荷美爾 (HRL) 2023 Q1 法說會逐字稿

Good morning, and welcome to the Hormel Foods First Quarter 2023 Earnings Conference Call. (Operator Instructions) Please note, this event is being recorded.

早上好，歡迎來到 Hormel Foods 2023 年第一季度收益電話會議。 （操作員說明）請注意，正在記錄此事件。

I would now like to turn the conference over to David Dahlstrom, Director of Investor Relations. Please go ahead, sir.

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 First Quarter of Fiscal 2023. 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。歡迎來到荷美爾食品公司 2023 財年第一季度電話會議。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; Jacinth Smiley, Executive Vice President and Chief Financial Officer; and Deanna Brady, Executive Vice President of the Retail segment. Jim will review the company's first quarter results and give a perspective on the rest of fiscal 2023. Jacinth will provide detailed financial results and further commentary on our outlook. And Deanna will join for the Q&A portion of the call. (Operator Instructions) At the conclusion of this morning's call, a webcast replay will be posted to our investor website and archived for 1 year.

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； Jacinth Smiley，執行副總裁兼首席財務官；和零售部門執行副總裁 Deanna Brady。 Jim 將回顧公司第一季度的業績，並對 2023 財年剩餘時間發表看法。Jacinth 將提供詳細的財務業績，並對我們的前景做出進一步評論。 Deanna 將參加電話會議的問答部分。 （操作員說明）在今天上午的電話會議結束時，網絡廣播重播將發佈到我們的投資者網站並存檔 1 年。

Additionally, earlier this week, we filed a Form 8-K with the U.S. Securities and Exchange Commission that included supplemental segment financial information for fiscal years 2021 and 2022 related to the go-forward initiative. We have posted a copy of the Form 8-K to our investor website, investor.hormelfoods.com.

此外，本週早些時候，我們向美國證券交易委員會提交了一份 8-K 表格，其中包括與推進計劃相關的 2021 和 2022 財年的補充部門財務信息。我們已將 8-K 表格的副本發佈到我們的投資者網站 investor.hormelfoods.com。

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. 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.

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。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。

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. With the release of our recast financial information earlier this week, our transition from a structural and reporting perspective is now complete for the go-forward initiative. I want to take time to acknowledge the immense amount of work the entire team has put in to transition the business to our new strategic operating model.

謝謝你，大衛。大家，早安。隨著本週早些時候我們重鑄的財務信息的發布，我們從結構和報告角度的轉變現在已經完成，以推進計劃。我想花時間感謝整個團隊為將業務過渡到我們新的戰略運營模式所做的大量工作。

We have spent time discussing the strategic rationale and how our actions over the past decade have positioned us for go forward, but there has been a lot of blocking and tackling that had to take place first to get us to where we are today. Over the past 6 months, we stood up 3 new business segments and consolidated the Jennie-O Turkey Store segment.

我們花時間討論了戰略依據以及我們在過去十年中的行動如何為我們的前進奠定了基礎，但是必須首先進行許多阻礙和解決才能使我們達到今天的水平。在過去的 6 個月裡，我們成立了 3 個新的業務部門，並整合了 Jennie-O Turkey Store 部門。

This included organizing the retail segment into 6 distinct verticals and combining the foodservice businesses across the enterprise. We invested in new centers of excellence including brand fuel and a dedicated FP&A team. And we made changes to the administrative side of the business to recast the financial statements, align and structure our entities and duties, maintain controls across the business and, of course, operate our business without interruption.

這包括將零售部門組織成 6 個不同的垂直領域，並將整個企業的餐飲服務業務合併。我們投資了新的卓越中心，包括品牌燃料和專門的 FP&A 團隊。我們對業務的管理方面進行了更改，以重寫財務報表、調整和構建我們的實體和職責、保持對整個業務的控制，當然還有不間斷地運營我們的業務。

We have learned a lot about our people, processes and technology going through this transition. While we have work to do in all of these areas, I am encouraged by the conversations that are taking place across the organization.

通過這次轉型，我們對我們的人員、流程和技術有了很多了解。雖然我們在所有這些領域都有工作要做，但我對整個組織正在進行的對話感到鼓舞。

The operating environment remains challenging. And while many areas of the business performed ahead of last year during the first quarter, our results were disappointing and below our expectations.

經營環境仍然充滿挑戰。儘管第一季度許多業務領域的表現優於去年，但我們的業績令人失望且低於我們的預期。

From a top line perspective, demand from consumers and operators generally remained elevated in key categories, and we delivered balanced growth between volume and price across many parts of our portfolio. We continue to see elevated demand for many of our center store refrigerated Mexican and premium items at retail, including Black Label Bacon, Columbus Charcuterie, Hormel Chili, Hormel Pepperoni, Applegate Breaded Chicken, Herdez products, Square Table entrees and Mary Kitchen hash.

從頂線的角度來看，消費者和運營商的需求在關鍵類別中普遍保持高位，我們在產品組合的許多部分實現了量價平衡增長。我們繼續看到對我們中心商店的許多冷藏墨西哥和優質零售商品的需求增加，包括黑標培根、哥倫布熟食店、荷美爾辣椒、荷美爾意大利辣香腸、Applegate 麵包雞、Herdez 產品、方桌主菜和 Mary Kitchen 雜燴。

Likewise, solutions-based items in our Foodservice segment had another strong quarter with volume growth in sliced meats, and from brands such as Cafe H, Fire Braised, BACON 1 and Austin Blues.

同樣，我們的餐飲服務部門中基於解決方案的項目也有另一個強勁的季度，切片肉的銷量增長，來自 Cafe H、Fire Braised、BACON 1 和 Austin Blues 等品牌。

For the quarter, sales declined 2%. As a reminder, there continues to be volatility in our overall volume and net sales results given the planned volume declines in commodity pork and the volume impacts across the turkey supply chain due to highly pathogenic avian influenza or HPAI.

