Hormel Foods Corporation · NYSE:HRL
Hormel Foods — Q2 2023 Earnings Presentation
17 slides from Hormel Foods's earnings presentation, Jun 1, 2023
Slide 1: Second Quarter Fiscal 2023 Supplemental Information
SUPPLEMENTAL INFORMATION Second Quarter Fiscal 2023 THE FOODSERVICE TEAM INTRODUCED FONTANINI® CUP-AND-CHAR SAUSAGE AT THE 2023 INTERNATIONAL PIZZA EXPO AND CONFERENCE
Slide 2: Forward-Looking Statements
Quarterly Forward-Looking Statements DISCLAIMERS Supplement 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
Slide 3: Continuing to be Recognized for Our Commitments
ESG Quarterly UPDATE Supplement Continuing to be Recognized for Our Commitments to consumers, team members and the communities where we live and work Named to Most Sustainable U.S. Companies List Selected to Top 5 Conscientious CPG Companies “We know that our environmental, social “Through its award
Slide 4: Remaining on Track for One of Our Safest Years Ever
EMPLOYEE Quarterly SAFETY Supplement Remaining on Track for One of Our Safest Years Ever by demonstrating our Safety First mentality Total Case Incident Rate for Hormel Foods * Safety First Reinforced at 2023 Safety Conference “Safety should be at the forefront of all team members’ minds, and this c
Slide 5: Bringing Innovation to Retail and Foodservice
Quarterly INNOVATION Supplement Bringing Innovation to Retail and Foodservice for the snack nuts, Mexican and pizza toppings categories The Planters® brand The Corn Nuts® brand The Herdez® brand The Hormel® Hormel Foods launches unveils three new flavor- introduces a bold new expands its pepperoni b
Slide 6: Making Progress on Our Six Strategic Priorities
Making Progress on Our Six Strategic Priorities Protect & grow Amplify scale in snacking Enhance growth of our ethnic & Food our core brands & entertaining Forward portfolios ▪ Hormel® Square TableTM entrees, Hormel® Black Label® ▪ We launched three new Planters® cashew items — ▪ The MegaMex Foods t
Slide 7: Key Messages
KEY Second Quarter MESSAGES Fiscal 2023 Key Messages • Second quarter results were in-line with our expectations. • We made progress during the quarter addressing inventory levels, improving our margin structure, stabilizing the Planters® snack nuts business and continuing the implementation of GoFW
Slide 8: Second Quarter Financial Metrics
Q2 FINANCIAL Second Quarter METRICS Fiscal 2023 Second Quarter Financial Metrics Diluted net earnings per share declined on lower volumes, unfavorable mix and higher costs Volume Net Sales Diluted Net EPS (6)% (4)% 1.16B $3.10B (17)% $0.48 1.10B $2.98B $0.40 $2.86B Q2 ‘22 Q2 ‘23 Q2 ‘22 Q2 ‘23 Q2 ‘22
Slide 9: Addressing Clear Priorities
ADDRESSING Second Quarter CLEAR PRIORITIES Fiscal 2023 Addressing Clear Priorities and demonstrating our team's ability to execute on its commitments Addressing Inventory Improving Margin Stabilizing the Planters® Implementing GoFWD Levels Structure Snack Nuts Business Operating Model • Regained sig
Slide 10: Continuing to Generate Consistent Cash Flow
CASH FLOW AND Second Quarter DEBT Fiscal 2023 Continuing to Generate Consistent Cash Flow to support our disciplined capital allocation strategy and commitments to stakeholders Operating Cash Flow Cash & Mkt Sec. Debt $1.13 (in billions) $1.13 $598M $3.3B $1.00 $0.97 $0.92 Remain Committed to Mainta
Slide 11: Retail
RETAIL Second Quarter SEGMENT RESULTS Fiscal 2023 Retail Profit declined due to lower net sales, unfavorable mix and higher operating costs Note: Volume and net sales declined partially due to lower turkey availability as a result of the ongoing impacts of HPAI in the company's vertically integrated
Slide 12: Growing Sales of Our Core and Ethnic Brands at Retail
LEADING RETAIL Second Quarter BRANDS Fiscal 2023 Growing Sales of Our Core and Ethnic Brands at Retail Remaining relevant to the changing needs of our customers and consumers +17% +43% +12% +76% +12% +61% +9% +88% +5% +91% VS. PY VS. 4YA VS. PY VS. 4YA VS. PY VS. 4YA VS. PY VS. 4YA VS. PY VS. 4YA +4
Slide 13: Foodservice
FOODSERVICE Second Quarter SEGMENT RESULTS Fiscal 2023 Foodservice Profit increased primarily due to improved mix across the portfolio Note: Volume and net sales declined partially due to lower turkey availability as a result of the ongoing impacts of HPAI in the company's vertically integrated turk
Slide 14: International
INTERNATIONAL Second Quarter SEGMENT RESULTS Fiscal 2023 International Profit declined significantly due to lower sales in China and lower turkey export sales Note: Volume and net sales declined partially due to lower turkey availability as a result of the ongoing impacts of HPAI in the company's ve
Slide 15: Second Quarter Additional Financial Disclosures
ADDITIONAL Second Quarter DISCLOSURES Fiscal 2023 Second Quarter Additional Financial Disclosures • For the second quarter, advertising spend was $35 million, compared to $39 million last year. The Company expects full-year advertising expense to increase compared to the prior year. • The effective
Slide 16: Fiscal 2023 Outlook Reaffirmed
FISCAL 2023 Quarterly OUTLOOK Supplement Fiscal 2023 Outlook Reaffirmed Expecting sales and earnings growth in the back half of the year Fiscal 2023 Outlook Commentary Guidance Comp. vs FY ‘22 • We anticipate continued growth from our Net Sales (billions) $12.6B - $12.9B +1% - 3% Foodservice segment
Slide 17: Additional Information
David Dahlstrom Additional Director of Investor Relations Information dwdahlstrom@hormel.com 17