Customer Concentration - The Company reported that sales to its largest customer, Walmart Inc., accounted for approximately 16% of consolidated gross sales during fiscal 2024[31]. - The top five customers collectively represented about 37% of consolidated gross sales during fiscal 2024[31]. Employee Information - As of October 27, 2024, the Company had approximately 20,000 active employees, with over 90% located in the U.S.[19]. - Approximately 50% of the Company's team members had five or more years of service as of October 27, 2024[22]. Patents and Intellectual Property - The Company holds 22 U.S. patents and eight foreign patents as of October 27, 2024[34]. Sustainability Efforts - The Company has set aspirational goals to improve sustainability efforts, including reducing greenhouse gas emissions and organic waste[30]. Risk Management - The Company utilizes futures, swaps, and options contracts to hedge a portion of its anticipated purchases to manage input cost risks[17]. - The Company is exposed to various forms of market risk, including commodity price risk and foreign currency exchange rate risk[235]. Financial Position - The Company's long-term debt had a fair value of $2.5 billion as of October 27, 2024, down from $2.7 billion as of October 29, 2023[237]. - The net asset position in foreign currencies increased to $1.2 billion as of October 27, 2024, compared to $1.1 billion as of October 29, 2023[238]. - The balance of corporate-owned life insurance policies classified as trading securities totaled $209.7 million as of October 27, 2024, up from $188.2 million as of October 29, 2023[239]. Financial Performance - Net sales for the fiscal year ended October 27, 2024, were $11,920,797, a decrease of 1.57% from $12,110,010 in the previous year[270]. - Gross profit increased to $2,022,138, up 1.5% from $1,999,841 year-over-year[270]. - Operating income slightly decreased to $1,067,932, compared to $1,072,046 in the prior year, reflecting a decline of 0.2%[270]. - Net earnings attributable to Hormel Foods Corporation were $805,038, an increase of 1.9% from $793,572 in the previous year[270]. - Basic and diluted net earnings per share both increased to $1.47, up from $1.45 year-over-year[270]. - Comprehensive income attributable to Hormel Foods Corporation was $813,959, up from $776,881, an increase of 4.8%[272]. Asset Management - Total current assets decreased to $3,246,476 from $3,297,249, a decline of 1.54%[274]. - Total assets slightly decreased to $13,434,729 from $13,448,772, a decline of 0.1%[274]. - Cash and cash equivalents increased to $741,881 from $736,532, a slight increase of 0.5%[274]. Debt Management - Long-term debt increased to $2,850,944 from $2,358,719, reflecting a rise of 20.8%[274]. - The company repaid $959.017 million in long-term debt during the fiscal year ending October 27, 2024[278]. Dividends and Shareholder Returns - The company declared dividends of $1.13 per share for the fiscal year ending October 27, 2024, compared to $1.10 per share in the previous year[276]. Impairment and Asset Valuation - The Company recorded no material impairment charges for long-lived or definite-lived assets in fiscal years 2024, 2023, or 2022[297]. - In fiscal 2023, the Company recorded a $28.4 million intangible asset impairment charge for the Justin's trade name[310]. - The carrying amount of goodwill decreased to $4,923.5 million as of October 27, 2024, from $4,928.5 million as of October 29, 2023, primarily due to the divestiture of Hormel Health Labs[344]. Revenue Recognition - The Company recognizes revenue at the point in time when performance obligations have been satisfied, typically when the ordered product is received or picked up by the customer[320]. Research and Development - Research and development expenses for fiscal years 2024, 2023, and 2022 were $36.1 million, $33.7 million, and $34.7 million, respectively, showing a year-over-year increase in R&D investment[327]. Investment Activities - The Company completed the divestiture of Hormel Health Labs for a preliminary purchase price of $25.0 million, resulting in a pre-tax gain of $3.9 million recognized in the Consolidated Statements of Operations[342]. - The Company acquired a 30% stake in PT Garudafood Putra Putri Jaya Tbk for $425.8 million, enhancing its presence in Southeast Asia[351]. Inventory Management - Total inventories decreased to $1.58 billion as of October 27, 2024, from $1.68 billion a year earlier, a decline of 6.2%[355]. Pension and Retirement Plans - The Company had $1.3 billion in plan assets related to defined benefit pension plans as of October 27, 2024, including $87.3 million in private equity and real estate funds[264]. - The net periodic cost for defined benefit plans was $44,334,000 for the fiscal year ended October 27, 2024, compared to $37,413,000 for the year ended October 29, 2023, reflecting an increase of 18.5%[374]. - The benefit obligation at the end of the year for pension plans was $1,339,726,000 as of October 27, 2024, compared to $1,174,380,000 as of October 29, 2023, showing a rise of 14.1%[375]. Accounting and Reporting - The Company maintained effective internal control over financial reporting as of October 27, 2024, as confirmed by independent auditors[246]. - The consolidated financial statements present fairly the financial position of the Company at October 27, 2024, in conformity with U.S. generally accepted accounting principles[258]. - The audit of the Company's internal control over financial reporting was conducted in accordance with PCAOB standards, resulting in an unqualified opinion[259].

