#HormelFoods Q4 FY2024 #EarningsReport Summary | $HRL (-0.46%)

Hormel Foods faced challenges such as inflationary pressures, declines in turkey commodity markets, and production disruptions at a Virginia facility. However, strategic initiatives like the Transform and Modernize (T&M) program and innovative product launches offset these headwinds, enabling strong operational performance.

📊 Income Statement Highlights (vs Q4 FY2023):

▫️ Net Income: $220.20M vs $195.93M (+12.37%)

▫️ Total Revenue: $3.14B vs $3.20B (-1.88%)

▫️ Adjusted EPS: $0.42 (flat YoY)

▫️ Gross Profit: $521.23M vs $514.43M (+1.32%)

▫️ Operating Income: $294.48M vs $270.04M (+9.06%)

▫️ Adjusted Operating Margin: 9.8% (unchanged YoY)

Segment Performance:

▫️Retail: Volume down 5.5%; net sales down 3.8%. Adjusted profit up 28.88%. Growth in SPAM, Jennie-O, and Black Label brands offset declines in snacking and ready meals.

▫️Foodservice: Volume up 1.7%; net sales up 1.3%. Profit down 7.91% due to margin pressures in premium and poultry products.

▫️International: Volume down 9.5%; net sales up 1.4%. Segment profit surged 184.51%, driven by China recovery and export margins.

💼 Balance Sheet Highlights (vs FY2023):

▫️ Total Assets: $13.43B (flat YoY)

▫️ Total Liabilities: $5.03B (-3.90%)

▫️ Cash and Cash Equivalents: $741.88M (+0.73%)

▫️ Inventories: $1.58B (-6.20%)

▫️ Long-term Debt: $2.85B (+20.85%)

🔮 Future Outlook:

Hormel expects FY2025 net sales between $11.9B-$12.2B (+1%-3% organic growth). Projected operating income is $1.13B-$1.23B, with incremental T&M initiative benefits of $100M-$150M. Challenges include ongoing turkey market weakness and snack nut supply constraints in early quarters, with recovery expected mid-year.