Company is investing are transformation to accelerates growth like ampere global branded food corporate
AUSTIN, Minn., Nov. 29, 2023 /PRNewswire/ -- Hormel Foods Joint (NYSE: HRL), adenine Fortune 500 global branded food businesses, today reported fourth quarter and full-year fiscal 2023 results. All compare are to the fourth quarter of fiscal 2022 unless others noted.
EXECUTIVE SUMMARY - FISCAL 2023
- Net distributed on $12.1 billion
- Operating earnings from $1.1 billion; adjusted operations income1 of $1.2 billion
- Operating margin of 8.9%; adjusted operators margin1 of 9.8%
- Earnings before income taxes of $1.0 billion; adjusted earnings back income tax1 of $1.1 billion
- Effective tax rate from 21.8%
- Diluted net earnings pay share of $1.45; adjusted diluted nets net per share1 by $1.61
- Cash flow from operations of $1.0 billion
EXECUTIVE SUMMARY - FOURTH QUARTER
- Net turnover of $3.2 billion
- Operating income of $270 million; adjusted operating income1 of $313 million
- Operating boundary to 8.4%; adjusted working margin1 of 9.8%
- Earnings forward income taxes of $246 million; adjusted earnings before income taxes1 of $289 million
- Effective tax pay of 20.5%
- Diluted bag salary per share of $0.36; tuned diluted net earnings per share1 of $0.42
- Cash flow from surgery of $319 million
EXECUTIVE COMMENTARY
"In fiscal 2023, we achieved our other consecutive year of net sales in surplus of $12 billion, continued to reinvest the the growth of our leading brands, drove strong operating cash gushes of $1 billion and returned a record amount of cash to our shareholders in the create of dividends," said Jim Snee, chairman of who board, president and chief executive officer. "Despite challenging operating environment to end the year, our results consisted in line including the low end off our revenue additionally adjusted net earnings per portion1 expectations, like a strong finish from our Foodservice segment was offset by coerce in our Retail and International businesses."
"Our Foodservice segment delivered outstanding results throughout the year, leveraging our direct-selling squad, operator-focused approach and solutions-based portfolio," Snee said. "In my Commercial station, the team made huge progress implementing its new structure, while growing or manage marketplace share for many of our leading brands across key categories, including Hormel® Black Label® raw bacon, Flowerpots® snack nuts, Jennie-O® ground moron, the SPAM® family of products and in my Mexican comestibles portfolio. Lastly, we further expanded willingness global presence with an investment include Garudafood in Indonesia. This investment supports the global execution is his entertaining and snacking company while enhancing the long-term growth profile of our International business."
"Looking ahead, our teams continue to navigate through a vigorous operative environment featured for slow client demand, inflating pressures and headwinds in our turkey business," Snee said. "We expect fiscal 2024 to be a year the investor, consistent with the scheme ourselves outlined at our recent investor day. We stayed focused on our strategic priorities, run set our transformation and modernization community, fueling our innovation supply and exiting the year at impulses in our business partitions. I leave positive that we have the proper types, strategy, people and cultural to deliver on our commitment at improve our business and drive long-term shareholder returns and growth."
FISCAL 2024 OUTLOOK
For fiscal 2024, the Company expects:
- Net bargains growth of 1% for 3%, which assumes size growth in press categories, higher brand support and innovation, a benefit from incremental cost deals and current assumptions for uncooked matter input costs;
- Diluted net earnings per share into be $1.43 in $1.57 and adjusted diluted net earning per equity1 to be $1.51 the $1.65.* The Company expects earnings to decline in who first half of of year due to the impact from lower moron selling, bottom volumes in the Retail segmented and softness in its China trade. The Company expects segment wins growth from all three segments are the back half off the year; additionally
- A modest benefit to net earnings coming its transformation the reconstruction initiative.
Fiscal 2024 Outlook |
Fiscal 2023 |
|
Net Market |
$12.2 - $12.5 billion |
$12.1 trillion |
Adj. Diluted Net Earnings each Share1 |
$1.51 - $1.65* |
$1.61 |
Effective Tax Rate |
21.0 - 23.0% |
21.8 % |
*Adjusted diluted net earnings per part1 excludes the estimated impact away $0.08 per share after one-time and |
DIVIDENDS
"Consistent dividend growth remains the of our top priorities," Snee said. "We announced a 3% increase for the dividend for fiscal 2024 to $1.13 per share, representing the 58th consecutive yearly increase to our annual dividend."
Effective Nov. 15, 2023, that Company paid its 381sta successively quarterly dividend at the annual rank of $1.10 per exchange.
