荷美爾 (HRL) 2022 Q4 法說會逐字稿

Good day, and welcome to the Hormel Foods Fourth Quarter 2022 Earnings Conference Call. (Operator Instructions). Please note, today's event is being recorded. I would now like to turn the conference over to David Dahlstrom, Director of Investor Relations. Please go ahead, sir.

美好的一天，歡迎來到 Hormel Foods 2022 年第四季度收益電話會議。 （操作員說明）。請注意，今天的活動正在錄製中。我現在想將會議轉交給投資者關係總監 David Dahlstrom。請繼續，先生。

Good morning. Welcome to the Hormel Foods Conference call for the fourth quarter of fiscal 2022. We released our results this morning before the market opened around 6:30 a.m. Eastern. If you did not receive a copy of the release, you can find it on our website at hormelfoods.com under the Investors section.

早上好。歡迎參加荷美爾食品公司 2022 財年第四季度電話會議。我們今天早上在東部時間早上 6 點 30 分開市前發布了業績。如果您沒有收到新聞稿的副本，您可以在我們網站 hormelfoods.com 的“投資者”部分找到它。

On our call today is Jim Snee, Chairman of the Board, President and Chief Executive Officer; and Jacinth Smiley, Executive Vice President and Chief Financial Officer.

今天接聽我們電話的是董事會主席、總裁兼首席執行官 Jim Snee；執行副總裁兼首席財務官 Jacinth Smiley。

Jim will provide a review of the company's fourth quarter and full-year results and update on the company's Go Forward initiative and a perspective on fiscal 2023. Jacinth will provide detailed financial results and further commentary on the fiscal 2023 outlook.

Jim 將回顧公司第四季度和全年的業績，並更新公司的 Go Forward 計劃以及對 2023 財年的展望。Jacinth 將提供詳細的財務業績，並進一步評論 2023 財年的前景。

The line will be open for questions following Jacinth's remarks. (Operator Instructions). An audio replay of this call will be available beginning at noon today Central Standard Time. The dial-in number is (877) 344-7529 and the access code is 9562037. It will also be posted to our website and archived for 1 year.

在 Jacinth 發表講話後，該熱線將開放供提問。 （操作員說明）。從中部標準時間今天中午開始，將提供此次通話的音頻重播。撥入號碼是（877）344-7529，接入碼是9562037。它也會發佈到我們的網站上並存檔1年。

Before we get started, I need to reference the safe harbor statement. Some of the comments made today will be forward-looking, and actual results may differ materially from those expressed in or implied by the statements we will be making.

在我們開始之前，我需要參考安全港聲明。今天發表的一些評論將是前瞻性的，實際結果可能與我們將要發表的聲明中明示或暗示的結果存在重大差異。

Please refer to our most recent annual report on Form 10-K and quarterly reports on Form 10-Q, which can be accessed at hormelfoods.com, under the Investors section.

請參閱我們最近的 10-K 表年度報告和 10-Q 表季度報告，這些報告可在 hormelfoods.com 的“投資者”部分下訪問。

Additionally, please note the company uses non-GAAP results to provide investors with a better understanding of the company's operating performance. These non-GAAP measures include organic net sales and net debt to EBITDA.

此外，請注意公司使用非 GAAP 業績讓投資者更好地了解公司的經營業績。這些非 GAAP 指標包括有機淨銷售額和 EBITDA 的淨債務。

Discussion on non-GAAP information is detailed in our press release and fourth quarter earnings supplement, which can be accessed from our corporate website and is also located on our investor website, investor.hormelfoods.com.

關於非 GAAP 信息的討論在我們的新聞稿和第四季度收益補充中有詳細說明，可以從我們的公司網站訪問，也可以在我們的投資者網站 investor.hormelfoods.com 上找到。

I will now turn the call over to Jim Snee.

我現在將把電話轉給 Jim Snee。

Thank you, David. Good morning, everyone. Fiscal 2022 was a return to growth for our business as we delivered record sales and double-digit earnings growth compared to last year. Fiscal 2022 marked the third consecutive year of record sales and the second most profitable year in our company's 131-year history. In addition to achieving strong year-over-year growth, our team made considerable progress on our 6 strategic priorities.

謝謝你，大衛。大家，早安。 2022 財年是我們業務恢復增長的一年，與去年相比，我們實現了創紀錄的銷售額和兩位數的盈利增長。 2022 財年是我們公司 131 年曆史上連續第三年創下銷售額和第二大盈利年份。除了實現強勁的同比增長外，我們的團隊還在 6 個戰略重點方面取得了長足進步。

First, we continued our efforts to protect and grow our core brands. Sales in our retail channel increased 7% in fiscal 2022, led by brands such as SPAM, SKIPPY, Hormel Natural Choice, Dinty Moore, Hormel Square Table entrees, and Mary Kitchen. Of note, the SPAM family of products achieved its eighth consecutive year of record growth.

首先，我們繼續努力保護和發展我們的核心品牌。在 SPAM、SKIPPY、Hormel Natural Choice、Dinty Moore、Hormel Square Table entrees 和 Mary Kitchen 等品牌的帶動下，我們零售渠道的銷售額在 2022 財年增長了 7%。值得注意的是，SPAM 系列產品連續第八年實現創紀錄的增長。

Second, we made progress amplifying our presence in snacking and entertaining. We delivered excellent growth on the Columbus and Hormel Gatherings brand, and we have successfully integrated the Planters business. We have a powerhouse of brands with the goal of becoming the leading solutions provider in the snacking and entertainment space.

其次，我們在擴大我們在零食和娛樂方面的影響力方面取得了進展。我們在 Columbus 和 Hormel Gatherings 品牌上實現了出色的增長，並且我們已經成功整合了 Planters 業務。我們擁有眾多品牌，目標是成為零食和娛樂領域領先的解決方案提供商。

Third, we saw growth from our ethnic and Food Forward portfolios. Both our MegaMex joint venture and Applegate business achieved sales milestones this fiscal year, driving growth behind the WHOLLY, Herdez and Applegate brands, respectively. These businesses are well positioned in the marketplace due to their strong and reputable brands, on-trend innovation and loyal consumer bases.

第三，我們看到了種族和食品前瞻投資組合的增長。我們的 MegaMex 合資企業和 Applegate 業務在本財年都實現了銷售里程碑，分別推動了 WHOLLY、Herdez 和 Applegate 品牌的增長。這些企業憑藉其強大且享有盛譽的品牌、緊跟潮流的創新和忠實的消費者基礎，在市場上處於有利地位。

Fourth, we continue to expand our leadership position in foodservice. Sales in the foodservice channel grew 20% compared to last year as operators again turn to our items to help solve for labor pressures and to diversify menu offerings.

第四，我們繼續擴大我們在餐飲服務領域的領先地位。與去年相比，餐飲服務渠道的銷售額增長了 20%，因為經營者再次轉向我們的產品來幫助解決勞動力壓力並使菜單產品多樣化。

We drove excellent growth in this critically important channel, highlighted by brands such as Bacon 1, Austin Blues, Hormel Fire Braised and Café H. Our foodservice portfolio and direct selling organization remain key differentiators and growth catalysts for the company.

我們在這一極其重要的渠道中實現了出色的增長，培根 1、Austin Blues、Hormel Fire Braised 和 Café H 等品牌尤為突出。我們的餐飲服務組合和直銷組織仍然是公司的主要差異化因素和增長催化劑。

Fifth, we invested into our International business as we look to aggressively develop our global presence. In fiscal 2022, we commissioned a state-of-the-art innovation center supporting the Asia Pacific region and approved another capacity investment to support our growth in China. Our International business is expected to be a significant growth driver for the company.

第五，我們投資於我們的國際業務，因為我們希望積極發展我們的全球影響力。在 2022 財年，我們委託了一個支持亞太地區的最先進的創新中心，並批准了另一項產能投資以支持我們在中國的增長。我們的國際業務預計將成為公司的重要增長動力。

And finally, we continue to transform our company. We made noteworthy progress on our transformational efforts at Jennie-O Turkey Store and laid the groundwork for the next step in our evolution as a global branded food company, our Go Forward initiative. We also made considerable progress on our 20 by 30 Challenge.

最後，我們繼續改造我們的公司。我們在 Jennie-O Turkey Store 的轉型努力中取得了顯著進展，並為我們作為全球品牌食品公司的下一步發展奠定了基礎，即我們的 Go Forward 計劃。我們在 20 x 30 挑戰賽上也取得了相當大的進步。

Some of the year's highlights included matching 100% of our domestic energy use in fiscal 2022 with renewable sourcing, remaining on track to have an approved science-based target for the reduction of greenhouse gas emissions by 2023, becoming a major sponsor of up to 50,000 acre regenerative agriculture pilot project in Central and Southeast Minnesota, announcing our commitment to create a food secure community program in Austin, Minnesota, with the additional goal of sharing the blueprint and findings globally.

今年的一些亮點包括在 2022 財年將我們 100% 的國內能源使用與可再生資源相匹配，繼續按計劃在 2023 年之前實現經批准的基於科學的溫室氣體減排目標，成為多達 50,000 個項目的主要贊助商在明尼蘇達州中部和東南部開展一英畝再生農業試點項目，宣布我們致力於在明尼蘇達州奧斯汀市創建一個食品安全社區計劃，其額外目標是在全球範圍內共享藍圖和發現。

We are making a difference, thanks to the incredible work and dedication of our team members, partners and suppliers. Our team showed tremendous results to deliver growth in fiscal 2022.

