Ghingo will join Hormel Foods' board of directorsEttinger's role to conclude after 15 monthsAUSTIN, Minn., June 23, 2025 /PRNewswire/ -- Hormel Foods Corporation (NYSE: HRL), a Fortune 500 global branded food company, today announced that John Ghingo will be promoted to the role of president, becoming the 11th person to hold the position in the company's nearly 135-year history. Jeffrey M. Ettinger, current member of the Hormel Foods board, will return to the company for a defined period of 15 months as int ...

Financial Data and Key Metrics Changes - The company reported net sales of $2.9 billion for the second quarter, reflecting a 1% organic increase compared to the previous year [26] - Gross profit margin was 16.7%, impacted by higher commodity input costs, partially offset by savings from the Transform and Modernize initiative [27] - Diluted earnings per share were $0.33, with adjusted diluted earnings per share at $0.35, aligning with expectations [28] Business Line Data and Key Metrics Changes - The retail segment maintained leadership positions, with notable growth from the Applegate brand and Jennie O lean ground turkey, which continues to perform strongly [9][10] - The food service business outperformed the broader industry, with strong volume and net sales growth from branded products [12] - The international segment saw double-digit volume and net sales growth, particularly in exports and China [14] Market Data and Key Metrics Changes - The company anticipates strong second-half growth, particularly from the Turkey portfolio and the Planters brand, with overall net sales growth expected to be between 2% to 3% for the full year [20][34] - The competitive landscape for turkey has tightened, with expectations for share gains as competitors shutter facilities [94] Company Strategy and Development Direction - The company remains committed to delivering profitable and predictable growth, focusing on a diversified portfolio and the Transform and Modernize initiative [21][31] - Increased advertising investments are planned for the second half, particularly for the Planters brand and other key products [46] - The company is strategically positioned to navigate changing consumer preferences and market dynamics [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to deliver strong second-half results, supported by positive momentum in key brands and segments [41][42] - The consumer sentiment is described as strained due to inflation and uncertainty in the macro environment, impacting overall demand [107] - The company is focused on managing input cost pressures and leveraging its diversified portfolio to sustain growth [33][34] Other Important Information - The company announced leadership changes, including the appointment of Kevin Myers to lead supply chain efforts and the retirement of Scott Okri [22][23] - Capital expenditures for fiscal 2025 are expected to be between $275 million to $300 million, focusing on capacity and technology investments [28] Q&A Session Summary Question: Can you help bridge the operating income outlook for the year? - Management highlighted strong positioning for the second half, with positive momentum in the Planters brand and value-added turkey [40][41] Question: What are the expectations for Turkey in the back half? - Management noted a tightening supply in the turkey market and emphasized the focus on value-added products [52][55] Question: Can you elaborate on the expected margin expansion in the second half? - Management expects margin expansion driven by turkey pricing and strong performance from the Planters brand [60][61] Question: How does the company plan to grow in the food service segment? - Management indicated a strong pipeline of innovation and favorable year-over-year comparisons as key drivers for growth [64][65] Question: What are the savings from the Transform and Modernize initiative? - Management reported executing 66 projects under the initiative, with a focus on improving logistics and inventory management [69][71] Question: What products are related to the inventory build for summer demand? - Management indicated that inventory was built for Planters and promotional products like Spam, while managing commodity input costs [74][76] Question: Is the company still confident in achieving the $250 million operating income growth target by FY 2026? - Management affirmed confidence in the target, emphasizing ongoing initiatives and the benefits of the Transform and Modernize program [105][106] Question: What is the current consumer sentiment? - Management described consumer sentiment as strained due to inflation and uncertainty, impacting overall demand [107]

