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HORMEL FOODS REPORTS RECORD SALES AND DOUBLE-DIGIT EARNINGS GROWTH IN FISCAL 2022; EXPECTS CONTINUED SALES AND EARNINGS GROWTH IN FISCAL 2023

HRL

AUSTIN, Minn., Nov. 30, 2022 /PRNewswire/ -- Hormel Foods Corporation (NYSE: HRL), a Fortune 500 leading global branded food company, today reported results for the fourth quarter of fiscal 2022. The fourth quarter and full year of 2022 reflect one fewer week compared to the prior year. All comparisons are to the fourth quarter of fiscal 2021 unless otherwise noted.

Hormel Foods corporate logo

EXECUTIVE SUMMARY - FISCAL 2022

  • Record net sales of $12.5 billion, up 9%; organic net sales1 up 6%, excluding the partial-year impact of the Planters® snack nuts business and an additional week last year
  • Operating income of $1.3 billion, up 17%; up 13% compared to adjusted operating income1 of $1.2 billion last year
  • Operating margin of 10.5% compared to 9.9% last year and compared to adjusted operating margin1 of 10.2% last year
  • Pretax earnings of $1.3 billion, up 13%; up 9% compared to adjusted pretax earnings1 of $1.2 billion last year
  • Effective tax rate of 21.7% compared to 19.3% last year
  • Diluted earnings per share of $1.82, up 10%; up 5% compared to adjusted diluted earnings per share1 of $1.73 last year
  • Cash flow from operations of $1.1 billion, up 13%

EXECUTIVE SUMMARY - FOURTH QUARTER

  • Net sales of $3.3 billion, down 5%; organic net sales1 up 2%, excluding the impact of an additional week last year
  • Operating income of $367 million, up 3%
  • Operating margin of 11.2% compared to 10.4% last year
  • Pretax earnings of $357 million, up 1%
  • Effective tax rate of 21.7% compared to 20.0% last year
  • Diluted earnings per share of $0.51, comparable to $0.51 last year
  • Cash flow from operations of $372 million, down 34%

EXECUTIVE COMMENTARY
"We achieved all-time record sales and double-digit profit growth in fiscal 2022," said Jim Snee, chairman of the board, president and chief executive officer. "In addition to delivering year-over-year growth, our team successfully integrated the Planters® business, made progress on our six strategic priorities, showed tremendous resolve in overcoming a challenging operating environment, and laid the groundwork for the next step in our evolution as a global branded company, the Go Forward (GoFWD) initiative."

"In the fourth quarter, our team delivered diluted earnings per share comparable with record results last year, which included an additional week of sales," Snee said. "These results further demonstrate that our brands remain healthy, and the strategic investments we have made are enabling growth. Organic volume and organic net sales growth were led by our center-store grocery portfolio as well as another solid performance from our foodservice businesses. We saw volume and sales2 growth from many retail brands and products in market, including Hormel® Black Label® bacon, SKIPPY® peanut butter products, SPAM® products, Hormel® chili, Hormel Gatherings® party trays and Lloyds® meats. Segment profit growth was due to the Jennie-O Turkey Store segment, as the team effectively managed limited turkey supply and maximized operational performance. We also made progress across our supply chain to increase production capabilities and restore inventories on key product lines."

STRATEGIC EVOLUTION - GoFWD
The company transitioned to three operating segments – Retail, Foodservice and International – and began operating under the new model on Oct. 31, 2022. As part of the transition, implementation activities in the first quarter are expected to include:

  • Adopting a new organizational design, management structures and accountabilities;
  • Continuing the work to fully integrate Jennie-O Turkey Store into the company's One Supply Chain and new operating segments; and
  • Standing up the Brand Fuel Center of Excellence, which will house enterprise-wide brand management expertise, e-commerce capabilities, insights-led innovation and analytical support to further enable data-driven decisions.

"The deliberate and thoughtful steps we have taken thus far are all about creating the Hormel Foods of the future," Snee said. "We are excited for the additional collaboration, capabilities and value we will realize from this transition and are increasingly confident in our ability to drive long-term sustainable growth."