由於我們的團隊成員、合作夥伴和供應商的出色工作和奉獻精神，我們正在發揮作用。我們的團隊在 2022 財年實現增長方面取得了巨大成果。

The team overcame broad-based inflationary pressures, supply chain disruptions, the impacts from highly pathogenic avian influenza or HPAI, and numerous headwinds in our International business. I want to express my sincere gratitude to the team for their dedication, hard work and for demonstrating our results-matter mentality again this past year.

該團隊克服了廣泛的通脹壓力、供應鏈中斷、高致病性禽流感或 HPAI 的影響以及我們國際業務中的眾多不利因素。我想對團隊的奉獻精神、辛勤工作以及在過去一年再次展示我們結果至上的心態表示衷心的感謝。

In the fourth quarter, our team delivered diluted earnings per share comparable with record results last year, and last year included an additional week of sales. These results further demonstrate that our brands remain healthy and the strategic investments we have made are enabling growth.

在第四季度，我們的團隊實現了與去年創紀錄的業績相當的稀釋後每股收益，去年還增加了一周的銷售額。這些結果進一步表明我們的品牌保持健康，我們所做的戰略投資正在推動增長。

We achieved another quarter of organic sales growth, led by our center store grocery portfolio and solid performances from our foodservice businesses.

在我們的中心商店雜貨組合和我們餐飲服務業務的穩健表現的帶動下，我們又實現了四分之一的有機銷售增長。

Segment profit growth was due to the Jennie-O Turkey Store segment as the team again managed Turkey supply effectively and maximized operational performance. We also made progress across our supply chain to increase production capabilities and restore inventories on key product lines.

分部利潤增長歸功於 Jennie-O 土耳其商店分部，因為該團隊再次有效地管理土耳其供應並最大限度地提高運營績效。我們還在整個供應鏈中取得了進展，以提高生產能力並恢復關鍵產品線的庫存。

Bill rates for retail, deli and foodservice items all improved compared to last year and the third quarter. As we announced in August, we recently began transitioning our business to a new strategic operating model. As of October 31, we have moved to 3 operating segments: Retail, Foodservice and International.

與去年和第三季度相比，零售、熟食和餐飲服務項目的賬單費率都有所提高。正如我們在 8 月份宣布的那樣，我們最近開始將我們的業務轉變為一種新的戰略運營模式。截至 10 月 31 日，我們已轉移到 3 個運營部門：零售、餐飲服務和國際。

Over the last month, we have been working to create a unified retail organization with scale, experience, expertise and passion to grow our almost $8 billion portfolio of brands. We are approaching customers differently, bringing together subject-matter experts from across our businesses to find growth opportunities and execute strategies in the marketplace.

在過去的一個月裡，我們一直致力於創建一個具有規模、經驗、專業知識和熱情的統一零售組織，以發展我們價值近 80 億美元的品牌組合。我們正在以不同的方式接近客戶，匯集來自我們各個業務領域的主題專家，以尋找增長機會並在市場上執行戰略。

We are leading with a more food-forward mentality, thinking and acting differently in the ways we position our brands with consumers. This has created new opportunities that were not easily executed in our old model. And we are working with a newly created brand fuel team to ignite the potential of our products in store and on shelf. And these early successes are not limited to our retail team.

我們以更加註重食品的心態引領潮流，以不同的方式思考和行動我們對消費者品牌的定位。這創造了在我們的舊模式中不容易執行的新機會。我們正在與一個新成立的品牌燃料團隊合作，以激發我們產品在商店和貨架上的潛力。這些早期的成功不僅限於我們的零售團隊。

Our combined foodservice team will further leverage the scale of Planters in the convenience store channel while assuming full control of the company's foodservice Turkey business, including the Jennie-O brand.

我們合併後的餐飲服務團隊將進一步利用 Planters 在便利店渠道的規模，同時全面控制公司的土耳其餐飲服務業務，包括 Jennie-O 品牌。

Though we are only in the initial stages of the implementation, we are receiving positive responses from our customers and operators. Our immediate focus is to accelerate the execution of our 6 strategic priorities while continuing to meet the needs of our customers, consumers and operators.

儘管我們僅處於實施的初始階段，但我們收到了客戶和運營商的積極響應。我們當前的重點是加快執行我們的 6 個戰略重點，同時繼續滿足我們的客戶、消費者和運營商的需求。

Specific to the first quarter, our teams will be working to adopt the new organizational design, management structures and accountabilities. The teams will be working to continue the work to integrate Jennie-O Turkey Store into the company's One Supply Chain and new operating segments.

具體到第一季度，我們的團隊將努力採用新的組織設計、管理結構和問責制。這些團隊將努力繼續將 Jennie-O Turkey Store 整合到公司的 One Supply Chain 和新的運營部門中。

And our teams will be working to stand up the Brand Fuel Center of Excellence, which will house enterprise-wide brand management expertise e-commerce capabilities, insights-led innovation and analytical support to better enable data-driven decisions.

我們的團隊將致力於建立 Brand Fuel 卓越中心，該中心將容納企業範圍內的品牌管理專業知識、電子商務能力、以洞察力為主導的創新和分析支持，以更好地實現數據驅動的決策。

Earnings will be reported under this structure beginning with the release of fiscal 2023 first quarter results in early March. We will be supplying recast financial information for fiscal years 2021 and 2022 in February 2023.

從 3 月初發布 2023 財年第一季度業績開始，將按照這種結構報告收益。我們將在 2023 年 2 月提供 2021 和 2022 財年的重鑄財務信息。

The deliberate and thoughtful steps we have taken thus far are all about better aligning our structure with our proven strategy to create the Hormel Foods of the future. We are excited for the additional collaboration, capabilities and value we will realize from this transition and remain confident in our ability to drive long-term sustainable growth.

迄今為止，我們採取的深思熟慮的步驟都是為了更好地使我們的結構與我們經過驗證的戰略保持一致，以創造未來的荷美爾食品。我們很高興我們將從這一轉變中實現更多的合作、能力和價值，並對我們推動長期可持續增長的能力充滿信心。

Turning to our outlook. We expect to grow both sales and earnings in fiscal 2023. We enter fiscal 2023 well positioned for the current macroeconomic climate and expect top line growth from all 3 of our new segments: Retail, Foodservice and International.

轉向我們的前景。我們預計 2023 財年的銷售額和收益都會增長。進入 2023 財年，我們在當前的宏觀經濟環境下處於有利地位，並預計我們所有 3 個新部門的收入都會增長：零售、餐飲服務和國際。

In retail, we expect demand for our center store grocery business to remain strong as consumers continue to seek products and brands that offer high value, versatility and convenience.

在零售方面，我們預計隨著消費者繼續尋求提供高價值、多功能性和便利性的產品和品牌，對我們中心商店雜貨業務的需求將保持強勁。

We expect growth from Planters and the rest of our snacking and entertaining businesses, including the Columbus and Gatherings brands. Planters will be rolling out meaningful innovation throughout the year to complement and expand on the new flavor varieties and packaging introduced in fiscal 2022.

我們預計 Planters 以及我們其他的零食和娛樂業務（包括 Columbus 和 Gatherings 品牌）將實現增長。 Planters 將在全年推出有意義的創新，以補充和擴展 2022 財年推出的新口味品種和包裝。

We expect to benefit from the investments we have made in additional Black Label Bacon and Hormel Pepperoni capacity and are excited for the new SPAM capacity to be operational in the first half of the year.

我們預計將從我們在額外的黑標培根和荷美爾意大利辣香腸產能方面進行的投資中受益，並對新的 SPAM 產能在今年上半年投入運營感到興奮。

And lastly, we expect a recovery in Turkey volumes in the back half of the year, allowing our teams to continue to create a demand-oriented and optimized Turkey portfolio. This is heavily dependent on any future impacts to the supply chain from HPAI. We expect that the pricing actions taken over the past few quarters should result in a benefit to net sales in fiscal 2023.

最後，我們預計土耳其銷量將在下半年復蘇，使我們的團隊能夠繼續創建以需求為導向和優化的土耳其產品組合。這在很大程度上取決於 HPAI 對供應鏈的任何未來影響。我們預計過去幾個季度採取的定價行動應該會給 2023 財年的淨銷售額帶來好處。

However, we have also accounted for additional impacts from elasticities as these new pricing actions are adopted in the marketplace. To help mitigate risk to our retail volumes, we plan to increase advertising and brand investment, make further progress on our efforts to continue to improve fill rates and return to full assortments across our leading platforms.

但是，隨著市場採用這些新的定價措施，我們還考慮了彈性帶來的額外影響。為了幫助降低我們零售量的風險，我們計劃增加廣告和品牌投資，進一步努力繼續提高填充率並恢復我們領先平台的完整分類。

We plan to deliver innovation across the portfolio. We'll leverage the capabilities of Go Forward, which include our well-established revenue growth management and digital experience teams, our combined direct selling organization and our newly created brand fuel team.

我們計劃在整個產品組合中提供創新。我們將利用 Go Forward 的能力，其中包括我們完善的收入增長管理和數字體驗團隊、我們聯合的直銷組織和我們新創建的品牌燃料團隊。

In foodservice, we are expecting another year of growth from our solutions-based portfolio and direct selling team. We entered the year from a position of strength after 2 consecutive years of robust growth during the industry recovery.