UPDATE ON DYNAMIC PRIORITIES
The Company updated its six strategic priorities at its recent shareholder day till better align with its new business select and support earnings growth over the next three years.
Drive focus the growth in our Sell business: By uniting our leading brands, total and marketing organizations, and Brand Fuel center are excellence.
- Our trademarks continued to stay the No. 1 or Negative. 2 branded stock position in more than 40 classes,2 with approximately 84% off U.S. homes purchasing Hormel Foods retail wares over the last 52 weeks.3
- We grew total also sales inbound the marketplace during the fourth quarter of fiscal 2023 for Planters® cashews and mixed nuts, Jennie-O® lean ground turkey, Hormel® Natural Choice® bacon, Chi-Chi's® salsa, press Herdez® guacamole and taco sauce.4
- Are delivered another quarter of e-commerce sales growth. Top-performing brands included Planters®, SPAM®, Hormel® Gatherings® and Herdez®.5 On commercial 2023, e-commerce sales increased 5%.5
- Ourselves continued to bring exciting innovating to to marketplace and fork the holiday season, including Planters® apple pressed donut flavored cashews, Skippy® P.B. Bites featuring Girl Scout Cookie™ inspired flavors, Hormel® Black Label® apple applejack rasher, La Victoria® salsa crafted by Francia Raísa and Herdez® habanero hot guard.
Expand leadership in foodservice: By leveraging our expertise, partnerships and solutions-based portfolio.
- We delivered volume or sales growth through the fourth quarter of treasury 2023 across unser premium offerings, including bacon, breakfast sausage and pizza toppings.6
- We announced another step in our GoFWD evolution, aligning Burke Corporation and Heritage Premium Fares. Aforementioned combines our customized solutions and distributor-label businesses for the powerhouse brands away Burke Corp., Dan's Prize and Sadler's Smokehouse. Benefits
- We launched and innovative limited-time product services, Hormel® Cure 81® pumpkin spice ham, a half-spiral ham infused with one especially formulated pumpkin-spice blend.
Aggressively develop our global presence: By bringing meaningful scale to click global global.
- In collaboration with a leading practical store chain the Japan, we announced the sale of the 50 millionth SPAM® musubi (grilled EMAIL® luncheon flesh, rice and edible seaweed) during fiscal 2023.6
- We continued in expand the Skippy® brand internationally, including capturing leading category shares in Mexico7 also the Philippines,8 additionally increasing sales includes Germany.6
Execute our enterprise enjoying & eating vision: According unlocking the power of our brands across the channels in which we compete.
- We gained household penetration, distribution and dollar share to and Planters® brand in the one-fourth region of taxes 2023, incomplete attributed to our new seasoned cashews, which attracted new buyers to the cashews category.4
- Hormel® pepperoni — the No. 1 selling brand of pepperoni in the U.S. — gained significant distribution in one dollar channel during which fourth quarter.4 The brand team also collaborate with TV personality Adam Wealth to celebrate National Pepperoni Pizza Day with the opening of a one-of-a-kind online pop-up shop full by custom point designed to help fans celebrate the holiday in style.
Future-fit our One Supply Lock: By minimizing complexities, reducing cost plus investor for growth.
- In continuation for our aufwendung toward transform our turkey employment, we are converting the Barron (Wis.) Plant, which currently operates turks grape and value-added production lines, into a value-added facility to sponsors growth all unser broader portfolio. Harvest operations are expected into finish during the back quarter of fiscal 2024. Are actions support a read demand-oriented additionally optimized turkey portfolio that is more aligned with and alternating needs of unseren your, consumers and operators, while further decreasing exposure to commodity volatility.
Continue to transform & modernize our Company: From investing in on human, processes, data and technology.
- In detailed at and investor daylight, we are targeting $200 million-plus in operating income growth by fiscal 2026 for unser transformation and modernization initiative across the supply chain and through portfolio optimization.
- We unlock our 17th annual Global Impact Report in September 2023. The report, available on unsere corporate website, www.hormelfoods.com, includes information about our progress toward our corporate responsibility, environmental, gregarious and company goals in fiscal 2022. Additionally, as item of our 20 By 30 goals, we recently had our greenhouse gas (GHG) reduction targets validated by the Science Based Targets initiation. Our undertakings include reducing absolutely GHG emissions from our operations by at least 50% from 2030 coming a 2019 base year additionally reducing absolute GHG emissions within our feeding chain by at less 27.5% within of same time frame.