Financial Data and Key Metrics Changes - The company reported net sales of $2.9 billion for the second quarter, reflecting a 1% organic increase compared to the previous year [25] - Gross profit margin was 16.7%, impacted by higher commodity input costs, partially offset by savings from the Transform and Modernize initiative [26] - Diluted earnings per share were $0.33, with adjusted diluted earnings per share at $0.35, aligning with expectations [28] - The company anticipates full-year net sales growth of 2% to 3% and adjusted diluted earnings per share in the range of $1.58 to $1.68 [19][34] Business Line Data and Key Metrics Changes - The retail segment maintained leadership positions, with notable growth from the Applegate brand and Jennie O lean ground turkey [6][8] - The food service business outperformed the broader industry, with strong volume and net sales growth from branded products [11] - The international business saw double-digit volume and net sales growth, particularly in exports and China [13] Market Data and Key Metrics Changes - The company experienced strong top-line growth in China, driven by customer and distribution expansions [13] - The food service segment is expected to achieve mid-single-digit growth in organic net sales, outperforming industry trends [60] Company Strategy and Development Direction - The company is focused on delivering profitable and predictable growth while navigating a dynamic operating environment [6] - The Transform and Modernize initiative is critical for restoring historical earnings growth and is on track to deliver expected benefits [29] - The company plans to increase advertising investments significantly in the second half of the year to support brand growth [46] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to deliver strong second-half results, supported by a diversified portfolio and strategic initiatives [14][19] - The consumer sentiment is described as strained due to inflation and uncertainty in the macro environment [104] - The company remains committed to long-term growth despite challenges in the operating environment [20][103] Other Important Information - The company announced leadership changes, including the appointment of Kevin Myers to lead supply chain efforts and the retirement of Scott Okri [20][22] - Capital expenditures for fiscal 2025 are expected to be between $275 million and $300 million, focusing on capacity and technology investments [28] Q&A Session Summary Question: Can you help bridge the operating income outlook for the year? - Management highlighted strong positioning for the second half, with positive momentum in the Planters brand and value-added turkey [42][44] Question: What are the expectations for Turkey cadence in the back half? - Management noted a tightening supply in the turkey market but expressed confidence in their position and ability to capture upside during the fresh season [52][55] Question: Can you provide details on T and M savings? - Management confirmed that 66 projects were executed under the Transform and Modernize initiative, focusing on efficiency and logistics [67][70] Question: What products are related to the inventory build for summer demand? - The inventory build is strategically aligned with upcoming summer demands, particularly for Planters and promotional products [73][75] Question: How is the Planters brand expected to perform in the second half? - Management expressed optimism about the Planters brand, expecting continued sequential improvement and positive year-over-year consumption [82][84]

Award-winning internship program offers students from 50 colleges and universities three months of hands-on business experience AUSTIN, Minn., May 27, 2025 /PRNewswire/ -- It's more than an internship — it's a launchpad to a rewarding career. Typically, more than 70% of Hormel Foods interns become full-time team members at the company. Starting today, the company will welcome over 95 students from 50 colleges and universities across the country. The award-winning Hormel Foods summer internship program o ...

Baker will assume the role at the end of the fiscal year following the planned retirement of Scott AakreAUSTIN, Minn., May 16, 2025 /PRNewswire/ -- Hormel Foods Corporation (NYSE: HRL), a Fortune 500 global branded food company, announced that Jeff Baker, group vice president of Retail marketing for Value-Added Meats, will assume the role of group vice president for Retail marketing at the end of the company's fiscal 2025. Following the retirement of Scott Aakre, group vice president and chief marketing off ...

Hormel Foods Corporation (NYSE:HRL) Q1 2025 Earnings Conference Call February 27, 2025 9:30 AM ET Company Participants Jess Blomberg - Director of Investor Relations Jim Snee - President and Chief Executive Officer Jacinth Smiley - Executive Vice President and Chief Financial Officer John Ghingo - Executive Vice President, Retail Segment Conference Call Participants Peter Galbo - Bank of America Ken Goldman - JPMorgan Heather Jones - Heather Jones Research Rupesh Parikh - Oppenheimer Ben Thurber - Barclays ...