本季度，銷售額下降了 2%。提醒一下，鑑於商品豬肉的計劃銷量下降以及高致病性禽流感或 HPAI 對整個火雞供應鏈的銷量影響，我們的整體銷量和淨銷售額結果繼續存在波動。

Diluted net earnings per share for the quarter was $0.40, a $0.04 decline compared to last year. Our results reflect the persistent impact from inflationary pressures, supply chain inefficiencies and lower sales volumes across each of the business segments.

本季度稀釋後每股淨收益為 0.40 美元，與去年同期相比下降 0.04 美元。我們的結果反映了通脹壓力、供應鏈效率低下和每個業務部門銷量下降的持續影響。

Now turning to our segments. Results in the Retail segment declined compared to last year. Net sales growth from the bacon, global flavors, convenient meals and proteins and emerging brands verticals was offset by lower sales in the value-added meats and snacking and entertaining verticals.

現在轉向我們的細分市場。與去年相比，零售部門的業績有所下降。培根、全球風味、方便餐和蛋白質以及新興品牌垂直領域的淨銷售額增長被增值肉類、零食和娛樂垂直領域的銷售額下降所抵消。

Segment profit declined as the benefit from pricing actions across the portfolio, higher equity and earnings from MegaMex and improved results for the bacon business were more than offset by the impact from lower net sales, unfavorable mix and higher operating costs.

由於整個投資組合的定價行動、MegaMex 的更高股本和收益以及培根業務的業績改善所帶來的好處被較低的淨銷售額、不利的組合和較高的運營成本的影響所抵消，因此部門利潤下降。

The Bacon vertical delivered outstanding results in the quarter due to elevated demand for our Black Label items. There was also a benefit from commodity relief in pork bellies throughout the quarter as we work through higher cost inventory. This is a category where we have made significant investments and one we expect to show growth for the year.

由於對我們黑標產品的需求增加，培根垂直業務在本季度取得了出色的業績。隨著我們處理成本更高的庫存，整個季度豬肚的商品減免也帶來了好處。我們已經在這一類別中進行了大量投資，並且我們預計今年會出現增長。

Similarly, the global flavors vertical made up of our MegaMex business had an excellent start to the year. The pricing actions that we have taken across this business to combat inflationary pressures coupled with commodity relief on avocado inputs, led to revenue and equity and earnings gains for the quarter.

同樣，由我們的 MegaMex 業務組成的全球風味垂直業務今年開局良好。我們為應對通貨膨脹壓力以及鱷梨投入的商品減免而在該業務中採取的定價行動導致了本季度的收入、股權和收益增長。

The emerging brands vertical delivered volume and sales growth for the Applegate brand led by frozen breaded chicken and wall deli items. The convenient meals and proteins vertical achieved another quarter of net sales growth, led by Hormel Chili, Square Table refrigerated entrees and Mary Kitchen hash. In addition to a benefit from pricing actions we implemented last year.

垂直新興品牌為 Applegate 品牌帶來了數量和銷售額增長，其中以冷凍麵包屑雞肉和牆面熟食為首。在 Hormel Chili、Square Table 冷藏主菜和 Mary Kitchen hash 的帶動下，方便食品和蛋白質垂直領域又實現了四分之一的淨銷售額增長。除了受益於我們去年實施的定價行動之外。

We will have new capacity for SPAM items beginning in the second quarter. In addition to supporting our highest selling products in the category, this new capacity allows us to restore assortments, introduce new flavors such as Maple and relaunch our 7-ounce SPAM item after a 3-year hiatus. This provides excellent value for consumers seeking a more affordable option in the category.

從第二季度開始，我們將擁有處理垃圾郵件項目的新容量。除了支持我們在該類別中最暢銷的產品外，這一新容量還使我們能夠恢復分類，推出楓糖等新口味，並在中斷 3 年後重新推出我們的 7 盎司 SPAM 產品。這為尋求該類別中更實惠選擇的消費者提供了卓越的價值。

SKIPPY peanut butter sales for the quarter were significantly behind last year. Last May, when we made the decision to relentlessly support our customers and the peanut butter category, we knew it would pressure inventory levels and have lingering impacts into fiscal 2023. This was the right decision for all stakeholders, and our team deserves credit for growing the peanut butter category and making the product readily available for our customers and consumers when they needed it.

本季度 SKIPPY 花生醬的銷售額明顯落後於去年。去年 5 月，當我們決定不懈地支持我們的客戶和花生醬類別時，我們知道這會給庫存水平帶來壓力並對 2023 財年產生揮之不去的影響。這對所有利益相關者來說都是正確的決定，我們的團隊值得讚揚花生醬類別，並在我們的客戶和消費者需要時隨時提供該產品。

Demand remains robust for the SKIPPY brand and the category, and we are working diligently to maximize capacity and return inventories and fill rates to normalized levels.

SKIPPY 品牌和品類的需求依然強勁，我們正在努力工作以最大限度地提高產能，並將庫存和填充率恢復到正常水平。

Net sales declined for the snacking and entertainment vertical as growth for the Columbus and Hormel Pepperoni brands was more than offset by a year-over-year decline in the snack nuts business.

零食和娛樂垂直領域的淨銷售額下降，因為哥倫布和荷美爾意大利辣香腸品牌的增長被零食堅果業務的同比下降所抵消。

The final vertical, value-added meats was most heavily impacted by lower commodity pork and turkey availability, leading to net sales declines.

最終的垂直增值肉類受到商品豬肉和火雞供應量下降的影響最大，導致淨銷售額下降。

In the Foodservice segment, products in the sliced meats, pepperoni, premium prepared proteins and premium bacon and breakfast sausage categories grew volume and net sales for the quarter. Like retail, the overall decline in volume was driven primarily by limited turkey and fresh pork availability. Segment profit increased for the quarter due to improved mix across the portfolio. Results for this segment were below our expectations, reflecting industry softness from mid-December into January. However, we have seen a sharp rebound in orders to begin the second quarter and are confident in our ability to grow the business this year.