在餐飲服務方面，我們預計我們基於解決方案的產品組合和直銷團隊將迎來又一年的增長。在行業復甦期間連續兩年強勁增長後，我們以強勢進入了這一年。

The consistent inroads our teams have made over time, including during previous economic slowdowns, to diversify our presence in emerging and noncommercial channels will help us navigate through future market volatility and uncertainty.

隨著時間的推移，包括在之前的經濟放緩期間，我們的團隊不斷取得進展，使我們在新興和非商業渠道中的存在多樣化，這將幫助我們應對未來的市場波動和不確定性。

Additionally, the team plans to leverage the Planters and Jennie-O brands to make further gains in the convenience and [K-12] channels, respectively.

此外，該團隊計劃利用 Planters 和 Jennie-O 品牌分別在便利渠道和 [K-12] 渠道取得進一步收益。

Our International business had a challenging year in 2022, but we expect a strong return to growth in fiscal 2023. Demand for our products globally is robust, and our production capabilities and inventory levels are healthy to support this demand. We believe that many of the export challenges we experienced this past year will gradually subside.

我們的國際業務在 2022 年是充滿挑戰的一年，但我們預計 2023 財年將強勁恢復增長。全球對我們產品的需求強勁，我們的生產能力和庫存水平足以支持這一需求。我們相信，我們在過去一年中遇到的許多出口挑戰將逐漸消退。

Like many, we are currently monitoring the situation in China. We are actively engaged with our in-country management team and are prioritizing the health, safety and well-being of our team members. This team has been resilient in the face of numerous challenges and will continue to deliver growth with balance between retail and foodservice.

像許多人一樣，我們目前正在關注中國的情況。我們積極與國內管理團隊合作，並將團隊成員的健康、安全和福祉放在首位。面對眾多挑戰，該團隊一直保持彈性，並將繼續在零售和餐飲服務之間實現增長。

From an overall bottom line perspective, we anticipate earnings growth to be driven by our foodservice and International segments and improvements across the supply chain.

從整體底線的角度來看，我們預計收入增長將受到我們的餐飲服務和國際部門以及整個供應鏈的改進的推動。

We expect to operate in a volatile, complex and high-cost environment again in fiscal 2023, which is why we are increasingly focused on reducing costs and inefficiencies as part of our One Supply Chain initiative. We have a strong track record of consistently capturing approximately $75 million per year of supply chain savings through our continuous improvement programs.

我們預計 2023 財年將再次在動盪、複雜和高成本的環境中運營，這就是為什麼我們越來越關注降低成本和降低效率，作為我們的單一供應鏈計劃的一部分。我們擁有良好的記錄，通過我們的持續改進計劃，每年持續節省大約 7500 萬美元的供應鏈成本。

Though these efforts continued over the last 3 years, the benefits have been masked by pandemic-related impacts, labor shortages, industry-wide supply chain disruption and most recently, broad-based inflation.

儘管這些努力在過去 3 年中仍在繼續，但好處已被大流行相關影響、勞動力短缺、全行業供應鏈中斷以及最近的廣泛通脹所掩蓋。

We will continue to identify and capture cost savings opportunities, find the efficiencies and drive unnecessary costs out of our system. We fully expect that over time, these actions, in addition to the benefits of broader market stabilization, will result in more normalized operating margins for our business.

我們將繼續識別和抓住成本節約機會，提高效率並從我們的系統中剔除不必要的成本。我們完全預計，隨著時間的推移，這些行動除了帶來更廣泛的市場穩定的好處外，還將為我們的業務帶來更正常的營業利潤率。

Taking all of these factors into account, we expect full-year net sales of $12.6 billion to $12.9 billion and diluted earnings per share of $1.83 to $1.93 per share.

考慮到所有這些因素，我們預計全年淨銷售額為 126 億美元至 129 億美元，每股攤薄收益為 1.83 美元至 1.93 美元。

We have continued to benefit from our balanced business model, which is not heavily dependent on any one channel, protein, input or product category. We also have a dedicated, well-respected, experienced and stable management team that has again proven their ability to navigate and grow our business in volatile market conditions.

我們繼續受益於我們平衡的商業模式，該模式不嚴重依賴任何一種渠道、蛋白質、投入或產品類別。我們還擁有敬業、受人尊敬、經驗豐富且穩定的管理團隊，再次證明了他們在動蕩的市場條件下駕馭和發展我們業務的能力。

Our long-term strategy to meet consumers where they want to eat with a broad portfolio of trusted brands and products will continue to be a key differentiator for our business. helping to drive growth for our customers and operators.

我們的長期戰略是通過廣泛的值得信賴的品牌和產品組合滿足消費者的需求，這將繼續成為我們業務的關鍵差異化因素。幫助推動我們的客戶和運營商的增長。

At this time, I will turn the call over to Jacinth Smiley to discuss more detailed financial information and provide more color on key drivers to the fiscal 2023 outlook.

此時，我將把電話轉給 Jacinth Smiley，討論更詳細的財務信息，並為 2023 財年展望的關鍵驅動因素提供更多色彩。

Thank you, Jim. Good morning, everyone. I want to start my remarks by congratulating Jim Snee. Jim was recently recognized as the 2022 Responsible CEO Of The Year for transformative leadership by 3BL Media.

謝謝你，吉姆。大家，早安。我想通過祝賀 Jim Snee 來開始我的發言。吉姆最近被 3BL Media 評為 2022 年度變革型領導責任首席執行官。

During the award ceremony, Dave Armon, CEO of 3BL Media said, and I quote, "The world needs business leaders who are operating with their eyes wide open and using the power of their businesses to bring forward meaningful ESG programs and policies to operate in a transparent manner."

在頒獎典禮上，3BL Media 首席執行官 Dave Armon 說，我引用一下，“世界需要商業領袖睜大眼睛，利用他們的業務力量提出有意義的 ESG 計劃和政策，以在一種透明的方式。”

Jim truly embodies these characteristics. We at Hormel Foods are honored to witness firsthand Jim's leadership style and be part of the difference our company is making to inspire a change, lift communities and bring people together. Congratulations, Jim, on this well-deserved recognition.

吉姆真正體現了這些特點。 Hormel Foods 很榮幸親眼目睹 Jim 的領導風格，並成為我們公司為激髮變革、促進社區發展和將人們團結在一起而做出的改變的一部分。恭喜 Jim，獲得當之無愧的認可。

The company achieved a record full-year net sales of $12.5 billion, up 9% from a year ago. Net sales for the fourth quarter were $3.3 billion, a 5% decline from the prior year, which included an additional week. Organic net sales increased 2% for the fourth quarter. Operating income for the fourth quarter and the full year increased 3% and 17%, respectively, overcoming the additional week of sales last year.

公司全年淨銷售額達到創紀錄的 125 億美元，同比增長 9%。第四季度的淨銷售額為 33 億美元，比上年下降 5%，其中包括一個額外的一周。第四季度有機淨銷售額增長 2%。第四季度和全年的營業收入分別增長了 3% 和 17%，克服了去年額外一周的銷售額。

Strong results from Jennie-O Turkey Store segment, higher foodservice sales, pricing actions to mitigate inflationary pressures and the inclusion of the Planters business were the primary drivers to earnings growth during the year.

Jennie-O Turkey Store 部門的強勁業績、較高的餐飲服務銷售額、緩解通脹壓力的定價行動以及納入 Planters 業務是年內盈利增長的主要驅動力。

Fourth quarter diluted earnings per share of $0.51 was comparable to the record quarterly earnings set last year. Diluted earnings per share for the full year were $1.82, a 10% increase.

第四季度每股攤薄收益為 0.51 美元，與去年創下的創紀錄季度收益相當。全年稀釋後每股收益為 1.82 美元，增長 10%。

The company's actions to offset inflationary pressures were evident in the fourth quarter. Operating margin of 11.2% was significantly ahead of 9.6% in the third quarter. Operating margin for the year was 10.5%, an improvement versus operating margin of 9.9% last year.

該公司抵消通脹壓力的行動在第四季度顯而易見。營業利潤率為 11.2%，遠高於第三季度的 9.6%。全年營業利潤率為 10.5%，較去年的 9.9% 有所改善。

For the full year, SG&A as a percentage of sales fell to 7.1% and from 7.5% last year. Advertising spend increased 14% compared to last year, with higher investments seen across every segment.

全年，SG&A 佔銷售額的百分比從去年的 7.5% 降至 7.1%。廣告支出與去年相比增長了 14%，每個細分市場的投資都增加了。

In fiscal 2023, we are again planning higher investments to support key brands, including Planters, SPAM, SKIPPY, Columbus, Black Label, Hormel Pepperoni and Jennie-O. Net unallocated expenses in 2022 decreased due to Planters acquisition costs last year.

在 2023 財年，我們再次計劃增加投資以支持主要品牌，包括 Planters、SPAM、SKIPPY、Columbus、Black Label、Hormel Pepperoni 和 Jennie-O。由於去年 Planters 的收購成本，2022 年的淨未分配費用有所減少。

In fiscal 2022, higher interest expense and investment losses on the rabbi trust net of associated deferred compensation negatively impacted earnings by approximately $0.05.