Changes to the company's operating segments have no impact on historical consolidated results of operations, financial position or cash flows. The company will provide recast financial information for fiscal years 2021 and 2022 in February 2023. Earnings will be reported under this structure beginning with the release of fiscal 2023 first quarter results in early March.

FISCAL 2023 GUIDANCE
"We enter the new fiscal year well-positioned in the retail, foodservice and international channels, and expect to drive top-line growth," Snee said. "We believe higher levels of brand investment, increased production capacity and our initial GoFWD actions further support this expectation. We anticipate earnings growth to be driven by our Foodservice and International segments, and improvements across the supply chain."

"We expect to operate in a volatile, complex and high-cost environment again in fiscal 2023," Snee said. "We have benefited from our balanced business model, which is not heavily dependent on any one channel, protein, input or product category. Our long-term strategy to meet consumers where they want to eat, with a broad portfolio of trusted brands and products, will continue to be a key differentiator for our business, helping to drive growth for our customers and operators."


Fiscal 2023 Outlook*

Comparison vs Fiscal 2022


Net Sales

$12.6 - $12.9 billion

+1 - 3%


Diluted Earnings per Share

$1.83 - $1.93

+1 - 6%


Effective Tax Rate

21.0 - 23.0%

21.7 %


Depreciation and Amortization

~$285 million

+8 %


Capital Expenditures

~$350 million

+25 %


* The company's guidance reflects the estimated impact of higher pension expense and higher feed costs for the turkey business.

DIVIDENDS
"Last week, we announced the 57th consecutive yearly increase to our annual dividend to $1.10 per share," Snee said. "We remain steadfast in our commitment to deliver consistent dividend growth and return cash to our shareholders."

Effective Nov. 15, 2022, the company paid its 377th consecutive quarterly dividend at the annual rate of $1.04 per share.

CHANNEL HIGHLIGHTS – FISCAL 2022
Net sales growth for the year was driven by the company's U.S. channels, which benefited from elevated demand for many of its leading retail and value-added foodservice brands, pricing actions to mitigate inflationary pressures and the full-year contribution of the Planters® snack nuts business. Sales for the international channel declined, primarily due to lower export sales. The fourth quarter and full year of 2022 reflect one fewer week compared to the prior year.







Fourth Quarter


Fiscal Year


Net Sales Percent Change (%)





U.S. Retail

(6)


7


U.S. Foodservice

(1)


20


International

(10)


(7)


Total Net Sales Percent Change (%)

(5)


9







SEGMENT HIGHLIGHTS – FOURTH QUARTER
Note: The fourth quarter of fiscal 2022 reflects one fewer week compared to the prior year.

Refrigerated Foods

  • Volume down 19%; organic volume1 down 13%
  • Net sales down 7%; organic net sales1 comparable to last year
  • Segment profit down 15%

Products such as Hormel® Natural Choice®meats, Hormel® Bacon 1TM fully cooked bacon, Hormel® Fire BraisedTM flame-seared meats, Hormel Gatherings® party trays and Applegate® breaded chicken grew volume and sales for the quarter. Overall net sales declined due to the impact from an additional week in the fourth quarter of last year and lower commodity sales. Consistent with the company's long-term strategy to better align resources to value-added growth, the overall decline in volume was primarily due to lower commodity sales resulting from the company's new pork supply agreement. The decline in segment profit was driven by lower commodity profitability and higher operational, logistics and raw material costs.

Grocery Products

  • Volume down 4%; organic volume1 up 4%
  • Net sales up 3%; organic net sales1 up 11%
  • Segment profit down 8%

Net sales increased due to strong demand for SKIPPY® peanut butter and the impact of pricing actions across the Mexican and simple-meals portfolios. Organic volume and net sales gains were led by the SPAM®, SKIPPY®, WHOLLY®, Herdez® and Dinty Moore® brands. Segment profit declined, as pricing actions did not offset the impact from continued inflationary pressures.

Jennie-O Turkey Store

  • Volume down 32%; organic volume1 down 27%
  • Net sales down 15%; organic net sales1 down 8%
  • Segment profit up 149%

As anticipated, volume and sales declined as a result of the supply impacts on the company's vertically integrated supply chain from highly pathogenic avian influenza (HPAI). Segment profit growth was primarily due to higher commodity prices and improved value-added mix.

