Flow and Expenses - Year-to-date cash flow from operations was $309 million, a decrease of 23% compared to the prior year[101]. - Cash provided by operating activities was $309,206,000, compared to $403,980,000 in the same quarter of fiscal 2024[135]. - Cash flows from operating activities were significantly impacted by changes in operating assets and liabilities, with accounts receivable decreasing by $57 million in Q1 fiscal 2025 compared to a decrease of $68 million in Q1 fiscal 2024[139]. - SG&A expenses increased by 9.4% to $263,013, primarily due to employee-related expenses and costs associated with the Transform and Modernize initiative[105]. - Net unallocated expense rose significantly to $60,700,000 from $34,020,000, primarily due to losses on the sale of a non-core operation and higher employee-related expenses[121]. - Cash and cash equivalents at the end of the period were $840,398,000, down from $963,212,000 in the prior year[135]. - The Company maintains $234 million of cash and cash equivalents held by international subsidiaries as of January 26, 2025[146]. Dividends and Shareholder Returns - The company paid $155,000,000 in cash dividends during the first quarter of fiscal 2025, an increase from $150,000,000 in the prior year[137]. - The Board of Directors approved an increased annual dividend rate for fiscal 2025, raising it to $1.16 per share from $1.13 per share, marking the 59th consecutive annual dividend increase[141]. - The Company is authorized to repurchase 3,677,494 shares of common stock but did not repurchase any shares during the first three months of fiscal 2025[147]. Future Outlook - The Company anticipates net sales growth from each segment in Q2 fiscal 2025 compared to the prior year[101]. - The company expects International segment profit to decrease in the second quarter of fiscal 2025, with growth in China and Indonesia offset by softness in Brazil[120]. - Capital expenditures for fiscal 2025 are estimated to be between $275 million and $300 million, focusing on value-added capacity, infrastructure, and new technology[142]. - Advertising investments in Q1 were $43 million, a decrease of 2% compared to the previous year, with expectations for an increase in full-year advertising expenses[106]. Debt and Financing - The Company’s outstanding debt as of January 26, 2025, included $2.9 billion of fixed-rate unsecured senior notes, with $25 million in interest payments made during Q1 fiscal 2025 and an additional $49 million expected for the fiscal year[143]. - The Company has a $750 million unsecured revolving credit facility, with the potential to increase by an additional $375 million, which is available for general corporate purposes[144]. Inventory and Sales - The Company reported a decrease in inventory of $56 million in Q1 fiscal 2025, compared to a decrease of $104 million in the same period of the prior year, primarily due to holiday sales and constrained turkey inventories[139]. - Proceeds from the sale of business amounted to $13.6 million in Q1 fiscal 2025 from the sale of equity interest in Mountain Prairie, LLC[139]. - The fair value of the Company's cash flow commodity contracts was $15.5 million as of January 26, 2025, compared to $(5.9) million as of October 27, 2024[161].

Core Insights - Hormel Foods Corporation reported a decline in both net sales and earnings for the first quarter of fiscal 2025, with adjusted earnings of 35 cents per share, down from 41 cents year-over-year, missing the Zacks Consensus Estimate of 37 cents [1][2][3] Financial Performance - Net sales totaled $2,988.8 million, a decrease of 0.3% from $2,996.9 million in the prior year, but exceeded the consensus estimate of $2,939.5 million [2] - Gross profit was $475.2 million, down from $508.7 million year-over-year [3] - Selling, general and administrative expenses rose to $263 million from $240.4 million in the previous year [3] - Adjusted operating income fell to $254 million from $294.8 million year-over-year, with an adjusted operating margin of 8.5%, down from 9.8% [3] Segment Performance - Retail unit net sales decreased by 1.1% to $1,890.1 million, with volumes down 3.7%, impacted by production disruptions [4] - Foodservice segment net sales increased by 1.9% to $930.2 million, despite a 4.7% decline in volumes, driven by premium products [6] - International unit net sales fell by 2.4% to $168.5 million, with volumes down 6.9%, although growth in China partially offset declines in Brazil [7] Strategic Initiatives - Hormel Foods is advancing its Transform and Modernize (T&M) initiative, expecting $100 million to $150 million in additional benefits in fiscal 2025 [10] - The company divested its last sow farm to reduce commodity exposure and streamline its portfolio [10] Future Outlook - For fiscal 2025, Hormel Foods expects net sales between $11.9 billion and $12.2 billion, with organic growth projected at 1% to 3% [11] - Operating income is anticipated to range from $1,118 million to $1,212 million, with adjusted operating income expected between $1,175 million and $1,275 million [12] - Annual EPS is projected to be between $1.49 and $1.63, with adjusted EPS expected in the range of $1.58 to $1.72 [13]

Core Insights - Hormel Foods reported revenue of $2.99 billion for the quarter ended January 2025, reflecting a year-over-year decline of 0.3% and an EPS of $0.35 compared to $0.41 a year ago [1] - The revenue exceeded the Zacks Consensus Estimate of $2.94 billion by 1.68%, while the EPS fell short of the consensus estimate of $0.37 by 5.41% [1] Revenue Breakdown - Retail Net Sales were $1.89 billion, surpassing the average estimate of $1.84 billion, but showing a year-over-year decline of 1.1% [4] - International Net Sales reached $168.50 million, below the average estimate of $179.03 million, representing a year-over-year decrease of 2.4% [4] - Foodservice Net Sales amounted to $930.19 million, exceeding the average estimate of $907.63 million, with a year-over-year increase of 1.9% [4] Segment Profit Analysis - Foodservice Segment Profit was $138.83 million, lower than the estimated $147.19 million [4] - International Segment Profit was $20.85 million, slightly above the estimated $20.79 million [4] - Retail Segment Profit stood at $119.15 million, below the estimated $125.46 million [4] Stock Performance - Hormel's shares have returned -4.8% over the past month, compared to a -2.2% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]