在 2022 財年，更高的利息支出和拉比信託的投資損失扣除相關的遞延補償對收益產生了約 0.05 美元的負面影響。

The effective tax rate for the year was 21.7% compared to 19.3% last year. The effective tax range for fiscal 2023 is expected to be 21% to 23%. The company again generated strong and consistent cash flow, with operating cash flow increasing 13% compared to last year.

本年度的有效稅率為 21.7%，而去年為 19.3%。預計 2023 財年的有效稅率範圍為 21% 至 23%。該公司再次產生了強勁而穩定的現金流，經營現金流比去年增長了 13%。

We generated more than $1 billion in cash from operations, allowing us to invest in future growth, return a record amount of cash to shareholders in the form of dividends, supporting ongoing business needs and increase our cash balance to nearly $1 billion.

我們從運營中產生了超過 10 億美元的現金，使我們能夠投資於未來的增長，以創紀錄的股息形式向股東返還現金，支持持續的業務需求，並將我們的現金餘額增加到近 10 億美元。

We invested $279 million in capital projects in 2022. The company's target for capital expenditures in 2023 is $350 million, which includes investment in value-added capacity, technology and automation to increase production and drive long-term savings and efficiencies.

我們在 2022 年的資本項目中投資了 2.79 億美元。公司 2023 年的資本支出目標為 3.5 億美元，其中包括對增值產能、技術和自動化的投資，以提高產量並推動長期節約和提高效率。

As Jim mentioned earlier, we recently approved another significant expansion to our operations in China, which we expect to come in operation in fiscal 2024.

正如吉姆之前提到的，我們最近批准了對我們在中國業務的另一項重大擴張，我們預計將在 2024 財年投入運營。

We returned a record amount of cash to shareholders in the form of dividends in 2022. We paid over $550 million in dividends during the year, including our 377th consecutive quarterly dividend effective November 15. We announced a 6% increase in the dividend for fiscal 2023, marking the 57th consecutive year of dividend increases.

我們在 2022 年以股息的形式向股東返還了創紀錄數量的現金。我們在這一年中支付了超過 5.5 億美元的股息，包括我們自 11 月 15 日起連續第 377 個季度派息。我們宣布 2023 財年的股息增加 6% ，標誌著連續第 57 年增加股息。

Our strong financial position also allows us to continue sharing our successes with our team members. For fiscal 2022, we will share approximately $20 million with the team, including our annual profit sharing for the 84th consecutive year.

我們強大的財務狀況也使我們能夠繼續與我們的團隊成員分享我們的成功。在 2022 財年，我們將與團隊分享約 2000 萬美元，包括我們連續第 84 年的年度利潤分享。

Remaining investment grade is a top priority for the company. The company ended the year with $3.3 billion of debt. On a net basis, we're below our stated goal of 1.5 to 2x EBITDA. Our first debt repayment related to the Planters acquisition is due June 2024 with a fixed rate of 65 basis points. Our total outstanding debt is fixed with an average yield of 1.7%.

剩餘的投資等級是公司的首要任務。該公司以 33 億美元的債務結束了這一年。在淨基礎上，我們低於 1.5 至 2 倍 EBITDA 的既定目標。我們與 Planters 收購相關的第一筆債務償還將於 2024 年 6 月到期，固定利率為 65 個基點。我們的未償還債務總額是固定的，平均收益率為 1.7%。

As Jim previously mentioned, we expect sales and earnings growth in fiscal 2023. I want to revisit some of the comments we made in our third quarter earnings call in the context of our fourth quarter results and outlook for 2023.

正如 Jim 之前提到的，我們預計 2023 財年的銷售額和收益將增長。我想在我們第四季度業績和 2023 年展望的背景下，重新審視我們在第三季度財報電話會議上發表的一些評論。

Heading into the fourth quarter, we cited the impact of an escalation in certain operational logistical and inflationary costs. Generally, these assumptions played out as expected, and we anticipate similar trends in fiscal 2023.

進入第四季度，我們列舉了某些運營物流和通貨膨脹成本上升的影響。總體而言，這些假設符合預期，我們預計 2023 財年會出現類似趨勢。

We made additional progress across the supply chain during the fourth quarter and are becoming more efficient and productive. Fill rates improved compared to last year and the third quarter.

第四季度，我們在整個供應鏈上取得了更多進展，並且變得更加高效和多產。與去年和第三季度相比，填充率有所提高。

We continue to see increased applicant and hiring flow at our production facilities. Our focus is on onboarding and training new team members and creating a best-in-class experience throughout our operations.

我們繼續看到我們生產設施的申請人和招聘流量增加。我們的重點是入職和培訓新的團隊成員，並在我們的整個運營過程中創造一流的體驗。

Freight and warehousing expenses remain elevated during the quarter. We saw signs of moderation in the domestic freight environment as truck availability improved, though higher diesel prices offset a portion of this benefit.

本季度的運費和倉儲費用仍然很高。隨著卡車可用性的提高，我們看到國內貨運環境出現放緩跡象，儘管較高的柴油價格抵消了部分收益。

Higher warehousing expenses were driven by a recovery in our inventory levels and industry-wide labor challenges. In 2023, we expect some of this pressure to be offset by savings from the work the team has been doing to control freight expenses and expand our logistics network.

庫存水平的回升和全行業的勞動力挑戰推動了倉儲費用的增加。到 2023 年，我們預計部分壓力將被團隊為控制運費和擴大我們的物流網絡所做的工作所節省的資金所抵消。

Prices on key protein inputs generally declined during the quarter, except for pork trim. Higher-priced inventory was a headwind in the quarter as we worked through inventory produced during the summer commodity peaks. Protein prices are expected to remain volatile in fiscal 2023.

本季度主要蛋白質投入品的價格普遍下降，豬肉碎料除外。在我們處理夏季大宗商品高峰期間產生的庫存時，高價庫存是本季度的不利因素。預計 2023 財年蛋白質價格將保持波動。

Additionally, we expect packaging, energy and labor costs to remain elevated or increase in 2023 and for upstream challenges to persist.

此外，我們預計包裝、能源和勞動力成本在 2023 年將保持高位或增加，並且上游挑戰將持續存在。

Actions by our One Supply Chain team will be key to managing and mitigating additional cost escalation in these areas. Beginning in fiscal 2023, our Turkey business will primarily reside in the retail and foodservice segment.

我們的 One Supply Chain 團隊的行動將是管理和減輕這些領域額外成本上漲的關鍵。從 2023 財年開始，我們的土耳其業務將主要集中在零售和餐飲服務領域。

HPAI has reemerged this fall, and this unprecedented event has affected our vertically integrated supply chain at about 1/3 of the magnitude of the spring event. We now anticipate the impacts for HPAI to reduce production volume in our Turkey facilities through at least the first half of fiscal 2023.

HPAI 在今年秋天捲土重來，這一史無前例的事件對我們垂直整合供應鏈的影響約為春季事件的 1/3。我們現在預計至少到 2023 財年上半年，HPAI 會減少我們土耳其工廠的產量。

Breast meat prices remain historically high and have yet to moderate. Our team has done an exceptional job managing through disruptions caused by HPAI, reflected in our guidance range or assumptions for higher pension expense and higher feed costs for our Turkey business.

胸肉價格仍處於歷史高位且尚未回落。我們的團隊在管理 HPAI 造成的中斷方面做得非常出色，這反映在我們對土耳其業務的更高養老金支出和更高飼料成本的指導範圍或假設中。

Taken together, these costs are approximately $0.15 of headwind, specific to fiscal 2023. In addition to these costs, we have planned incremental investment against One Supply Chain and Go Forward, supporting areas such as infrastructure, automation, data analytics, brand support and investment in innovation capabilities.

總的來說，這些成本大約是 0.15 美元的不利因素，具體到 2023 財年。除了這些成本之外，我們還計劃對 One Supply Chain 和 Go Forward 進行增量投資，以支持基礎設施、自動化、數據分析、品牌支持和投資等領域在創新能力方面。

In closing, I am extremely excited about Go Forward and our plans to unlock even more potential from our now $12 billion uncommon company. We have a long track record of successfully evolving our company, which is a credit to our strong management team and our inspired team members around the world. Better aligning our structure with our strategy, which is at the core of this transition, positions us well into 2023 and for the long term.

最後，我對 Go Forward 以及我們從我們現在價值 120 億美元的非凡公司釋放更多潛力的計劃感到非常興奮。我們擁有成功發展公司的長期記錄，這要歸功於我們強大的管理團隊和我們在世界各地的鼓舞人心的團隊成員。更好地使我們的結構與我們的戰略保持一致，這是這一轉變的核心，使我們能夠很好地進入 2023 年，並從長遠來看。

Said simply, Go Forward ensures that we will continue to deliver on our commitment to our team members, customers and shareholders. At this time, I'll turn the call over to the operator for the question-and-answer portion of the call.

簡而言之，Go Forward 確保我們將繼續履行我們對團隊成員、客戶和股東的承諾。此時，我會將電話轉給接線員進行電話的問答部分。

(Operator Instructions) Today's first question comes from Peter Galbo with Bank of America.

（操作員說明）今天的第一個問題來自美國銀行的 Peter Galbo。

Jim, I'm just curious, like, in the overall protein complex and understanding that protein is now a much smaller portion of your overall business than maybe it was historically, but your single biggest input is still pork, and that seems to have been less deflationary at this point than the other proteins. Beef is down pretty substantially; chicken, obviously, has come off materially.

