hrl-20240128

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended January 28, 2024


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______________ to _______________

Commission File Number: 1-2402

HORMEL FOODS CORPORATION

(Exact name of registrant as specified in its charter)


Delaware						41-0319970
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)


1 Hormel Place, Austin Minnesota						55912-3680
(Address of principal executive offices)						(Zip Code)

(507) 437-5611

(Registrant’s telephone number, including area code)

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol

Name of each exchange on which registered

Common Stock

$0.01465

par value

HRL

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☒ No

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.


Class	Outstanding at February 25, 2024
Common Stock	$0.01465	par value	547,687,578
Common Stock Nonvoting	$0.01	par value	0

Table of Contents

TABLE OF CONTENTS


PART I - FINANCIAL INFORMATION		3
Item 1.	Financial Statements	3
	Consolidated Statements of Operations	3
	Consolidated Statements of Comprehensive Income	4
	Consolidated Condensed Statements of Financial Position	5
	Consolidated Statements of Changes in Shareholders’ Investment	6
	Consolidated Condensed Statements of Cash Flows	7
	Notes to the Co nsolidated Financial Statements	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	20
	Results of Operations	20
	Overview	20
	Consolidated Results	20
	Segment Results	22
	Related Party Transactions	24
	Non-GAAP Financial Measures	24
	Liquidity and Capital Resources	26
	Critical Accounting Estimates	27
	Forward-looking Statements	28
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	28
Item 4.	Controls and Procedures	29
PART II - OTHER INFORMATION		29
Item 1.	Legal Proceedings	29
Item 1A.	Risk Factors	30
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	30
Item 3.	Defaults Upon Senior Securities	30
Item 4.	Mine Safety Disclosures	30
Item 5.	Other Information	30
Item 6.	Exhibits	30
SIGNATURES		31

Table of Contents

PART I – FINANCIAL INFORMATION

Item 1. FINANCIAL STATEMENTS

HORMEL FOODS CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

Unaudited


	Quarter Ended
In thousands, except per share amounts	January 28, 2024		January 29, 2023
Net Sales	$	2,996,911	$	2,970,992
Cost of Products Sold	2,488,178		2,475,043
Gross Profit	508,733		495,949
Selling, General, and Administrative	240,386		222,056

Equity in Earnings of Affiliates	16,091		15,559
Operating Income	284,438		289,452

Interest and Investment Income	19,434		10,096
Interest Expense	18,326		18,347
Earnings Before Income Taxes	285,547		281,201
Provision for Income Taxes	66,818		63,551
Net Earnings	218,729		217,651
Less: Net Earnings (Loss) Attributable to Noncontrolling Interest	(134)		(69)
Net Earnings Attributable to Hormel Foods Corporation	$	218,863	$	217,719

Net Earnings Per Share
Basic	$	0.40	$	0.40
Diluted	$	0.40	$	0.40

Weighted-average Shares Outstanding
Basic	547,020		546,384
Diluted	547,920		550,031

See Notes to the Consolidated Financial Statements

Table of Contents

HORMEL FOODS CORPORATION

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Unaudited


	Quarter Ended
In thousands	January 28, 2024		January 29, 2023
Net Earnings	$	218,729	$	217,651
Other Comprehensive Income (Loss), Net of Tax:
Foreign Currency Translation	11,459		15,046
Pension and Other Benefits	2,129		2,990
Derivatives and Hedging	5,206		(14,514)
Equity Method Investments	2,884		—
Total Other Comprehensive Income (Loss)	21,678		3,522
Comprehensive Income	240,407		221,173
Less: Comprehensive Income (Loss) Attributable to Noncontrolling Interest	75		154
Comprehensive Income Attributable to Hormel Foods Corporation	$	240,332	$	221,019

See Notes to the Consolidated Financial Statements

Table of Contents

HORMEL FOODS CORPORATION

CONSOLIDATED CONDENSED STATEMENTS OF FINANCIAL POSITION

Unaudited


In thousands, except share and per share amounts	January 28, 2024		October 29, 2023
Assets
Cash and Cash Equivalents	$	963,212	$	736,532
Short-term Marketable Securities	18,712		16,664
Accounts Receivable (Net of Allowance for Doubtful Accounts of $3,651 at January 28, 2024, and $3,557 at October 29, 2023)	751,048		817,391
Inventories	1,578,191		1,680,406

