Q1 2026 Hormel Foods Corp Earnings Call Transcript
Key Points
- Hormel Foods Corp (HRL) reported its fifth consecutive quarter of organic net sales growth, with a 2% increase in Q1 2026.
- The Foodservice and International segments achieved high single-digit organic net sales growth and impressive segment profit growth.
- The company successfully implemented pricing strategies to offset inflation in key commodity inputs, which are expected to benefit future quarters.
- Hormel Foods Corp (HRL) reaffirmed its full-year guidance for organic net sales and adjusted diluted earnings per share.
- The strategic sale of the whole-bird turkey business is expected to reduce exposure to volatile commodity-driven businesses and sharpen focus on value-added protein products.
- The Retail segment experienced a decline in organic volumes and net sales, impacted by the strategic exit from select noncore private label snacking items.
- Higher input costs, particularly for beef, pork trim, and nuts, continued to hamper gross profit in Q1 2026.
- Unexpected increases in logistics expenses, driven by severe winter weather and industry dynamics, added pressure to profitability.
- The company anticipates continued challenges with high beef costs and elevated nut costs throughout fiscal 2026.
- Despite strategic actions, the Retail segment's profitability remains challenged, with significant pressure from increased raw material costs.
Good morning, ladies and gentlemen, and welcome to the Hormel Foods Corporation first quarter earnings conference call. (Operator Instructions) This call is being recorded on Thursday, February 26, 2026.
I would now like to hand the conference over to Florence Makope.
Good morning. Welcome to the Hormel Foods conference call for the first quarter of fiscal 2026.
We released results this morning before the market opened. If you did not receive a copy of the release, you can find it on our website, hormelfoods.com, under the Investors section, along with supplemental slide materials.
On our call today is Jeff Ettinger, Interim Chief Executive Officer; John Ghingo, President; and Paul Kuehneman, Interim Chief Financial Officer and Controller. Jeff, John, and Paul will review the company's fiscal 2026 first quarter results and provide a perspective on the remainder of the year.
We will conclude with the Q&A portion of the call. (Event Instructions) At the
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