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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.
Hormel
Hormel
Hormel Revenue by Segment
Revenue by Segment
International Revenue
CapyFin.com 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
- The Company's fiscal 2025 outlook assumes Net sales and earnings impact from the snack nuts supply disruption will continue in the first quarter
- The Company's fiscal 2025 outlook assumes Estimated incremental benefits from the T&M initiative in the range of $100 million to $150 million