International & Other

  • Volume comparable to last year; organic volume1 up 8%
  • Net sales down 2%; organic net sales1 up 6%
  • Segment profit down 4%

Volume and net sales growth from the SPAM® and SKIPPY® brands and the multinational businesses were offset by lower fresh pork and refrigerated export sales. Fresh pork sales declined as a result of the company's new pork supply agreement. Segment profit growth in China did not overcome declines in the export business and elevated logistics expenses.

SELECTED FINANCIAL DETAILS - FISCAL 2022

Income Statement

  • Operating margin for the full year was 10.5%. This compares to 9.9% and 10.2% on an adjusted basis1 for the previous year. The company continued to be negatively impacted by broad-based inflationary pressures and announced numerous pricing actions throughout the year to combat these pressures.
  • Selling, general and administrative expenses as a percentage of net sales were 7.1%. This compares to 7.5% and 7.2% on an adjusted basis1 last year. The decline is a result of record net sales and disciplined cost management.
  • Advertising investments were $157 million compared to $139 million last year. All business segments increased investment compared to the prior year.
  • The effective tax rate was 21.7% compared to 19.3% last year. Last year's rate included the benefit of one-time state tax discrete items.

Cash Flow Statement

  • Cash flow from operations was $1.1 billion, up 13% compared to last year.
  • Dividends paid to shareholders were a record $558 million.
  • Capital expenditures were $279 million compared to $232 million last year. Large projects in fiscal 2022 included the completion of pepperoni and bacon capacity-expansion projects, an expansion for our SPAM® family of products to be opened in the first half of fiscal 2023, and many other projects to support growth of branded products and increase automation. Capital expenditures are expected to be $350 million in fiscal 2023, which includes a recently approved investment to support the company's growth in China.
  • The company did not repurchase shares during fiscal 2022. The company has the capacity to repurchase approximately 4 million shares under its current authorization.
  • Depreciation and amortization expense for the full year was $263 million.

Balance Sheet

  • The company is in a strong financial position with ample liquidity, a conservative level of debt and consistent cash flows.
  • Cash on hand increased to $982 million from $614 million at the beginning of the year.
  • Total long-term debt is $3.3 billion, unchanged from the beginning of the year.

PRESENTATION

A conference call will be webcast at 8 a.m. CST on Nov. 30, 2022. Access is available at www.hormelfoods.com by clicking on "Investors." The call will also be available via telephone by dialing 888-317-6003 and providing the access code 7127801. An audio replay is available by going to www.hormelfoods.com. The webcast replay will be available at noon CST, Nov. 30, 2022, and will remain on the website for one year.

ABOUT HORMEL FOODS - Inspired People. Inspired Food.™

Hormel Foods Corporation, based in Austin, Minn., is a global branded food company with over $12 billion in annual revenue across more than 80 countries worldwide. Its brands include Planters®, SKIPPY®, SPAM®, Hormel® Natural Choice®, Applegate®, Justin's®, WHOLLY®, Hormel® Black Label®, Columbus®, Jennie-O® and more than 30 other beloved brands. The company is a member of the S&P 500 Index and the S&P 500 Dividend Aristocrats, was named on the "Global 2000 World's Best Employers" list by Forbes magazine for three years, is one of Fortune magazine's most admired companies, has appeared on the "100 Best Corporate Citizens" list by 3BL Media 13 times, and has received numerous other awards and accolades for its corporate responsibility and community service efforts. The company lives by its purpose statement — Inspired People. Inspired Food.™ — to bring some of the world's most trusted and iconic brands to tables across the globe. For more information, visit www.hormelfoods.com.

