On this page of StockholderLetter.com we present the latest annual shareholder letter from HORMEL FOODS CORP /DE/ — ticker symbol HRL. Reading current and past HRL letters to shareholders can bring important insights into the investment thesis.

 •  12/18/2024 Letter Continued (Full PDF)
 •  12/20/2023 HRL Stockholder Letter
 •  More "Food & Beverage" Category Stockholder Letters
 •  HRL Benford's Law Stock Score = 93

HRL Shareholder/Stockholder Letter Transcript:

INVEST
TRANSFORM
GROW
2024
Annual
Report

Global branded food company
Hormel Foods Corporation (HRL), based in Austin, Minnesota, is a global branded food
company with approximately $12 billion in annual revenue across more than 80 countries
worldwide. Its brands include Planters  , Jennie-O  , SPAM  , Applegate  , Skippy  , Wholly  ,
Hormel   Black Label   and more than 30 other beloved brands. The company also has
a renowned direct foodservice-selling organization that delivers value to operators and
foodservice partners. The company is a member of the S&P 500 Index and the S&P 500
Dividend Aristocrats.
~$12B
Net sales
Dividend
Aristocrat
1.6x
Net debt/EBITDA*
59
consecutive years of
dividend increases
80+
Leader in
40+
Strong
corporate
citizenship
retail
categories**
countries
where our brands
are sold
Committed to our long-term key results
Net sales
Operating income
Organic net sales
growth*
Operating income
growth
2-3%
5-7%
*Non-GAAP measure. Refer to reconciliation of non-GAAP measures in Management's Discussion and Analysis in the fiscal 2024 annual report on Form 10-K.
**Circana 52 weeks ending 11/3/2026 - MULO; SPINS 52 weeks ending 10/26/2024.

Jim Snee
Chairman of the Board, President
and Chief Executive Officer
Dear fellow shareholders:
As anticipated, fiscal 2024 presented a dynamic operating environment and was a year of investment to
continue our evolution as a global branded food company. As I reflect on 2024, I am encouraged by significant
progress we have made against our strategic priorities. We demonstrated our ability to drive the execution of
our long-term strategy, the strength of our portfolio and the resilience of our team. There are many milestones
to be proud of, including our safest year in company history, a record $1.3 billion in operating cash flow and
a record amount of cash returned to our shareholders in the form of dividends. The momentum we built
throughout the year positions us well as we move into 2025.
Building momentum
landscape. The Retail team remained focused on
delivering value, convenience and high-quality products
to our consumers and customers, while bringing
excitement and versatility through innovation and
relevant brand messaging.
We exited fiscal 2024 with momentum in key businesses,
validating that we have the right long-term strategy to
accelerate growth in 2025 and beyond.
     In Retail, we have iconic and relevant brands with
leading positions in more than 40 categories. The
investments we are making in our flagship and rising
brands are delivering results. Collectively, these brands
delivered dollar and volume consumption growth above
one year ago, driven by exceptional performance from
Hormel   Black Label   bacon, Jennie-O   raw ground,
Applegate   products and Corn Nuts   snacks. This is
especially impressive given the intricate consumer
     The Foodservice segment once again delivered
above-industry growth, showcasing the strength of
its portfolio. Our differentiated go-to-market strategy
enables us to provide value to operators across
various segments and channels even as they navigate
a dynamic industry landscape. Members of our
dedicated selling organization are deeply connected to
their operators' needs, ensuring they are addressing
real-time challenges in the industry. In 2024, the team
Invest
Transform
Grow
in people, processes,
data & technology,
and brands
and modernize processes,
portfolios and how we
create value as a company
net sales, earnings
and the impact we
have on the world
1

