Hormel Foods Corporation · NYSE:HRL

Hormel Foods — Q1 2022 Earnings Presentation

14 slides from Hormel Foods's earnings presentation, Mar 1, 2022

  1. Slide 1: First Quarter, Fiscal 2022 Supplemental Information

    First Quarter, Fiscal 2022 March 1, 2022 SUPPLEMENTAL INFORMATION 1

  2. Slide 2: Legal Disclosure

    This presentation contains forward-looking information based on management’s current views and assumptions. Actual events may differ materially. Please refer to the Legal cautionary statement regarding “Forward- Looking Statements” and “Risk Factors” on Disclosure pages 5-10 in the Company’s Form 10

  3. Slide 3: Our 2022 Path Forward: Six Strategic Priorities

    Six Strategic Priorities #1 Expand leadership in foodservice Our #2 Protect and grow our core brands 2022 Path Forward #3 Aggressively develop our global presence as an Uncommon Global Branded Food Company #4 Amplify scale in snacking and entertaining #5 Enhance growth of our ethnic and Food Forward

  4. Slide 4: First Quarter Business Highlights

    First Quarter Business Highlights Continued to Deliver on Our Commitments to ESG Supported our Team Members Invested in Additional Wind Energy Projects 83 Consecutive Years of Profit Sharing Responded to Crisis Recognized with Awards and Accolades 4

  5. Slide 5: First Quarter Business Highlights

    First Quarter Business Highlights Achieved High-Quality Growth and Remain On Track to Deliver Sales and Earnings Guidance 1. Achieved fifth consecutive quarter of record net sales 2. Delivered double-digit operating income growth 3. Overcame difficult operating conditions within our supply chain 4.

  6. Slide 6: First Quarter Financial Results

    First Quarter Financial Results* Strong Year-Over-Year Growth in Volume, Net Sales and Diluted Earnings Per Share Volume (Lbs.) Net Sales Diluted EPS +2% 1.20B $3.04B +7% $0.44 +24% 1.18B $0.41 $2.46B Q1 FY21 Q1 FY22 Q1 FY21 Q1 FY22 Q1 FY21 Q1 FY22 • Benefited from inclusion of Planters® • Record fi

  7. Slide 7: Refrigerated Foods Results

    Refrigerated Foods Results Growth Driven by Strong Results in Foodservice and Pricing Actions Across Many Categories Net Sales Segment Profit $1,628M $162M +19% +15% $1,367M $141M Q1 FY21 Q1 FY22 Q1 FY21 Q1 FY22 • Value-added sales increased due to strong results from the foodservice businesses and

  8. Slide 8: Grocery Products Results

    Grocery Products Results Benefited from the Addition of the Planters® Snack Nuts Business Net Sales Segment Profit +8% $99M +48% $856M $92M $578M Q1 FY21 Q1 FY22 Q1 FY21 Q1 FY22 • Completed the supply chain integration for the Planters® and Corn Nuts® businesses • Volume and sales increased, driven

  9. Slide 9: Jennie-O Turkey Store Results

    Jennie-O Turkey Store Results Significant Increase in Segment Profit Driven by Strong Foodservice Results and Pricing Actions Net Sales Segment Profit +15% $384M $44M +62% $333M $27M Q1 FY21 Q1 FY22 Q1 FY21 Q1 FY22 • Sales increased due to improved foodservice performance, increased whole bird shipm

  10. Slide 10: Jennie-O Turkey Store Transformation

    Jennie-O Turkey Store Transformation Continuing to Create a More Demand-Oriented and Optimized Turkey Portfolio Q1 2022 Fiscal 2022 Fiscal 2023+ • Benefited from shift in lower-margin • Close the Benson Ave facility • Further integrate the supply chain items to branded value-added • Start integratio

  11. Slide 11: International & Other Results

    International & Other Results Sales and Earnings Impacted by COVID-Related Restrictions in China & Export Logistics Challenges Net Sales Segment Profit (3)% $183M $32M (19)% $177M $26M Q1 FY21 Q1 FY22 Q1 FY21 Q1 FY22 • Sales declined due to demand softness in China caused by COVID-related restrictio

  12. Slide 12: First Quarter Channel Highlights

    First Quarter Channel Highlights Strong Growth in U.S. Domestic Channels Compared to Prior Year and Pre-pandemic Levels Net Sales Percent Change (%) Q1 ’22 vs Q1 ’21 Q1 ’22 vs Q1 ’20 U.S. Retail 17 32 U.S. Foodservice 51 25 International (3) 6 Total 24 28 • Demand across all channels remained elevat

  13. Slide 13: Fiscal 2022 Outlook

    Fiscal 2022 Outlook Sales and Earnings Guidance Reaffirmed Fiscal 2022 Outlook Fiscal 2022 Considerations Net Sales (in billions) $11.7 – 12.5 • Elevated levels of demand across our go-to-market channels Diluted Earnings Per Share $1.87 – $2.03 • Margin improvement from our efforts to combat Effecti

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