吉姆，我只是好奇，比如，在整個蛋白質複合體中，我了解到蛋白質現在在你的整體業務中所佔的比例可能比以往要小得多，但你最大的投入仍然是豬肉，而且這似乎一直是在這一點上通貨緊縮比其他蛋白質少。牛肉價格大幅下降；顯然，雞肉已經脫落了。

Just curious about your outlook over the next 12 months, what is it going to take to get some of these pork prices and particularly the cuts that you buy to kind of match the other proteins that we're seeing in terms of how deflationary they've been? And maybe, how that might end up pulling through your business, both from a top line and margin standpoint?

只是想知道你對未來 12 個月的展望，需要什麼才能讓這些豬肉價格，特別是你購買的豬肉價格與我們看到的其他蛋白質在通貨緊縮程度上相匹配？去過？也許，從頂線和利潤率的角度來看，這最終會如何推動您的業務發展？

Yes. Thanks, Peter. Pork is still a very important part of our complex, as you described. And for us, we think that pork still represents a great value to consumers. As we're looking into 2023 end markets, although we expect some moderate relief, are still going to run well above 5-year averages.

是的。謝謝，彼得。正如您所描述的，豬肉仍然是我們綜合體中非常重要的一部分。對我們來說，我們認為豬肉對消費者來說仍然具有很大的價值。在我們研究 2023 年的終端市場時，儘管我們預計會有一些適度的緩解，但仍將遠高於 5 年平均水平。

And we've also seen a lot of volatility throughout the last several years, and that's what we really have talked about, is it's not so much the point to point, but some of the volatility that occurs. The other thing that we're watching very, very closely is the export element in terms of what's happening with pork.

在過去的幾年裡，我們也看到了很多波動，這就是我們真正談論的，與其說是點對點，不如說是發生的一些波動。我們非常非常密切地關注的另一件事是豬肉的出口因素。

So one of the things to consider is as turkey prices are higher, we're seeing bone-in hams be exported at an accelerated rate. And then the other thing is just thinking about the continued labor challenges that are out there.

因此，需要考慮的一件事是，隨著火雞價格上漲，我們看到帶骨火腿的出口速度加快。然後另一件事就是考慮那裡持續存在的勞動力挑戰。

And so one of our key inputs across a lot of our business is pork trim. And if the labor is not there to do the necessary boning to get the trim, then we're not going to see that relief. So there are a lot of variables at play, but we know that there are things that we can control.

因此，我們許多業務的關鍵投入之一是豬肉切塊。而且，如果沒有人工去進行必要的剔骨以獲得修剪，那麼我們就不會看到這種緩解。所以有很多變數在起作用，但我們知道有些事情是我們可以控制的。

We know that our brands are going to remain strong. The work that we're doing to drive that demand is very successful. And now we just need some of these other variables that are outside of our control to play out more favorably for us.

我們知道我們的品牌將保持強勢。我們為推動這一需求所做的工作非常成功。現在我們只需要一些我們無法控制的其他變量來為我們發揮更有利的作用。

Got it. No, that's helpful. And Jacinth, maybe if I could ask a two-parter just on some of the moving pieces in the guidance for '23. Of the $0.15 you mentioned that I think is a headwind from pension and Turkey, can you just break down for us what exactly the pension piece is versus the feed costs?

知道了。不，那很有幫助。 Jacinth，也許我可以就 23 年指南中的一些活動部分問一個由兩人組成的合作夥伴。在你提到的 0.15 美元中，我認為這是來自養老金和土耳其的逆風，你能為我們分解一下養老金與飼料成本到底是多少嗎？

And then also just within the guidance, I don't think I heard any mention on MegaMex, I think avocado prices have gotten more favorable. So any commentary there as well.

然後也在指導範圍內，我認為我沒有聽到 MegaMex 上的任何提及，我認為鱷梨價格變得更加有利。所以那裡也有任何評論。

Yes. So yes, so the pension and feed costs, definitely headwinds as we go into 2023. The split between the two is about $0.10 related to feed and $0.05 related to pension costs. And as it relates to our MegaMex business, we expect avocado prices to continue to go down. So that will translate into positive impact for us on our MegaMex business.

是的。所以，是的，養老金和飼料成本，隨著我們進入 2023 年，絕對是不利因素。兩者之間的差距約為 0.10 美元與飼料相關，0.05 美元與養老金成本相關。由於它與我們的 MegaMex 業務相關，我們預計鱷梨價格將繼續下跌。因此，這將對我們的 MegaMex 業務產生積極影響。

And our next question today comes from Ben Theurer with Barclays.

我們今天的下一個問題來自巴克萊銀行的 Ben Theurer。

Jim, could you elaborate maybe a little more on the dynamics in what you're seeing amongst consumers around the elasticity? So you've talked a little bit about it in the prepared remarks, but it would be nice to understand what's like kind of embedded within your guidance on top line.

吉姆，你能否詳細說明一下你在消費者中看到的彈性方面的動態？所以你在準備好的評論中談了一點，但很高興了解你的指南中嵌入了什麼。

How much of a decline in volume you kind of anticipate, based on the pricing you've done more recently, which obviously still remains a tailwind, particularly in the first fiscal half because of the prices that you've just implemented more recently? So that would be my first question.

根據你最近所做的定價，你預計銷量會下降多少，這顯然仍然是一個順風，特別是在上半年，因為你最近剛剛實施的價格？所以這是我的第一個問題。

Yes. So I mean, it varies category by category. As you know, we've got some categories where the elasticities are performing at more historical levels. I think probably our legacy grocery products, which show a big part of that being our new convenience meals pillar.

是的。所以我的意思是，它因類別而異。如您所知，我們有一些類別的彈性在更多歷史水平上表現。我認為可能是我們的傳統雜貨產品，其中很大一部分是我們新的方便餐支柱。

But then we've got some others where we're seeing elasticity but not quite to the rate that we would have historically. The thing that is positive for us is we're not seeing anything above historical levels for elasticity. And so that, I'd say, is a really, really good thing.

但隨後我們在其他一些地方看到了彈性，但還沒有達到歷史上的彈性。對我們有利的是，我們沒有看到任何高於歷史水平的彈性。所以，我想說，這是一件非常非常好的事情。

The other part we need to make sure we're thinking about is our foodservice business. A significant part of our overall portfolio.

我們需要確保考慮的另一部分是我們的餐飲服務業務。我們整體產品組合的重要組成部分。

That business -- the demand continues to remain strong. Portfolio is well positioned, and that team is just doing a great job not only driving new demand, but also taking share.

該業務——需求繼續保持強勁。投資組合定位良好，該團隊做得很好，不僅推動了新的需求，而且還分享了份額。

Perfect. And then just on the CapEx number, can you elaborate a little bit on like what part of that is -- how much of that is maintenance? How much is maybe what you didn't execute or initially may plan to execute in '22 and then couldn't? How much is rollover, how much is maintenance and how much is real dedicated new CapEx for '23?

完美的。然後就資本支出數字，您能否詳細說明其中的哪一部分 - 其中有多少是維護？有多少是您沒有執行或最初可能計劃在 22 年執行但後來不能執行的？翻車是多少，維護是多少，23 年真正專用的新資本支出是多少？

Yes. So we have, in the plan for 2023, the $350 million of CapEx planned of that. The maintenance portion is fairly consistent with what we have on a yearly basis, at about $125 million of that number. I mean in terms of rollover, we certainly have pieces coming over from last year, which is relating to our SPAM and on our China expansion that we're doing.

是的。因此，在 2023 年的計劃中，我們計劃了 3.5 億美元的資本支出。維護部分與我們每年的數量相當一致，約為 1.25 億美元。我的意思是，就輪轉而言，我們肯定有去年的作品，這與我們的垃圾郵件和我們正在做的中國擴張有關。

Yes. And just on that note, Ben, as we've said in our comments, SPAM capacity will come online the early part of 2023. And then really the China capacity that Jacinth references will really come online until 2024.

是的。就此而言，本，正如我們在評論中所說，垃圾郵件容量將在 2023 年初上線。然後 Jacinth 提到的中國容量實際上將在 2024 年之前上線。

And our next question today comes from Ken Zaslow with Bank of Montreal.

我們今天的下一個問題來自蒙特利爾銀行的 Ken Zaslow。

Two questions. One is, when you think about your pricing actions, which categories have you taken pricing to cover the cost? Which ones do you still need to take pricing to cover the costs? And then I have a follow-up.

兩個問題。一是，當你考慮你的定價行為時，你對哪些類別進行了定價以支付成本？哪些還需要定價來彌補成本？然後我有一個後續行動。

Yes. I think as you think about our portfolio, again, going back to our legacy Grocery Products portfolio, we've taken significant pricing but haven't quite covered down all of the inflation that we're seeing.

是的。我想當你再次考慮我們的投資組合時，回到我們傳統的雜貨產品組合，我們已經採取了重要的定價，但還沒有完全掩蓋我們所看到的所有通貨膨脹。

But as part of that, and you know this, Ken, is we're being very sensitive to some of the price gaps that are out there in the category. So we've had to watch that closely. We're seeing some of those gaps start to narrow as others are moving.

