Company delivers volume growth across all
segments; reaffirms full-year guidance
AUSTIN, Minn.,
Feb. 29,
2024 /PRNewswire/ -- Hormel Foods Corporation (NYSE:
HRL), a Fortune 500 global branded food company, today reported
results for the first quarter of fiscal 2024 ending Jan. 28, 2024. All comparisons are to the first
quarter of fiscal 2023 unless otherwise noted.
EXECUTIVE SUMMARY — FIRST QUARTER
- Volume of 1.1 billion lbs., up 4%
- Net sales of $3.0 billion, up
1%
- Operating income of $284 million,
down 2%; adjusted operating income1 of $295 million, up 2%
- Operating margin of 9.5%, compared to 9.7% last year; adjusted
operating margin1 of 9.8%
- Earnings before income taxes of $286
million, up 2%; adjusted earnings before income
taxes1 of $296 million, up
5%
- Effective tax rate of 23.4%, compared to 22.6%
- Diluted net earnings per share of $0.40, comparable to last year; adjusted diluted
net earnings per share1 was $0.41
- Cash flow from operations of $404
million, up 98%
EXECUTIVE COMMENTARY & OUTLOOK
"We delivered strong results in the first quarter, led by
better-than-expected performance in each of our business segments
and progress against our transformation and modernization
initiative," said Jim Snee, chairman
of the board, president and chief executive officer. "We are
especially encouraged by broad-based volume growth across our
businesses, reflecting the strength of our leading brands, robust
demand for our foodservice products and momentum in our
Planters® snack nuts business. These
results demonstrate our team's meaningful execution against our
strategic priorities, the value of our balanced business model and
marked improvements in our supply chain."
"We are reaffirming our full-year net sales and earnings
expectations," Snee said. "We expect continued growth in
Foodservice, improvement in our International business, impacts
from pricing and innovation in Retail, and further progress on our
transformation and modernization initiative. Our teams remain
focused on our strategic priorities and delivering on our
commitment to improve our business and drive long-term shareholder
returns."
For fiscal year 2024, the Company is:
- Reaffirming its net sales growth outlook of 1% to 3%, which
assumes volume growth in key categories, higher brand support and
innovation, impacts from incremental pricing actions and its
current assumptions for raw material input costs.
- Reaffirming its diluted net earnings per share and adjusted
diluted net earnings per share1 expectations of
$1.43 to $1.57, and $1.51 to
$1.65,* respectively. Diluted net
earnings per share and adjusted diluted net earnings per
share1 are expected to decline year over year in the
second quarter and grow in the back half of the year. The full-year
outlook reflects a significant year-over-year decline in whole bird
turkey markets.
- Assuming a modest benefit to net earnings from its
transformation and modernization initiative.
|
Fiscal 2024
Outlook
|
Net Sales
|
$12.2 - $12.5
billion
|
Adj. Diluted Net
Earnings per Share*
|
$1.51
- $1.65
|
Effective Tax
Rate
|
21.0 - 23.0%
|
|
*Adjusted diluted net
earnings per share1 excludes the estimated impact of
$0.08 per share from nonrecurring costs associated with the
Company's transformation and modernization initiative. Please see
discussion of non-GAAP financial measures and a reconciliation of
the Company's fiscal year 2024 guidance for estimated adjusted
diluted net earnings per share1 at the end of this
release.
|
PROGRESS EXECUTING STRATEGIC PRIORITIES – Q1
HIGHLIGHTS
Drive focus and growth in our Retail business
- We delivered volume and sales growth in the marketplace for
Skippy® peanut butter,
Hormel® Square Table™ entrees,
Chi-Chi's® salsa, Hormel®
Natural Choice® bacon,
Herdez® guacamole and Corn
Nuts® corn kernels.2
- We grew retail volume and sales of
Jennie-O® turkey items during the quarter,
including above-category performance in the fresh ground turkey
category.3
- The Applegate® brand drove sales
growth in many natural and organic channel categories for the
quarter, including in sliced deli meats, breakfast sausage, breaded
chicken, bacon and hot dogs.4
Expand leadership
in Foodservice
- We delivered strong volume and net sales growth, driven by
categories such as premium bacon, premium prepared proteins,
poultry and snacking.5
- We launched three items, including:
- Hormel® Flash 180™ sous vide-style
chicken breast: creating easy to-prepare, consistent fried chicken
that helps increase productivity and profitability without
compromising flavor or value.