FORWARD-LOOKING STATEMENTS

This news release contains "forward-looking" information within the meaning of the federal securities laws. The "forward-looking" information may include statements concerning the Company's outlook for the future as well as other statements of beliefs, future plans, strategies, or anticipated events and similar expressions concerning matters that are not historical facts. Words or phrases such as "should result," "believe," "intend," "plan," "are expected to," "targeted," "will continue," "will approximate," "is anticipated," "estimate," "project," or similar expressions are intended to identify forward-looking statements. Such statements are subject to certain risks and uncertainties that could cause actual results to differ materially from historical earnings and those anticipated or projected, which factors include, but are not limited to, risks related to the deterioration of economic conditions; the COVID-19 pandemic; risks associated with acquisitions and divestitures; potential disruption of operations including at co-manufacturers, suppliers, logistics providers, customers, or other third party service providers; risk of loss of a material contract; the Company's inability to protect information technology systems against, or effectively respond to, cyber attacks or security breaches; deterioration of labor relations, labor availability or increases to labor costs; general risks of the food industry, including food contamination; outbreaks of disease among livestock and poultry flocks; fluctuations in commodity prices and availability of raw materials and other inputs; fluctuations in market demand for the Company's products; damage to the Company's reputation or brand image; climate change, or legal, regulatory, or market measures to address climate change; risks of litigation; potential sanctions and compliance costs arising from government regulation; compliance with stringent environmental regulation and potential environmental litigation; and risks arising from the Company's foreign operations. Please refer to the cautionary statements regarding "Risk Factors" and "Forward-Looking Statements" that appear in our most recent Annual Report on Form 10-K and Quarterly reports on Form 10-Q, which can be accessed at www.hormelfoods.com in the "Investors" section, for additional information. In making these statements, the Company is not undertaking, and specifically declines to undertake, any obligation to address or update each or any factor in future filings or communications regarding the Company's business or results, and is not undertaking to address how any of these factors may have caused changes to discussions or information contained in previous filings or communications. Though the Company has attempted to list comprehensively these important cautionary risk factors, the Company wishes to caution investors and others that other factors may in the future prove to be important in affecting the Company's business or results of operations. The Company cautions readers not to place undue reliance on forward-looking statements, which represent current views as of the date made.

Note: Due to rounding, numbers presented throughout this news release may not sum precisely to the totals provided, and percentages may not precisely reflect the absolute figures.

END NOTES
1Organic net sales, organic volume, and adjusted financial measurements of adjusted operating income, adjusted operating margin, adjusted selling, general, and administrative expenses, adjusted pretax earnings and adjusted diluted earnings per share are non-GAAP financial measures. Please see the discussion of these non-GAAP financial measures and the reconciliation of these to comparable U.S. GAAP measures following the end notes.

2IRI Panel; Total US All Outlet; 13 weeks ending Oct. 30, 2022, vs year ago.

COMPARISON OF U.S. GAAP TO NON-GAAP FINANCIAL MEASUREMENTS
The non-GAAP adjusted financial measurements of adjusted operating income, adjusted operating margin, adjusted selling, general, and administrative expenses, adjusted pretax earnings and adjusted diluted earnings per share are presented to provide investors with additional information to facilitate the comparison of past and present operations. These measurements exclude the impact of the acquisition-related expenses and accounting adjustments related to the acquisition of the Planters® snack nuts business. The tax impact was calculated using the effective tax rate for the quarter in which the expenses and accounting adjustments were incurred.

The non-GAAP adjusted financial measurements of organic volume and organic net sales are presented to provide investors with additional information to facilitate the comparison of past and present operations. Organic net sales and organic volume exclude the impacts of the acquisition of the Planters® snack nuts business (June 2021) in the Grocery Products, Refrigerated Foods and International & Other segments. Organic volume and organic net sales also exclude the impact of the 53rd week in fiscal 2021 as approximated based on average weekly sales for the fourth quarter (fourteen weeks) ended Oct. 31, 2021.

The company believes these non-GAAP financial measurements provide useful information to investors because they are the measurements used to evaluate performance on a comparable year-over-year basis. Non-GAAP measurements are not intended to be a substitute for U.S. GAAP measurements in analyzing financial performance. These non-GAAP measurements are not in accordance with generally accepted accounting principles and may be different from non-GAAP measures used by other companies.

The tables below show the calculations to reconcile from the GAAP measures to the non-GAAP adjusted measures.

