About Company

Company Overview

Hormel Foods Corporation, founded in 1891 and headquartered in Austin, Minnesota, has evolved into a global branded food company with over $12 billion in annual revenue. The company operates across more than 80 countries worldwide, serving foodservice, convenience store, and commercial customers. As of September 2025, Hormel Foods has a market capitalization of $13.68 Billion USD.

The company develops, processes, and distributes a wide array of meat, nuts, and other food products. It operates through three primary segments: Retail, Foodservice, and International.

Business Segments and Operations

The company's operations are structured across distinct segments, catering to diverse market needs:

- Retail Segment: Focuses on consumer-facing products sold through grocery stores and other retail channels.

- Foodservice Segment: Supplies food products to restaurants, institutions, and other food service providers.

- International Segment: Manages sales and distribution of Hormel products in global markets outside the United States.

#### Product Portfolio

Hormel Foods offers a diverse range of products, including:

- Perishable Products: Fresh meats, frozen items, refrigerated meal solutions, bacon, sausages, hams, and guacamoles.

- Shelf-Stable Products: Canned luncheon meats, nut butters, snack nuts, chili, shelf-stable microwaveable meals, hash, stews, tortillas, salsas, tortilla chips, and nutritional food supplements.

#### Brand Portfolio

The company boasts a strong portfolio of over 30 beloved brands, including:

- PLANTERS®

- SKIPPY®

- SPAM®

- HORMEL® NATURAL CHOICE®

- APPLEGATE®

- JUSTIN'S®

- WHOLLY®

- HORMEL® BLACK LABEL®

- COLUMBUS®

- JENNIE-O®

HORMEL® Pepperoni holds its position as America's #1 selling pepperoni brand.

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Financial Performance and Market Position

Hormel Foods has demonstrated a history of consistent performance, leveraging its diversified portfolio and strong brand equity. While facing market dynamics, the company remains committed to profitable growth and shareholder returns.

Fiscal Year 2024 Results

For the fiscal year 2024, Hormel Foods reported annual revenue of $11.921 billion, representing a 1.56% decline from 2023. The Board of Directors also announced a 3 percent increase in the dividend, underscoring financial stability.

Q1 2025 Performance (Ended January 26, 2025)

- Net Sales: $3 billion, a 1% organic increase year-over-year.

- Gross Profit Margin: 15.9%

- Diluted Earnings Per Share (EPS): $0.31

- Adjusted Diluted EPS: $0.35

- Operating Cash Flow: $309 million

Q3 2025 Performance (Ended July 27, 2025)

- Net Sales: $3.03 billion, up 4.6% from the same period last year.

- Net Earnings: $183.7 million, or $0.33 per share.

- Retail Segment Net Sales: Increased 5% year-over-year to $1.85 billion.

- Foodservice Segment Sales: Rose 3.5% to $987 million.

- International Segment Sales: Grew 6% to $187 million.

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Key Financial Metrics

- Market Capitalization: $13.68 Billion USD (as of September 2025)

- FY 2024 Revenue: $11.921 Billion

- Q1 FY2025 Net Sales: $3 Billion

- Q3 FY2025 Net Sales: $3.03 Billion

- Annual Dividend Rate: $1.16 per share (following a 3% increase)

- Cash on Hand (Fiscal Year-End): $742 million

- Total Long-Term Debt (Fiscal Year-End): $2.9 billion

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Strategic Initiatives

Transform & Modernize (T&M) Initiative

Hormel Foods is making significant strides with its Transform & Modernize (T&M) initiative. In fiscal 2024, this initiative generated $75 million in operating income benefit. The company expects the T&M initiative to deliver an additional $100 million to $150 million in benefits in fiscal 2025.

Key focus areas include:

- Transforming the supply chain.

- Minimizing portfolio complexity.

- Investing in data and technology.

- Enhancing people and processes.

Brand Focus and Innovation

The company prioritizes resources on its flagship and rising brands, which has proven effective. For example, HORMEL® Pepperoni underwent a brand renovation, featuring modernized packaging, the "Boldly Irresistible" campaign, and new flavors. As the #1 retail pepperoni brand, this strategic refresh aims to drive consumer engagement and sustain category leadership.

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Financial Position and Capital Allocation

Strong Financial Foundation

Hormel Foods maintains a robust financial position characterized by ample liquidity, a conservative debt level, and consistent cash flows. At the fiscal year-end, cash on hand increased to $742 million, while total long-term debt (including current maturities) stood at $2.9 billion.

Dividend History

The company recently announced a 3% increase to its quarterly dividend, raising the annual rate to $1.16 per share. This marks the 59th consecutive year of annual dividend growth, positioning Hormel Foods as a member of the S&P 500 Index and the S&P 500 Dividend Aristocrats.

Capital Expenditure Plans

The target for capital expenditures in fiscal 2025 is set between $275 million and $300 million. Investments during the year are directed towards capacity expansions for key product lines such as HORMEL® FIRE BRAISED® products, APPLEGATE® products, and the Jiaxing, China, facility.

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Leadership and Recognition

The company is currently led by Jeff Ettinger, interim chief executive officer. Hormel Foods has received notable recognition, including being named one of the best companies to work for by U.S. News & World Report, one of America's most responsible companies by Newsweek, and recognized by TIME magazine as one of the World's Best Companies.

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Future Outlook

- Full Year Guidance:

- Organic Net Sales Growth: 1% to 3%

- Adjusted Diluted Net Earnings Per Share: $1.58 to $1.72

- Fourth Quarter 2025 Expectations:

- Net Sales: $3.15 - $3.25 billion

- Organic Sales Growth: 1-4%

- GAAP EPS: $0.36 - $0.38

- Adjusted EPS: $0.38 - $0.40

Hormel Foods continues to focus on profitable growth, leveraging its diversified brand portfolio and operational efficiency initiatives to drive long-term value creation for shareholders.