Hormel Foods Corporation · NYSE:HRL
Hormel Foods — Q1 2023 Earnings Presentation
14 slides from Hormel Foods's earnings presentation, Mar 2, 2023
Slide 1: First Quarter Fiscal 2023 Supplemental Information
SUPPLEMENTAL INFORMATION First Quarter Fiscal 2023 1 WE CONTINUED TO SUPPORT OUR LEADING BRANDS, INCLUDING THE HORMEL® BLACK LABEL® BRAND THROUGH ITS “SHARE PIECE THIS HOLIDAY” CAMPAIGN.
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: Named to Fortune's World's Most Admired Companies List
ESG CORPORATE Quarterly Quarterly UPDATE RECOGNITION Supplement Supplement Named to Fortune’s World’s Most Admired Companies List Recognized for our strong reputation within the industry “For 132 years, Hormel Foods has brought innovation, beloved brands and outstanding value to our consumers, custo
Slide 4: Demonstrating Our Safety-First Mentality
EMPLOYEE Quarterly SAFETY Supplement Demonstrating Our Safety-First Mentality On track for one of our safest years ever 10.0 Total Case Incident Rate* for Hormel Foods 9.0 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 **
Slide 5: 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 ▪ Volume and sales growth from Hormel® chili, ▪ The Planters® brand launched The Roast of Mr. ▪ Strong performance from MegaM
Slide 6: Key Messages
KEY First Quarter MESSAGES Fiscal 2023 Key Messages • First quarter results were below our expectations. • Demand from consumers and operators remained elevated in key categories. • We are taking immediate actions to combat inventory levels and warehousing costs, and are executing strategies to driv
Slide 7: First Quarter Financial Metrics
Q1 FINANCIAL First Quarter METRICS Fiscal 2023 First Quarter Financial Metrics Diluted net earnings per share declined on lower volumes, unfavorable mix and higher costs Volume Net Sales Diluted Net EPS -2% 1.20B -12% -9% $0.44 $3.04B 1.06B $2.97B $0.40 $2.86B Q1 ‘22 Q1 ‘23 Q1 ‘22 Q1 ‘23 Q1 ‘22 Q1 ‘
Slide 8: Retail
RETAIL First Quarter SEGMENT RESULTS Fiscal 2023 Retail Lower net sales, unfavorable mix and higher operating costs impacted results Note: Volume and net sales declined due to lower fresh pork availability resulting from the Company's new pork supply agreement and lower turkey volumes due to the ong
Slide 9: Foodservice
FOODSERVICE First Quarter SEGMENT RESULTS Fiscal 2023 Foodservice Improved mix drove profit growth Note: Volume and net sales declined due to lower fresh pork availability resulting from the Company's new pork supply agreement and lower turkey volumes due to the ongoing impacts of HPAI in the Compan
Slide 10: International
INTERNATIONAL First Quarter SEGMENT RESULTS Fiscal 2023 International Strong Philippines joint venture results offset by lower exports, results in China Note: Volume and net sales declined due to lower fresh pork availability resulting from the Company's new pork supply agreement and lower turkey vo
Slide 11: Minority Investment in Garudafood
GARUDAFOOD First Quarter ACQUISITION Fiscal 2023 Minority Investment in Garudafood Supporting the global execution of our snacking and entertaining strategic priority “Garudafood is a market leader, with strong and reputable brands, local expertise and a best-in-class distribution network. We have b
Slide 12: First Quarter Additional Financial Disclosures
ADDITIONAL First Quarter DISCLOSURES Fiscal 2023 First Quarter Additional Financial Disclosures • Advertising spend was $47 million, comparable with last year. • The effective tax rate was 22.6%, compared to 22.4% for the previous year. • Capital expenditures were $37 million, compared to $50 millio
Slide 13: Fiscal 2023 Outlook
FISCAL 2023 Quarterly OUTLOOK Supplement Fiscal 2023 Outlook Expecting net sales growth from each segment in fiscal 2023 Fiscal 2023 Outlook Commentary Guidance Comp. vs FY ‘22 • We remain well positioned in the retail, foodservice and Net Sales (billions) $12.6B - $12.9B +1% - 3% international chan
Slide 14: Additional Information
David Dahlstrom Additional Director of Investor Relations Information dwdahlstrom@hormel.com 14