Hormel Foods Corporation · NYSE:HRL
Hormel Foods — Q1 2024 Earnings Presentation
22 slides from Hormel Foods's earnings presentation, Feb 29, 2024
Slide 1: First Quarter Fiscal 2024 Supplemental Information
First Quarter Fiscal 2024 SUPPLEMENTAL INFORMATION 1 SUPPORTING THE PLANTERS® BRAND WITH A NEW NATIONAL ADVERTISING CAMPAIGN, “AHHH, NUTS”
Slide 2: Disclaimers: Forward-Looking Statements and Non-GAAP Information
Quarterly Quarterly DISCLAIMERS DISCLAIMERS Supplement Supplement 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 f
Slide 3: Delivering on Our Commitments
CORPORATE Quarterly RESPONSIBILITY Supplement Delivering on Our Commitments As a strategic business partner and responsible corporate citizen Perfect Score of 100 on the Corporate Equality Index America’s Best Run Companies “We are honored to receive this “We’re honored to be recognized as one of re
Slide 4: Giving Back During the Holidays
CORPORATE Quarterly RESPONSIBILITY Supplement Giving Back During the Holidays Supporting the communities where we live and work Hormel® Cure 81 ® Hams for Hunger ® Record-breaking Turkey Donation “Hormel Foods is proud to support hunger-relief efforts in “Jennie-O® is honored to provide 15,000 whole
Slide 5: Executing Entertaining & Snacking Vision
Quarterly INNOVATION Supplement Executing Entertaining & Snacking Vision By innovating in fast-growing, higher-margin categories Available Now Available Now Launching Soon Launching Soon Justin’s® organic dark Corn Nuts® loaded taco Skippy® peanut butter wafer cones and Planters® Nut Duos, our choco
Slide 6: First Quarter Key Messages
BUSINESS First Quarter HIGHLIGHTS Fiscal 2024 First Quarter Key Messages ▪ We delivered strong results, led by better-than-expected performance in each of our segments. ▪ Volume, net sales, adjusted diluted net earnings per share1 and operating cash flow increased compared to prior year. ▪ We are re
Slide 7: Making Progress on Our Strategic Priorities
BUSINESS First Quarter HIGHLIGHTS Fiscal 2024 Making Progress on Our Strategic Priorities To support long-term earnings growth Drive Focus and Growth in Aggressively Develop Expand Leadership in Execute our Enterprise our Retail Business our Global Presence Foodservice Entertaining & Snacking Vision
Slide 8: Investing for Growth
BUSINESS First Quarter HIGHLIGHTS Fiscal 2024 Investing for Growth Future-fitting our One Supply Chain and continuing to transform & modernize our Company Implementing a new end-to-end planning process and integrating new planning Plan technology. Realizing the benefits from our new procurement and
Slide 9: Brand Spotlight FY '24 Q1
Brand Spotlight FY ’24 Q1 9
Slide 10: Planters Brand Spotlight
STRATEGIC INNOVATIVE RELEVANT ▪ Focus on higher ROI promotions Maintained positive volume and and business segments PLANTERS® dollar share1 momentum in our FLAVORED Planters® snack nuts business ▪ Shifting mix toward innovation and CASHEWS during the first quarter, along with premium nut varieties i
Slide 11: First Quarter Highlights: Jennie-O
First Quarter Highlights Grew retail volume and sales of Jennie-O® turkey items Jennie-O® branded items Grew turkey volume in during the quarter, including in foodservice delivered each of our segments above-category performance double-digit volume and in the fresh ground turkey net sales growth cat
Slide 12: First Quarter Financial Metrics
Q1 FINANCIAL First Quarter METRICS Fiscal 2024 First Quarter Financial Metrics Delivering volume, net sales and adjusted diluted net EPS1 growth Net Diluted Adjusted Volume Diluted Net EPS1 Sales Net EPS 4% 1% Flat 3% 1.10B 1.06B $2.97B $3.00B $0.40 $0.40 $0.40 $0.41 $2.86 B Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1
Slide 13: Generating Strong Operating Cash Flow
CASH FLOW First Quarter AND DEBT Fiscal 2024 Generating Strong Operating Cash Flow Significant operating cash flow improvement versus prior year Operating Cash Flow Cash & Mkt Sec. Debt +98% $404M $982M $3.3B $204M Committed to Maintaining Investment- Q1 2023 Q1 2024 Grade Rating 13
Slide 14: Retail Segment Results
RETAIL First Quarter SEGMENT RESULTS Fiscal 2024 Retail Results benefited from growth in snacking and entertaining, lower logistics expenses Segment Highlights Segment Highlights ▪ Demand was strong for many products, including Skippy® peanut butter, Planters® snack nuts, Wholly® dips, Herdez® salsa
Slide 15: Foodservice Segment Results
FOODSERVICE First Quarter SEGMENT RESULTS Fiscal 2024 Foodservice Higher net sales and favorable logistics expenses drove increased segment profit Segment Highlights ▪ Volume and net sales growth were broad based across numerous Foodservice Segment Q1 categories, led by Jennie-O® turkey and double-d
Slide 16: International Segment Results
INTERNATIONAL First Quarter SEGMENT RESULTS Fiscal 2024 International Profit growth led by partnerships in Indonesia and the Philippines Segment Highlights ▪ Higher commodity exports led to volume gains for the quarter. Net sales declined due to lower branded export sales and lower sales in China. I
Slide 17: Fiscal 2024 Outlook
FISCAL 2024 Quarterly OUTLOOK Supplement Fiscal 2024 Outlook Reaffirming full-year earnings guidance Fiscal 2024 Outlook Outlook Commentary Outlook For fiscal year 2024, the Company is: ▪ Reaffirming its net sales growth outlook of 1% to 3%, which Net Sales (billions) $12.2 – $12.5 assumes volume gr
Slide 18: Selected Financial Details – Q1 and FY 2024
ADDITIONAL Quarterly DISCLOSURES Supplement Selected Financial Details – Q1 and FY 2024 ▪ Advertising investments were $44 million, compared to $47 million last year. The Company expects full-year advertising expense to increase compared to the prior year. ▪ The effective tax rate was 23.4%, compare
Slide 19: Additional Information
David Dahlstrom Additional Director of Investor Relations Information dwdahlstrom@hormel.com 19
Slide 20: Non-GAAP Financial Measures
Quarterly APPENDIX Supplement Non-GAAP Financial 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 cons
Slide 21: GAAP to Non-GAAP Reconciliation
Quarterly APPENDIX Supplement The table below shows the calculations to reconcile from the GAAP measures to the non-GAAP financial measures. 21
Slide 22: Forward-looking GAAP to Non-GAAP Measures
Quarterly APPENDIX Supplement Forward-looking GAAP to Non-GAAP Measures Our fiscal 2024 outlook for adjusted diluted net earnings per share is a non-GAAP financial measure that excludes, or has otherwise been adjusted for, items impacting comparability, including estimated charges associated with th