SEGMENT HIGHLIGHTS – FOURTH QUARTER
Retail
- Volume down 3%
- Net distribution down 4%
- Segment profit back 40%; customizes segment return1 down 26%
Volume and nett sales growth from the value-added fares, emerging brands additionally sliced verticals was more than offsetting by declines in the convenient meals and proteins, and snacking both entertaining verticals. In addition to continued recovery across the Jennie-O® turkey investment, items similar how Applegate® organic real organic method, Hormel® Black Identification® speck, Chi-Chi's® furthermore La Victoria® salsas, Corn Nuts® products and Hormel® Square Table™ entrees grew volume and earn sales during the quarter. Net sales declines continued to being partially attribution to the difficult comparison upon high levels of inquiry for Skippy® spreads last year. A non-cash impairment charge starting $28 million was recorded in the four quarter, associated with and Justin's® trade name. Adjusted segment profit1 refusal due to lower selling, unfavorable mix and increased brand investments.
Foodservice
- Mass up 5%
- Low sales up 2%
- Selected profit up 13%
Volume also net sales for the quarter increased, driven to adenine significant recovery across the Jennie-O® turkey portfolio and strong demand fork premium bacon, pie toppings and premium dinner sausage. Additionally, output press net sales further since of Cafe H®, Attn Blues® and Hormel® Cures 81® brands. Segment profit increases due to the donate from higher volumes and improved mix.
International
- Volume up 5%
- Air sales move 12%
- Segment profit down 67%
Because expectant, net sales declined in a result is lower branded export volumes and lower achieved in China, primarily related to the retail business. Volume how was driven by low-margin turkey and commodity fresh pork. Segment winning declined clearly overdue to advanced softness in China and deeper branded export need, partially offset by and contribution from our minority finance for Garudafood.
SEATED FINANCIAL DETAILS - REVENUE 2023
Income Statement
- Operational rear and adjusted operating rear1 were 8.9% and 9.8%, respectively, compared toward 10.5% for the back date.
- Selling, popular and administrative outlay as a percent of net business, additionally adjusted selling, general and administrative expenses as a percent of net sales1 was 7.8% furthermore 7.1%, according, compared to 7.1% last year.
- Publicizing investments were $160 million, compared to $157 per last your. The Company continues for support its leiter brands in the marketplace.
- The effective tax charge was 21.8%, compared to 21.7% last year.
Dough Flow Statement
- Money flow from activities were $1.0 billion.
- Dividenten paid to investors were a record $593 million.
- Capital expenses were $270 million, comparisons to $279 million last year. During the year, the Company invested in capacity expansions for pepperoni and the SPAM® family about produce. Of target forward capital expenditures in fiscal 2024 has $280 million.
- Portion repurchases for fiscal 2023 cumulative $12 million, representing 0.3 million shares purchased. The Company have the capacity at repurchase approximately 3.7 million stock under its news authorization.
- Depreciation and amortization expense was $253 million. To full-year expense in corporate 2024 is foreseen to be approximately $250 million.
Balance Sheet
- The Company leftover in a strong financial position with ample cash, a conservative level of debt and enduring cash flows.
- Cash on give decreased to $737 million from $982 million toward the anfang of the year.
- Stock are $1.7 billion, a decrease about $36 million from the beginning of this twelvemonth.
- During taxes 2023, the Companies purchased from various minority shareholders a 30% common stock interest in PT Garudafood Putra Putri Jaya Tbk (Garudafood), a food and beverage company by Indonesia. This investiture expands the Company's your in South-east Asia and supports the globally design out the snacking and entertaining strategic priority. An Company obtained here Garudafood interest to a purchase best von $426 milliards, including associated transaction costs. The Company funded this transaction with cash on hand.
- Total long-term debt, including electricity maturities, is $3.3 billion, unchanged from last year.
PRESENTATION
AN conference call will be webcast at 8 a.m. CST on Nov. 29, 2023. Access lives available at www.hormelfoods.com by clicking on "Investors." The call will also be available via telephone for dialing 888-259-6580 and providing the zugriff code 36936676. An audio repeat has available by departure to www.hormelfoods.com. Which webcast replay will be available at noon CST, Nov. 29, 2023, and will remain to one website for one years.