- Café H® pork Al Pastor: lightly smoked and seasoned pork
with chipotle peppers, guajillo peppers and achiote spice — sliced
to replicate the "off-the-spit style."
- Hormel® ribbon pepperoni: capitalizing
on our leadership position in pizza toppings.
- Our Foodservice team was awarded the International Foodservice
Distributor Association's Distributor Choice: Strategic Partner
award in January 2024, which
recognized our team as the most strategic partner out of more than
70 manufacturers across the foodservice landscape.
Aggressively develop our global presence
- We continued to expand export sales of
Hormel® Bacon 1™ cooked
bacon to foodservice operators around the world, achieving rapid
growth in Canada and Australia.5
- We expect to launch Skippy® peanut
butter wafer cones and Skippy® peanut
butter mini ball snacks in Indonesia. This marks our first branded entry
into Indonesia through our
partnership with Garudafood, advancing the global execution of our
entertaining and snacking strategy.
Execute our enterprise entertaining & snacking
vision
- Net sales increased during the quarter within the snacking and
entertaining vertical in our Retail segment, driven by higher net
sales of Planters® snack nuts, Corn
Nuts® corn kernels and
Hormel® pepperoni.5
- We maintained positive volume and dollar share6
momentum in our Planters® snack nuts
business once again during the first quarter, along with increasing
our points of distribution6 and household
penetration.7 We are building on this momentum with the
planned second quarter launch of Planters®
Nut Duos and an extension to our flavored-cashews line. In
addition, we are supporting the brand with "Ahhh, nuts," a new
nationwide advertising campaign.
Future-fit our One Supply Chain/Continue to transform &
modernize our Company
- We made progress against our transformation and modernization
initiative, including in the areas of supply chain efficiency and
portfolio optimization:
- Plan: We are implementing a new end-to-end planning
process and are integrating new planning technology.
- Buy: We are realizing the benefits from our new
procurement and productivity programs, with further savings
expected across many categories, such as logistics and warehousing,
direct supplies and indirect supplies.
- Make: We launched the Hormel Production System to
standardize our ways of working across our manufacturing
network.
- Move: We are taking actions to optimize our refrigerated
and ambient distribution networks.
- Portfolio Optimization: We have identified approximately
10% of the items in our portfolio to be optimized. Throughout the
year, we expect to use our enhanced data and analytics capabilities
to identify more opportunities to improve our portfolio.
- We formed a data and analytics office, focused on creating easy
access to reliable and consistent technology, data and analytics to
support our transformation and modernization initiative.
SEGMENT HIGHLIGHTS – FIRST QUARTER
Retail
- Volume up 2%
- Net sales down 2%
- Segment profit down 3%
Volume growth for the quarter was driven by the value-added
meats, global flavors, emerging brands and bacon verticals. Net
sales declined primarily due to lower contract manufacturing volume
and lower commodity turkey pricing. Demand was strong for many
products, including Skippy® peanut butter,
Planters® snack nuts,
Wholly® dips,
Herdez® salsas and sauces, La
Victoria® salsas,
Jennie-O® ground turkey,
Hormel® Square Table™
entrees and Hormel® pepperoni, which each
delivered volume and net sales improvement during the quarter.
Segment profit declined, as the benefit from higher sales in our
snacking and entertaining vertical and lower logistics expenses was
more than offset by the impact from lower commodity turkey pricing
and lower equity in earnings from MegaMex Foods.
Foodservice
- Volume up 8%
- Net sales up 9%
- Segment profit up 10%
Volume and net sales growth were broad based across numerous
categories, led by Jennie-O® turkey and
double-digit gains for products such as
Hormel® Bacon 1™ cooked
bacon, pepperoni, Austin
Blues® smoked meats and Café
H® globally inspired proteins. Additionally, the
Company's Heritage Premium Meats group drove strong volume and
double-digit net sales improvement for the quarter. Segment profit
increased primarily due to higher sales and favorable logistics
expenses.
International
- Volume up 11%
- Net sales down 3%
- Segment profit up 1%
Higher commodity exports led to volume gains for the quarter.