在餐飲服務領域，本季度肉片、意大利辣香腸、優質預製蛋白質以及優質培根和早餐香腸類別的產品銷量和淨銷售額均有所增長。與零售一樣，整體銷量下降主要是由於火雞和新鮮豬肉供應有限。由於整個投資組合的組合得到改善，本季度的部門利潤有所增加。該部門的業績低於我們的預期，反映了從 12 月中旬到 1 月的行業疲軟。然而，我們已經看到第二季度開始的訂單急劇反彈，並且對我們今年業務增長的能力充滿信心。

Finally, the International segment was heavily impacted by external factors during the first quarter. From a top line perspective, our branded export business had a strong quarter led by the SPAM and SKIPPY brands. We also saw another quarter of improved results in Brazil as the team continues to focus on its premium products and food service strategy.

最後，國際業務在第一季度受到外部因素的嚴重影響。從頂線的角度來看，我們的品牌出口業務在 SPAM 和 SKIPPY 品牌的帶動下表現強勁。隨著團隊繼續專注於其優質產品和食品服務戰略，我們在巴西也看到了另外四分之一的業績改善。

Commodity turkey volumes declined almost 80% compared to last year due to restrictions on turkey exports and limited supply as we strategically diverted raw material to support the domestic business.

由於我們戰略性地轉移原材料以支持國內業務，火雞出口受到限制且供應有限，因此商品火雞銷量與去年相比下降了近 80%。

Our team in China faced incredibly difficult operating conditions throughout the quarter as the impact of COVID-related policy changes had dramatic short-term effects on the business as well as our employees, customers and operators. Taken together, the impact from lower turkey exports and disruptions in China represented a more than $0.01 earnings per share impact on the quarter compared to last year.

由於與 COVID 相關的政策變化對業務以及我們的員工、客戶和運營商產生了巨大的短期影響，我們在中國的團隊在整個季度都面臨著極其困難的經營條件。總的來說，與去年相比，火雞出口下降和中國業務中斷對本季度每股收益的影響超過 0.01 美元。

We are seeing improvement in China to begin the second quarter especially in our foodservice business. As conditions normalize, we expect our China business to resume delivering accelerated growth.

我們看到中國在第二季度開始有所改善，尤其是在我們的餐飲服務業務方面。隨著情況正常化，我們預計我們的中國業務將恢復加速增長。

During the quarter, we purchased a minority stake in Garuda Food, one of the largest food and beverage companies in Indonesia. This investment supports our international growth ambitions and the global execution of our snacking and entertaining strategy. Garudafood is a market leader with strong and reputable brands, local expertise and a best-in-class distribution network. We have been partnering with the Garudafood team for several years, and this strategic investment enhances that partnership. Jacinth will provide the financial details of the transaction later in the call.

本季度，我們收購了印度尼西亞最大的食品和飲料公司之一嘉魯達食品的少數股權。這項投資支持我們的國際增長雄心以及我們零食和娛樂戰略的全球執行。 Garudafood 是市場領導者，擁有強大而知名的品牌、本地專業知識和一流的分銷網絡。多年來，我們一直與 Garudafood 團隊合作，這項戰略投資加強了這種合作關係。 Jacinth 將在稍後的通話中提供交易的財務細節。

As we disclosed earlier this morning, we are reaffirming our top line expectations and reducing our diluted net earnings per share outlook for fiscal 2023. Our top line remains healthy. And despite softness in the first quarter, we are on track to deliver growth for the year.

正如我們今天上午早些時候披露的那樣，我們重申了我們的收入預期，並下調了 2023 財年的稀釋後每股淨收益展望。我們的收入仍然健康。儘管第一季度表現疲軟，但我們有望實現今年的增長。

Demand for our leading center store and refrigerated retail brands remains favorable. The foodservice segment expects strong growth for the remainder of the year, and we anticipate the near-term challenges impacting the international segment to abate over the coming months.

對我們領先的中心商店和冷藏零售品牌的需求依然旺盛。餐飲服務部門預計今年剩餘時間將實現強勁增長，我們預計影響國際部門的近期挑戰將在未來幾個月減弱。

Compared to our expectations heading into the year, earnings are being pressured by inefficiencies across the supply chain, persistent inflationary pressures and softness in the snack nuts category. I want to detail how we plan to address each of these challenges for the balance of the year.

與我們對今年的預期相比，整個供應鏈效率低下、持續的通脹壓力和零食堅果類別的疲軟給收益帶來了壓力。我想詳細說明我們計劃如何在今年餘下時間應對這些挑戰中的每一個。

First, I would like to discuss the state of our supply chain. It is important to note that we have made progress over the last year, staffing our facilities, expanding production capacity and improving fill rates for each of our businesses. This has allowed us to catch up to demand in most categories and further supports the confidence we have in our revenue outlook for this year and longer term.

首先，我想討論一下我們供應鏈的狀況。值得注意的是，我們在過去一年中取得了進展，為我們的設施配備了人員，擴大了生產能力並提高了我們每項業務的填充率。這使我們能夠滿足大多數類別的需求，並進一步支持我們對今年和長期收入前景的信心。

Since the fall, we have been operating with elevated inventories due to our efforts to increase production, optimize plant performance and return fill rates to historical levels. We expected this inventory to clear during the normal course of business. This has not happened. And in fact, we have seen inventories continue to grow in a number of areas. This has resulted in inefficiencies across the supply chain and higher operating costs.

自秋季以來，由於我們努力提高產量、優化工廠性能並將填充率恢復到歷史水平，我們的庫存一直在增加。我們預計該庫存會在正常業務過程中清空。這並沒有發生。事實上，我們已經看到許多地區的庫存繼續增長。這導致了整個供應鏈的低效率和更高的運營成本。

We are taking immediate action to combat these inefficiencies by focusing on selling excess inventories and reducing the reliance on third-party warehouses and co-packers. These actions are expected to cause short-term margin compression, but they are necessary as we look to restore profitability to normalized levels and reduce complexity.

我們正在立即採取行動，通過專注於銷售過剩庫存和減少對第三方倉庫和代加工商的依賴來解決這些低效率問題。這些行動預計會導致短期利潤率壓縮，但在我們希望將盈利能力恢復到正常水平並降低複雜性時，它們是必要的。

Simply said, after almost 3 years of chasing unprecedented demand, our ability to supply our customers, consumers and operators caught up to and in some cases began to exceed demand and we needed to react sooner. Rectifying the inefficiencies caused by elevated inventory levels is the top priority in the company.