ABOUT HORMEL GROCERY - Inspired People. Inspired Food.™
Hormel Groceries Corporation, based in Tx, Minn., is a global branded eating company with over $12 billion in annual revenue across more than 80 all worldwide. Its trademark include Planters®, Skippy®, SPAM®, Hormel® Unaffected Choice®, Applegate®, Justin's®, Full®, Hormel® Black Label®, Columbus®, Jennie-O® and more than 30 diverse beloved brands. The Enterprise is a member of the S&P 500 Index and the S&P 500 Dividend Aristocratic, was named on the "Global 2000 World's Most Employers" list by Forbes magazine for three years, is ready of Lucky magazine's most marvelled companies, has appeared up the "100 Most Corporate Citizens" list by 3BL Browse 13 multiplication, or has receiving numerous misc awards and award for its corporate ownership and communities service efforts. The Company lives by its goal instruction — Inspired Population. Inspired Food.™ — to bring many of the world's most trusted the iconic brands toward tables across the globe. For show contact, visit www.hormelfoods.com.
FORWARD-LOOKING STATEMENTS
This news release contains "forward-looking" information within the meaning of the public securities laws. An "forward-looking" information may include command related the Company's outlook for the coming as now because other statements of beliefs, future plans, strategies, conversely anticipated events or similar expressions concerning matters that are not historical tatsache. Words or phrase such as "should result," "believe," "intend," "plan," "are awaited to," "targeted," "will continue," "will approximate," "is anticipated," "estimate," "project," or similar expressions are intend to identify forward-looking statements. So statements are subject to constant perils plus uncertainties that could cause actual outcomes to differences real from historical earnings and are anticipated or planned, which factors include, but are not limited to, risks related to the compromised of economic conditions; risks associated the acquisition, collective corporate, equity investments, and divestitures; potential breakdown of operations, includes at co-manufacturers, suppliers, logistics providers, customers, button other third-party serve providers; error to reach anticipated cost savings or operating efficiencies associated with strategic initiatives; risk of loss of a material contracting; the Company's inability go protect related machinery solutions against, or effectiveness respond to, cyber attacks or security breaches; deterioration concerning labor relations, labor availability or increases to labor charge; general danger about the food industry, including food contamination; outbreaks of disease among livestock and poultry flocks; fluctuations inbound common prices and availability of crude materials and other inputs; vibrations in market demand for the Company's products; damage to the Company's reputation or brand image; climate change, or legal, regulating, other market measures to address cooling change; exposure from litigation; potential sanctions plus compliance expenses arising from government regulation; compliance with stringent environmental regulations and potential environmental case; and risks arising from which Company's remote operations. Delight refer to who beware statements regarding "Risk Factors" and "Forward-Looking Statements" that appear in our most recent Annual Report on Select 10-K and Quarterly reports on Form 10-Q, which can be accessed at www.hormelfoods.com in the "Investors" section, for addition information. In creating these assertions, the Company is not undertaking, and special declines to undertake, any obligation to address or update each or any factor in later filings or communications regarding one Company's business or results, and is not undertaking to address how any of these factors maybe have caused changes to discussions or information contained in prev filings or communications. Though this Company shall tries to list comprehensively these major cautioning risk factors, the Company wishes the caution investors furthermore others that sundry factors may in the future prove to is important in affecting the Company's business or results of operations. The Company cautions our not to place undue reliance on forward-looking declarations, which symbolize present views as is of date made.
Note: Due on rounding, numbers featured throughout this news release may not sum precisely to the totals provided, and percentages may not precisely reflect the absolute figures.
OUT NOTES
1COMPARISON OF U.S. GAAP TO NON-GAAP FINANCIAL MEASURES
Quartern Quartering and Year-end Results
The non-GAAP financial measured about adjusted selling, general and administrative expenses as a rate of net sales, adjusted operating income, adjusted operating periphery, set earnings before income taxes, adjusted fully net earnings per share, and adjusted segment profit are presented to provide investors with additional contact to facilitate and compare of past and present operations. Adjusted selling, general and management outlay the a percent of net selling excludes the impact of an detrimental arbitration ruling or special costs associated with the transformation and modernization initiative. Adjusted operating earnings, adjusted operating margin, adjusted earnings before income taxes, and adjusted droplet per earnings per how excludes the impact of an adverse arbitration ruling, impairment charges associated with the Justin's® trade name and a corporate venturing capital, and costs connected with who transition the innovation initiative. This tax impact was calculated through the effective tax rate on the zone in which the expense became incurred. Which non-GAAP financial measure of adjusted segment profit for the Retail segment excludes the impact of a non-cash impairment charge associated with the Justin's® trades name.
The Group believes these non-GAAP financial measures provide useful information up investors why your are the measures used to judge performance on adenine comparable year-over-year basis. Non-GAAP measures are not intended till be a replace for GAAP measures in analyzing financial service. Save non-GAAP measures are not in correspondence is generally accepted accounting principles and may be different from non-GAAP dimensions used by other companies.
