What is the market's earnings forecast for Hormel Foods next quarter?

What guidance did Hormel Foods's management provide for the next earnings period?

What is the revenue and EPS growth rate for Hormel Foods year over year?

Did Hormel Foods beat or miss consensus estimates last quarter?

What is Hormel Foods's gross profit margin?

What does Hormel Foods do and what are its main business segments?

What is Hormel Foods's latest dividend and current dividend yield?

What factors drove the changes in Hormel Foods's revenue and profit?

- **2025 Performance**: $12B+ net sales, 2% organic growth, but 16% EPS decline due to input costs and impairments.
- **2026 Outlook**: 1-4% sales growth, 4-10% operating income growth, $1.43-1.51 EPS. Pork costs down, beef/nuts remain headwinds.
- **Restructuring Impact**: $20-25M annual savings, 2-3x ROI; reinvesting in marketing and T&M.
- **Key Drivers**: Protein-centric portfolio (Jennie-O, SPAM, Planters), AI-driven innovation, and disciplined cost management.
- **Risks**: Commodity volatility, consumer inflation sensitivity, Brazil market challenges.

**【CEO Summary Section】**
- Fiscal 2025 net sales exceeded $12 billion, with 2% organic growth across all segments. Challenges included elevated input costs (e.g., pork, turkey), supply chain disruptions, and a $0.03 EPS impact from a chicken recall and facility fire.
- The Transform and Modernize (T&M) initiative delivered $719 million in operating income, offsetting margin pressures. Restructuring reduced 250 corporate/sales positions, saving $20-25 million annually, with 2-3x return on investment.
- 2026 guidance: 1-4% organic net sales growth, 4-10% adjusted operating income growth, and $1.43-1.51 EPS. Pork costs expected to decline, but beef and nut costs remain headwinds.

**【CFO Financial Commentary】**
- Full-year GAAP net income: $719 million; adjusted operating income: $1.0 billion. Adjusted EPS: $1.37 (down 16% YoY due to input costs and impairments).
- Commodity inflation: 500+ bps in Q4 (pork belly +25%, turkey cutout +10%). T&M savings offset 9% of margin pressure.
- Strong cash flow ($845M) and dividend return ($633M, 1% increase). FY26 capex: $311M for capacity expansion and data/technology.

**【Q&A Highlights】**
- **Cost Savings & Restructuring**: $20-25M annual savings from workforce reduction, with 2-3x ROI. SG&A as % of sales stable due to reinvestment in marketing.
- **Planters Recovery**: +12% dollar sales, +6% volume in Q4; distribution nearly back to pre-disruption levels. Profit recovery delayed by mix shifts to lower-margin nuts.
- **Brazil Operations**: Under review; China and branded exports drive international growth despite Brazil drag.
- **2026 Cadence**: Q1 EPS down $0.02-0.04 YoY due to lingering costs; H2 benefits from pork cost decline and pricing wraparound.
- **AI & Innovation**: SKIPPY used generative AI to create 25+ seasonal assets in 1 day; Hormel Fire Braised and Applegate expand capacity.


Hormel Foods Corporation(HRL)-20251204-2025 Q4 Earnings call transcript

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