HORMEL FOODS CORPORATION



RECONCILIATION OF NON-GAAP MEASURES







ADJUSTED FINANCIAL MEASUREMENTS (NON-GAAP)








Year Ended



October 30,
2022

October 31,
2021


In thousands, except per share amounts

Reported
GAAP

Reported
GAAP

Acquisition
costs and
adjustments

Non-GAAP

Non-GAAP
% Change

Net Sales

$ 12,458,806

$ 11,386,189

$ —

$ 11,386,189

9.4

Cost of Products Sold

10,294,120

9,458,283

(12,900)

9,445,383

9.0

Gross Profit

2,164,686

1,927,906

12,900

1,940,806

11.5

Selling, General, and Administrative

879,265

853,071

(30,303)

822,768

6.9

Equity in Earnings of Affiliates

27,185

47,763

47,763

(43.1)

Operating Income

1,312,607

1,122,599

43,203

1,165,802

12.6

Interest and Investment Income (Expense)

28,012

46,878

46,878

(40.2)

Interest Expense

62,515

43,307

43,307

44.4

Earnings Before Income Taxes

1,278,103

1,126,170

43,203

1,169,373

9.3

Provision for Income Taxes

277,877

217,029

5,975

223,004

24.6

Net Earnings

1,000,226

909,140

37,228

946,368

5.7

Less: Net Earnings Attrib. to Noncontrolling
Interest

239

301

301

(20.5)

Net Earnings Attrib. to Hormel Foods
Corporation

$ 999,987

$ 908,839

$ 37,228

$ 946,067

5.7







Diluted Net Earnings Per Share

$ 1.82

$ 1.66

$ 0.06

$ 1.73

5.2







Operating Margin (% of Net Sales)

10.5

9.9


10.2


HORMEL FOODS CORPORATION



RECONCILIATION OF NON-GAAP MEASURES (CONTINUED)







ORGANIC VOLUME (NON-GAAP)








Fourth Quarter Ended



October 30,
2022

October 31, 2021


Lbs., in thousands

Reported

GAAP

Reported

GAAP

53rd Week

Organic

(Non-GAAP)

Non-GAAP

% Change

Grocery Products

388,270

403,550

(28,825)

374,725

3.6

Refrigerated Foods

530,166

657,488

(46,963)

610,525

(13.2)

Jennie-O Turkey Store

163,785

240,771

(17,198)

223,573

(26.7)

International & Other

78,269

78,039

(5,574)

72,465

8.0

Total Volume

1,160,490

1,379,848

(98,561)

1,281,287

(9.4)


Year Ended



October 30, 2022

October 31, 2021


Lbs., in thousands

Reported

GAAP

Acquisitions

Organic

(Non-GAAP)

Reported

GAAP

53rd Week

Organic

(Non-GAAP)

Non-GAAP

% Change

Grocery Products

1,499,558

(138,186)

1,361,372

1,340,895

(28,825)

1,312,070

3.8

Refrigerated Foods

2,104,665

(22,127)

2,082,538

2,437,217

(46,963)

2,390,254

(12.9)

Jennie-O Turkey Store

703,824

703,824

824,184

(17,198)

806,986

(12.8)

International & Other

296,122

(3,503)

292,619

330,841

(5,574)

325,267

(10.0)

Total Volume

4,604,169

(163,817)

4,440,352

4,933,136

(98,561)

4,834,575

(8.2)

ORGANIC NET SALES (NON-GAAP)








Fourth Quarter Ended



October 30,
2022

October 31, 2021


In thousands

Reported

GAAP

Reported

GAAP

53rd Week

Organic

(Non-GAAP)

Non-GAAP

% Change

Grocery Products

$ 934,174

$ 905,030

$ (64,645)

$ 840,385

11.2

Refrigerated Foods

1,759,161

1,888,311

(134,879)

1,753,432

0.3

Jennie-O Turkey Store

391,866

459,754

(32,840)

426,914

(8.2)

International & Other

198,274

201,655

(14,404)

187,251

5.9

Total Net Sales

$ 3,283,475

$ 3,454,751

$ (246,768)

$ 3,207,983

2.4


Year Ended



October 30, 2022

October 31, 2021


In thousands

Reported

GAAP

Acquisitions

Organic

(Non-GAAP)

Reported

GAAP

53rd Week

Organic

(Non-GAAP)