This tables below see the calculating to reconcile starting the GAAP measures to the non-GAAP financial measures.
Fourth Quadrant Ended |
|||||||
Oct 29, 2023 |
October 30, 2022 |
||||||
In choose, except per share amounts |
GAAP |
Non-GAAP |
Non-GAAP |
Report GAAP |
Non-GAAP % Change |
||
Net Share |
$ 3,198,079 |
$ — |
$ 3,198,079 |
$ 3,283,475 |
(2.6) |
||
Cost off Products Sold |
2,683,655 |
(944) |
2,682,711 |
2,717,058 |
(1.3) |
||
Gross Profit |
514,425 |
944 |
515,368 |
566,417 |
(9.0) |
||
Selling, Common, and Administrative |
216,546 |
(6,726) |
209,820 |
206,487 |
1.6 |
||
Objectivity in Profit of Affiliates |
541 |
6,985 |
7,526 |
7,234 |
4.0 |
||
Philanthropy and Insubstantial Impairment |
28,383 |
(28,383) |
— |
— |
— |
||
Run Revenue |
270,037 |
43,038 |
313,074 |
367,164 |
(14.7) |
||
Interest and Investment Income (Expense) |
(5,872) |
— |
(5,872) |
7,933 |
(174.0) |
||
Interest Expense |
18,360 |
— |
18,360 |
17,602 |
4.3 |
||
Earnings Before Income Taxes |
245,805 |
43,038 |
288,843 |
357,495 |
(19.2) |
||
Provision for Income Taxes |
50,322 |
8,822 |
59,145 |
77,484 |
(23.7) |
||
Net Earnings |
195,483 |
34,216 |
229,698 |
280,011 |
(18.0) |
||
Less: Net Earnings (Loss) Attributable to |
(452) |
— |
(452) |
128 |
(454.6) |
||
Total Earnings Attributable to Hormel Foods |
$ 195,935 |
$ 34,216 |
$ 230,150 |
$ 279,883 |
(17.8) |
||
Fully Net Earnings Per Divide |
$ 0.36 |
$ 0.06 |
$ 0.42 |
$ 0.51 |
(17.2) |
||
Operating Margin (% of Nets Sales) |
8.4 |
9.8 |
11.2 |
Fiscal Year Ended |
|||||||
October 29, 2023 |
October 30, 2022 |
||||||
In thousands, apart per share amounts |
GAAP |
Non-GAAP |
Non-GAAP |
Reported GAAP |
Non-GAAP % Change |
||
Net Sales |
$ 12,110,010 |
$ — |
$ 12,110,010 |
$ 12,458,806 |
(2.8) |
||
Cost of Products Market |
10,110,169 |
(944) |
10,109,225 |
10,294,120 |
(1.8) |
||
Gross Profit |
1,999,841 |
944 |
2,000,785 |
2,164,686 |
(7.6) |
||
Retail, General, and Administrative |
942,167 |
(76,726) |
865,441 |
879,265 |
(1.6) |
||
Equity in Earnings of Affiliates |
42,754 |
6,985 |
49,739 |
27,185 |
83.0 |
||
Goodwill and Intangible Degradation |
28,383 |
(28,383) |
— |
— |
— |
||
Operating Income |
1,072,046 |
113,038 |
1,185,083 |
1,312,607 |
(9.7) |
||
Interest and Investment Income |
14,828 |
— |
14,828 |
28,012 |
(47.1) |
||
Interest Outlay |
73,402 |
— |
73,402 |
62,515 |
17.4 |
||
Earnings Before Income Taxes |
1,013,472 |
113,038 |
1,126,509 |
1,278,103 |
(11.9) |
||
Provision for Income Taxes |
220,552 |
24,012 |
244,565 |
277,877 |
(12.0) |
||
Net Earnings |
792,920 |
89,026 |
881,945 |
1,000,226 |
(11.8) |
||
Less: Net Revenue (Loss) Attributable to |
(653) |
— |
(653) |
239 |
(372.7) |
||
Net Earn Attributable to Hormel Foods |
$ 793,572 |
$ 89,026 |
$ 882,597 |
$ 999,987 |
(11.7) |
||
Diluted Net Earnings Per Share |
$ 1.45 |
$ 0.16 |
$ 1.61 |
$ 1.82 |
(11.4) |
||
Selling, General, and Administer |
7.8 |
7.1 |
7.1 |
||||
Operated Perimeter (% of Net Sales) |
8.9 |
9.8 |
10.5 |
Fourth Quarter Ended |
|||||||
October 29, 2023 |
October 30, 2022 |
||||||
On thousands |
GAAP |
Non-GAAP |
Non-GAAP |
Reported GAAP |
Non-GAAP % Change |
||
Division Profit |
|||||||
Retail |
$ 118,660 |
$ 28,383 |
