Core Insights - Hormel Foods reported a solid start to fiscal 2026 with 2% organic net sales growth in the first quarter and adjusted diluted earnings per share of $0.34 [4][3] - The company is facing continued commodity inflation, particularly in beef and pork trim, which has pressured gross profit despite strong performance in Foodservice and International segments [1][2][4] Financial Performance - For the fiscal first quarter, net sales were just over $3 billion, marking the fifth consecutive quarter of organic growth [3] - Adjusted operating income was $247 million with an adjusted operating margin of 8.2% and an effective tax rate of 22.4% [3] - The company reaffirmed full-year guidance for organic sales growth of 1% to 4% and adjusted EPS of $1.43 to $1.51 [5][17] Segment Performance - Foodservice and International segments showed strength, with Foodservice achieving its 10th consecutive quarter of organic net sales growth driven by premium prepared proteins [9][11] - Retail segment faced challenges with a 2% decline in organic net sales year over year, attributed to a strategic exit from non-core private label snack nut items [7][8] Commodity and Cost Pressures - Management highlighted significant inflationary pressures from commodities, particularly beef and pork trim, which increased by approximately 12% [1][6] - Rising logistics and freight costs have also impacted gross profit, with management forecasting only modest improvements in commodity prices for the latter half of fiscal 2026 [6][18] Strategic Initiatives - Hormel agreed to sell its whole-bird turkey business to Life-Science Innovations to reduce exposure to volatile, low-margin operations, expected to reduce net sales by about $50 million [5][14] - The company is progressing on its "Transform and Modernize" initiative, with financial benefits expected to materialize more significantly beginning in the second quarter [12] Operational Developments - Hormel is focusing on simplifying its operations and has made leadership changes to strengthen execution, including new appointments in key positions [17] - The company is investing in technology and modernization efforts, including a new strategic partnership for the Justin's branded business and advancements in order-to-cash processes [13]

Hormel Foods (NYSE:HRL) Q1 2026 Earnings call February 26, 2026 08:00 AM ET Company ParticipantsFlorence Makope - VP, TreasurerJeffrey M. Ettinger - Interim CEOJohn Ghingo - PresidentPaul Kuehneman - Interim CFO and ControllerConference Call ParticipantsChris Downing - AnalystHeather Jones - AnalystLeah Jordan - AnalystPooran Sanoo - AnalystRupesh Parikh - AnalystRyan Hanley - AnalystThomas Palmer - AnalystOperatorGood morning, ladies and gentlemen, welcome to the Hormel Foods Corporation first quarter earn ...

Hormel Foods (NYSE:HRL) Q1 2026 Earnings call February 26, 2026 08:00 AM ET Speaker6Good morning, ladies and gentlemen, welcome to the Hormel Foods Corporation first quarter earnings conference call. At this time, all lines are in listen-only mode. Following the presentation, we will conduct a question and answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on Thursday, February 26, 2026. I would now like to h ...