Hormel Foods Corporation · NYSE:HRL
Hormel Foods — Q3 2023 Earnings Presentation
18 slides from Hormel Foods's earnings presentation, Aug 31, 2023
Slide 1: Third Quarter Fiscal 2023 Supplemental Information
SUPPLEMENTAL INFORMATION Third Quarter Fiscal 2023 THE PLANTERS® BRAND LAUNCHED A NEW LINEUP OF FLAVORED CASHEWS – ROSEMARY AND SEA SALT, CINNAMON BROWN SUGAR, AND DILL PICKLE
Slide 2: Forward-Looking Statements and Non-GAAP Information
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: We Continue to be Recognized by Reputable Organizations
COMPANY Quarterly RECOGNITION Supplement We Continue to be Recognized by Reputable Organizations Delivering on commitments to our team members and culture Ranked #14 on Best Companies to Sell For List Named One of America’s Best Companies to Work For “We’re proud that our sales team continues to “Th
Slide 4: Putting Safety First
EMPLOYEE Quarterly SAFETY Supplement Putting Safety First Remaining on track for one of our safest years ever Total Case Incident Rate for Hormel Foods * 10.0 9.0 8.0 7.0 6.0 5.0 4.0 "Thank you to all of our committed team members that uphold the 3.0 Safety-First culture. Taking time to celebrate sa
Slide 5: Introducing Innovation Across Our Portfolios
Quarterly INNOVATION Supplement Introducing Innovation Across Our Portfolios Supporting growth in the Retail, Foodservice and International segments Applegate Naturals™ SPAM® maple flavored The maker of the Co-branded Calbee SPAM® In celebration of the fall, Frittata Bites are the ushers in a unique
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 ▪ We grew sales in the marketplace for Hormel® chili, Hormel® ▪ Household penetration gains were seen within the snacking ▪ O
Slide 7: Third Quarter Key Messages
KEY Third Quarter MESSAGES Fiscal 2023 Third Quarter Key Messages • We delivered volume growth in each segment and made further progress on our key initiatives. • Adjusted diluted net earnings per share1 were in line with last year. • We remain focused on driving volume and earnings growth as well a
Slide 8: Third Quarter Financial Metrics
Q3 FINANCIAL Third Quarter METRICS Fiscal 2023 Third Quarter Financial Metrics Delivered volume growth in each segment, lower earnings from one-time impact Volume Net Sales Diluted Net EPS +2% (2)% 1.09B $3.03B (25)% $0.40 1.07B $2.96B $0.30 $2.86B Q3 ‘22 Q3 ‘23 Q3 ‘22 Q3 ‘23 Q3 ‘22 Q3 ‘23 • Volume
Slide 9: We Made Progress Addressing Near-term Challenges
ADDRESSING Third Quarter CLEAR PRIORITIES Fiscal 2023 We Made Progress Addressing Near-term Challenges Including inventory levels, margins and our snack nuts business Improving the Planters® Addressing Inventory Levels Expanding Margins Snack Nuts Business Finished Goods Inventory Adjusted Q3 Volume
Slide 10: Continuing to Generate Consistent Cash Flow
CASH FLOW Third Quarter AND DEBT Fiscal 2023 Continuing to Generate Consistent Cash Flow Supporting our disciplined capital allocation strategy and commitments to stakeholders Operating Cash Flow Cash & Mkt Sec. Debt $763M (5)% $729M $687M $3.3B $1.00 +70% $317M Committed to Maintaining $186M Invest
Slide 11: Retail
RETAIL Third Quarter SEGMENT RESULTS Fiscal 2023 Retail Pricing, bacon volume and MegaMex benefits helped mitigate unfavorable mix Segment Results Segment Highlights • Volume growth was driven by the value-added meats, Retail Segment Q3 bacon, snacking and entertaining, and emerging brands YoY Perce
Slide 12: Foodservice
FOODSERVICE Third Quarter SEGMENT RESULTS Fiscal 2023 Foodservice Higher volumes and improved mix drove increased segment profit Segment Results Segment Highlights • Volume for the quarter increased, driven by growth in Foodservice Segment Q3 our affiliated businesses and strong demand in many YoY P
Slide 13: International
INTERNATIONAL Third Quarter SEGMENT RESULTS Fiscal 2023 International Results impacted by lower commodity markets, softness in China Segment Results Segment Highlights Q3 • Net sales declined as a result of lower branded International Segment YoY Percent Change (%) export sales and lower results in
Slide 14: Third Quarter Additional Financial Disclosures
ADDITIONAL Third Quarter DISCLOSURES Fiscal 2023 Third Quarter Additional Financial Disclosures • Advertising spend was $43 million, compared to $37 million last year. • The effective tax rate was 21.7%, compared to 24.5% for the previous year. • Capital expenditures were $78 million, compared to $6
Slide 15: Fiscal 2023 Outlook
FISCAL 2023 Quarterly OUTLOOK Supplement Fiscal 2023 Outlook Lowering expectations due to International segment weakness, heightened competition at retail Fiscal 2023 Outlook Commentary Guidance • We remain focused on driving volume and earnings growth, as well as delivering on our commitments to im
Slide 16: Additional Information
David Dahlstrom Additional Director of Investor Relations Information dwdahlstrom@hormel.com 16
Slide 17: Non-GAAP Financial Measures
Quarterly APPENDIX Supplement NON-GAAP FINANCIAL MEASURES The non-GAAP adjusted financial measures of adjusted operating income, adjusted operating margin, adjusted earnings before income taxes, and adjusted diluted net earnings per share are presented to provide investors with additional informatio
Slide 18: Non-GAAP Financial Measures
Quarterly APPENDIX Supplement NON-GAAP FINANCIAL MEASURES The non-GAAP adjusted financial measures of adjusted operating income, adjusted operating margin, adjusted earnings before income taxes, and adjusted diluted net earnings per share are presented to provide investors with additional informatio