Hormel Foods Corporation · NYSE:HRL
Hormel Foods — Q1 2025 Earnings Presentation
19 slides from Hormel Foods's earnings presentation, Feb 27, 2025
Slide 1: February 27, 2025
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Slide 2: Forward-Looking Statements and Non-GAAP Information
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: Q1 highlights
• Achieved solid top-line performance, demonstrated by strong value-added portfolio • Delivered significant, sequential Planters® recovery • Navigated market dynamics in turkey supply chain • Reaffirmed fiscal 2025 net sales and adjusted diluted earnings per share expectations 3
Slide 4: Strength in value-added portfolio helped mitigate known headwinds
Strength in value-added portfolio helped mitigate known headwinds $0.41 $0.35 Q1Q1 2024 Total Turkey Snack Nuts All Other Interest and Tax Q1‘25 2025 ‘24 Q1 Portfolio Operating Gains Investment Income and Expense 1 Non-GAAP measure. See Appendix: Non-GAAP Measures for more information 4
Slide 5: Strategic Priorities: Q1 Highlights
Strategic Priorities: Q1 Highlights Drive focus & growth in our Retail business • Many flagship and rising brands grew volume while gaining share in their respective categories • As expected, saw significant, sequential market recovery from Planters® brand1 Expand leadership in Foodservice • Premium
Slide 6: Operating cash flow and investment-grade rating
To support our disciplined capital allocation strategy and return value to shareholders Operating Cash Flow (in billions) $1.3 $1.2 $1.1 $1.0 $1.0 $866M $2.9B Investment-Grade Rating * Fiscal years unless noted otherwise. Fiscal year 2021 included 53 weeks 6
Slide 7: 59th consecutive increase to our annual dividend
59 59th consecutive increase to our annual dividend* 9% 96+ 10 yr CAGR Dividend Aristocrat 7 *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 dividend announced on Nov. 25, 2024.
Slide 8: Segment Highlights: Retail
Segment Highlights • Collectively, flagship and rising brands delivered growth relative to last year, led by the SPAM® brand, Applegate® natural and organic meats, Hormel® Black Label® bacon, Jennie-O® ground turkey, Wholly® guacamole, and Hormel® pepperoni. • As anticipated, lower sales of snack
Slide 9: Aligning resources to better drive focus & accelerate growth
Aligning resources to better drive focus & accelerate growth Flagship Rising Foundational Large, material, established; Differentiated, emerging brands; Strong category positions; proven sustainable growth poised for accelerated growth steady performance INVEST prioritized resources CULTIVATE potent
Slide 10: Multi-brand, multi-channel campaign
Multi-brand, multi-channel campaign 10
Slide 11: Segment Highlights: Foodservice
Segment Highlights • The Foodservice segment continues to benefit from a large portfolio of solutions-based products, a direct-selling organization, and a diverse channel presence. • Organic volume1 and net sales growth in the first quarter were primarily driven by strong performance across the prem
Slide 12: Segment Highlights: International
Segment Highlights • Strong volume and net sales growth in China and growth in exports such as SPAM® luncheon meat, Skippy® peanut butter, and fresh pork were more than offset by softness in Brazil and lower commodity turkey exports. • The China business benefited from a continued focus on new custo
Slide 13: Fiscal 2025 Outlook Commentary
Reaffirming fiscal 2025 Net Sales and Adjusted Diluted Earnings Per Share1 Expectations Fiscal 2025 Outlook Commentary For fiscal 2025, the Company expects: • Organic net sales1 growth of 1% to 3%, which assumes leading Net Sales $11.9 - $12.2 billion on-trend categories, increased brand investments
Slide 14: Long-term algorithm
LONG-TERM ALGORITHM • Leading & differentiated brands Net Sales • Fueled by innovation 2-3% Organic net sales1 growth • Organized for long-term growth Operating Income • Stable financial performance 5-7% Operating income growth • Strong corporate citizenship 1Non-GAAP measure. See appendix to this p
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Slide 16: Non-GAAP Measures
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 17: Legal Matters and Organic Volume and Net Sales
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 may not be meaningful when comparing the Company’s operating pe
Slide 18: Organic Volume, Organic Net Sales and Adjusted Diluted EPS
ORGANIC VOLUME AND ORGANIC NET SALES (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 18
Slide 19: Forward-looking U.S. GAAP to Non-GAAP Measures
Forward-looking U.S. GAAP to Non-GAAP Measures These tables show the calculations to reconcile from the estimated fiscal 2025 GAAP measures to the estimated adjusted non-GAAP measures. Our fiscal 2025 outlook for adjusted operating income and diluted earnings per share are non-GAAP measures that exc