簡單地說，在追逐前所未有的需求近 3 年後，我們為客戶、消費者和運營商提供的能力已經趕上並在某些情況下開始超過需求，我們需要更快地做出反應。糾正庫存水平升高導致的低效率是公司的首要任務。

Second, we continue to operate in a volatile, complex and high-cost environment and cost pressures remain high. Our retail businesses, especially in the center store, continue to be disproportionately impacted by high inflationary pressures and the pricing actions we have taken over the last 18 months still lag inflation.

第二，我們繼續在多變、複雜和高成本的環境中運營，成本壓力仍然很大。我們的零售業務，尤其是中心店，繼續受到高通脹壓力的不成比例的影響，我們在過去 18 個月採取的定價行動仍然落後於通脹。

To help mitigate some of this pressure, we have announced additional inflationary justified pricing actions in certain retail categories effective late in the second quarter. We are evaluating further pricing actions but as we have said, our teams remain highly focused on the long-term needs of the business and protecting the equity of our brands.

為幫助減輕部分壓力，我們宣佈在第二季度末對某些零售類別採取額外的通脹合理定價行動。我們正在評估進一步的定價行動，但正如我們所說，我們的團隊仍然高度關注業務的長期需求並保護我們品牌的資產。

For the remainder of the year, we believe we can stabilize these margin pressures through a combination of pricing actions, operational cost management and supply chain cost savings initiatives.

在今年餘下的時間裡，我們相信我們可以通過結合定價行動、運營成本管理和供應鏈成本節約舉措來穩定這些利潤壓力。

Third, after meeting expectations last year, our Planters business is off to a slower-than-expected start in 2023. There are numerous factors at play including general category softness, a consumer shift away from certain higher-priced items, production challenges and timing issues. We are taking immediate action to address the current challenges, stabilize the top line and grow the consumer base.

第三，在去年達到預期後，我們的 Planters 業務在 2023 年的開局將慢於預期。有許多因素在起作用，包括總體類別疲軟、消費者從某些高價商品轉移、生產挑戰和時機問題。我們正在立即採取行動應對當前的挑戰，穩定收入並擴大消費者基礎。

Beginning in the second quarter, we are shifting resources to drive consumption. This includes increasing promotional support and prioritizing peanut items and pack sizes aimed at value-seeking consumers. We are bringing much needed innovation to the category with flavored cashews and several new corn nuts flavors.

從二季度開始，我們正在轉移資源來拉動消費。這包括增加促銷支持，並優先考慮針對尋求價值的消費者的花生產品和包裝尺寸。我們正在通過風味腰果和幾種新的玉米堅果口味為該類別帶來急需的創新。

We're expanding assortments as we continue to gain distribution for the brand. And we are investing in capital for higher growth items that are relevant for today's consumer. Long term, we remain fully committed to the Planters brand and the snack nuts category. This business is at the center of our snacking and entertainment strategy, our ambitions to grow in the convenience store channel and as we look to become even more balanced as a company. We know what we need to do to change the trajectory of this business and our teams are focused on accelerating the pace of that change.

隨著我們繼續獲得品牌的分銷，我們正在擴大品種。我們正在投資於與當今消費者相關的更高增長項目的資本。從長遠來看，我們仍然完全致力於 Planters 品牌和零食堅果類別。這項業務是我們零食和娛樂戰略的核心，是我們在便利店渠道發展的雄心，也是我們希望成為一家更加平衡的公司。我們知道我們需要做些什麼來改變這項業務的軌跡，我們的團隊專注於加快這種變化的步伐。

Considering these factors, we expect full year net sales growth of 1% to 3% and diluted net earnings per share of $1.70 to $1.82 per share. While we have work to do the rest of this fiscal year, we cannot lose sight of the progress we have made over the last 2 years. We are a significantly larger company today, 30% bigger, in fact.

考慮到這些因素，我們預計全年淨銷售額增長 1% 至 3%，每股攤薄淨收益為 1.70 美元至 1.82 美元。雖然我們在本財政年度的剩餘時間裡還有工作要做，但我們不能忽視過去兩年取得的進展。我們今天是一家大得多的公司，實際上大了 30%。

We are a more balanced company through the products we sell and in the ways we reach our customers, consumers and operators. We have transformed our company, not only through the go-forward initiative but with the investments we have continued to make in technology, capacity and capabilities. And we have made all of this progress while simultaneously navigating a dynamic and volatile environment and managing through the impacts of HPAI.

通過我們銷售的產品以及我們接觸客戶、消費者和運營商的方式，我們是一家更加平衡的公司。我們改變了我們的公司，不僅通過前瞻性舉措，而且通過我們在技術、能力和能力方面的持續投資。我們取得了所有這些進展，同時在動態和多變的環境中航行，並通過 HPAI 的影響進行管理。

Our brands remain vibrant and relevant. Our strategies remain effective and our business is positioned for long-term growth.

我們的品牌仍然充滿活力和相關性。我們的戰略仍然有效，我們的業務定位於長期增長。

At this time, I will turn the call over to Jacinth Smiley to discuss detailed financial information related to the first quarter and additional color on key drivers to our outlook.

此時，我將把電話轉給 Jacinth Smiley，討論與第一季度相關的詳細財務信息，以及對我們前景的關鍵驅動因素的額外色彩。

Thank you, Jim. Good morning, everyone. Net sales for the first quarter were $3 billion, a 2% decline to last year. Planned lower commodity pork and turkey volumes were the primary drivers of the decrease in net sales.

謝謝你，吉姆。大家，早安。第一季度的淨銷售額為 30 億美元，比去年下降 2%。計劃減少的商品豬肉和火雞銷量是淨銷售額下降的主要原因。

We have now lapped our new pork supply agreement as of January and turkey supplies have improved since the fall. We anticipate more normalized volume comparisons for the remainder of the year, barring a return of HPAI in the spring.