但作為其中的一部分，肯，你知道的，我們對該類別中存在的一些價格差距非常敏感。所以我們不得不密切關注這一點。我們看到其中一些差距開始縮小，而其他差距正在縮小。

So that's a good thing. And then we are continuing to look at certain categories. But as always, we're going to have to be very, very strategic. But I would say, as we think about our overall portfolio, that's probably the biggest gap that we have.

所以這是一件好事。然後我們將繼續研究某些類別。但一如既往，我們將必須非常、非常具有戰略意義。但我會說，當我們考慮我們的整體投資組合時，這可能是我們最大的差距。

You gave guidance kind of on the top line. You didn't give a feel for the operating profit, which ones of the divisions you'll see -- even if you do high, low, medium, more than average, less than average.

你給出了最重要的指導。你沒有對營業利潤有任何感覺，你會看到哪些部門——即使你做的是高、低、中、高於平均水平、低於平均水平。

Any sort of commentary on the profit growth outlook by division would be quite helpful, just particularly given that you're changing divisions, and we don't have the same sort of history of understanding how those margins will kind of evolve. So any sort of commentary on that would be really appreciated.

任何關於按部門劃分的利潤增長前景的評論都會非常有幫助，特別是考慮到你正在改變部門，而且我們沒有了解這些利潤率將如何演變的相同歷史。因此，我們將不勝感激。

Yes. I think, in our prepared remarks, Ken, we talked about growth really being driven by foodservice and International. As I said, we expect our foodservice business to remain strong. Our current demand is very positive. Portfolio is well positioned. Our International business, we expect to bounce back and some of those headwinds moderate. The retail business, which is experiencing the biggest change in this new operating model, is certainly going to have the impact of some of the feed costs that Jacinth has talked about. So consistent with what we said in the prepared remarks, we really expect the drivers of the growth to be foodservice and International.

是的。我認為，在我們準備好的發言中，肯，我們談到了真正由餐飲服務和國際推動的增長。正如我所說，我們希望我們的餐飲服務業務保持強勁。我們目前的需求非常積極。投資組合定位良好。我們的國際業務預計會反彈，其中一些不利因素會有所緩和。在這種新的運營模式中經歷最大變化的零售業務肯定會受到 Jacinth 談到的一些飼料成本的影響。與我們在準備好的發言中所說的一致，我們真的希望增長的驅動力是餐飲服務和國際。

So when you were talking about it -- and I don't want to ask a third question, I understand that. But when you were talking about it, you were talking about the sales or the operating profit. I thought during the commentary, you were mostly talking about sales, but you will -- you think it applies to the operating profit as well. I just want to clarify, and then I'll leave it there.

所以當你談論它時——我不想問第三個問題，我理解這一點。但是當你談論它時，你談論的是銷售額或營業利潤。我認為在評論中，你主要是在談論銷售，但你會 - 你認為它也適用於營業利潤。我只是想澄清一下，然後我會把它留在那裡。

Yes. Think about both of them that way, Ken.

是的。以這種方式考慮他們兩個，肯。

And our next question today comes from Robert Moskow with Credit Suisse.

我們今天的下一個問題來自瑞士信貸的 Robert Moskow。

I actually have a bunch of questions here. You said that feed costs are going to be the biggest headwind for retail in fiscal '23. Is that because Turkey, like the majority of Turkey will be lumped into it?

我實際上有很多問題。你說飼料成本將成為 23 財年零售業的最大阻力。那是因為土耳其和大多數土耳其人一樣會被歸為一類嗎？

And just in the context of all these other retail businesses that are now catching up to margins, it just strikes me that the U.S. retail outlook is pretty soft. Like most of your packaged food peers are catching up and exceeding last year's gross margins because of all the pricing they've taken. So what's different here? Is it just turkey? Or are there other things?

就在所有這些現在正在追趕利潤率的其他零售企業的背景下，令我震驚的是，美國零售業的前景相當疲軟。就像你的大多數包裝食品同行一樣，由於他們採取的所有定價，他們正在趕上並超過去年的毛利率。那麼這裡有什麼不同呢？只是火雞嗎？還是有其他事情？

Pardon, everyone. This is the conference operator. It looks like we've lost the speaker connection. I want to put music back on, and we'll be right back with you. We ask you please hold the line. Thank you.

對不起，大家。這是會議接線員。看起來我們失去了揚聲器連接。我想重新播放音樂，我們很快就會回來陪你。我們請您保持通話。謝謝你。

(technical difficulty)

（技術難度）

And everyone, we thank you for your patience. We've reconnected the speaker location. Mr. Moskow, if you can please repeat your question, sir. Thank you.

每個人，我們感謝您的耐心等待。我們已重新連接揚聲器位置。 Moskow 先生，如果可以，請重複您的問題，先生。謝謝你。

So it was a question about the guidance for retail for -- I guess, for profits to be kind of flattish or maybe even down in '23. And you said it was because of feed cost. Is that because the majority of Jennie-O will end up in retail?

所以這是一個關於零售業指導的問題——我想，利潤在 23 年會持平甚至下降。你說這是因為飼料成本。那是因為大部分 Jennie-O 最終都會進入零售市場嗎？

And ex that, would you have expected retail profits to grow? Because in comparison to all these other U.S. packaged food companies, it seems like the next 12 months is characterized by pricing catching up to cost and gross margins reexpanding.

除此之外，您會期望零售利潤增長嗎？因為與所有其他美國包裝食品公司相比，未來 12 個月的特點似乎是定價趕上成本和毛利率的重新擴張。

Yes. I think the way you're just -- Rob, first of all, our apologies. Secondly, the way you're describing it is correct, in that the feed costs as you think about the value-added business, the whole bird business, a lot of the commodity business that will be flowing now into retail will be impacted by those higher feed costs as Jacinth described. So I mean, absent that, the rest of the business, as we think about the pillars, are very positive.

是的。我認為你的方式 - Rob，首先，我們的道歉。其次，你描述它的方式是正確的，因為當你考慮增值業務時，飼料成本，整個鳥類業務，現在將流入零售業的許多商品業務將受到這些影響正如 Jacinth 所描述的那樣，飼料成本更高。所以我的意思是，如果沒有這個，其他業務，正如我們考慮的支柱，是非常積極的。

Okay. And could you help us a little bit just on your outlook for Turkey in fiscal '23? Because it must be a pretty wide range of outcomes, given the uncertainties around AI. And is your outlook different for commodity than it is for value-add? Is it still very positive for commodity and weak for value-add? How should we think about it?

好的。你能幫我們談談你對土耳其在 23 財年的展望嗎？因為它必須是相當廣泛的結果，考慮到人工智能的不確定性。您對商品的看法與對增值的看法是否不同？它對大宗商品是否仍然非常積極而對附加值仍然疲軟？我們應該如何思考呢？

Yes. You're opening statement is correct. Again, Rob, is that there's a lot of uncertainty as we think about the [jobs] business, going forward. .

是的。你的開場白是對的。再次，Rob，當我們考慮[工作]業務時，存在很多不確定性。 .

On our last quarterly call, we had talked about us being back to more normalized levels after the first quarter. Now we're talking about the back half of the year. And then everything that you just described really all depends on the meat availability in our system and then what's available elsewhere. So there is just a lot of uncertainty in the jobs business throughout 2023.

在我們上次的季度電話會議上，我們談到了我們在第一季度後回到了更正常的水平。現在我們談論的是今年下半年。然後，您剛才描述的一切實際上都取決於我們系統中的肉類供應情況，然後是其他地方的供應情況。因此，整個 2023 年的就業業務存在很多不確定性。

Can I assume that you're assuming flat profits in Turkey just as a starting point for '23? Or -- how should I think about it?

我可以假設您假設土耳其的利潤持平只是作為 23 年的起點嗎？或者——我應該如何考慮？

Yes. I mean I think that's a good starting point. We've got feed costs. You've got breast meat markets, you've got supply. There's just so many variables there as we progress throughout the year. We'll certainly be keeping you well advised.

是的。我的意思是我認為這是一個很好的起點。我們有飼料成本。你有胸肉市場，你有供應。隨著我們全年的進步，那裡的變數太多了。我們一定會及時通知您。

And our next question today comes from Tom Palmer at JPMorgan.

我們今天的下一個問題來自摩根大通的 Tom Palmer。

I wanted to get some clarity maybe on the expected earnings cadence for the year. You made mention, for instance, of certain pork cuts rolling over. It sounds like maybe we see more of a flow-through of that in the first quarter than we did in the fourth quarter. .

我想弄清楚今年的預期收益節奏。例如，您提到某些豬肉切塊翻滾了。聽起來，與第四季度相比，我們在第一季度看到的流量可能更多。 .

At the same time, there's some operational changes underway. Maybe those present some initial cost headwinds. So how does this shake out just as we think about earnings progression for the year?

與此同時，一些運營方面的變化正在進行中。也許那些會帶來一些初始成本阻力。那麼，當我們考慮今年的盈利進展時，這會如何改變呢？

Tom, as we're thinking about the earnings growth that we described, I mean we expect it to be fairly evenly distributed throughout the year, half 1 and half 2. Clearly, we've identified the major impacts that are out there in terms of feed and the pension costs that we've already talked about several times.