Strategic Priorities The Company is making great progress against its six strategic priorities.
Drive focus
and growth
in our Retail
business
Expand
leadership in
Foodservice
Aggressively
develop our
global
presence
Execute our
enterprise
entertaining
& snacking
vision
delivered innovative solutions to effectively tackle
issues related to labor and time constraints. Products
such as Flash 180    chicken, Hormel   Ribbon Pepperoni
and Caf   H   products are proof of what is possible
when you are backed by an impressive team of
culinary experts who deliver innovative, high-quality,
great-tasting solutions focused on addressing the
needs of the industry.
Future-fit
our One
Supply Chain
Continue to
transform
& modernize
our Company
In fiscal 2024, we returned a record $615 million to our
shareholders in the form of dividends. As a testament to
our confidence in the success of our business in 2025 and
beyond, we recently announced a 3% increase in the annual
dividend to $1.16 per share, marking the 59th consecutive
year of annual dividend growth, a record of which we are
incredibly proud.
We also invested $256 million in capital expenditure, led
by capacity expansions to support growth for Hormel  
Fire Braised    products, Applegate   natural and organic
products, and items made at our Jiaxing, China, facility.
     As expected, the International segment experienced
a solid recovery in fiscal 2024. Our China business
saw a significant rebound, as the team continued to
emphasize distribution growth and innovation. The
strategic investments into the Philippines and Indonesia
are paying off, and we saw a rebalance of increased
branded exports, while commodity exports decreased.
There is significant growth potential in the International
segment, and I am excited about the team   s return to
the expected growth trajectory.
Senior Leadership and Board of Director changes
Fiscal 2024 was another year marked with retirements,
leadership appointments and advancements. We continue
to have an experienced, diverse and skilled team of leaders
that can drive growth for our business and navigate change,
and will cultivate the next generation of company leaders.
Transformation
     In January, Pat Schwab, vice president of Retail sales    
East, announced his retirement after 37 years with
Hormel Foods, and Darren Carter was appointed his
successor.
We are a stronger company today because of the actions
we've taken, like our One Supply Chain and GoFwd initiatives,
to better align our structure with our strategy. In fiscal 2024,
we accelerated our transformation by making important
investments into our people, data and technology, and our
brands. We are making excellent progress to return the
Company to its historical earnings trajectory, provide fuel
for incremental investments, and increase cash flow to
support further shareholder returns and debt reduction. We
captured significant benefits in 2024, resulting in operating
income benefit and a record year in operating cash flow. We
expect these benefits to accelerate in 2025.
     After almost 40 years with Hormel Foods, Mark Coffey,
group vice president of supply chain, announced his
retirement in February, and the company announced
that Steve Lykken, group vice president of Jennie-O
Turkey Store, advanced to group vice president of
supply chain. In conjunction with this change, Matt
Schrupp was promoted to vice president of supply chain
operations     Jennie-O Turkey Store.
     In March, Katie Clark joined Hormel Foods as senior vice
president and chief communications officer.
Capital management
     In April, after a 40-year career with the company, Jeff
Grev, vice president of legislative affairs, announced his
retirement, and Chad Randick was named his successor.
We remain focused on successfully managing a complex
market and maintaining sustainable, steady and predictable
growth, and driving shareholder value.
2

     In May, Colleen Batcheler joined Hormel Foods and was
appointed to the role of senior vice president, external
affairs, and general counsel.
momentum in our underlying business, coupled with the
strength of our most transformative initiative yet, gives
me great confidence in our team, brands and company. We
have a portfolio of leading and differentiated brands that are
fueled by innovation. We are organized for long-term growth
with an ability to deliver stable financial performance. And
we do all this with a focus on being a strong corporate
citizen.
     In August, with 28 years of distinguished leadership at
Hormel Foods, Deanna Brady, executive vice president,
Retail, announced her retirement, effective at the close
of the fiscal year. Her successor, John Ghingo, rejoined
the company as executive vice president, Retail.
I remain confident that we have the right brands, strategy,
people and culture to deliver on this commitment to restore
our business to its earning potential and drive long-term
shareholder returns and growth.
During the year, Ray Young and Jose Luis Prado concluded
their service on our board of directors. We are grateful
for their valuable contributions. With that, we had the
opportunity to announce the addition of our newest board
member, Deb Schoneman, president of Piper Sandler
Companies, who joined the Audit and Governance Committees
of our board. Given Deb   s impressive background and
extensive expertise in finance and corporate development,
she is a great addition to our board of directors.
To our team members: Thank you for all your hard work
and unwavering commitment.
To our shareholders: Thank you for your continued trust
and support.
Invest. Transform. Grow.
As we head into 2025, we are building a more efficient,
scalable, and adaptable organization that is well positioned
to meet the demands of an evolving marketplace. The
James P. Snee
Chairman of the Board, President
and Chief Executive Officer
    Responsible business practices have     and will always be    
fundamental to our company,    said Jim Snee, chairman of the board,
president and chief executive officer of Hormel Foods.    We recognize
our role in shaping a better future for generations to come and that our
reach and scale enable us to make a significant impact and be a positive
influence. Our Global Impact Report reflects where we are today and
is a road map for where we aspire to be in the future.    The full 2023
Global Impact Report can be found at hormelfoods.com/global-impact.
Highlights of the 2023 Global Impact Report
Eco-friendly
packaging
Reduced product
packaging by nearly
1.7 million pounds
Education
Supported 200+
dependents of U.S
team members
through our Inspired
Pathways program
Food security
Continued to invest
in the Hometown
Food Security Project
3
Communities
Contributed more
than $12.5 million in
cash and products to
uplift communities
Safety, health
& wellness
Achieved the
lowest recordable
incident rate in our
company's history



 12/18/2024 Letter Continued (Full PDF)