Q3 2024 Hormel Foods Corp Earnings Call Transcript
Key Points
- Hormel Foods Corp (HRL) delivered solid third-quarter results with better-than-expected earnings.
- The foodservice segment experienced its fifth consecutive quarter of year-over-year volume growth.
- International segment profit grew impressively by 78% compared to the prior year.
- Key retail brands such as Hormel Black Label bacon, Jennie-O lean ground turkey, SPAM luncheon meats, and Skippy peanut butter showed strong performance.
- The company is seeing growing benefits from its transform and modernize initiatives, particularly in planning and operational improvements.
- The retail segment's topline results were negatively impacted by lower sales of whole bird turkeys, contract manufacturing, and Planters.
- Production disruption at the Planters facility in Suffolk, Virginia, significantly impacted third-quarter results.
- Continued softness in the high-volume, low-margin contract manufacturing business is expected to persist.
- Commodity exports, which historically benefited the international segment's top line, were down significantly year over year.
- The company experienced storm damage to its Papillion, Nebraska facility, adding to operational challenges.
(Operator Instructions) This call is being recorded on Wednesday, September 4, 2024.
I would now like to turn the conference over to Jess Blomberg. Please go ahead.
Good morning. Welcome to the Hormel Foods conference call for our third-quarter results of fiscal 2024. We released our results this morning before the market opened. A copy of the release can be found on our website, hormelfoods.com, under the Investors section. On our call today is Jim Snee, Chairman of the Board, President, and Chief Executive Officer; Jacinth Smiley, Executive Vice President and Chief Financial Officer; and Deanna Brady, Executive Vice President of the Retail segment. Jim will review our third-quarter results and give a perspective on the rest of fiscal 2024. Jacinth will provide detailed financial results and further commentary on our outlook. Deanna will join Jim and Jacinth for the Q&A portion of the call.
The line will remain open for questions following Jacinth's remarks. As a courtesy
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