Hormel Foods (HRL) Barclays 17th Annual Global Consumer Staples Conference summary

Business performance and outlook

• Core business remains strong, with retail brands like Black Label Bacon, SPAM, and Applegate performing well.

• Food service and international segments are showing robust growth and recovery, especially in China and Indonesia.

• Known headwinds include turkey market impacts, Planters supply disruption, and contract manufacturing, but these are isolated and mainly affect the top line.

• Guidance was narrowed but the midpoint maintained, reflecting confidence in underlying business health.

• Transform and Modernize initiative is delivering margin expansion and operating income benefits.

Planters brand and supply chain

• Planters faced a supply disruption at the Suffolk facility, but demand remains strong and innovation continues.

• New products like flavored cashews and Nut Duos are attracting younger consumers.

• Investments in packaging and production lines have shifted offerings to more consumer-friendly formats.

• Financial impact from the disruption is expected to be resolved in Q4, with full sales recovery into 2025.

Turkey business and protein portfolio

• Turkey remains a key protein, with a $0.15 per share impact for the year as previously guided.

• Value-added turkey products are important for both retail and food service segments.

• Turkey's relevance is expected to grow with consumer trends favoring lean proteins.