In This Article:
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Fourth Quarter Volume: 1.1 billion pounds.
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Fourth Quarter Net Sales: $3.1 billion.
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Full Year Volume: 4.3 billion pounds.
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Full Year Net Sales: $11.9 billion.
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Fourth Quarter Gross Margin: Increased 50 basis points to 16.6%.
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Full Year Gross Margin: Increased 50 basis points to 17%.
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Operating Income for Fiscal 2024: $1.1 billion.
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Operating Margin: 9%.
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Adjusted Operating Margin: 9.6%.
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Full Year Diluted Net Earnings Per Share: $1.47.
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Adjusted Diluted Net Earnings Per Share: $1.58.
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Record Operating Cash Flow: $1.3 billion.
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Dividends Returned to Shareholders: $615 million.
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Capital Projects Investment: $256 million in fiscal 2024.
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Debt: $2.9 billion.
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Cash and Short-term Securities: Over $765 million.
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Inventory: $1.6 billion, a decrease of $104 million from the beginning of the year.
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Net Sales Guidance for Fiscal 2025: $11.9 billion to $12.2 billion.
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Adjusted Diluted EPS Guidance for Fiscal 2025: $1.58 to $1.72.
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Transform and Modernize Initiative Benefits: $75 million in fiscal 2024, with an expected $100 million to $150 million in fiscal 2025.
Release Date: December 04, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Hormel Foods Corp (NYSE:HRL) delivered solid results in fiscal 2024, meeting adjusted diluted net earnings per share expectations.
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The company achieved a record year of operating cash flow, delivering $1.3 billion, and returned a record amount of cash to shareholders through dividends.
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Significant progress was made in the first year of the transform and modernize initiative, delivering $75 million in operating income benefits.
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Strong growth was observed in flagship and rising brands such as Hormel Black Label, Jennie-O, SPAM, and Applegate.
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The international segment saw a strong recovery, with increased branded exports and growth from investments in the Philippines and Indonesia.
Negative Points
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Hormel Foods Corp (NYSE:HRL) experienced a $9 million negative impact in Q4 due to storm damage at the Patelin Nebraska facility.
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The company anticipates some near-term commercial impacts and higher costs in Q1 of fiscal 2025, particularly affecting the Planters brand.
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Full year expenses increased compared to last year, primarily due to employee-related expenses and the transform and modernize initiative.
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The company expects SG&A expenses to increase in fiscal 2025, with planned double-digit percentage increases in advertising investments.
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Turkey markets are expected to remain depressed for the full year of 2025, with lower year-over-year whole-bird prices impacting earnings.