Latest news with #JimSnee
Yahoo
30-05-2025
- Business
- Yahoo
HRL Q1 Earnings Call: Revenue Misses, Guidance Lowered Amid Supply Chain and Consumer Headwinds
Packaged foods company Hormel (NYSE:HRL) fell short of the market's revenue expectations in Q1 CY2025, with sales flat year on year at $2.90 billion. Its non-GAAP profit of $0.35 per share was in line with analysts' consensus estimates. Is now the time to buy HRL? Find out in our full research report (it's free). Revenue: $2.90 billion (flat year on year) Adjusted EPS: $0.35 vs analyst estimates of $0.34 (in line) Adjusted Operating Income: $264.9 million vs analyst estimates of $257.3 million (9.1% margin, 2.9% beat) Management lowered its full-year Adjusted EPS guidance to $1.63 at the midpoint, a 1.2% decrease Operating Margin: 8.6%, in line with the same quarter last year Sales Volumes fell 5.7% year on year (-3.6% in the same quarter last year) Market Capitalization: $16.52 billion Hormel Foods' first quarter performance reflected stable but pressured operating conditions across its portfolio. Management pointed to solid organic growth in core brands such as Applegate and Jennie-O turkey, as well as strong consumption trends in Mexican foods, including Herdez salsa and guacamole. CEO Jim Snee highlighted the company's focus on providing value through quality, innovation, and convenience. Strategic moves—including the launch of new convenience breakfast items and expanded product lines—were cited as drivers of market relevance. However, management acknowledged softness in volumes, impacted by promotional timing, contract manufacturing, and ongoing consumer sensitivity to inflation, which has led to shifts in purchasing behavior. Looking ahead, Hormel Foods' leadership expects a meaningful ramp in performance in the second half of the year, supported by increased advertising behind flagship brands like Planters, new product innovation, and benefits from its Transform and Modernize (T&M) initiative. Management stressed the importance of Turkey and Planters as key growth drivers, while also cautioning about headwinds from tariffs, higher commodity costs, and a strained consumer environment. CFO Jacinth Smiley noted, 'We are reaffirming our expectation for incremental benefits from the T&M initiative,' with anticipated margin improvement and operational efficiencies. Despite narrowing its full-year outlook, the company believes its diversified protein-centric portfolio and ongoing supply chain optimization efforts position it to deliver bottom-line growth. Hormel's management attributed the quarter's performance to continued product innovation, selective brand investment, and operational changes in its supply chain. Key leadership transitions and ongoing efforts to adapt to consumer trends shaped results. Applegate and Convenience Growth: The Applegate brand outperformed the edible category, fueled by new product launches such as lightly-breaded chicken and the Convenience Breakfast platform. Management emphasized that ongoing innovation and product differentiation are reinforcing brand strength and household penetration. Jennie-O Turkey Performance: Jennie-O lean ground turkey continued to show strong consumption gains, benefiting from consumer demand for lean, high-protein foods. Hormel's strategic transformation of this business over recent years has enabled it to capture shifting preferences and maintain category leadership. Mexican Foods Momentum: The company's Mexican foods portfolio, including Herdez salsa and refrigerated guacamole under the Herdez and Wholly brands, delivered double-digit consumption growth. Expansion into new meal solutions, like refrigerated entrees featuring el pastor, reflects a focus on authentic, convenient offerings. Supply Chain Initiatives: Hormel closed one of its three dry sausage facilities in California and opened a new distribution center in the Memphis metro area. These actions are part of its Transform and Modernize initiative to improve efficiency, customer service, and operational excellence. Leadership Changes: The company appointed Dr. Kevin Myers to lead supply chain operations, with a focus on transformation and operational efficiency. Additionally, Scott Aakre's upcoming retirement as Chief Marketing Officer and the appointment of Jeff Baker as his successor were highlighted as part of a broader effort to ensure leadership continuity and brand evolution. Hormel expects second-half growth to be driven by increased marketing investment, execution on key brands, and operational efficiencies despite ongoing macro headwinds. Planters and Turkey as Growth Engines: Management expects Planters' sales to recover fully in the back half, aided by stepped-up advertising, in-store promotions, and product innovation targeting younger consumers. The Turkey portfolio, especially value-added offerings like Jennie-O, is positioned for incremental growth as lean protein demand rises and competitors exit the market. T&M Initiative Savings: The Transform and Modernize initiative is expected to deliver $100 million to $150 million in incremental savings, supporting margin expansion and offsetting commodity inflation. Specific projects include facility consolidation, improved logistical networks, and end-to-end production planning using data analytics. Consumer and Tariff Headwinds: Management acknowledged that consumer sentiment remains