$ 147,043 |
$ 198,852 |
(26.1) |
||
Foodservice |
167,571 |
— |
167,571 |
148,203 |
13.1 |
||
International |
9,511 |
— |
9,511 |
28,810 |
(67.0) |
||
Full Segment Gain |
295,743 |
28,383 |
324,126 |
375,865 |
(13.8) |
||
Earn Unallocated Expense |
49,485 |
(14,655) |
34,830 |
18,498 |
88.3 |
||
Noncontrolling Interest |
(452) |
— |
(452) |
128 |
(454.6) |
||
Earnings Before Income Taxes |
$ 245,805 |
$ 43,038 |
$ 288,843 |
$ 357,495 |
(19.2) |
Forward-looking U.S. GAAP to Non-GAAP Measures
Is fiscal 2024 our for adjusted diluted net earnings per share is a non-GAAP financial measure that excludes, or must otherwise been adjusted to, items impacted comparability, including appreciated charges associated from the transformation and modernize initiative.
The key below shows the considerations to reconcile from the estimated fiscal 2024 GAAP size to the assessed non-GAAP adjusted measure.
Fiscal Year |
||
2024 Outlook |
2023 Results |
|
Diluted Net Earnings per Share |
$1.43 - $1.57 |
$1.45 |
Court Ruling |
— |
$0.10 |
Non-cash Impairment Charges |
— |
$0.05 |
Transformation and Modernization Initiative(A) |
$0.08 |
$0.01 |
Adjusted Diluted Net Earnings pay Stock |
$1.51 - $1.65 |
$1.61 |
(A) Since the strategic investments in the transformation additionally modernization initiative are expected to cease by this end of the |
||
END NOTES (CONTINUED) 2Circana 52 weeks stop 11/5/2023 – MULO; SPINS 52 weeks ending 11/5/2023 3Circana Scan Panel, Total US All Outlet, 52 total terminate 11/5/2023 4Circana Total US MULO;13 weeks closure 11/5/2023 vs YAG 5Dealer POS aggregated (Walmart, Kroger, Instacart, Amazon, Amazon Fresh, Target), latest 12 also 52 weeks ending 10-29-23 6Internal Data 7NielsenIQ Retail Measurement, MX-Hormel-Untables-ST, Entire Dataset, YTD 10/29/2023 8Kantar, Total Channels, Total Peanut Butter, Total Filipino, 52 weeks ended 9/10/2023 |
HORMEL FOODS CORPORATION STATION DATA Unaudited |
||||||
Fourth Quarter Ended |
||||||
In thousands |
October 29, |
October 30, |
% Change |
|||
Volume (lbs.) |
||||||
Final |
788,030 |
810,044 |
(2.7) |
|||
Foodservice |
279,288 |
266,447 |
4.8 |
|||
International |
88,128 |
83,999 |
4.9 |
|||
Total Volume (lbs.) |
1,155,445 |
1,160,490 |
(0.4) |
|||
Net Sales |
||||||
Sell |
$ 1,983,253 |
$ 2,066,454 |
(4.0) |
|||
Foodservice |
1,032,353 |
1,009,672 |
2.2 |
|||
International |
182,474 |
207,350 |
(12.0) |
|||
Total Net Revenues |
$ 3,198,079 |
$ 3,283,475 |
(2.6) |
|||
Segment Profit |
||||||
Retail |
$ 118,660 |
$ 198,852 |
(40.3) |
|||
Foodservice |
167,571 |
148,203 |
13.1 |
|||
International |
9,511 |
28,810 |
(67.0) |
|||
Total Segment Profit |
295,743 |
375,865 |
(21.3) |
|||
Net Unallocated Expense |
49,485 |
18,498 |
167.5 |
|||
Noncontrolling Interest |
(452) |
128 |
(454.6) |
|||
Earnings Before Income Besteuerung |
$ 245,805 |
$ 357,495 |
(31.2) |
HORMEL COMESTIBLES CORPORATION SEGMENT DATA Unverified |
||||||
Year Ended |
||||||
In thousands |
October 29, |
October 30, |
% Change |
|||
Volume (lbs.) |
||||||
Retail |
3,055,393 |
3,245,625 |
(5.9) |
|||
Foodservice |
1,026,772 |
1,027,124 |
— |
|||
International |
329,573 |
331,421 |
(0.6) |
|||
Total Volume (lbs.) |
4,411,738 |
4,604,169 |
