Hormel Foods Issues FY24 Guidance; Remains Focused On Strategic Priorities

(RTTNews) - Hormel Foods Corp. (HRL) said it expects fiscal 2024 to be a year of investment, consistent with the plan outlined at investor day. For fiscal 2024, the company expects: net sales growth of 1% to 3%; net earnings per share to be $1.43 to $1.57; and adjusted net earnings per share to be $1.51 to $1.65. The company noted that its adjusted net earnings per share guidance excludes the estimated impact of $0.08 per share from one-time and nonrecurring costs. Hormel Foods stated that consistent dividend growth remains one of its top priorities.

Hormel Foods expects earnings to decline in the first half of the year due to the impact from lower turkey markets, lower volumes in the Retail segment and softness in its China business. The company expects segment profit growth from all three segments in the back half of the year; and a modest benefit to net earnings from transformation and modernization initiative.

"We remain focused on our strategic priorities, executing on our transformation and modernization initiative, fueling our innovation pipeline and exiting the year with momentum in our business segments," said Jim Snee, CEO.

Fourth quarter earnings came in at $195.94 million, or $0.36 per share compared with $279.88 million, or $0.51 per share, in last year's fourth quarter. Excluding items, Hormel Foods reported adjusted earnings of $230.15 million or $0.42 per share for the period. Analysts on average had expected the company to earn $0.44 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.

Fourth quarter revenue fell 2.4% to $3.20 billion from $3.28 billion last year. Analysts on average had estimated $3.26 billion in revenue.

Hormel Foods stated that its cash on hand decreased to $737 million from $982 million at the beginning of the year. Total long-term debt, including current maturities, was $3.3 billion, unchanged from last year.

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