strained due to inflation, leading to trading down and increased focus on value. Tariffs and higher pork, beef, and nut input costs are expected to pressure margins, although measured pricing and efficiency gains are intended to partially offset these impacts. In the coming quarters, the StockStory team will monitor (1) the pace of Planters' distribution and sales recovery, (2) margin improvement and realized savings from the Transform and Modernize initiative, and (3) continued growth in flagship protein brands like Jennie-O and Applegate. We will also track any material changes in consumer demand, commodity costs, and tariff impacts as additional indicators of execution against strategic goals. Hormel Foods currently trades at a forward P/E ratio of 17.6×. In the wake of earnings, is it a buy or sell? Find out in our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
29-05-2025
- Business
- Yahoo
Hormel Foods reports in-line Q2 earnings, narrows full-year outlook
-- Hormel Foods Corporation (NYSE:HRL) on Thursday reported second-quarter earnings that met analyst expectations, while revenue fell slightly short of estimates. Hormel reported adjusted earnings per share of $0.35 for the second quarter, in line with analyst estimates. Revenue came in at $2.9 billion, just below the consensus forecast of $2.92 billion. The company saw organic net sales growth of 1% in the quarter. Hormel's Retail segment profit increased 4% despite flat net sales, driven by operational efficiencies. The Foodservice segment posted 4% organic net sales growth, though segment profit declined 6% due to margin pressures. "We achieved solid organic top-line growth and delivered second quarter results in line with our expectations," said Jim Snee, president and CEO of Hormel Foods. "We anticipate strong second half growth led by our range of consumer-focused, protein-centric products." For fiscal year 2025, Hormel narrowed its organic net sales growth outlook to 2-3%, compared to its previous guidance of 1-4% growth. The company now expects adjusted earnings per share of $1.58 to $1.68, tightening the range from its prior outlook of $1.58 to $1.72. Hormel highlighted strength in its Applegate brand, which outpaced category growth, as well as notable retail sales gains for Jennie-O ground turkey products. The company's Mexican foods portfolio also delivered strong year-over-year growth in the quarter. Related articles Hormel Foods reports in-line Q2 earnings, narrows full-year outlook Chip stocks rise as Nvidia eases China demand concerns Trump's 'liberation day' tariffs blocked by US trade court
Yahoo
29-05-2025
- Business
- Yahoo
HORMEL FOODS REPORTS SECOND QUARTER FISCAL 2025 RESULTS
Company Achieved Solid Top-Line Growth; Positioned for Strong Second Half Narrows Fiscal 2025 Net Sales and Earnings Outlook AUSTIN, Minn., May 29, 2025 /PRNewswire/ -- Hormel Foods Corporation (NYSE: HRL), a Fortune 500 global branded food company, today reported results for the second quarter of fiscal 2025, which ended April 27, 2025. All comparisons are to the comparable period of fiscal 2024, unless otherwise noted. EXECUTIVE SUMMARY — FIRST HALF Net sales of $5.89 billion; organic net sales1 up 1% Operating income of $477 million; adjusted operating income1 of $519 million Operating margin of 8.1%; adjusted operating margin1 of 8.8% Earnings before income taxes of $449 million; adjusted earnings before income taxes1 of $491 million Effective tax rate of 21.9% Diluted earnings per share of $0.64; adjusted diluted earnings per share1 of $0.70 Cash flow from operations of $366 million EXECUTIVE SUMMARY — SECOND QUARTER Net sales of $2.90 billion; organic net sales1 up 1% Operating income of $248 million; adjusted operating income1 of $265 million Operating margin of 8.6%; adjusted operating margin1 of 9.1% Earnings before income taxes of $230 million; adjusted earnings before income taxes1 of $247 million Effective tax rate of 22.0% Diluted earnings per share of $0.33; adjusted diluted earnings per share1 of $0.35 Cash flow from operations of $56 million EXECUTIVE COMMENTARY "We achieved solid organic top-line growth and delivered second quarter results in line with our expectations," said Jim Snee, president and chief executive officer. "We anticipate strong second half growth led by our range of consumer-focused, protein-centric products. Notably, we expect meaningful contributions from our turkey portfolio, continued momentum in the Planters® brand, growth from our leading positions in the marketplace and ongoing benefits from our Transform and Modernize (T&M) initiative. In the face of a dynamic environment, we remain confident in our portfolio, our strategy and our team." FISCAL 2025 OUTLOOK For fiscal year 2025, the Company is: Narrowing its organic net sales1 growth outlook to 2% to 3% Narrowing its diluted earnings per share expectations to $1.49 to $1.59 Narrowing its adjusted diluted earnings per share1 expectations to $1.58 to $1.68 Reaffirming its outlook of year over year T&M benefits in the range of $100 million to $150 million Fiscal 2025 Outlook Revised Previous Net Sales $12.0 - $12.2 billion $11.9 - $12.2 billion Diluted Earnings per Share $1.49 - $1.59 $1.49 - $1.63 Adj. Diluted Earnings per Share1 $1.58 - $1.68 $1.58 - $1.72 PROGRESS EXECUTING STRATEGIC PRIORITIES – Q2 HIGHLIGHTS Drive focus and growth in our Retail business The Applegate® brand