Net sales declined due to lower branded export sales and lower
sales in China. Also in
China, foodservice results
improved as we lapped COVID-related disruption last year. This
benefit was more than offset by continued weakness in the retail
channel. Segment profit increased due to the inclusion of our
investment in Indonesia and
significantly higher results from our partnership in the Philippines, which offset the impact from
lower branded export demand and lower sales in China.
SELECTED FINANCIAL DETAILS – FIRST QUARTER AND FISCAL
2024
- Advertising investments were $44
million, compared to $47
million last year. The Company expects full-year advertising
expense to increase compared to the prior year.
- The effective tax rate was 23.4%, compared to 22.6% last year.
The Company benefited from the impact of certain discrete items and
higher federal deductions last year.
- Capital expenditures were $47
million, compared to $37
million last year. The Company's target for capital
expenditures in fiscal 2024 is $280
million.
- Depreciation and amortization expense was $64 million, compared to $62 million last year. The full-year expense for
fiscal 2024 is expected to be approximately $250 million.
PRESENTATION
A conference call will be webcast at
8 a.m. CST on Feb. 29, 2024. Access is available at
www.hormelfoods.com 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
01317. An audio replay is available by going to
www.hormelfoods.com. The webcast replay will be available at
noon CST, Feb.
29, 2024, and will remain on the website for one year.
ABOUT HORMEL FOODS - Inspired People. Inspired
Food.™
Hormel Foods Corporation, based in Austin, Minn., is a global branded food
company with over $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 on Fast Company's list of the 100 Best
Workplaces for Innovators, received a perfect score of 100 on the
2023–24 Corporate Equality Index 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 www.hormelfoods.com.
FORWARD-LOOKING STATEMENTS
This news 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; potential disruption of operations, including at
co-manufacturers, suppliers, logistics providers, customers, or
other third-party service providers; failure to realize anticipated
cost savings or operating efficiencies associated with strategic
initiatives; risk of loss of a material contract; the Company's
inability to protect information technology systems against, or
effectively respond to, cyber attacks or security breaches;
deterioration of labor relations, labor availability or increases
to labor costs; general risks of the food industry, including food
contamination; 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; damage to the Company's reputation or brand
image; 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 Company's
foreign operations. 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 www.hormelfoods.com
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
news release may not sum precisely to the totals provided, and
percentages may not precisely reflect the absolute figures.
END NOTES
1 COMPARISON OF U.S. GAAP TO NON-GAAP
FINANCIAL MEASURES
This news 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
financial measures provide useful information to investors because
they facilitate year-over-year comparison and comparison with peer
companies as well as provide additional information about trends in
the Company's operations. Non-GAAP measures are not intended to be
a substitute for GAAP measures in analyzing financial performance.
These non-GAAP measures are not in accordance with GAAP and may be
different from non-GAAP measures used by other companies.
In the fourth quarter of fiscal 2023, the Company announced a
multi-year transformation and modernization initiative. The
strategic investments in this initiative are expected to cease at
the end of the investment period, are not expected to recur in the
foreseeable future and are not considered representative of the
Company's underlying operating performance. The Company does not
believe such costs to be reflective of the ongoing operating cost
structure; therefore, the Company is excluding certain discrete
costs related to the transformation and modernization initiative
from the non-GAAP financial measures. Expenses for this initiative
are comprised primarily of nonrecurring charges for consulting
fees, which are reflected in selling, general, and administrative
(SG&A), and charges related to portfolio optimization, which
are reflected in Cost of Products Sold. This presentation is
consistent with the information the Company's management is using
to evaluate performance and allocate resources and facilitates
comparison of operating performance across multiple periods.
Adjusted cost of products sold, adjusted SG&A, adjusted
operating income, adjusted earnings before income taxes, adjusted
net earnings attributable to Hormel Foods Corporation, adjusted
diluted net earnings per share, adjusted SG&A as a percent of
net sales, and adjusted operating margin exclude certain costs
associated with the transformation and modernization initiative.
The tax impact was calculated using the effective tax rate for the
quarter in which the expense was incurred.
The table below shows the calculations to reconcile from the
GAAP measures to the non-GAAP financial measures.