湯姆，當我們考慮我們所描述的收益增長時，我的意思是我們預計它會在全年相當均勻地分佈，一半 1 和一半 2。顯然，我們已經確定了存在的主要影響我們已經多次討論過的飼料和養老金成本。

And as we go throughout the year, we've talked about the need to really now find some supply chain savings. We've talked about the fact that we expect fill rates to improve -- continue to improve as we progress.

隨著我們全年的進行，我們已經討論了現在真正找到一些供應鏈節省的必要性。我們已經談到了一個事實，即我們預計填充率會提高——隨著我們的進步繼續提高。

We've got some pricing that will continue to roll forward. International, we expect to moderate and improve throughout the year. And so there are some things that will happen sequentially. But as we're looking at the business, we do expect it to be pretty evenly distributed between half 1 and half 2.

我們有一些定價將繼續向前推進。國際方面，我們預計全年會有所緩和和改善。所以有些事情會依次發生。但當我們審視這項業務時，我們確實希望它在 half 1 和 half 2 之間相當均勻地分佈。

Understood. And then I just wanted to ask on the cash balance approaching $1 billion. You highlighted that there's really not any near-term debt due, and it's pretty low cost. So how should we think about deploying this?

明白了。然後我只想問一下接近 10 億美元的現金餘額。您強調說，確實沒有任何短期債務到期，而且成本非常低。那麼我們應該如何考慮部署它呢？

I mean is this -- you'll retire some debt in the coming year? Or is it more -- this is put aside as a way to effectively fund M&A without having to go to capital markets and maybe a higher interest rate environment?

我的意思是——你會在來年還清一些債務嗎？還是更多——這被擱置作為一種有效地為併購提供資金的方式，而不必去資本市場和可能更高的利率環境？

And then just with regards to that M&A side, I think you talked about International being an opportunity at the Investor Day. Is that still the priority? Or just given macro uncertainty, should maybe domestic be more of a priority?

然後就併購方面而言，我想你在投資者日談到國際是一個機會。這仍然是優先事項嗎？或者只是考慮到宏觀不確定性，也許國內應該更重要？

So our capital allocation policy and approach will remain -- it still remains the same. And so yes, I mean, we're happy that we continue to generate very strong cash flow, and we will continue to deploy it strategically. As it relates to paying down the debt, we still believe that is not the best use of our cash today.

因此，我們的資本配置政策和方法將保持不變——它仍然保持不變。所以是的，我的意思是，我們很高興我們繼續產生非常強勁的現金流，我們將繼續戰略性地部署它。由於它涉及償還債務，我們仍然認為這不是我們今天現金的最佳用途。

And our first payment doesn't come due until 2024. And so again, we'll continue to be strategic. We're continuing to look at opportunities from an M&A perspective and aligning those with our 6 strategic priorities. And so that is really how we'll think about deploying our funds, paying our dividends, continuing to remain a dividend aristocrat. That's very important to us.

我們的第一筆付款要到 2024 年才能到期。因此，我們將繼續保持戰略性。我們將繼續從併購的角度尋找機會，並將其與我們的 6 大戰略重點保持一致。因此，這就是我們真正考慮部署資金、支付股息、繼續保持股息貴族地位的方式。這對我們來說非常重要。

And in terms of the cadence of how we deploy the funds, as I talked about, that still remains consistent with our strategic approach for deploying our cash.

正如我所說，就我們如何部署資金的節奏而言，這仍然與我們部署現金的戰略方法保持一致。

And from an M&A perspective, Tom, we are still very interested in International opportunities. We believe that we can continue to leverage what we've built in Asia Pacific, China. We've talked a lot about snacking and entertaining as we built out the SKIPPY portfolio, the Planters portfolio, also the work that we've done in Brazil.

從併購的角度來看，湯姆，我們仍然對國際機會非常感興趣。我們相信，我們可以繼續利用我們在中國亞太地區建立的資源。在構建 SKIPPY 產品組合、Planters 產品組合以及我們在巴西所做的工作時，我們討論了很多關於零食和娛樂的話題。

So International certainly remains a key area for us as we're thinking about the acquisition front.

因此，在我們考慮收購方面時，國際當然仍然是我們的關鍵領域。

And our next question comes from Rupesh Parikh with Oppenheimer.

我們的下一個問題來自 Rupesh Parikh 和 Oppenheimer。

So I wanted to just go back to top line growth of 1% to 3% growth. I was just curious if you can just again walk through the key puts and takes there. At least to me, it seems a little lighter than we thought, going into this year.

所以我只想回到 1% 到 3% 增長的頂線增長。我只是很好奇你是否可以再次走過關鍵位置並到達那裡。至少對我來說，今年似乎比我們想像的要輕鬆一些。

Rupesh, I think there are -- just like you described, lots of puts and takes. We do know that we're going to have some positive impact from pricing. We expect strong growth, foodservice and International. We are bringing more capacity online in 2023. But then we also know that we've got elasticities that will be somewhat of an offset.

Rupesh，我認為有——就像你描述的那樣，有很多投入和投入。我們確實知道定價會對我們產生一些積極影響。我們期待強勁的增長、餐飲服務和國際業務。我們將在 2023 年將更多容量上線。但是我們也知道我們的彈性會在一定程度上抵消。

But as we've already talked about, really the biggest wildcard in terms of the top line for next year is [jobs]. And so knowing that we're dealing with this unprecedented fall event and it's already pushed back what we expect to be a more normalized level by 1/4, we have to wait and see what happens in the spring time. And so really, that's the biggest unknown as we think about our sales outlook in 2023.

但正如我們已經談到的那樣，就明年的收入而言，真正最大的通配符是[工作]。因此，知道我們正在應對這一前所未有的秋季事件，並且它已經將我們預期的正常化水平推遲了 1/4，我們必須拭目以待，看看春季會發生什麼。所以說真的，這是我們考慮 2023 年銷售前景時最大的未知數。

Okay. Great. That's helpful color. And then just on the U.S. consumer, obviously, you guys are seeing great strength in your Grocery Products business and you're seeing strength of foodservice. So just curious, how you think about the consumer, just based on your vantage points in both channels?

好的。偉大的。這是有用的顏色。然後就美國消費者而言，很明顯，你們看到了雜貨產品業務的強大實力，而且你們看到了餐飲服務的實力。所以很好奇，你如何看待消費者，只是基於你在兩個渠道中的優勢？

As we're thinking about 2023, it's continued strength. The brands are doing well. All of the scanned data for the most recent 13 weeks are showing really positive dollar sales growth.

當我們考慮 2023 年時，它是持續的力量。這些品牌做得很好。最近 13 週的所有掃描數據都顯示出非常積極的美元銷售額增長。

As you said, the foodservice business just continues to do really, really well, not only finding new opportunities, but they're also doing a really nice job of taking share.

正如您所說，餐飲服務業務繼續做得非常非常好，不僅找到了新的機會，而且他們在分享份額方面也做得非常好。

And our next question today comes from Michael Lavery with Piper Sandler.

我們今天的下一個問題來自 Michael Lavery 和 Piper Sandler。

I just wanted to unpack pricing a little bit. And I guess I just would love to understand in your guidance, does it factor in -- can you quantify roughly what amount of pricing is included in the growth outlook? And how much is that just -- are you counting on just the pricing you've already taken flowing through, rolling into next year? Or do you anticipate new pricing actions on top of that?

我只是想稍微解釋一下定價。而且我想我只是想在你的指導中理解，它是否會影響 - 你能否粗略地量化增長前景中包含的定價數量？那是多少——你指望的是你已經採取的定價，並延續到明年？或者您是否預計在此基礎上採取新的定價行動？

Michael, what we've got factored in there right now are the pricing actions that we've taken. And so again, if you think about the Grocery Products pricing that went into place in the fourth quarter, our Jennie-O Turkey Store pricing that we put in place really also in the fourth quarter.

邁克爾，我們現在考慮的是我們已經採取的定價行動。因此，如果您再次考慮第四季度實施的雜貨產品定價，我們在第四季度實施的 Jennie-O 火雞店定價也確實如此。

On the refrigerated side of the business, we've taken pricing on Pepperoni. And so we've got some pretty significant wraparound pricing there.

在業務的冷藏方面，我們對意大利辣香腸進行了定價。所以我們在那裡有一些非常重要的環繞定價。

And as we're thinking about 2023, just what I said earlier is we're really watching the price gaps in the categories. We have to be very responsible. We are seeing some gaps close. And we're also looking at those areas where we can be a bit more precise and strategic.

當我們考慮 2023 年時，正如我之前所說的，我們確實在關注類別中的價格差距。我們必須非常負責。我們看到一些差距正在縮小。我們也在研究那些我們可以更加精確和更具戰略性的領域。

So what we have in there today is already what we've taken, but we are assessing where there are those opportunities and where it's necessary, going forward.

所以我們今天所擁有的已經是我們已經採取的，但我們正在評估哪些地方有這些機會，哪些地方有必要，繼續前進。

Okay. That's helpful. And just on the margin outlook and maybe not necessarily specific to next year or fiscal '23, it seems like you're guiding for some modest margin expansion. But as you think about just where margin levels were 2, 3 years ago, how much can you restore that? Or how long does it take? What's sort of the outlook as far as the margin build, going forward?