Non-GAAP

% Change

Grocery Products

$ 3,533,138

$ (514,708)

$ 3,018,430

$ 2,809,445

$ (64,645)

$ 2,744,800

10.0

Refrigerated Foods

6,691,230

(80,979)

6,610,251

6,333,410

(134,879)

6,198,531

6.6

Jennie-O Turkey Store

1,507,421

1,507,421

1,495,151

(32,840)

1,462,311

3.1

International & Other

727,017

(9,877)

717,140

748,183

(14,404)

733,779

(2.3)

Total Net Sales

$ 12,458,806

$ (605,565)

$ 11,853,241

$ 11,386,189

$ (246,768)

$ 11,139,421

6.4

HORMEL FOODS CORPORATION

SEGMENT DATA

Unaudited




Fourth Quarter Ended

In thousands


October 30,
2022


October 31,
2021


% Change

Net Sales







Grocery Products


$ 934,174


$ 905,030


3.2

Refrigerated Foods


1,759,161


1,888,311


(6.8)

Jennie-O Turkey Store


391,866


459,754


(14.8)

International & Other


198,274


201,655


(1.7)

Total Net Sales


$ 3,283,475


$ 3,454,751


(5.0)















Segment Profit







Grocery Products


$ 102,378


$ 111,235


(8.0)

Refrigerated Foods


167,402


196,819


(14.9)

Jennie-O Turkey Store


75,891


30,492


148.9

International & Other


30,194


31,343


(3.7)

Total Segment Profit


375,865


369,888


1.6

Net Unallocated Expense


18,498


17,669


4.7

Noncontrolling Interest


128


12


994.1

Earnings Before Income Taxes


$ 357,495


$ 352,230


1.5



Year Ended

In thousands


October 30,
2022


October 31,
2021


% Change

Net Sales







Grocery Products


$ 3,533,138


$ 2,809,445


25.8

Refrigerated Foods


6,691,230


6,333,410


5.6

Jennie-O Turkey Store


1,507,421


1,495,151


0.8

International & Other


727,017


748,183


(2.8)

Total Net Sales


$ 12,458,806


$ 11,386,189


9.4















Segment Profit







Grocery Products


$ 367,642


$ 382,197


(3.8)

Refrigerated Foods


685,394


664,558


3.1

Jennie-O Turkey Store


218,860


76,006


188.0

International & Other


105,264


115,943


(9.2)

Total Segment Profit


1,377,161


1,238,704


11.2

Net Unallocated Expense


99,297


112,836


(12.0)

Noncontrolling Interest


239


301


(20.6)

Earnings Before Income Taxes


$ 1,278,103


$ 1,126,170


13.5

HORMEL FOODS CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

Unaudited




Fourth Quarter Ended


Year Ended

In thousands, except per share amounts


October 30,
2022


October 31,
2021



October 30,
2022


October 31,
2021

Net Sales


$ 3,283,475


$ 3,454,751



$ 12,458,806


$ 11,386,189

Cost of Products Sold


2,717,058


2,876,669



10,294,120


9,458,283

Gross Profit


566,417


578,081



2,164,686


1,927,906

Selling, General, and Administrative


206,487


230,441



879,265


853,071

Equity in Earnings of Affiliates


7,234


10,041



27,185


47,763

Operating Income


367,164


357,681



1,312,607


1,122,599

Interest and Investment Income


7,933


10,138



28,012


46,878

Interest Expense


17,602


15,589



62,515


43,307

Earnings Before Income Taxes


357,495


352,230



1,278,103


1,126,170

Provision for Income Taxes


77,484


70,480



277,877


217,029

Effective Tax Rate


21.7 %


20.0 %



21.7 %


19.3 %

Net Earnings


280,011


281,750



1,000,226


909,140

Less: Net Earnings Attrib. to Noncontrolling Interest


128


12



239


301

Net Earnings Attrib. to Hormel Foods Corporation


$ 279,883


$ 281,738



$ 999,987


$ 908,839











Net Earnings Per Share:










Basic


$ 0.51


$ 0.52



$ 1.84


$ 1.68

Diluted


$ 0.51


$ 0.51



$ 1.82


$ 1.66











Weighted-average Shares Outstanding:










Basic


546,213


542,496



544,918


541,114

Diluted


550,135


547,290



549,566


547,580











Dividends Declared per Share


$ 0.260


$ 0.245



$ 1.040


$ 0.980

HORMEL FOODS CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

Unaudited


In thousands


October 30,
2022



October 31,
2021

Assets






Cash and Cash Equivalents


$ 982,107



$ 613,530

Short-term Marketable Securities


16,149



21,162

Accounts Receivable


867,593



895,719

Inventories


1,716,059



1,369,198

Taxes Receivable


7,177



8,293

Prepaid Expenses and Other Current Assets


48,041



39,914

Total Current Assets


3,637,125



2,947,816







Goodwill


4,925,829



4,929,102

Other Intangibles


1,803,027



1,822,273

Pension Assets


245,566



289,096

Investments In and Receivables From Affiliates


271,058



299,019

Other Assets


283,169



299,907

Net Property, Plant, and Equipment


2,141,146



2,109,117

Total Assets


$ 13,306,919



$ 12,696,329







Liabilities and Shareholders' Investment






Accounts Payable


$ 816,604



$ 793,310

Accrued Expenses


58,801



51,192

Accrued Marketing Expenses


113,105



114,746

Employee Related Expenses


279,072



269,327

Interest and Dividends Payable


163,963



154,803

Taxes Payable


32,925



23,520

Current Maturities of Long-term Debt


8,796



8,756

Total Current Liabilities


1,473,266



1,415,654







Long-term Debt Less Current Maturities


3,290,549



3,315,147

Pension and Post-retirement Benefits


385,832



546,362

Deferred Income Taxes


475,212



278,183

Other Long-term Liabilities


141,840



162,623

Accumulated Other Comprehensive Loss


(255,561)



(277,269)

Other Shareholders' Investment


7,795,780



7,255,630

Total Liabilities and Shareholders' Investment


$ 13,306,919



$ 12,696,329

HORMEL FOODS CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Unaudited




Fourth Quarter Ended



Year Ended

In thousands


October 30,
2022


October 31,
2021



October 30,
2022


October 31,
2021

Operating Activities










Net Earnings


$ 280,011


$ 281,750



$ 1,000,226


$ 909,140

Depreciation and Amortization


71,185


65,917



262,753


228,406

Decrease (Increase) in Working Capital


(101,510)


184,817



(371,792)


(165,786)

Other


122,132


31,664



243,789


30,173

Net Cash Provided by (Used in) Operating Activities


371,820


564,148



1,134,977


1,001,934











Investing Activities










Net (Purchase) Sale of Securities


1,196


(3,059)



2,493


(4,364)

Acquisitions of Businesses and Intangibles






(3,396,246)

Net Purchases of Property and Equipment


(89,555)


(92,749)



(277,694)


(230,200)

Other


2,148


289



17,165


4,972

Net Cash Provided by (Used in) Investing Activities


(86,210)


(95,519)



(258,037)


(3,625,839)











Financing Activities










Proceeds from Long-term Debt






2,276,292

Repayments of Long-term Debt and Finance Leases


(2,174)


(2,083)



(8,673)


(258,617)

Dividends Paid on Common Stock


(141,916)


(132,909)



(557,839)


(523,114)

Share Repurchase



(10,305)




(19,958)

Other


1,869


1,912



79,827


45,919

Net Cash Provided by (Used in) Financing Activities


(142,221)


(143,385)



(486,684)


1,520,520

Effect of Exchange Rate Changes on Cash


(11,625)


(3,078)



(21,679)


2,606

Increase (Decrease) in Cash and Cash Equivalents


131,763


322,167



368,577


(1,100,778)

Cash and Cash Equivalents at Beginning of Period


850,344


291,363



613,530


1,714,309

Cash and Cash Equivalents at End of Year


$ 982,107


$ 613,530



$ 982,107


$ 613,530

INVESTOR CONTACT:

David Dahlstrom

(507) 437-5248

ir@hormel.com


MEDIA CONTACT:

Media Relations

(507) 437-5345

media@hormel.com

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SOURCE Hormel Foods Corporation