performed well in the second quarter, as consumption growth outpaced the total edible category2 while also gaining households.3 The team's commitment to delivering high-quality products in convenient formats is evident in previous launches like frozen breakfast sandwiches and the newly launched lightly breaded chicken. The Jennie-O® ground turkey business experienced notable retail sales growth relative to last year4 and remains well-positioned to grow in today's environment. As demand for lean, high-protein offerings continues to rise, we believe Jennie-O® lean ground turkey will continue to be a preferred choice of consumers and retain its strong category leadership position. Our Mexican foods portfolio delivered strong year over year growth in the second quarter, driven by double-digit consumption growth in our combined Wholly® and Herdez® refrigerated guacamole products and continued success in Herdez® salsa.4 To further enhance our offerings, the team extended our Herdez® refrigerated entrees line with the bold and authentic flavor of al pastor, an exciting, globally-inspired meal solution. Expand leadership in Foodservice Our Foodservice team again highlighted its innovative leadership during the quarter, bringing on-trend solutions for operators at the International Pizza Expo. The team showcased the new Fontanini® hot honey sliced sausage, providing operators with a trusted offering to deliver the hot honey flavor that consumers are craving. Our Flash 180™ chicken is designed to streamline back-of-the-house operations. During the quarter, it continued to be a game-changing solution for operators, simplifying preparation for the most in-demand menu item — the chicken sandwich.5 Aggressively develop our global presence Our in-country China business performed well in the quarter, driven by customer and distribution expansion, alongside the introduction of innovative product offerings. The launch of Hormel® barbecue bites, for example, demonstrates our team's deep understanding of consumer trends and their ability to create meaningful innovations that address market demands. Execute our enterprise entertaining & snacking vision The Planters® brand continued to see sequential improvement in both distribution and overall retail sales4 in the quarter. This momentum reflects the brand's strength in the marketplace and growth potential. We introduced innovative snacking experiences this quarter by launching Corn Nuts® partially popped corn kernels – blending the signature crunch of Corn Nuts® with the airy texture of popcorn in three flavor-packed varieties. We also expanded our Hormel Gatherings® line with a bold and spicy tray, meeting consumer demand for bold flavors and convenient, high-quality entertaining options. Continue to transform & modernize our Company We successfully began operations at our new distribution center in the Memphis, Tennessee, metro-area. This strategically located facility allows us to better service our customers with greater speed, meeting the growing demand and expectations for timely deliveries. As part of our continuous review of assets and cost structure, we announced the closure of a California dry sausage production facility, and the movement of related production to other internal facilities. We believe this network optimization project will allow us to continue to create high-quality products for consumers while controlling costs and best serving our customers. SEGMENT HIGHLIGHTS – SECOND QUARTER Retail Volume down 7% Net sales flat Segment profit up 4% Net sales in the second quarter of fiscal 2025 were comparable to the prior year, as high-single-digit growth from both our Mexican portfolio and value-added turkey products was primarily offset by the impacts of promotional timing. Two-thirds of the Retail segment's volume decline in the quarter was due to lower commodity shipments and contract manufacturing. Flagship and rising brands continued to hold leadership positions in their respective categories in the quarter. Notably, the Planters® brand exceeded volume and net sales expectations for the second quarter, while demand for Jennie-O® lean ground turkey remained strong. Retail segment profit increased in the second quarter of fiscal 2025, primarily due to benefits from operational efficiencies as part of the T&M initiative and favorable selling, general and administrative expenses. Foodservice Volume down 7%; organic volume1 down 1% Net sales flat; organic net sales1 up 4% Segment profit down 6% Organic net sales1 growth was broad-based in the Foodservice segment in the second quarter of fiscal 2025, with notable contributions from the customized solutions business and the turkey portfolio. Branded products such as Jennie-O®, Hormel® Fire Braised™ meats and Café H® globally inspired proteins delivered another quarter of strong volume and net sales growth. Several categories achieved volume growth in the second quarter of fiscal 2025, despite industry softness. Volume growth in these categories was more than offset by the impact of reduced commodity shipments. Segment profit decreased for the second quarter of fiscal 2025 as higher net sales were more than offset by margin pressures, primarily in non-core businesses. The Foodservice segment continued to benefit from an extensive range of solutions-based products, its direct-selling organization and a diverse channel