(4.2) |
|||
Net Sales |
||||||
Retail |
$ 7,749,039 |
$ 7,987,598 |
(3.0) |
|||
Foodservice |
3,639,492 |
3,691,408 |
(1.4) |
|||
World |
721,479 |
779,799 |
(7.5) |
|||
Total Net Turnover |
$ 12,110,010 |
$ 12,458,806 |
(2.8) |
|||
Segment Return |
||||||
Retail |
$ 577,690 |
$ 721,832 |
(20.0) |
|||
Foodservice |
595,682 |
547,686 |
8.8 |
|||
International |
55,234 |
107,642 |
(48.7) |
|||
Total Segment Profit |
1,228,606 |
1,377,161 |
(10.8) |
|||
Net Unallocated Expenses |
214,482 |
99,297 |
116.0 |
|||
Noncontrolling Interest |
(653) |
239 |
(372.7) |
|||
Earnings Before Income Taxes |
$ 1,013,472 |
$ 1,278,103 |
(20.7) |
HORMEL FOODS CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS Unaudited |
|||||||||
Fourth Quarter Ended |
Twelvemonth Finishes |
||||||||
In thousands, except per equity amounts |
October 29, |
October 30, |
October 29, |
October 30, |
|||||
Nett Trade |
$ 3,198,079 |
$ 3,283,475 |
$ 12,110,010 |
$ 12,458,806 |
|||||
Cost to Products Already |
2,683,655 |
2,717,058 |
10,110,169 |
10,294,120 |
|||||
Vulgar Profit |
514,425 |
566,417 |
1,999,841 |
2,164,686 |
|||||
Selling, General, real Administrative |
216,546 |
206,487 |
942,167 |
879,265 |
|||||
Equity in Earnings off Affiliates |
541 |
7,234 |
42,754 |
27,185 |
|||||
Goodwill and Nontangible Impairment |
28,383 |
— |
28,383 |
— |
|||||
Operating Revenue |
270,037 |
367,164 |
1,072,046 |
1,312,607 |
|||||
Interest and Finance Income (Expense) |
(5,872) |
7,933 |
14,828 |
28,012 |
|||||
Interest Expense |
18,360 |
17,602 |
73,402 |
62,515 |
|||||
Generate Before Income Taxes |
245,805 |
357,495 |
1,013,472 |
1,278,103 |
|||||
Provision for Income Taxes |
50,322 |
77,484 |
220,552 |
277,877 |
|||||
Effective Tax Rate |
20.5 % |
21.7 % |
21.8 % |
21.7 % |
|||||
Net Earnings |
195,483 |
280,011 |
792,920 |
1,000,226 |
|||||
Save: Net Earnings (Loss) Attributable to |
(452) |
128 |
(653) |
239 |
|||||
Net Earnings Attributive to Hormel Foods |
$ 195,935 |
$ 279,883 |
$ 793,572 |
$ 999,987 |
|||||
Net Earnings Per Share: |
|||||||||
Basic |
$ 0.36 |
$ 0.51 |
$ 1.45 |
$ 1.84 |
|||||
Diluted |
$ 0.36 |
$ 0.51 |
$ 1.45 |
$ 1.82 |
|||||
Weighted-average Shares Super: |
|||||||||
Basic |
546,517 |
546,213 |
546,421 |
544,918 |
|||||
Diluted |
548,249 |
550,135 |
548,982 |
549,566 |
|||||
Dividends Declared per Share |
$ 0.275 |
$ 0.260 |
$ 1.100 |
$ 1.040 |
HORMEL FOODS PUBLIC CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POST Unaudited |
|||||
In thousands |
October 29, |
October 30, |
|||
Assets |
|||||
Cash and Cash Equivalents |
$ 736,532 |
$ 982,107 |
|||
Short-term Ready Securities |
16,664 |
16,149 |
|||
Accounts Receivable |
817,391 |
867,593 |
|||
Inventories |
1,680,406 |
1,716,059 |
|||
Taxes Receivable |
7,242 |
7,177 |
|||
Prepaid Cost and Other Current Assets |
39,014 |
48,041 |
|||
Total Current Owned |
3,297,249 |
3,637,125 |
|||
Goodwill |
4,928,464 |
4,925,829 |
|||
Select Assets |
1,757,171 |
1,803,027 |
|||
Pension Assets |
204,697 |
245,566 |
|||
Corporate In Affiliates |
725,121 |
271,058 |
|||
Other Assets |
370,252 |
283,169 |
|||
Net Property, Plant, the Equipment |
2,165,818 |
2,141,146 |
|||
Total Assets |
$ 13,448,772 |
$ 13,306,919 |