HORMEL FOODS
CORPORATION
|
RECONCILIATION OF
NON-GAAP MEASURES
|
Unaudited
|
|
Quarter
Ended
|
in thousands, except
per share amounts
|
January 28,
2024
|
|
January 29,
2023
|
Cost of Products Sold
(GAAP)
|
$
2,488,178
|
|
$
2,475,043
|
Transformation and
Modernization Initiative
|
(1,598)
|
|
—
|
Adjusted Cost of
Products Sold (Non-GAAP)
|
$
2,486,580
|
|
$
2,475,043
|
|
|
|
|
SG&A
(GAAP)
|
$ 240,386
|
|
$ 222,056
|
Transformation and
Modernization Initiative
|
(8,715)
|
|
—
|
Adjusted SG&A
(Non-GAAP)
|
$ 231,671
|
|
$ 222,056
|
|
|
|
|
Operating Income
(GAAP)
|
$ 284,438
|
|
$ 289,452
|
Transformation and
Modernization Initiative
|
10,313
|
|
—
|
Adjusted Operating
Income (Non-GAAP)
|
$ 294,751
|
|
$ 289,452
|
|
|
|
|
Earnings Before Income
Taxes (GAAP)
|
$ 285,547
|
|
$ 281,201
|
Transformation and
Modernization Initiative
|
10,313
|
|
—
|
Adjusted Earnings
Before Income Taxes (Non-GAAP)
|
$ 295,859
|
|
$ 281,201
|
|
|
|
|
Net Earnings
Attributable to Hormel Foods Corporation (GAAP)
|
$ 218,863
|
|
$ 217,719
|
Transformation and
Modernization Initiative
|
7,900
|
|
—
|
Adjusted Net Earnings
Attributable to Hormel Foods Corporation (Non-GAAP)
|
$ 226,763
|
|
$ 217,719
|
|
|
|
|
Diluted Net Earnings
Per Share (GAAP)
|
$
0.40
|
|
$
0.40
|
Transformation and
Modernization Initiative
|
0.01
|
|
—
|
Adjusted Diluted Net
Earnings Per Share (Non-GAAP)
|
$
0.41
|
|
$
0.40
|
|
|
|
|
SG&A as a Percent
of Net Sales (GAAP)
|
8.0 %
|
|
7.5 %
|
Transformation and
Modernization Initiative
|
(0.3)
|
|
—
|
Adjusted SG&A as a
Percent of Net Sales (Non-GAAP)
|
7.7 %
|
|
7.5 %
|
|
|
|
|
Operating Margin
(GAAP)
|
9.5 %
|
|
9.7 %
|
Transformation and
Modernization Initiative
|
0.3
|
|
—
|
Adjusted Operating
Margin (Non-GAAP)
|
9.8 %
|
|
9.7 %
|
Forward-looking GAAP to Non-GAAP Measures
Our fiscal
2024 outlook for adjusted diluted net earnings per share is a
non-GAAP financial measure that excludes, or has otherwise been
adjusted for, items impacting comparability, including estimated
charges associated with the transformation and modernization
initiative.
The table below shows the calculation to reconcile from the
estimated fiscal 2024 GAAP measure to the estimated non-GAAP
adjusted measure.
|
Fiscal 2024
Outlook
|
Diluted Net Earnings
per Share
|
$1.43 -
$1.57
|
Transformation and
Modernization Initiative
|
$0.08
|
Adjusted Diluted Net
Earnings per Share
|
$1.51 -
$1.65
|
|
END NOTES
(continued)
|
2Circana
Total US MULO;13 weeks ended 1/28/2024 vs YAG
|
3Circana
Total US MULO;12 weeks ended 1/28/2024 vs YAG
|
4SPINS;12
weeks ended 1/28/2024 vs YAG
|
5Internal
data
|
6Circana
Total US MULO + Convenience; 13 weeks ended 1/28/2024 vs
YAG
|
7Circana
Panel Total US All Outlet; 13 weeks ended 1/28/24 vs YAG
|
HORMEL FOODS CORPORATION
|
SEGMENT DATA
|
In thousands
|
Unaudited
|
|
|
|
Quarter
Ended
|
|
|
January 28,
2024
|
|
January 29,
2023
|
|
%
Change
|
Volume
(lbs.)