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Hormel Foods Corporation (NYSE:HRL) Q4 2024 Earnings Conference Call December 4, 2024 9:00 AM ET Company Participants Jess Blomberg - Director of IR Jim Snee - Chairman, President and CEO Jacinth Smiley - EVP and CFO John Ghingo - EVP, Retail Segment Nathan Annis - VP, Corporate Development Conference Call Participants Rupesh Parikh - Oppenheimer Ken Goldman - JPMorgan Thomas Palmer - Citi Heather Jones - Heather Jones Research Max Gumport - BNP Paribas Peter Galbo - Bank of America Michael Lavery - Piper S ...

Core Insights - Hormel Foods Corporation reported its fourth-quarter fiscal 2024 results, with net sales matching the Zacks Consensus Estimate but declining year-over-year. The bottom line remained flat compared to the previous year but missed consensus expectations [1][2]. Financial Performance - Adjusted earnings were 42 cents per share, missing the Zacks Consensus Estimate of 43 cents [2]. - Net sales totaled $3,138.1 million, down from $3,198.1 million in the year-ago quarter, reflecting a volume decline of 4.1% [3]. - Gross profit increased to $521.2 million from $514.4 million year-over-year, while SG&A expenses rose to $238.6 million from $216.5 million [4]. - Adjusted operating income decreased to $308 million from $313.1 million, with the adjusted operating margin remaining stable at 9.8% [4]. Segment Performance - Retail unit net sales fell 3.8% year-over-year to $1,907.1 million, with volumes down 6%. Despite declines in several categories, growth in branded products partially offset the decrease [5]. - Foodservice segment net sales increased by 1.3% to $1,046 million, with volumes up 2%. However, segment profit decreased by 8% due to reduced margins and increased SG&A expenses [6]. - International unit net sales rose 1.4% to $185 million, despite a 10% drop in volumes. The increase was driven by demand in China and strong exports, although turkey export volumes declined [7]. Financial Health - The company ended the quarter with cash and cash equivalents of $741.9 million and total long-term debt of $2,850.9 million. Cash flow from operations was $408.6 million [8]. Shareholder Returns - Hormel Foods announced a 3% dividend increase, raising the annual rate to $1.16 per share, marking the 59th consecutive year of annual dividend growth [9]. Strategic Initiatives - The company made significant progress with its Transform and Modernize (T&M) initiative, generating $75 million in operating income benefits, with expectations of an additional $100 million to $150 million in fiscal 2025 [10]. - Hormel Foods aims for at least $250 million in annualized operating income growth by fiscal 2026 through this initiative [10]. Fiscal 2025 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 be between $1.13 billion and $1.23 billion, with adjusted operating income expected in the range of $1.18 billion to $1.28 billion [12]. - The company forecasts annual EPS between $1.51 and $1.65, with adjusted EPS projected to range from $1.58 to $1.72 [12]. Market Performance - Hormel Foods' stock has decreased by 0.9% over the past three months, contrasting with the industry's growth of 1.5% [15].

Hormel Foods (HRL) reported $3.14 billion in revenue for the quarter ended October 2024, representing a year-over-year decline of 1.9%. EPS of $0.42 for the same period compares to $0.42 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $3.14 billion, representing a surprise of -0.05%. The company delivered an EPS surprise of -2.33%, with the consensus EPS estimate being $0.43.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and ho ...