我們現在已經簽署了 1 月份的新豬肉供應協議，火雞供應自秋季以來有所改善。我們預計今年剩餘時間的數量比較將更加標準化，除非 HPAI 在春季回歸。

First quarter gross profit was $496 million compared to $539 million last year. Gross profit margin declined 100 basis points as the impact from pricing actions was more than offset by unfavorable mix and persistent inflationary pressures.

第一季度毛利潤為 4.96 億美元，而去年同期為 5.39 億美元。毛利率下降了 100 個基點，因為定價行為的影響被不利的組合和持續的通脹壓力所抵消。

For the first quarter, SG&A expenses as a percent of net sales increased marginally to 7.5%. The company continued to support its leading brands through advertising investments.

第一季度，SG&A 費用占淨銷售額的百分比小幅上升至 7.5%。公司繼續通過廣告投資支持其領先品牌。

Advertising expenses were $47 million during the quarter comparable to last year. Of note, we promoted Black Label bacon over the holiday season and the Planters brand was once again front and center at this year's big game with the rose of Mr. Peanut.

與去年同期相比，本季度的廣告費用為 4700 萬美元。值得注意的是，我們在節日期間推廣了 Black Label 培根，而 Planters 品牌憑藉花生先生的玫瑰再次成為今年盛會的焦點。

Equity in earnings of affiliates for the first quarter increased significantly compared to last year due to improved results for MegaMex and our joint venture in the Philippines.

由於 MegaMex 和我們在菲律賓的合資企業的業績改善，第一季度附屬公司的權益收益與去年相比顯著增加。

Operating income for the first quarter was $289 million compared to $320 million last year. Operating margins compressed to 9.7% compared to 10.5% last year. Net unallocated expenses in the first quarter increased $7 million. This increase was driven by higher employee-related expenses and outside consulting fees.

第一季度營業收入為 2.89 億美元，而去年同期為 3.2 億美元。營業利潤率從去年的 10.5% 壓縮至 9.7%。第一季度淨未分配費用增加了 700 萬美元。這一增長是由於與員工相關的費用和外部諮詢費用增加所致。

The effective tax rate for the quarter moved modestly higher to 22.6% compared to 22.4% last year. Last year's rate reflected higher stock option exercise benefits. The effective tax rate for fiscal 2023 is expected to be 21% to 23%. The net result of all these factors was diluted net earnings per share of $0.40.

本季度的有效稅率從去年的 22.4% 小幅上升至 22.6%。去年的比率反映了更高的股票期權行使收益。 2023 財年的有效稅率預計為 21% 至 23%。所有這些因素的最終結果是每股攤薄淨收益為 0.40 美元。

Turning to cash flow. Operating cash flow was $204 million for the first quarter compared to $384 million last year. This decline was driven by lower net earnings and an increase in working capital.

轉向現金流。第一季度的運營現金流為 2.04 億美元，而去年同期為 3.84 億美元。下降的原因是淨收益下降和營運資本增加。

As Jim mentioned, we purchased a 29% common stock interest in Garudafood, a leading food and beverage company in Indonesia. We obtained a minority interest from various shareholders for a purchase price of $411 million, including associated transaction costs. The transaction was funded using cash on hand. We do not expect the transaction to have a material impact on our fiscal 2023 results.

正如 Jim 提到的，我們購買了印度尼西亞領先的食品和飲料公司 Garudafood 29% 的普通股權益。我們以 4.11 億美元的收購價格（包括相關交易成本）從多個股東那裡獲得了少數股權。該交易的資金來自手頭現金。我們預計該交易不會對我們 2023 財年的業績產生重大影響。

We are targeting $350 million in capital expenditures for 2023. In addition to the newly commissioned SPAM product line, we recently approved a $40 million expansion for our Columbus line of premium charcuterie products and additional capacity for higher demand Planters items at the Fort Smith, Arkansas facility.

我們的目標是在 2023 年實現 3.5 億美元的資本支出。除了新委託的 SPAM 產品線外，我們最近還批准了 4000 萬美元的擴建，用於擴建我們的 Columbus 優質熟食產品線，並增加在阿肯色州史密斯堡滿足更高需求的 Planters 產品的能力設施。

We also continue to invest heavily in automation projects as evidenced by our recently completed project supporting turkey processing at the (inaudible) Minnesota facility. The project automates more than 30 difficult, highly repetitive jobs at the plant, further aiding our efforts to improve employee retention and satisfaction.

我們還繼續大力投資自動化項目，我們最近在（聽不清）明尼蘇達工廠完成的支持火雞加工的項目證明了這一點。該項目使工廠 30 多項困難、高度重複的工作自動化，進一步幫助我們提高員工保留率和滿意度。

We paid our 378th consecutive quarterly dividend effective February 15 at an annual rate of $1.10 per share, a 6% increase over last year. We ended the first quarter with $3.3 billion in debt unchanged from the prior year. We remain committed to maintaining an investment-grade rating.

自 2 月 15 日起，我們連續第 378 次支付季度股息，年利率為每股 1.10 美元，比去年增長 6%。第一季度結束時，我們的債務與去年同期持平，為 33 億美元。我們仍然致力於維持投資級評級。

As Jim detailed, we have lowered our diluted net earnings per share outlook for the year and have action plans in place for the balance of fiscal 2023.

正如 Jim 詳述的那樣，我們已經下調了今年的稀釋後每股淨收益預期，並製定了 2023 財年剩餘時間的行動計劃。

In terms of cadence for the year, we expect diluted net earnings per share in the second quarter to be significantly lower than last year. We expect unfavorable mix in the retail segment, short-term margin compression due to our immediate actions across the supply chain and for continued COVID-related disruption in China to negatively affect the second quarter. We are also not expecting a repeat of last year's lower effective tax rate.

從全年節奏來看，我們預計二季度攤薄後每股淨收益將明顯低於去年同期。我們預計零售部門的不利組合、由於我們在整個供應鏈中立即採取行動而導致的短期利潤率壓縮以及中國與 COVID 相關的持續中斷將對第二季度產生負面影響。我們也不認為去年較低的有效稅率會重演。

As we look to the second half of the year, we expect earnings growth compared to last year led by the Foodservice and International segments, gradual improvement in the cost environment and higher turkey volumes. We are beginning to see signs of market stabilization and even cost relief in certain areas such as raw materials and freight.