presence during the second quarter. International Volume up 9% Net sales up 7% Segment profit down 21% Double-digit volume and net sales growth in exports, and robust growth in the China market drove top-line performance in the International segment in the second quarter of fiscal 2025. Strong shipments within the refrigerated portfolio, primarily of bacon and pepperoni, made the largest contribution to export growth. Our in-country China business continued to benefit from top-line momentum in both the retail and foodservice channels, supported by innovative product launches. International segment profit decreased in the second quarter of fiscal 2025 as meaningful net sales growth was primarily offset by a temporary shift in export customer mix and softness in Brazil. SELECTED FINANCIAL DETAILS – SECOND QUARTER FISCAL 2025 Advertising investments were $36 million, compared to $44 million last year. The decline was partially due to year over year timing impacts for investments in the Planters® brand. In the second half of fiscal 2025, the Company expects advertising investments to significantly increase compared to the prior year. The effective tax rate was 22.0%, compared to 22.5% last year, primarily due to higher federal deductions in the current year. The effective tax rate for fiscal 2025 is expected to be between 22.0% and 23.0%. Capital expenditures were $75 million, compared to $60 million last year. The largest projects in the quarter were related to capacity expansions for Hormel® Fire Braised™ products, Applegate® products, and investments in data and technology. The Company's target for capital expenditures in fiscal 2025 remains $275 million to $300 million. Depreciation and amortization expense was $64 million, comparable to last year. The full-year expectation for fiscal 2025 remains unchanged at approximately $265 million. The Company returned approximately $159 million to stockholders during the quarter through dividends. PRESENTATIONA conference call will be webcast at 8:00 a.m. CT on May 29, 2025. Access is available at by clicking on "Investors." The call will also be available via telephone by dialing 800-549-8228 (toll-free) or 646-564-2877 (international) and providing the conference ID 97177. An audio replay is available at The webcast replay will be available at noon CT, May 29, 2025, and will remain on the website for one year. ABOUT HORMEL FOODS - Inspired People. Inspired Food.™Hormel Foods Corporation, based in Austin, Minnesota, is a global branded food company with approximately $12 billion in annual revenue across more than 80 countries worldwide. Its brands include Planters®, Skippy®, SPAM®, Hormel® Natural Choice®, Applegate®, Justin's®, Wholly®, Hormel® Black Label®, Columbus®, Jennie-O® and more than 30 other beloved brands. The company is a member of the S&P 500 Index and the S&P 500 Dividend Aristocrats, was named one of the best companies to work for by U.S. News & World Report, one of America's most responsible companies by Newsweek, recognized by TIME magazine as one of the World's Best Companies and has received numerous other awards and accolades for its corporate responsibility and community service efforts. The company lives by its purpose statement — Inspired People. Inspired Food.™ — to bring some of the world's most trusted and iconic brands to tables across the globe. For more information, visit FORWARD-LOOKING STATEMENTSThis press release 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 of beliefs, future plans, strategies, or anticipated events and similar expressions concerning matters that are not historical facts. Words or phrases such as "should result," "believe," "intend," "plan," "are expected to," "targeted," "will continue," "will approximate," "is anticipated," "estimate," "project," or similar expressions are intended to identify forward-looking statements. Such statements are subject to certain risks and uncertainties that could cause actual results to differ materially from historical earnings and those anticipated or projected, which factors include, but are not limited to, risks related to the deterioration of economic conditions; risks associated with acquisitions, joint ventures, equity investments, and divestitures; risks and uncertainties associated with intangible assets, including any future goodwill or intangible assets impairment charges; the risk of disruption of operations, including at owned facilities, co-manufacturers, suppliers, logistics providers, customers, or other third-party service providers; the risk that the Company may fail to realize anticipated cost savings or operating profit improvements associated with strategic initiatives, including the Transform and Modernize initiative; risk of loss of a significant contract or unfavorable changes in the Company's relationships with significant customers; risk of the Company's inability to protect information technology (IT) systems against, or effectively respond to, cyber attacks, security breaches or other IT interruptions, against or involving the Company's IT systems or those of others with whom it does business; risk of the Company's failure to timely replace legacy technologies; deterioration of labor relations or labor availability or increases to labor costs; general risks of the food industry, including those related to food safety, such as costs resulting from food