Hormel Foods Corporation · NYSE:HRL
Hormel Foods — Q2 2025 Earnings Presentation
17 slides from Hormel Foods's earnings presentation, May 29, 2025
Slide 1: Second Quarter Fiscal 2025
( Hormel ) SECOND QUARTER FISCAL 2025 May 29, 2025 “ey At Pastor ans Ugg SPAM =. concotd 007 HERDEZ 2
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains “forward-looking” information within the meaning of the federal securities laws. The “forward-looking” information may include statements concerning the Company’s outlook for the future as well as other statements of beliefs, future plans, strate
Slide 3: Company achieved solid top-line growth
• Company achieved solid top-line growth • Positioned for strong second half • Led by portfolio of consumer-focused, protein-centric products • Narrows fiscal 2025 net sales and earnings outlook 3
Slide 4: Strategic Priorities
Strategic Priorities: Drive focus & growth in our Retail business • Applegate® brand performed well; outpacing total edible category consumption1 • Jennie-O® ground turkey experienced notable sales growth2; well-positioned for today’s demands • Wholly® and Herdez® refrigerated guacamole portfolio sa
Slide 5: 387th consecutive quarterly dividend paid in May
387th consecutive quarterly dividend paid in May 59 9% 10 yr CAGR 96+ Dividend *Per share figures have been restated to reflect the two-for-one stock split distributed on Feb. 9, 2016. Fiscal years 2016 and 2021 included 53 weeks. Fiscal 2025 5 dividend rate to-date implies a $1.16 full year dividen
Slide 6: Retail Segment Highlights
Segment Highlights • Net sales in the second quarter of fiscal 2025 were RETAIL comparable to the prior year, as high-single-digit growth from both our Mexican portfolio and value-added turkey products was primarily offset by the impacts of promotional timing. • Two-thirds of the Retail segment's vo
Slide 7: Brand Spotlight: Applegate
BRAND SPOTLIGHT Well-positioned to meet today’s consumer demands and unlock significant growth Applegate® Retail Consumption Volume Growth* Strategic Growth Drivers (% change vs. comparable time period year ago) Marketing Innovation +13% +10% +6% +4% +6% eCommerce Price Pack Architecture FY24 FY24 F
Slide 8: Foodservice Segment Highlights
Segment Highlights FOODSERVICE • The Foodservice segment continued to benefit from an extensive range of solutions-based products, its direct- selling organization and a diverse channel presence. • Organic net sales1 growth was broad-based, with notable contributions from the customized solutions bu
Slide 9: International Segment Highlights
Segment Highlights INTERNATIONAL • Double-digit volume and net sales growth in exports, and robust growth in the China market drove top-line performance. • Strong shipments within the refrigerated portfolio, primarily bacon and pepperoni, made the largest contribution to export growth. International
Slide 10: Fiscal 2025 Outlook Commentary
Company narrows fiscal 2025 net sales & earnings outlook, reaffirms Transform & Modernize expectations Fiscal 2025 Outlook Commentary Revised Previous For fiscal 2025, the Company expects: • Organic net sales1 growth of 2% to 3%, which assumes leading on-trend Net Sales $12.0 – $12.2 billion $11.9 –
Slide 11: Long-Term Algorithm
LONG-TERM ALGORITHM • Consumer-focused, protein-centric Net Sales portfolio 2-3% • Leading & differentiated brands Organic net sales1 growth • Fueled by innovation Operating Income • Organized for long-term growth 5-7% Operating income growth • Stable financial performance • Strong corporate citizen
Slide 12: Appendix
APPENDIX
Slide 13: Transform and Modernize (T&M) Initiative
This presentation includes measures of financial performance that are not defined by U.S. generally accepted accounting principles (GAAP). The Company utilizes these non-GAAP measures to understand and evaluate operating performance on a consistent basis. These measures may also be used when making
Slide 14: Legal Matters
Legal Matters From time to time, the Company incurs expenses related to discrete legal matters that the Company believes are not indicative of the Company’s core operating performance, do not reflect expected future operating costs, and are not meaningful when comparing the Company’s operating perfo
Slide 15: Organic Volume and Organic Net Sales (Non-GAAP)
ORGANIC VOLUME AND ORGANIC NET SALES (NON-GAAP) 15
Slide 16: Adjusted Diluted Earnings Per Share (Non-GAAP)
ADJUSTED DILUTED EARNINGS PER SHARE (NON-GAAP) 1 Comprised primarily of project-based external consulting fees and asset write-offs and severance expenses related to supply chain and portfolio optimization 16
Slide 17: Forward-looking GAAP to Non-GAAP Measures
Forward-looking GAAP to Non-GAAP Measures These tables show the calculation to reconcile from the estimated fiscal 2025 GAAP measure to the estimated non-GAAP adjusted measure. Our fiscal 2025 outlook for adjusted operating income and diluted earnings per share are non-GAAP measures that exclude, or