展望下半年，我們預計與去年相比，餐飲服務和國際業務將帶動收入增長、成本環境逐步改善以及火雞銷量增加。我們開始看到市場穩定的跡象，甚至在原材料和運費等某些領域出現成本下降。

As anticipated, prices on key protein inputs generally declined during the quarter compared to last year and the fourth quarter. The USDA composite cutout declined 19% compared to the fourth quarter and was 2% lower than last year. This decrease was driven primarily by bellies, which declined 26% compared to last year. Higher cost inventory was generally a headwind in the first quarter and will continue to affect results as we work to reduce inventories.

正如預期的那樣，與去年和第四季度相比，本季度關鍵蛋白質投入品的價格普遍下降。美國農業部綜合分切比第四季度下降 19%，比去年低 2%。這一下降主要是由肚子造成的，與去年相比下降了 26%。較高的庫存成本在第一季度通常是一個不利因素，並將繼續影響我們努力減少庫存的結果。

We have assumed a benefit from lower raw materials costs in the back half of the year. Similarly, we saw a more balanced freight environment during the first quarter as demand for trucks moderated. We expect freight rates for the remainder of the year to be lower compared to last year. In addition to the actions we are taking to address inventory levels and inflation, our teams remain focused on identifying and capturing cost savings opportunities as supply chain conditions normalize.

我們假設下半年原材料成本下降會帶來好處。同樣，隨著對卡車的需求放緩，我們在第一季度看到了更加平衡的貨運環境。我們預計今年剩餘時間的運費將低於去年。除了我們為解決庫存水平和通貨膨脹而採取的行動外，我們的團隊仍然專注於在供應鏈條件正常化時識別和抓住成本節約機會。

HPAI remains a significant risk facing the business. While the last supported case in our supply chain was early December, the virus continues to impact domestic poultry supplies. There is increased risk to our supply chain into the spring as migration begins along the Mississippi flyway.

HPAI 仍然是企業面臨的重大風險。雖然我們供應鏈中的最後一個支持案例是在 12 月初，但該病毒繼續影響家禽供應。隨著沿密西西比遷徙路線開始遷徙，我們的供應鏈進入春季的風險會增加。

Assuming current conditions hold, reduced production volume in our turkey facilities is expected through the end of the second quarter before steadily improving in the back half of the year. This should be supportive of our turkey business as demand for general turkey products remains strong. Turkey markets have become less favorable as breast meat prices have steadily declined over the last month. Additionally, historically high feed costs remain a headwind for our business.

假設目前的情況保持不變，我們火雞設施的產量預計會下降到第二季度末，然後在今年下半年穩步改善。這應該會支持我們的火雞業務，因為對普通火雞產品的需求依然強勁。由於上個月胸肉價格穩步下降，火雞市場變得不太有利。此外，歷史上高昂的飼料成本仍然是我們業務的不利因素。

Considering these factors, we expect to improve meat availability in the back half of the year to drive higher sales volumes for our turkey business, offsetting the impact of market declines and higher feed costs. Additionally, we made significant progress towards fully integrating Jennie-O Turkey store into the company's One Supply chain and new operating segments during the first quarter.

考慮到這些因素，我們預計下半年將提高肉類供應量，以推動我們火雞業務的銷量增加，從而抵消市場下滑和飼料成本上漲的影響。此外，我們在第一季度將 Jennie-O 土耳其商店完全整合到公司的 One Supply 鍊和新的運營部門方面取得了重大進展。

We remain on track to achieve $20 million to $30 million of savings on a run rate basis by the end of the fiscal 2023. As noted, last quarter, there were incremental investments planned against one supply chain and go forward. Our new business model demands this, and our strong financial position allows us to continue investing for the long term.

我們仍然有望在 2023 財年末按運行率實現 2000 萬至 3000 萬美元的節省。如前所述，上個季度，計劃對一個供應鏈進行增量投資並向前推進。我們的新商業模式需要這一點，而我們強大的財務狀況使我們能夠繼續長期投資。

In closing, I want to acknowledge the demand and work of all the teams across the organization to make the go-forward initiative possible. I remain confident that once fully implemented, our new strategic operating model will better align the businesses to the needs of our customers, consumers, operators and shareholders to deliver sustainable long-term growth.

最後，我想感謝整個組織所有團隊的需求和工作，以使向前推進的計劃成為可能。我仍然相信，一旦全面實施，我們新的戰略運營模式將更好地使業務與我們的客戶、消費者、運營商和股東的需求保持一致，以實現可持續的長期增長。

At this time, I'll turn the call over to the operator for the question-and-answer portion of the call.

此時，我會將電話轉給接線員進行電話的問答部分。

(Operator Instructions) The first question comes from Rupesh Parikh of Oppenheimer.

（操作員說明）第一個問題來自 Oppenheimer 的 Rupesh Parikh。

So to start out for us, the report today is not really consistent with what we typically see for Hormel. So what happened? And what are the key efforts from here to improve performance?

因此，首先對我們來說，今天的報告與我們通常看到的荷美爾報告並不完全一致。所以發生了什麼事？從這裡開始提高性能的關鍵努力是什麼？

Rupesh, we agree with you. The word that we used is we're disappointed, and these are not results that we expected. But I do think it's important that even with that disappointment, to remember just how far we've come with our supply chain and everything we've been through over the last 3 years. We go back to, obviously, the COVID impact when plants were shut down, and we didn't have labor. And then when we did have labor, it was turning over. And so we are in a more stable operating environment for sure. And so fill rates continue to improve, labor is better and production capacity across key categories for us is good.

Rupesh，我們同意你的看法。我們用的詞是我們很失望，這些不是我們預期的結果。但我確實認為重要的是，即使有這種失望，也要記住我們的供應鏈走了多遠，以及我們在過去 3 年中經歷的一切。很明顯，當工廠關閉時，我們回到了 COVID 的影響，我們沒有勞動力。然後當我們確實有勞動時，它正在翻身。因此，我們肯定處於更穩定的操作環境中。因此，填充率繼續提高，勞動力更好，關鍵類別的生產能力對我們來說很好。

But as we think about Quarter 1 that -- in the context of our -- this dynamic and volatile environment is a bit more explainable. We talked about China. That's easy to understand. Foodservice had a period of softness, but their business continues to be strong and will stay strong for the balance of the year. We mentioned Planters, which we met our expectations last year, but are seeing a slower start this year, and we know what we need to get done there. And then avian influenza, still battling that.