contamination, product recalls, the remediation of food safety events at its facilities, including the production disruption at the Suffolk, Virginia, facility, food-specific laws or regulations, or outbreaks of disease among livestock and poultry flocks; fluctuations in commodity prices and availability of raw materials and other inputs; fluctuations in market demand for the Company's products, including due to private label products and lower-priced alternatives; risks related to the Company's ability to respond to changing consumer preferences, diets and eating patterns, and the success of innovation and marketing investments; damage to the Company's reputation or brand image; risks associated with climate change, or legal, regulatory, or market measures to address climate change; risks of litigation; potential sanctions and compliance costs arising from government regulation; compliance with stringent environmental regulations and potential environmental litigation; and risks arising from the fact that the Company operates globally, with product manufactured and sold in foreign markets and a variety of inputs sourced from around the world, these risks including geopolitical risk, exchange rate risk, legal, tax, and regulatory risk, and risks associated with trade policies, export and import controls, and tariffs. Please refer to the cautionary statements regarding "Risk Factors" and "Forward-Looking Statements" that appear in our most recent Annual Report on Form 10-K and Quarterly reports on Form 10-Q, which can be accessed at in the "Investors" section, for additional information. In making these statements, the Company is not undertaking, and specifically declines to undertake, any obligation to address or update each or any factor in future filings or communications regarding the Company's business or results, and is not undertaking to address how any of these factors may have caused changes to discussions or information contained in previous filings or communications. Though the Company has attempted to list comprehensively these important cautionary risk factors, the Company wishes to caution investors and others that other factors may in the future prove to be important in affecting the Company's business or results of operations. The Company cautions readers not to place undue reliance on forward-looking statements, which represent current views as of the date made. Note: Due to rounding, numbers presented throughout this press release may not sum precisely to the totals provided, and percentages may not precisely reflect the absolute figures. END NOTES 1 Non-GAAP measure. Organic volume and organic net sales exclude the impact of the sale of Hormel Health Labs, LLC in the Foodservice segment in the fourth quarter of fiscal 2024. Adjusted performance measures exclude non-recurring impacts of the Company's Transform and Modernize initiative, loss on sale of business, and legal matters. See Appendix: Non-GAAP Measures to this press release for more information. 2 Data aggregated from NielsenIQ Discover, Total US xAOC, 13 weeks ended 4/26/2025, SPINS Satori, Total US Natural, 12 weeks ended 4/20/2025 3 Circana HH Panel, Total US All Outlets, 52 weeks ended 4/20/2025 4 Circana Total US MULO+; 13 weeks ended 4/20/2025 5 Technomic Ignite Menu data Q1 2025 HORMEL FOODS CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS In thousands, except per share amounts UnauditedQuarter EndedSix Months Ended April 27, 2025April 28, 2024April 27, 2025April 28, 2024 Net Sales$ 2,898,810$ 2,887,352$ 5,887,623$ 5,884,263 Cost of Products Sold2,414,3772,383,5464,927,9574,871,723 Gross Profit484,433503,806959,6661,012,539 Selling, General, and Administrative251,432266,668514,445507,054 Equity in Earnings of Affiliates15,35015,18231,46131,273 Operating Income248,352252,320476,682536,758 Interest and Investment Income1,65313,49710,85732,932 Interest Expense19,51621,67938,97740,005 Earnings Before Income Taxes230,489244,139448,561529,685 Provision for Income Taxes50,74754,93198,289121,749 Effective Tax Rate22.0 %22.5 %21.9 %23.0 % Net Earnings179,742189,207350,272407,936 Less: Net Earnings (Loss) Attributable to Noncontrolling Interest(275)(70)(320)(204) Net Earnings Attributable to Hormel Foods Corporation$ 180,017$ 189,278$ 350,592$ 408,140Net Earnings Per Share Basic$ 0.33$ 0.35$ 0.64$ 0.75 Diluted$ 0.33$ 0.34$ 0.64$ 0.74Weighted-average Shares Outstanding Basic550,277547,868549,868547,444 Diluted550,611548,685550,233548,303Dividends Declared Per Share$ 0.2900$ 0.2825$ 0.5800$ 0.5650 HORMEL FOODS CORPORATION CONSOLIDATED CONDENSED STATEMENTS OF FINANCIAL POSITION In thousands UnauditedApril 27, 2025October 27, 2024 Assets Cash and Cash Equivalents$ 669,688$ 741,881 Short-term Marketable Securities29,29324,742 Accounts Receivable743,981817,908 Inventories1,729,2371,576,300 Taxes Receivable50,52950,380 Prepaid Expenses and Other Current Assets59,34135,265 Total Current Assets3,282,0693,246,476Goodwill4,920,6354,923,487 Intangible Assets1,724,8101,732,705 Pension Assets196,736205,964 Investments in Affiliates682,810719,481 Other Assets422,903411,889 Net Property, Plant, and Equipment2,191,8432,194,728 Total Assets$ 13,421,808$ 13,434,729 Liabilities and Shareholders' Investment Accounts Payable & Accrued Expenses$ 770,245$ 801,984 Accrued Marketing Expenses119,092108,156 Employee-related Expenses239,392283,490 Interest and Dividends