好的。這很有幫助。就利潤率前景而言，也許不一定特定於明年或 23 財年，您似乎正在指導適度的利潤率擴張。但是，當您考慮 2、3 年前的保證金水平時，您可以將其恢復多少？或者需要多長時間？就利潤率增長而言，未來前景如何？

Yes. As we're thinking about it, the headwinds that we've covered down or had to cover down over the last several years are pretty significant. And the team has done a great job when we think about some of the commodity costs that we've had, we've talked a lot about freight and warehousing costs. .

是的。正如我們正在考慮的那樣，過去幾年我們已經掩蓋或不得不掩蓋的逆風非常重要。當我們考慮我們所擁有的一些商品成本時，團隊做得很好，我們已經討論了很多關於運費和倉儲成本的問題。 .

So as we think about relief from some markets, we've got in -- still incredibly high markets, some of the packaging costs. We've got to do a better job of taking costs out of our supply chain and our operations. And so it's all of those things that we need to focus on, but also get some moderation on, which, to say, is going to happen in any specific point in time.

因此，當我們考慮從一些市場中解脫出來時，我們已經進入了——仍然非常高的市場，一些包裝成本。我們必須更好地降低供應鍊和運營成本。因此，我們需要關注所有這些事情，但也要適度，也就是說，這將在任何特定時間點發生。

If we've learned anything over the last 3 years, is that's really hard to do. But thinking about the things that we can control and focusing on those things is really what's going to allow us to continue on this journey of margin expansion.

如果我們在過去 3 年中學到了什麼，那就是真的很難做到。但是考慮我們可以控制的事情並專注於這些事情真的會讓我們繼續這個利潤率擴張的旅程。

And our next question today comes from Eric Larson at Seaport Research Partners.

我們今天的下一個問題來自 Seaport Research Partners 的 Eric Larson。

I was thinking that you could have given your employees a really nice nontaxable bonus just by giving a turkey this year.

我在想，你今年只要給一隻火雞，就可以給你的員工一筆非常不錯的免稅獎金。

You should have called us sooner, Eric.

你應該早點打電話給我們，埃里克。

So Jim, I, like others, we're just kind of struggling to kind of think through the process of your new structure, which we will eventually get used to. But for people like me, I've been looking at your business this way previously, it's measured in decades, as you know.

所以吉姆，我和其他人一樣，我們只是在努力思考你的新結構的過程，我們最終會習慣的。但是對於像我這樣的人，我以前一直以這種方式看待您的業務，如您所知，它以幾十年為單位進行衡量。

So I guess my first question that I want to ask is -- you -- I think you've now -- and it relates to your commodity sales business, your commodity sales, your commodity pork sales, which I think you now have effectively by contract -- I don't think you have much of that anymore. And I'd like an update on that as well.

所以我想我想問的第一個問題是——你——我想你現在——它與你的商品銷售業務有關，你的商品銷售，你的商品豬肉銷售，我認為你現在有效地按合同 - 我認為你不再有太多了。我也想了解最新情況。

And then the commodity sales also for Jennie-O, I know I don't have a huge foodservice business, but why would foodservice not participate in some of the ups and downs in the commodity pricing market, given that neither retail nor foodservice would be responsible for that commodity business solely?

然後還有 Jennie-O 的商品銷售，我知道我沒有龐大的餐飲服務業務，但為什麼餐飲服務不參與商品定價市場的一些起伏，因為零售和餐飲服務都不會參與其中單獨負責那個商品業務？

So how do the commodity sales for all the stuff kind of land in your new retail, foodservice, International structure?

那麼，在您的新零售、餐飲服務和國際結構中，所有商品的商品銷售情況如何？

Yes. Great question, Eric. So a couple of things. I mean as we head into this new operating model, I mean, clearly, we're going to continue to provide clarity and education. The key takeaway in all of this is really about how we are able to align our strategy with our structure.

是的。好問題，埃里克。所以有幾件事。我的意思是，當我們進入這種新的運營模式時，我的意思是，很明顯，我們將繼續提供清晰度和教育。所有這一切的關鍵要點實際上是關於我們如何能夠使我們的戰略與我們的結構保持一致。

And although we've had all of our different reporting segments historically, we haven't had it as well aligned as it could be. So that's really where we're heading.

儘管我們歷史上擁有所有不同的報告部分，但我們並沒有盡可能地保持一致。所以這真的是我們要去的地方。

David and the team will obviously be spending a lot of time on the education front to make sure everybody understands what is where and why. From a Jennie-O perspective, as we think about how that commodity business in particular falls, it will fall between our retail and International business. And so there will be elements that will fall in both.

大衛和團隊顯然會在教育方面花費大量時間，以確保每個人都了解什麼是什麼以及為什麼。從 Jennie-O 的角度來看，當我們考慮商品業務特別是如何下降時，它將落在我們的零售和國際業務之間。因此，會有一些元素同時屬於兩者。

When -- the other part of it, as you mentioned, is the foodservice piece, is there's still a significant Jennie-O business in our foodservice segment.

當——正如你提到的，它的另一部分是餐飲服務時，我們的餐飲服務部門是否仍然有重要的 Jennie-O 業務。

And then the other part you mentioned was just in regards to traditional pork commodity sales. And that business -- I mean, our team has done just a great job over the last number of years, finding ways to really derisk the business, derisk the commodity side.

然後你提到的另一部分只是關於傳統的豬肉商品銷售。那項業務——我的意思是，我們的團隊在過去幾年裡做得很好，找到了真正降低業務風險、降低商品風險的方法。

And right now, we're less than 10%. And so that's a journey that we've been on for a very long time. We continue to stay focused on that. And the team has just done a great job. So hopefully, that gives you a little more clarity. But just know, as we get into 2023, we'll have those opportunities for education and further discussion.

而現在，我們還不到 10%。因此，這是我們已經進行了很長時間的旅程。我們繼續專注於此。團隊剛剛做得很好。所以希望這能讓你更清楚一點。但要知道，隨著我們進入 2023 年，我們將有機會進行教育和進一步討論。

And our next question today comes from Adam Samuelson at Goldman Sachs.

我們今天的下一個問題來自高盛的亞當薩繆爾森。

This is Arthur on for Adam. If you could just talk to us about how Jennie-O performed relative to your expectations, it looks like volume declines weren't nearly as much as we had anticipated and you had noted in the last quarter's call.

這是亞當的亞瑟。如果你能和我們談談 Jennie-O 相對於你的預期的表現，看起來銷量下降並沒有我們預期的那麼多，你在上個季度的電話會議上也注意到了。

And if you could also give us some color on, to whatever extent you can, margin headwinds from fixed cost under absorption and how pricing, specifically commodity pricing affected that or offset that?

如果你也能在任何程度上給我們一些顏色，吸收固定成本帶來的利潤逆風以及定價，特別是商品定價如何影響或抵消它？

Yes. Arthur, I would say that our Jennie-O business was actually in line with our expectations. What we have said for the back half of last year when we first started to see the outbreak was that we were going to have a 30% decline in volume in the back half of the year, and that's almost exactly what we saw. So the volume piece was accurate.

是的。 Arthur，我想說我們的 Jennie-O 業務實際上符合我們的預期。我們在去年下半年剛開始看到疫情爆發時所說的是，下半年我們的銷量將下降 30%，而這幾乎正是我們所看到的。所以捲片是準確的。

Clearly, the drivers or what happened with the breast meat market, obviously, whole birds, so there's always a lot of moving parts. But I would say that, by and large, it met our expectations. And then I'm sorry, I missed the second part of the question.

很明顯，驅動因素或胸肉市場發生的事情，很明顯，整隻鳥，所以總是有很多活動部件。但我要說的是，總的來說，它符合我們的預期。然後我很抱歉，我錯過了問題的第二部分。

Just to what extent fixed cost under absorption was a headwind on margins? And what offset you had on pricing?

吸收固定成本在多大程度上對利潤率構成不利影響？你在定價上有什麼抵消？

Yes. Arthur, I think David is going to have some follow-up calls. So maybe we'd be better served to handle that there.

是的。亞瑟，我想大衛會接到一些跟進電話。所以也許我們在那里處理這個問題會更好。

And ladies and gentlemen, this concludes our question-and-answer session. I'd like to turn the conference back over to the management for any closing remarks.

女士們，先生們，我們的問答環節到此結束。我想將會議轉回給管理層，聽取任何閉幕詞。

Well, thank you all for joining us this morning. As we close the book on our fiscal 2022, I want to once again thank our team for delivering such strong results for the fourth quarter and full year.

好吧，謝謝大家今天早上加入我們。在我們結束 2022 財年的賬簿之際，我想再次感謝我們的團隊在第四季度和全年取得如此強勁的業績。

I also want to thank the entire team for their hard work as we embark on our new operating model. We still have work to do, but their efforts to date have been nothing short of outstanding as we create the Hormel Foods of the future.

我還要感謝整個團隊在我們開始新的運營模式時所做的辛勤工作。我們仍有工作要做，但他們迄今為止的努力在我們創造未來的 Hormel Foods 時非常出色。

As we go forward into 2023, I want to wish all of you a happy, healthy and safe holiday season.

在我們邁入 2023 年之際，我希望大家度過一個快樂、健康和安全的假期。

Thank you. And ladies and gentlemen, this concludes today's conference call. We thank you all for attending today's presentation. You may now disconnect your lines, and have a wonderful day.

謝謝你。女士們，先生們，今天的電話會議到此結束。感謝大家出席今天的演講。您現在可以斷開線路，度過美好的一天。