但是，當我們考慮第一季度時，在我們的背景下，這種充滿活力和動蕩的環境更容易解釋。我們談到了中國。這很容易理解。餐飲服務有一段時間疲軟，但他們的業務繼續保持強勁勢頭，並將在今年餘下時間保持強勁勢頭。我們提到了 Planters，去年我們達到了預期，但今年開局較慢，我們知道我們需要在那裡完成什麼。然後是禽流感，仍在與之抗爭。

So we've said since the fall, we've been operating with elevated inventories. We wanted to get fill rates up. We needed more inventory to support our expanded network. The big thing here is probably a misalignment of our inventory and our demand because we expected the inventory to clear, it didn't and it hasn't. And it's resulted in inefficiencies across the supply chain and higher operating costs when we think about product and warehouses and probably moving it more than we had expected. And so those are real dollars that impacted us in the quarter.

所以我們說自秋天以來，我們一直在提高庫存。我們想提高填充率。我們需要更多庫存來支持我們擴展的網絡。這裡的大問題可能是我們的庫存和需求不一致，因為我們預計庫存會清空，但事實並非如此，也沒有。當我們考慮產品和倉庫時，它會導致整個供應鏈效率低下和運營成本增加，並且可能比我們預期的移動更多。因此，這些是本季度影響我們的真實美元。

And then the other thing is we want to be careful when we talk about inventory because as we progress throughout the year, it's not going to be as simple as just looking at a dollar amount to gauge how we're doing. Mix is huge in our portfolio. When we think about pounds versus dollars impacts of markets, a potential rebound in Turkey, times when we may be building inventory to support customer promotional activity. All those things are part of our inventory mix. And really, for us, we'll be talking to all of you, just like we're doing today in a very transparent manner to say is our demand or is our inventory aligned with our demand. And that's really going to be the key indicator going forward.

然後另一件事是我們在談論庫存時要小心，因為隨著我們全年的進步，它不會像僅僅看一美元的金額來衡量我們的表現那麼簡單。在我們的投資組合中，混合是巨大的。當我們考慮英鎊對美元的市場影響時，土耳其的潛在反彈，我們可能會建立庫存以支持客戶促銷活動。所有這些都是我們庫存組合的一部分。實際上，對於我們來說，我們將與你們所有人交談，就像我們今天以非常透明的方式所做的那樣，說出我們的需求或我們的庫存是否與我們的需求保持一致。這真的將成為未來的關鍵指標。

So we're disappointed where we are, but we know what we need to do and probably said [to say this in] the most simple way possible is that after almost 3 years of chasing this unprecedented demand, supply caught demand and we needed to react sooner and we didn't.

所以我們對現在的處境感到失望，但我們知道我們需要做什麼，並且可能用最簡單的方式說，在追逐這種前所未有的需求近 3 年後，供應抓住了需求，我們需要反應更快，我們沒有。

Yes. And another important point to just mention here, Rupesh, is that as we have this elevated inventory, what it does is also just delay us from recognizing and benefiting from some of the costs coming down. When we think about freight rates, markets coming down, we haven't really been able to realize those, and that's been delayed. We talked about it in the fourth quarter that we should see that relief here and those benefits showing up in our margins this quarter, and that's been delayed as well and affecting where we're sitting right now from a guidance perspective.

是的。 Rupesh 在這裡要提到的另一個重要點是，由於我們的庫存增加了，它所做的也只是延遲了我們認識到某些成本下降並從中受益的時間。當我們考慮運費、市場下跌時，我們還沒有真正意識到這些，而且已經被推遲了。我們在第四季度談到了這一點，我們應該看到這裡的緩解以及本季度我們的利潤率中出現的這些好處，這也被推遲了，並從指導的角度影響了我們現在的位置。

Great. I'm going to slip in another question. So I think in your prepared comments, you mentioned something about learning about people -- I think you said technology and processes. What are the key learnings there? And then how quickly can they be implemented?

偉大的。我要提出另一個問題。所以我認為在你準備好的評論中，你提到了一些關於了解人的事情——我想你說的是技術和流程。那裡的主要學習是什麼？然後它們能以多快的速度實施？

Yes. I'll go ahead and start on that, Rupesh. I mean I think there's a couple of things there that we need to talk about just to level set those comments. I mean the first thing is we're a much larger company today than we were 2 years ago. And it's not just the Planters acquisition. That's part of it. But we've seen significant growth in our business. We haven't stopped acting on our strategic priorities. Everything that we've talked about in terms of becoming more balanced, transforming our company. We've continued to move that forward, all while navigating this crazy current environment and managing through avian influenza.

是的。 Rupesh，我會繼續並開始。我的意思是，我認為我們需要討論一些事情，只是為了讓這些意見保持一致。我的意思是，第一件事是我們今天是一家比兩年前大得多的公司。這不僅僅是 Planters 的收購。那是其中的一部分。但我們已經看到我們業務的顯著增長。我們沒有停止根據我們的戰略重點採取行動。我們談論的一切都是為了變得更加平衡，改變我們的公司。我們一直在繼續向前推進，同時應對當前這個瘋狂的環境並應對禽流感。

And so when we say that we've learned a lot about our people. We have the right people as we've gone through our go-forward initiative, we just need to make sure that we have them doing the right work and go forward, we'll help with that.

因此，當我們說我們對我們的員工了解了很多。我們有合適的人選，因為我們已經完成了我們的前進計劃，我們只需要確保我們讓他們做正確的工作並繼續前進，我們會為此提供幫助。

When we talk about processes, as we've integrated our businesses, there are processes that will need a refresh. When we think about inventory, pricing decisions, brand resourcing and go forward, we'll help with that as well. And then on the technology side, I'll maybe let Jacinth add some color there.

