In this file:
· Hormel Foods 2020 – Inside the company's growth strategy
· Hormel Foods Highlights Long-Term Growth Plans and Reaffirms Guidance at its 2017 Investor Day at the New York Stock Exchange
Hormel Foods 2020 – Inside the company's growth strategy
by Keith Nunes, Food Business News
June 19, 2017
NEW YORK — Despite a lackluster food and beverage marketplace, where growth is difficult to find, Hormel Foods Corp. management reaffirmed its commitment to its goals of achieving 5% top-line growth, 10% bottom-line growth, and achieving margins that are in the top quartile of the company’s peers by 2020 during the firm’s 2017 investor day, which was held June 15 in New York.
The goals are ambitious given how the company has performed. During fiscal 2016, Hormel Foods earned $890,052,000, equal to $1.68 per share on the common stock, up from net income of $686,088,000, or $1.30 per share, in fiscal 2015.
Sales for fiscal 2016 were $9,523,224,000 compared with $9,263,863,000 during fiscal 2015.
Jim Snee, president and chief executive officer, said six strategies will give Hormel Foods the momentum to achieve its goals. The six strategies include continuing to become a more diversified food company; expanding and accelerating its food service business; expanding its international footprint; reducing volatility and increasing balance throughout the business; divesting assets that do not perform; and modernizing Hormel’s supply chain.
“We are deeply rooted in the meat protein space, and that’s a space that we know and we love both in the retail, food service channel, (and) domestic and international space,” he said. “But over time, we have to become a broader food company and build that balance across our portfolio.”
Hormel Foods has rapidly diversified its portfolio during the past six years with the acquisitions of Skippy peanut butter, CytoSport sports nutrition products and Justin’s nut butters.
“But beyond non-meat protein, we’ve also been able to increase our presence in what we call this flavor enhancement area: salsas, sauces, dips and hot sauces …,” he said.
Management also sees opportunities to translate the branded product successes it has had at retail to food service...
Hormel Foods Highlights Long-Term Growth Plans and Reaffirms Guidance at its 2017 Investor Day at the New York Stock Exchange
Source: Hormel Foods Corporation
via PRNewswire - June 19, 2017
AUSTIN, Minn., June 19, 2017 /PRNewswire/ -- During the Hormel Foods (NYSE: HRL) 2017 Investor Day at the New York Stock Exchange in New York City, New York, Jim Snee, president and chief executive officer, and Jim Sheehan, senior vice president and chief financial officer and nine other senior managers provided insights on the company's strategies for driving sales and earnings growth into the future. Snee also detailed plans for delivering on the company's stated long-term growth goals.
More information on the event, including an archived version of the broadcast, can be found at http://investor.hormelfoods.com/.
About Hormel Foods
Hormel Foods Corporation, based in Austin, Minn., is a global branded food company with over $9 billion in annual revenues across 75 countries worldwide. Its brands include SKIPPY®, SPAM®, Hormel® Natural Choice®, Applegate®, Justin's®, Wholly Guacamole®, Hormel® Black Label® 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 one of "The 100 Best Corporate Citizens" by Corporate Responsibility Magazine for the ninth year in a row, and has received numerous other awards and accolades for its corporate responsibility and community service efforts. In 2016, the company celebrated its 125th anniversary and announced its new vision for the future - Inspired People. Inspired Food.™ - focusing on its legacy of innovation. For more information, visit www.hormelfoods.com and http://2015csr.hormelfoods.com/.
Forward Looking Statements
This news release contains forward-looking information based on management's current views and assumptions. Actual events may differ materially. Please refer to the cautionary statement regarding Forward-Looking Statements and Risk Factors that appear on pages 32-38 in the company's Form 10-Q for the quarter ended April 30, 2017, which can be accessed at www.hormelfoods.com under "Investors-SEC Filings."
Nathan P. Annis
Wendy A. Watkins
SOURCE Hormel Foods Corporation