|
|
|
|
|
|
|
Retail
|
|
765,412
|
|
752,887
|
|
1.7
|
Foodservice
|
|
256,007
|
|
237,087
|
|
8.0
|
International
|
|
80,135
|
|
72,237
|
|
10.9
|
Total Volume
(lbs.)
|
|
1,101,554
|
|
1,062,211
|
|
3.7
|
|
|
|
|
|
|
|
Net
Sales
|
|
|
|
|
|
|
Retail
|
|
$
1,911,272
|
|
$
1,957,797
|
|
(2.4)
|
Foodservice
|
|
913,087
|
|
834,750
|
|
9.4
|
International
|
|
172,552
|
|
178,445
|
|
(3.3)
|
Total Net
Sales
|
|
$
2,996,911
|
|
$
2,970,992
|
|
0.9
|
|
|
|
|
|
|
|
Segment
Profit
|
|
|
|
|
|
|
Retail
|
|
$
149,505
|
|
$
154,677
|
|
(3.3)
|
Foodservice
|
|
150,164
|
|
136,442
|
|
10.1
|
International
|
|
20,031
|
|
19,905
|
|
0.6
|
Total Segment
Profit
|
|
319,700
|
|
311,025
|
|
2.8
|
Net Unallocated
Expense
|
|
34,020
|
|
29,755
|
|
14.3
|
Noncontrolling
Interest
|
|
(134)
|
|
(69)
|
|
(95.4)
|
Earnings Before
Income Taxes
|
|
$
285,547
|
|
$
281,201
|
|
1.5
|
|
|
|
|
|
|
|
HORMEL FOODS CORPORATION
|
CONSOLIDATED STATEMENTS OF
OPERATIONS
|
In thousands, except per share
amounts
|
Unaudited
|
|
|
|
Quarter
Ended
|
|
|
January 28,
2024
|
|
January 29,
2023
|
Net Sales
|
|
$ 2,996,911
|
|
$ 2,970,992
|
Cost of Products
Sold
|
|
2,488,178
|
|
2,475,043
|
Gross
Profit
|
|
508,733
|
|
495,949
|
Selling, General, and
Administrative
|
|
240,386
|
|
222,056
|
Equity in Earnings of
Affiliates
|
|
16,091
|
|
15,559
|
Operating
Income
|
|
284,438
|
|
289,452
|
Interest and
Investment Income
|
|
19,434
|
|
10,096
|
Interest
Expense
|
|
18,326
|
|
18,347
|
Earnings Before
Income Taxes
|
|
285,547
|
|
281,201
|
Provision for Income
Taxes
|
|
66,818
|
|
63,551
|
Effective Tax
Rate
|
|
23.4 %
|
|
22.6 %
|
Net
Earnings
|
|
218,729
|
|
217,651
|
Less: Net Earnings
(Loss) Attributable to Noncontrolling Interest
|
|
(134)
|
|
(69)
|
Net Earnings
Attributable to Hormel Foods Corporation
|
|
$
218,863
|
|
$
217,719
|
|
|
|
|
|
Net Earnings Per
Share:
|
|
|
|
|
Basic
|
|
$
0.40
|
|
$
0.40
|
Diluted
|
|
$
0.40
|
|
$
0.40
|
|
|
|
|
|
Weighted-average
Shares Outstanding:
|
|
|
|
|
Basic
|
|
547,020
|
|
546,384
|
Diluted
|
|
547,920
|
|
550,031
|
|
|
|
|
|
Dividends Declared Per
Share
|
|
$ 0.2825
|
|
$ 0.2750
|
|
HORMEL FOODS CORPORATION
|
CONSOLIDATED CONDENSED STATEMENTS OF FINANCIAL
POSITION
|
In thousands
|
Unaudited
|
|
|
|
January 28,
2024
|
|
October 29,
2023
|
Assets
|
Cash and Cash
Equivalents
|
|
$
963,212
|
|
$
736,532
|
Short-term Marketable
Securities
|
|
18,712
|
|
16,664
|
Accounts
Receivable
|
|
751,048
|
|
817,391
|
Inventories
|
|
1,578,191
|
|
1,680,406
|
Prepaid Expenses and
Other Current Assets
|
|
56,001
|
|
46,256
|
Total Current
Assets
|
|
3,367,164
|
|
3,297,249
|
|
|
|
|
|
Goodwill
|
|
4,931,257
|
|
4,928,464
|
Other
Intangibles
|
|
1,753,156
|
|
1,757,171
|
Pension