Hormel Foods (HRL) came out with quarterly earnings of $0.42 per share, missing the Zacks Consensus Estimate of $0.43 per share. This compares to earnings of $0.42 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -2.33%. A quarter ago, it was expected that this maker of Spam canned ham, Dinty Moore stew and other foods would post earnings of $0.36 per share when it actually produced earnings of $0.37, delivering a surprise of 2 ...

INVESTOR CONTACT: Jess Blomberg ir@hormel.com MEDIA CONTACT: Media Relations media@hormel.com HORMEL FOODS REPORTS FOURTH QUARTER AND FULL-YEAR FISCAL 2024 RESULTS Strength in Value-Added Portfolio and $75 million in Operating Income Benefit from Transform and Modernize Initiative Results in Record Operating Cash Flow AUSTIN, Minn. (Dec. 4, 2024) – Hormel Foods Corporation (NYSE: HRL), a Fortune 500 global branded food company, today reported fourth quarter and full-year fiscal 2024 results. All comparisons ...

Core Viewpoint - Hormel Foods Corporation (HRL) is expected to show bottom-line growth in its upcoming fourth-quarter fiscal 2024 earnings report, with earnings per share estimated at 43 cents, reflecting a 2.4% increase year-over-year, while total revenues are projected to decline by 1.9% to $3.1 billion [1][2]. Financial Performance - The Zacks Consensus Estimate for fiscal 2024 earnings is $1.58 per share, indicating a 1.9% decline from the previous year [1]. - The trailing four-quarter earnings surprise for HRL averages 6.3% [1]. - For fiscal 2024, HRL projects net sales between $11.8 billion and $12.1 billion, with adjusted earnings per share expected in the range of $1.57 to $1.63 [5]. Revenue Breakdown - The expected revenue for the Retail segment in the fiscal fourth quarter is $1,882.8 million, down from $1,983.3 million in the prior year [4]. - The Foodservice segment is anticipated to see revenue growth, with estimates at $1,084.2 million, up from $1,032.4 million year-over-year [6]. - The overall revenue for fiscal 2024 is projected at $11.9 billion, reflecting a 1.6% decline from the previous year [2]. Operational Challenges - Hormel Foods is facing production disruptions at its Planters facility in Suffolk, VA, which has affected its snack nuts portfolio and is expected to impact performance into the fourth quarter [3]. - The company is also dealing with challenges in the turkey commodity market and declining sales in its International segment, alongside ongoing softness in its contract manufacturing business [4]. Strategic Initiatives - The company is focusing on the Transform and Modernize initiative, which aims to enhance supply chain efficiency, optimize its portfolio, and leverage data and analytics [6].

The upcoming report from Hormel Foods (HRL) is expected to reveal quarterly earnings of $0.43 per share, indicating an increase of 2.4% compared to the year-ago period. Analysts forecast revenues of $3.14 billion, representing a decrease of 1.9% year over year.The current level reflects no revision in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.Before a company ...

Core Insights - Hormel Foods Corporation (HRL) has announced a 3% increase in its annual dividend, marking the 59th consecutive annual dividend increase, raising the annualized rate from $1.13 to $1.16 per share [1] - The company will distribute a quarterly dividend of 29 cents per share on February 18, 2025, to shareholders of record as of January 13, 2025, representing HRL's 386th consecutive quarterly dividend payment [2] - Hormel Foods has a dividend payout ratio of 71.5%, a dividend yield of 3.6%, and a free cash flow yield of 5.2%, indicating a sustainable increase in dividends supported by a 7.4% annual free cash flow return on investment [3] Financial Performance - Year-to-date cash flow from operations for Hormel Foods totaled $858 million as of the third quarter of fiscal 2024, with a focus on consistent dividend growth and reinvestment in business operations [5] - The company's strategic initiatives, particularly the Transform and Modernize initiative, have begun to yield results in production efficiency and inventory management, unlocking additional production capacity and achieving cost savings [6][7] Market Position - Hormel Foods has experienced strong demand in its food service segment, achieving its fifth consecutive quarter of year-over-year volume growth, driven by longstanding relationships and an innovative product portfolio [8] - Despite facing challenges in the turkey commodity market and production disruptions at its Planters facility, the company remains committed to innovation and strategic acquisitions to bolster its market position [9][11] Stock Performance - HRL shares have declined by 2.8% over the past three months, contrasting with the industry's growth of 1.0% [10]