Hormel Foods Corporation (NYSE:HRL) traded lower on Wednesday after warning that it will have to continue to navigate through a dynamic operating environment characterized by slowing consumer demand, inflationary pressures, and headwinds in the company's turkey business. Looking ahead, Hormel (HRL) sees FY24 revenue of $12.2B to $12.5B vs. $12.3B consensus and expects FY24 of $1.51 to 1.65 vs. $1.66 consensus.
During the earnings conference call, Hormel (HRL) execs said that for FY24 the company expects to drive modest volume and net sales growth for the full year. The growth is expected to come from key categories, supported by higher brand investments and innovation. In retail, Hormel (HRL) expects higher net sales across many of its verticals, including bacon, convenient meals and proteins, global flavors, emerging brands, and snacking and entertaining.
CEO Jim Snee: "We have embedded in our outlook targeted pricing actions, a step-up in innovation, and higher brand support to drive volume and improved mix. In Foodservice, we are anticipating broad volume growth led by turkey, pepperoni and bacon. In addition to higher volumes, net sales are expected to benefit from higher raw material input markets. In our International business, we expect net sales increases to be driven by the branded export business, led by SPAM and Skippy, and improvement in both the Retail and Foodservice channels in China."
Shares of Hormel (HRL) were down 4.62% at 12:02 p.m. on Wednesday and traded at a new 52-week low of $30.25 earlier in the session. The drop in share price has pushed up the dividend yield for new buyers of the stock to 3.54%.
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