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Oct 27, 2024
Hormel Q4 2024 Earnings Report
Hormel Foods reported Q4 and full-year fiscal 2024 results, with strength in the value-added portfolio and a $75 million operating income benefit from the Transform and Modernize initiative, resulting in record operating cash flow.
Key Takeaways
Hormel Foods reported Q4 net sales of $3.1 billion and operating income of $294 million. The company's performance was supported by its value-added portfolio and benefits from the Transform and Modernize initiative.
Net sales were $3.1 billion.
Operating income was $294 million.
Diluted earnings per share were $0.40.
The Transform and Modernize initiative contributed $75 million in operating income benefit for the full year.
Revenue by Segment
Forward Guidance
In fiscal 2025, the Company expects net sales of $11.9 billion to $12.2 billion and diluted earnings per share in the range of $1.51 to $1.65.
Positive Outlook
- Each of the three segments is expected to deliver top line growth.
- The company will continue to lead on-trend categories.
- The company will increase brand investments.
- The company will drive innovation in the marketplace.
- Estimated incremental benefits from the T&M initiative in the range of $100 million to $150 million
Challenges Ahead
- Net sales and earnings impact from lower whole bird turkey commodity markets that are most acute in the first quarter
- Net sales and earnings impact from the snack nuts supply disruption will continue in the first quarter with sequential improvement from the Planters® brand beginning in the second quarter
- The Company's fiscal 2025 outlook assumes Net sales and earnings impact from lower whole bird turkey commodity markets
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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