Prepaid Expenses and Other Current Assets	56,001		46,256

Total Current Assets	3,367,164		3,297,249


Goodwill	4,931,257		4,928,464
Other Intangibles	1,753,156		1,757,171
Pension Assets	200,113		204,697
Investments in Affiliates	728,146		725,121
Other Assets	377,623		370,252
Property, Plant, and Equipment
Land	75,000		74,626
Buildings	1,464,811		1,458,354
Equipment	2,781,258		2,781,730
Construction in Progress	215,086		195,665
Less: Allowance for Depreciation	(2,380,631)		(2,344,557)
Net Property, Plant, and Equipment	2,155,524		2,165,818
Total Assets	$	13,512,983	$	13,448,772
Liabilities and Shareholders’ Investment
Accounts Payable and Accrued Expenses	$	744,116	$	823,076


Accrued Marketing Expenses	101,928		87,452
Employee-related Expenses	212,719		263,330
Interest and Dividends Payable	162,452		172,178
Taxes Payable	85,533		15,212
Current Maturities of Long-term Debt	954,031		950,529
Total Current Liabilities	2,260,779		2,311,776
Long-term Debt Less Current Maturities	2,357,176		2,358,719
Pension and Post-retirement Benefits	352,709		349,268
Deferred Income Taxes	500,581		498,106
Other Long-term Liabilities	193,172		191,917
Shareholders’ Investment
Preferred Stock, Par Value $0.01 a Share — Authorized 160,000,000 Shares; Issued — None	—		—
Common Stock, Nonvoting, Par Value $0.01 a Share — Authorized 400,000,000 Shares; Issued — None	—		—
Common Stock, Par Value $0.01465 a Share — Authorized 1,600,000,000 Shares; Shares Issued as of January 28, 2024: 547,595,988 Shares Issued as of October 29, 2023: 546,599,420	8,021		8,007
Additional Paid-in Capital	529,715		506,179
Accumulated Other Comprehensive Loss	(250,783)		(272,252)
Retained Earnings	7,557,157		7,492,952
Hormel Foods Corporation Shareholders’ Investment	7,844,111		7,734,885
Noncontrolling Interest	4,455		4,100
Total Shareholders’ Investment	7,848,566		7,738,985
Total Liabilities and Shareholders’ Investment	$	13,512,983	$	13,448,772

See Notes to the Consolidated Financial Statements

Table of Contents

HORMEL FOODS CORPORATION

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ INVESTMENT

Unaudited


	Quarter Ended January 29, 2023
		Hormel Foods Corporation Shareholders
	Common Stock			Treasury Stock			Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Non- controlling Interest		Total Shareholders’ Investment
In thousands, except per share amounts	Shares	Amount		Shares	Amount
Balance at October 30, 2022	546,237	$	8,002	—	$	—	$	469,468	$	7,313,374	$	(255,561)	$	4,936	$	7,540,219
Net Earnings (Loss)									217,719				(69)		217,651
Other Comprehensive Income (Loss)											3,300		222		3,522


Stock-based Compensation Expense							5,202								5,202
Exercise of Stock Options/Restricted Shares	228	3					2,632								2,635

Declared Dividends – $0.2750 per Share							169		(150,405)						(150,236)
Balance at January 29, 2023	546,466	$	8,006	—	$	—	$	477,470	$	7,380,689	$	(252,261)	$	5,089	$	7,618,993

	Quarter Ended January 28, 2024
		Hormel Foods Corporation Shareholders
	Common Stock			Treasury Stock			Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Non- controlling Interest		Total Shareholders’ Investment
In thousands, except per share amounts	Shares	Amount		Shares	Amount
Balance at October 29, 2023	546,599	$	8,007	—	$	—	$	506,179	$	7,492,952	$	(272,252)	$	4,100	$	7,738,985
Net Earnings (Loss)									218,863				(134)		218,729
Other Comprehensive Income (Loss)											21,469		209		21,678
Contribution from Noncontrolling Interest													280		280

Stock-based Compensation Expense							4,444								4,444
Exercise of Stock Options/Restricted Shares	997	14					18,883								18,898

Declared Dividends – $0.2825 per Share							209		(154,658)						(154,449)
Balance at January 28, 2024	547,596	$	8,021

SEC Form 10-Q filed by Hormel Foods Corporation