Assets
|
|
200,113
|
|
204,697
|
Investments in
Affiliates
|
|
728,146
|
|
725,121
|
Other
Assets
|
|
377,623
|
|
370,252
|
Net Property, Plant,
and Equipment
|
|
2,155,524
|
|
2,165,818
|
Total
Assets
|
|
$
13,512,983
|
|
$
13,448,772
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Investment
|
Accounts
Payable
|
|
$
744,116
|
|
$
823,076
|
Accrued Marketing
Expenses
|
|
101,928
|
|
87,452
|
Employee Related
Expenses
|
|
212,719
|
|
263,330
|
Interest and Dividends
Payable
|
|
162,452
|
|
172,178
|
Taxes
Payable
|
|
85,533
|
|
15,212
|
Current Maturities of
Long-term Debt
|
|
954,031
|
|
950,529
|
Total Current
Liabilities
|
|
2,260,779
|
|
2,311,776
|
|
|
|
|
|
Long-term Debt Less
Current Maturities
|
|
2,357,176
|
|
2,358,719
|
Pension and
Post-retirement Benefits
|
|
352,709
|
|
349,268
|
Deferred Income
Taxes
|
|
500,581
|
|
498,106
|
Other Long-term
Liabilities
|
|
193,172
|
|
191,917
|
Accumulated Other
Comprehensive Loss
|
|
(250,783)
|
|
(272,252)
|
Other Shareholders'
Investment
|
|
8,099,349
|
|
8,011,237
|
Total Liabilities
and Shareholders' Investment
|
|
$
13,512,983
|
|
$
13,448,772
|
HORMEL FOODS CORPORATION
|
CONSOLIDATED CONDENSED STATEMENTS OF CASH
FLOWS
|
In thousands
|
Unaudited
|
|
|
|
Quarter
Ended
|
|
|
January 28,
2024
|
|
January 29,
2023
|
Operating
Activities
|
|
|
|
|
Net
Earnings
|
|
$
218,729
|
|
$
217,651
|
Depreciation and
Amortization
|
|
64,067
|
|
61,503
|
Decrease (Increase) in
Working Capital
|
|
115,402
|
|
(67,564)
|
Other
|
|
5,783
|
|
(7,962)
|
Net Cash Provided by
(Used in) Operating Activities
|
|
403,980
|
|
203,629
|
|
|
|
|
|
Investing
Activities
|
|
|
|
|
Net Sale (Purchase) of
Securities
|
|
(964)
|
|
(833)
|
Purchases of Property,
Plant, and Equipment
|
|
(47,210)
|
|
(37,052)
|
Proceeds from
(Purchases of) Affiliates and Other Investments
|
|
—
|
|
(418,616)
|
Other
|
|
20
|
|
5,032
|
Net Cash Provided by
(Used in) Investing Activities
|
|
(48,154)
|
|
(451,469)
|
|
|
|
|
|
Financing
Activities
|
|
|
|
|
Repayments of
Long-term Debt and Finance Leases
|
|
(2,249)
|
|
(2,189)
|
Dividends Paid on
Common Stock
|
|
(150,294)
|
|
(142,017)
|
Other
|
|
19,178
|
|
2,635
|
Net Cash Provided by
(Used in) Financing Activities
|
|
(133,365)
|
|
(141,570)
|
Effect of Exchange
Rate Changes on Cash
|
|
4,218
|
|
7,093
|
Increase (Decrease)
in Cash and Cash Equivalents
|
|
226,680
|
|
(382,318)
|
Cash and Cash
Equivalents at Beginning of Year
|
|
736,532
|
|
982,107
|
Cash and Cash
Equivalents at End of Period
|
|
$
963,212
|
|
$
599,789
|
INVESTOR
CONTACT:
David
Dahlstrom
ir@hormel.com
|
|
MEDIA
CONTACT:
Media
Relations
media@hormel.com
|
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SOURCE Hormel Foods Corporation