Payable180,561175,941 Taxes Payable11,12521,916 Current Maturities of Long-term Debt7,2497,813 Total Current Liabilities1,327,6641,399,299Long-term Debt Less Current Maturities2,850,6972,850,944 Pension and Post-retirement Benefits384,678379,891 Deferred Income Taxes594,504589,366 Other Long-term Liabilities222,324211,219 Accumulated Other Comprehensive Loss(298,601)(263,331) Other Shareholders' Investment8,340,5428,267,342 Total Liabilities and Shareholders' Investment$ 13,421,808$ 13,434,729 HORMEL FOODS CORPORATION CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS In thousands UnauditedQuarter EndedSix Months Ended April 27, 2025April 28, 2024April 27, 2025April 28, 2024 Operating Activities Net Earnings$ 179,742$ 189,207$ 350,272$ 407,936 Depreciation and Amortization63,96363,630129,835127,696 Decrease (Increase) in Working Capital(203,831)(36,790)(159,167)78,611 Other16,56720,10044,70625,883 Net Cash Provided by (Used in) Operating Activities56,441236,147365,646640,127Investing Activities Net Sale (Purchase) of Securities(3,349)(4,535)(4,735)(5,499) Proceeds from Sale of Business(504)—13,139— Purchases of Property, Plant, and Equipment(75,083)(59,965)(147,250)(107,175) Proceeds from (Purchases of) Affiliates and Other Investments(1,305)(450)(2,699)(450) Other1,9053882,877408 Net Cash Provided by (Used in) Investing Activities(78,336)(64,562)(138,668)(112,716)Financing Activities Proceeds from Long-term Debt—497,765—497,765 Repayments of Long-term Debt and Finance Leases(2,043)(2,270)(4,245)(4,520) Dividends Paid on Common Stock(159,244)(154,741)(314,225)(305,035) Other11,72113,68325,84132,862 Net Cash Provided by (Used in) Financing Activities(149,566)354,437(292,629)221,072 Effect of Exchange Rate Changes on Cash752(2,865)(6,542)1,353 Increase (Decrease) in Cash and Cash Equivalents(170,710)523,156(72,193)749,836 Cash and Cash Equivalents at Beginning of Year840,398963,212741,881736,532 Cash and Cash Equivalents at End of Period$ 669,688$ 1,486,368$ 669,688$ 1,486,368 HORMEL FOODS CORPORATION SEGMENT DATA In thousands UnauditedQuarter EndedSix Months Ended April 27, 2025April 28, 2024% ChangeApril 27, 2025April 28, 2024% Change Volume (lbs.) Retail677,277724,994(6.6)1,414,1621,490,406(5.1) Foodservice242,595261,832(7.3)486,449517,839(6.1) International79,51873,0178.9154,087153,1530.6 Total Volume (lbs.)999,3901,059,843(5.7)2,054,6982,161,397(4.9)Net Sales Retail$ 1,783,835$ 1,788,556(0.3)$ 3,673,968$ 3,699,827(0.7) Foodservice936,442932,0030.51,866,6271,845,0901.2 International178,533166,7947.0347,028339,3462.3 Total Net Sales$ 2,898,810$ 2,887,3520.4$ 5,887,623$ 5,884,2630.1Segment Profit Retail$ 137,135$ 132,3993.6$ 256,281$ 281,904(9.1) Foodservice140,633149,302(5.8)279,459299,466(6.7) International18,40723,202(20.7)39,25243,234(9.2) Total Segment Profit296,175304,903(2.9)574,992624,603(7.9) Net Unallocated Expense65,41160,6947.8126,11194,71433.1 Noncontrolling Interest(275)(70)(291.9)(320)(204)(56.7) Earnings Before Income Taxes$ 230,489$ 244,139(5.6)$ 448,561$ 529,685(15.3) APPENDIX: NON-GAAP MEASURESThis press release 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 basis. These measures may also be used when making decisions regarding resource allocation and in determining incentive compensation. The Company believes these non-GAAP measures provide useful information to investors because they aid analysis and understanding of the Company's results and business trends relative to past performance and the Company's competitors. Non-GAAP measures are not intended to be a substitute for GAAP measures in analyzing financial performance. These non-GAAP measures are not calculated in accordance with GAAP and may be different from non-GAAP measures used by other companies. Transform and Modernize (T&M) InitiativeIn the fourth quarter of fiscal 2023, the Company announced a multi-year T&M initiative. In presenting non-GAAP measures, the Company adjusts for (i.e., excludes) expenses for this initiative that are non-recurring, which are primarily project-based external consulting fees and expenses related to supply chain and portfolio optimization (e.g., asset write-offs, severance, or relocation-related costs). The Company believes that non-recurring costs associated with the T&M initiative are not reflective of the Company's ongoing operating cost structure; therefore, the Company is excluding these discrete costs. The Company does not adjust for (i.e., does not exclude) certain costs related to the T&M initiative that are expected to continue after the project ends, such as software license fees and internal employee expenses, because those costs are considered ongoing in nature as a component of normal operating costs. The Company also does not adjust for savings realized through the T&M initiative as these are considered ongoing in nature and reflective of expected future operating performance. Loss on Sale of BusinessIn the first quarter of fiscal 2025, the Company sold Mountain Prairie, LLC, a non-core sow operation, resulting in a loss on the sale. The Company believes the one-time detriment from the sale, including transaction costs, is not reflective of the Company's ongoing operating cost structure, is not indicative of the Company's core operating performance, and is not meaningful when comparing the Company's operating performance against that of prior periods. Thus, the Company has adjusted for (i.e. excluded) the loss. Legal MattersFrom time to time, the Company incurs expenses related to discrete legal matters that the Company believes are not indicative of the Company's core operating performance, do not reflect expected future operating costs, and are not meaningful when comparing the Company's operating performance against that of prior periods. The Company adjusts for (i.e., excludes) these expenses. Litigation SettlementsIn the second quarter of fiscal 2024, the Company agreed to settle with three classes of plaintiffs in the pork antitrust litigation. In the first quarter of fiscal 2025, the Company entered into a settlement agreement with an additional plaintiff in this matter. Organic Volume and Organic Net SalesThe non-GAAP measures of organic volume and organic net sales are presented to provide investors with additional information to facilitate the comparison of past and present operations. Organic volume and organic net sales exclude the impact of the sale of Hormel Health Labs, LLC in the Foodservice segment in the fourth quarter of fiscal 2024. The tables below show the calculations to reconcile from the GAAP measures to the non-GAAP measures presented in this press release. The tax impacts were calculated using the effective tax rate for the quarter in which the transactions occurred. HORMEL FOODS CORPORATION RECONCILIATION OF NON-GAAP MEASURES UnauditedQuarter EndedSix Months Ended In thousands, except per share amounts April 27, 2025April 28, 2024April 27, 2025April 28, 2024 Cost of Products Sold (GAAP) $ 2,414,377$ 2,383,546$ 4,927,957$ 4,871,723 Transform and Modernize Initiative(1) (2,777)(1,823)(2,963)(3,420) Adjusted Cost of Products Sold (Non-GAAP) $ 2,411,600$ 2,381,723$ 4,924,994$ 4,868,303 SG&A (GAAP) $ 251,432$ 266,668$ 514,445$ 507,054 Transform and Modernize Initiative(2) (13,775)(10,021)(27,743)(18,736) Loss on Sale of Business ——(11,324)— Litigation Settlements —(11,750)(240)(11,750) Adjusted SG&A (Non-GAAP) $ 237,657$ 244,898$ 475,138$ 476,568 Operating Income (GAAP) $ 248,352$ 252,320$ 476,682$ 536,758 Transform and Modernize Initiative(1)(2) 16,55211,84330,70622,156 Loss on Sale of Business ——11,324— Litigation Settlements —11,75024011,750 Adjusted Operating Income (Non-GAAP) $ 264,903$ 275,914$ 518,952$ 570,665 Earnings Before Income Taxes (GAAP) $ 230,489$ 244,139$ 448,561$ 529,685 Transform and Modernize Initiative(1)(2) 16,55211,84330,70622,156 Loss on Sale of Business ——11,324— Litigation Settlements —11,75024011,750 Adjusted Earnings Before Income Taxes (Non-GAAP) $ 247,040$ 267,732$ 490,831$ 563,591 Provision for Income Taxes (GAAP) $ 50,747$ 54,931$ 98,289$ 121,749 Transform and Modernize Initiative(1)(2) 3,6412,6656,7274,985 Loss on Sale of Business ——2,469— Litigation Settlements —2,644522,644 Adjusted Provision for Income Taxes (Non-GAAP) $ 54,388$ 60,240$ 107,537$ 129,378 Net Earnings Attributable to Hormel Foods Corporation (GAAP) $ 180,017$ 189,278$ 350,592$ 408,140 Transform and Modernize Initiative(1)(2) 12,9109,17923,97917,171 Loss on Sale of Business ——8,855— Litigation Settlements —9,1061889,106 Adjusted Net Earnings Attributable to Hormel Foods Corporation (Non-GAAP) $ 192,928$ 207,562$ 383,615$ 434,418 Diluted Earnings Per Share (GAAP) $ 0.33$ 0.34$ 0.64$ 0.74 Transform and Modernize Initiative(1)(2) 0.020.020.040.03 Loss on Sale of Business ——0.02— Litigation Settlements —0.02—0.02 Adjusted Diluted Earnings Per Share (Non-GAAP) $ 0.35$ 0.38$ 0.70$ 0.79 SG&A as a Percent of Net Sales (GAAP) 8.7 %9.2 %8.7 %8.6 % Transform and Modernize Initiative(2) (0.5)(0.3)(0.5)(0.3) Loss on Sale of Business ——(0.2)— Litigation Settlements —(0.4)—(0.2) Adjusted SG&A as a Percent of Net Sales (Non-GAAP) 8.2 %8.5 %8.1 %8.1 % Operating Margin (GAAP) 8.6 %8.7 %8.1 %9.1 % Transform and Modernize Initiative(1)(2) 0.60.40.50.4 Loss on Sale of Business ——0.2— Litigation Settlements —0.4—0.2 Adjusted Operating Margin (Non-GAAP) 9.1 %9.6 %8.8 %9.7 % (1) Comprised primarily of asset write-offs and severance expenses related to supply chain and portfolio optimization. (2) Comprised primarily of project-based external consulting fees. ORGANIC VOLUME AND ORGANIC NET SALES (NON-GAAP) Quarter EndedApril 27, 2025April 28, 2024In thousandsGAAPGAAP Divestiture Non-GAAP Organic Non-GAAP % Change Volume (lbs.)Retail677,277724,994 — 724,994 (6.6) Foodservice242,595261,832 (16,585) 245,246 (1.1) International79,51873,017 — 73,017 8.9 Total Volume (lbs.)999,3901,059,843 (16,585) 1,043,258 (4.2) Net SalesRetail$ 1,783,835$ 1,788,556 $ — $ 1,788,556 (0.3) Foodservice936,442932,003 (28,211) 903,792 3.6 International178,533166,794 — 166,794 7.0 Total Net Sales$ 2,898,810$ 2,887,352 $ (28,211) $ 2,859,141 1.4 Six Months EndedApril 27, 2025April 28, 2024In thousandsGAAPGAAP Divestiture Non-GAAP Organic Non-GAAP % Change Volume (lbs.)Retail1,414,1621,490,406 — 1,490,406 (5.1) Foodservice486,449517,839 (32,516) 485,323 0.2 International154,087153,153 — 153,153 0.6 Total Volume (lbs.)2,054,6982,161,397 (32,516) 2,128,882 (3.5) Net SalesRetail$ 3,673,968$ 3,699,827 $ — $ 3,699,827 (0.7) Foodservice1,866,6271,845,090 (55,109) 1,789,981 4.3 International347,028339,346 — 339,346 2.3 Total Net Sales$ 5,887,623$ 5,884,263 $ (55,109) $ 5,829,154 1.0 Forward-looking GAAP to Non-GAAP MeasuresOur fiscal 2025 outlook for adjusted operating income and diluted earnings per share are non-GAAP measures that exclude, or