Hormel Foods Corporation · NYSE:HRL
Hormel Foods — Q3 2024 Earnings Presentation
21 slides from Hormel Foods's earnings presentation, Sep 4, 2024
Slide 1: Third Quarter Fiscal 2024 Supplemental Information
Third Quarter Fiscal 2024 SUPPLEMENTAL INFORMATION 1 In June, Applegate® Introduced the First Nationally Available Organic Pepperoni
Slide 2: Forward-Looking Statements 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: Hormel Releases 18th Global Impact Report
GLOBAL Hormel Releases 18th Global Impact Report Quarterly IMPACT Supplement REPORT Showcases meaningful advancement of its environmental & social impact goals - 2023 Highlights - 3
Slide 4: Innovating in Key Categories
Quarterly Innovating in Key Categories INNOVATION Supplement Capturing new consumers through branded innovation Recent Branded Innovation - Available Now Applegate® Organic Uncured House of Tsang® General Wholly® Guacamole Hormel® Golden Turkey Pepperoni and Organic Tso’s Chicken, Beef Teriyaki, Ext
Slide 5: Third Quarter Key Messages
BUSINESS Third Quarter HIGHLIGHTS Fiscal 2024 Third Quarter Key Messages ▪ We delivered solid third-quarter results with earnings above expectations. ▪ We made further progress on our strategic initiatives, including delivering growing benefits from our transform and modernize initiative. ▪ We are n
Slide 6: Executing Our Business Strategy
Executing Our Business Strategy BUSINESS HIGHLIGHTS Third Quarter Fiscal 2024 Supporting the strategic priorities that drive our results Drive Focus and Growth in Expand Leadership in Aggressively Develop Execute our Enterprise our Retail Business Foodservice our Global Presence Entertaining & Snack
Slide 7: Driving Company-wide Efficiencies
BUSINESS Third Quarter Driving Company-wide Efficiencies HIGHLIGHTS Fiscal 2024 Further progress on our transform & modernize initiative Plan Make Continued to generate improved operational Continued to implement our new end-to-end results in our manufacturing facilities, planning process and improv
Slide 8: Brand Spotlight
Brand Spotlight FY ‘24 Q3 8
Slide 9: SPAM Korean BBQ Flavor Launched in Q3
SPAM® Korean BBQ Flavor Launched in Q3, SPAM®’s 12th Permanent Variety The Makers of the SPAM® Brand Unwrap Showcasing the Joy of A SPAM® Musubi, Limited-Edition SPAM® Musubi Day Merch A New SPAM® Brand Campaign Went Collection Benefiting Maui Live In July Across Japan 9 9
Slide 10: Third Quarter Financial Metrics
Q3 FINANCIAL Third Quarter Third Quarter Financial Metrics METRICS Fiscal 2024 Delivering better-than-expected earnings Net Diluted Adjusted Volume (lbs) Sales Net EPS Diluted Net EPS1 (7)% (2)% 7% (8)% 1.09B $3.0B $2.9B $0.40 1.02B $0.32 $0.37 $0.30 $2.86 B Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3 2023 2024 2023 20
Slide 11: Retail
RETAIL Third Quarter SEGMENT RESULTS Fiscal 2024 Retail Multiple key brands outperform marketplace Segment SegmentHighlights Highlights ▪ Volume and net sales declined, primarily due to significant year-over-year Retail Q3 volume and pricing declines for whole bird turkeys, lower sales of Planters®
Slide 12: Foodservice
FOODSERVICE Third Quarter SEGMENT RESULTS Fiscal 2024 Foodservice Top-line growth despite industry softness Segment Highlights ▪ Volume and net sales growth were driven primarily by strong performance Foodservice across the turkey, premium prepared proteins, bacon and pepperoni Q3 Segment YoY Percen
Slide 13: International
INTERNATIONAL Third Quarter SEGMENT RESULTS Fiscal 2024 International Recovery on track with significant profitability improvements Segment Highlights ▪ Robust volume and net sales growth for SPAM® luncheon meat, International refrigerated foodservice exports, and Skippy® peanut butter Q3 Segment Yo
Slide 14: Generating Strong Operating Cash Flow
CASH FLOW Third Quarter Generating Strong Operating Cash Flow AND DEBT Fiscal 2024 Supporting our disciplined capital allocation strategy and shareholder commitments Operating Cash Flow Cash & Mkt Sec. Debt +18% $858M $562M $2.9B $729M Committed to Maintaining Investment- Q3 – YTD 2023 Q3 – YTD 2024
Slide 15: Returning Cash to Stockholders
DIVIDEND Third Quarter Returning Cash to Stockholders PAYMENT Fiscal 2024 Consistently growing dividends for our investors $155M 11% 10-yr CAGR $1.13 Returned to Stockholders in Q3 $1.10 $1.04 $0.84 $0.93 $0.98 58 Consecutive $0.75 $0.68 Years of Dividend Increases $0.58 $0.50 $0.40 96 Years of Cons
Slide 16: Selected Financial Details – Q3 and FY 2024
ADDITIONAL Quarterly DISCLOSURES Supplement Selected Financial Details – Q3 and FY 2024 ▪ Advertising investments were $40 million, compared to $43 million last year. The decline is partially due to lower support for the Planters® brand due to production disruptions at the Suffolk, Virginia, facilit
Slide 17: Fiscal 2024 Outlook
FISCAL 2024 Quarterly Fiscal 2024 Outlook OUTLOOK Supplement Updating full-year earnings guidance Fiscal 2024 Outlook Outlook Commentary For fiscal year 2024, the Company is: Current Previous ▪ Updating its net sales range expectations to $11.8 billion Net Sales (billions) $11.8 – $12.1 $12.2 – $12.
Slide 18: Additional Information
Jess Blomberg Additional Director of Investor Relations Information JCBlomberg@hormel.com 18
Slide 19: Non-GAAP Measures
Quarterly APPENDIX Supplement 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 bas
Slide 20: Reconciliation of GAAP to non-GAAP measures
Quarterly APPENDIX Supplement The tables below shows the calculations to reconcile from the GAAP measures to the non-GAAP measures. (1) Comprised primarily of asset write-offs related to portfolio optimization and project-based external consulting fees (2) Comprised primarily of project-based extern
Slide 21: Forward-looking GAAP to Non-GAAP Measures
Quarterly APPENDIX Supplement Forward-looking GAAP to Non-GAAP Measures The table below shows the calculation to reconcile from the estimated fiscal 2024 GAAP measure to the estimated non-GAAP adjusted measure. 21