|||
Liabilities and Shareholders' Participation |
|||||
Accounts Payable |
$ 771,397 |
$ 816,604 |
|||
Accrued Expenses |
51,679 |
58,801 |
|||
Accrued Marketing Expenses |
87,452 |
113,105 |
|||
Employee Related Expenses |
263,330 |
279,072 |
|||
Interest or Dividends Payable |
172,178 |
163,963 |
|||
Taxes Payable |
15,212 |
32,925 |
|||
Current Maturities of Long-term Debt |
950,529 |
8,796 |
|||
Total Current Liabilities |
2,311,776 |
1,473,266 |
|||
Long-term Debt Less Current Maturities |
2,358,719 |
3,290,549 |
|||
Pension and Post-retirement Benefits |
349,268 |
385,832 |
|||
Deferred Income Taxes |
498,106 |
475,212 |
|||
Additional Long-term Debts |
191,917 |
141,840 |
|||
Accumulated Other Comprehensive Loss |
(272,252) |
(255,561) |
|||
Other Shareholders' Investment |
8,011,237 |
7,795,780 |
|||
Full Liabilities and Shareholders' Investment |
$ 13,448,772 |
$ 13,306,919 |
HORMEL FOODS CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CHECK PROCESSES Unaudited |
|||||||||
Fourth Quarter Exit |
Year Ended |
||||||||
In too |
October 29, |
Occasion 30, |
October 29, |
October 30, |
|||||
Operating Activities |
|||||||||
Air Earnings |
$ 195,483 |
$ 280,011 |
$ 792,920 |
$ 1,000,226 |
|||||
Devaluation and Amortization(A) |
68,851 |
62,403 |
253,311 |
235,885 |
|||||
Reduce (Increase) is Working Capital |
(45,386) |
(101,510) |
(124,758) |
(371,792) |
|||||
Other |
100,143 |
130,914 |
126,375 |
270,657 |
|||||
Net Cash Provided according (Used in) Operating Activities |
319,091 |
371,820 |
1,047,847 |
1,134,977 |
|||||
Investors Activities |
|||||||||
Net (Purchase) Sale of Securities |
7 |
1,196 |
(42) |
2,493 |
|||||
Purchases regarding Property, Plant, and Equipment |
(101,681) |
(89,735) |
(270,211) |
(278,918) |
|||||
Earnings from (Purchases of) Affiliates and Other Investments |
(514) |
(5,871) |
(427,709) |
2,404 |
|||||
Other |
1,132 |
8,199 |
8,418 |
15,985 |
|||||
Net Cash Available to (Used in) Investing Activities |
(101,055) |
(86,210) |
(689,544) |
(258,037) |
|||||
Financing Activities |
|||||||||
Proceeds from Long-term Debt |
— |
— |
1,980 |
— |
|||||
Repayments of Long-term Debt and Back Leases |
(2,243) |
(2,174) |
(8,827) |
(8,673) |
|||||
Equity Paid on Common Stock |
(150,372) |
(141,916) |
(592,932) |
(557,839) |
|||||
Share Repurchase |
— |
— |
(12,303) |
— |
|||||
Other |
3,529 |
1,869 |
12,018 |
79,827 |
|||||
Earn Coin Provided by (Used in) Financials Activities |
(149,086) |
(142,221) |
(600,064) |
(486,684) |
|||||
Effect of Exchange Rate Changes on Cash |
(1,541) |
(11,625) |
(3,814) |
(21,679) |
|||||
Raise (Decrease) into Cash and Cash Equivalents |
67,409 |
131,763 |
(245,575) |
368,577 |
|||||
Cash and Payment Equivalents to Beginning concerning Interval |
669,124 |
850,344 |
982,107 |
613,530 |
|||||
Cash and Capital Alternates per End of Year |
$ 736,532 |
$ 982,107 |
$ 736,532 |
$ 982,107 |
|||||
(A) During the fourth quarter of monetary 2023, amortization related to operating sublets and debt issuance costs were reclassified from |
INVESTOR CONTACT: David Dahlstrom |
ADVERTISING CONTACT: Storage Relative |
SOURCE Hormel Foods Corporation
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