have otherwise been adjusted for, items impacting comparability, including estimated charges associated with the T&M initiative and the loss on sale of business. The Company's strategic investments in the T&M initiative are expected to cease at the end of the investment period. The Company believes the one-time detriment from the sale, including transaction costs, is not reflective of the Company's ongoing operating cost structure. These items are not expected to recur in the foreseeable future and are not considered representative of the Company's underlying operating performance. The tables below show the calculation to reconcile from the estimated fiscal 2025 GAAP measure to the estimated non-GAAP adjusted 2025 Outlook In millions RevisedPrevious Operating Income (GAAP) $ 1,118 - $ 1,185$ 1,118 - $ 1,212 Transform and Modernize Initiative 46 - 5246 - 52 Loss on Sale of Business 11 - 1111 - 11 Adjusted Operating Income (Non-GAAP) $ 1,175 - $ 1,248$ 1,175 - $ 1,275 Fiscal 2025 OutlookRevisedPrevious Diluted Earnings per Share (GAAP) $1.49 - $1.59$1.49 - $1.63 Transform and Modernize Initiative $0.07$0.07 Loss on Sale of Business $0.02$0.02 Adjusted Diluted Earnings per Share (Non-GAAP) $1.58 - $1.68$1.58 - $1.72 INVESTOR CONTACT: MEDIA CONTACT: Jess Blomberg Media Relations ir@ media@ View original content to download multimedia: SOURCE Hormel Foods Corporation Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
BBC News
06-03-2025
- Politics
- BBC News
West Lindsey: Lincolnshire 'remote mega-council' plans rejected
Councillors in West Lindsey have rejected proposals for a single county-wide unitary authority for the proposals, the county's city and district councils, along with Lincolnshire County Council, would be said the idea would improve efficiency and save money, while critics warned that one large council would be too remote and local issues could be a full West Lindsey District Council meeting on Monday, councillor Matt Boles said that while the current two-tier system presented "some challenges", one "vast and remote mega-council" was not the solution. Putting forward a motion to reject the proposals, he said West Lindsey District Council had "served its residents successfully for over 50 years"."If unitarisation is to be implemented in Lincolnshire, it should be based on smaller, more localised areas that align with existing communities and their identities," he motion was seconded by councillor Jim Snee, who told the meeting: "Bigger isn't always better - be careful what you wish for."Council leader Trevor Young said an extraordinary meeting would take place in the next couple of weeks to consider the issue further. Resolution passed However, he urged colleagues to support the motion, telling the meeting: "We believe that local councils should be local."He said if the proposals were implemented it would lead to local knowledge being lost and huge uncertainty."There might be areas where district councils want to do this - and they should be free to [make that decision] - but it should not be for government to dictate what happens everywhere," he a result of the meeting, the council passed a resolution to reject the creation of a single county-wide unitary authority and to call on all other local authorities to do the to highlights from Lincolnshire on BBC Sounds, watch the latest episode of Look North or tell us about a story you think we should be covering here.
Yahoo
27-02-2025
- Business
- Yahoo
Hormel Foods misses quarterly profit estimates on higher input costs
(Reuters) - Skippy peanut butter maker Hormel Foods on Thursday missed first-quarter profit estimates, hurt by higher input costs and the persistent effects of a supply issue at its Planters brand's distribution facility from last year. Hormel Foods, which sells snacking and packaged meat products, has also taken a hit due to lower whole turkey prices and increased advertising expenses. The company has been struggling to boost demand for its turkey products as consumers preferred affordable meat alternatives such as beef and chicken amid high inflation. Meanwhile, demand for certain packaged products suffered as the company kept the prices elevated to protect its margins from inflated input costs. Hormel's Planters nut brand faced a supply disruption at its Suffolk, Virginia-based distribution facility due to an unspecified food safety issue last April, which continued to impact the company's margins in the first quarter. "As anticipated, the first quarter was pressured as we continued to recover from the snack nuts supply disruption and lapped a full year of whole bird turkey market compression," CEO Jim Snee said. The company's selling, general and administrative costs rose about 7% to $475.232 million in the quarter ended January 26 from a year ago. Hormel earned 35 cents per share on an adjusted basis in the first quarter, missing analysts' average estimate of 38 cents, according to data compiled by LSEG. Its first-quarter sales came in at $2.99 billion, compared with estimates of $2.94 billion. The company reaffirmed its full-year adjusted earnings forecast of $1.58 to $1.72 per share. It expects its annual net sales to be between $11.9 billion and $12.2 billion, as previously projected. In contrast, larger peer Tyson Foods earlier this month raised its annual sales forecast on the back of strong demand for its beef and chicken products.