當我們談論流程時，因為我們已經整合了我們的業務，所以有些流程需要更新。當我們考慮庫存、定價決策、品牌資源並向前推進時，我們也會提供幫助。然後在技術方面，我可能會讓 Jacinth 在那裡添加一些顏色。

Yes. So from a short-term perspective, we are probably just a level set, I mean, this team knows how to manage inventory. And so what we're doing in the immediate term here is just returning to that pre-pandemic discipline when we think about S&OP and the process that is aligned with ensuring that we're listening to demand signal, connecting our commercial team with our supply chain team and getting all our supply planning aligned. And so that's what we're doing in the immediate term.

是的。所以從短期的角度來看，我們可能只是一個水平集，我的意思是，這個團隊知道如何管理庫存。因此，當我們考慮 S&OP 以及與確保我們正在傾聽需求信號、將我們的商業團隊與我們的供應聯繫起來的流程時，我們近期在這裡所做的只是回到大流行前的紀律鏈團隊並使我們所有的供應計劃保持一致。這就是我們近期正在做的事情。

And then from a long-term perspective, we have made significant investment from a systems and technology standpoint with Project Orion. And we pause that intentionally as we work integrating Planters, integrating JOTS and that was purposeful to get those done correctly. And now we're now continuing that work to enhance our S&OP and our end-to-end planning and be able to leverage our technology and our people to get us to the next level.

然後從長遠的角度來看，我們從系統和技術的角度對 Project Orion 進行了大量投資。我們在整合 Planters、整合 JOTS 時有意暫停，這是為了正確完成這些工作。現在我們正在繼續這項工作，以加強我們的 S&OP 和我們的端到端規劃，並能夠利用我們的技術和我們的人員讓我們更上一層樓。

The next question comes from Robert Moskow of Credit Suisse.

下一個問題來自瑞士信貸的羅伯特莫斯科。

I guess I'm a little confused as to where the inventory is building up in terms of your portfolio. And what categories did you underestimate the volume weakness. Is it bellies? Is it protein? Is it in the freezers? Because you mentioned in your prepared remarks, a lot of products that did really, really well and you talked about strong demand. So what kind of demand were you expecting? And where did it fall short?

我想我對您的投資組合中庫存在哪裡增加感到有點困惑。您低估了哪些類別的成交量弱點。是肚皮嗎？是蛋白質嗎？它在冰箱裡嗎？因為你在準備好的評論中提到，很多產品確實非常好，而且你談到了強勁的需求。那麼你期待什麼樣的需求？它的不足之處在哪裡？

Yes, we did also say that we had across all segments, some volume softness. So we certainly had a lot of brands and categories that did really well. We talked about Planters being off to a slower start. So that's a part of it. And we did also talk about that period of time with our foodservice business where we had softness. And so that, too, is part of it.

是的，我們確實也說過我們在所有細分市場都有一定的成交量疲軟。所以我們當然有很多做得很好的品牌和品類。我們談到 Planters 的起步較慢。這就是其中的一部分。我們也確實談到了我們的餐飲服務業務軟化的那段時間。因此，這也是其中的一部分。

The foodservice piece will experience growth for the balance of the year, less concerned about that. But it's really -- I mean it's a little bit across the board, the sales and volume side. But then the other part to consider is what we're talking about with our supply chain is there's a level of overproduction as well. And so as we've gotten better in our supply chain and wanted to run it more productively, more efficiently, they've been running hard, and we've built that inventory. In some cases, that inventory is not aligned with the demand.

餐飲服務將在今年餘下時間經歷增長，對此不太關心。但它真的 - 我的意思是它有點全面，銷售和數量方面。但是，要考慮的另一部分是我們與我們的供應鏈談論的是也存在一定程度的生產過剩。因此，當我們在供應鏈中變得更好並希望更高效地運行它時，他們一直在努力運行，我們已經建立了庫存。在某些情況下，庫存與需求不一致。

And so that's really our issue is it's a little bit across the board on the product side or I'll say, the sales side. And then across on the supply chain side, this overproduction, which built the inventory.

所以這真的是我們的問題，它在產品方面有點全面，或者我會說，在銷售方面。然後在供應鏈方面，這種生產過剩導致庫存增加。

Okay. Because if I can dig in a little, Jim, like I think 6 to 9 months ago, the issue was labor shortages, turnover couldn't run the plants effectively enough to meet demand. And now they're overproducing?

好的。因為如果我能深入挖掘一下，吉姆，就像我在 6 到 9 個月前想的那樣，問題是勞動力短缺，營業額無法有效地運行工廠以滿足需求。現在他們生產過剩了？

Exactly. Yes, Rob, I mean that's exactly -- and I said that a little while ago, if we go back over the last 3 years, everything that we've been through and that -- those different scenarios of, you're right, not having people. And then when we were getting people, they were turning over. And now that we're getting people, we're keeping people. The plants are running more productively and more efficiently. And our goal is to make sure that we're getting up to fill rates, and that we do have some production capacity. So our plants have gotten better. And like I said, in some cases, they've outproduced demand, and that is definitely part of the problem.

確切地。是的，Rob，我的意思是——我剛才說過，如果我們回顧過去 3 年，我們所經歷的一切——那些不同的場景，你是對的，沒有人。然後當我們招人的時候，他們就翻身了。現在我們在招人，我們也在留人。這些工廠的生產效率更高。我們的目標是確保我們達到填充率，並且我們確實有一些生產能力。所以我們的植物變得更好了。就像我說的，在某些情況下，他們的產量超過了需求，這絕對是問題的一部分。

Okay. Last question on Planters. When I look at the Nielsen tracking data, the unit sales are certainly down. The volumes are down over the last 12 weeks, like 6% or 7%, but that's been consistent for the past 52 weeks. Unit sales have been down by that amount. Were you expecting a big pickup in unit sales and total sales in the quarter on stronger marketing and Super Bowl marketing and it just didn't play out?

好的。關於 Planters 的最後一個問題。當我查看尼爾森跟踪數據時，單位銷售額肯定下降了。過去 12 週的交易量下降了 6% 或 7%，但這在過去 52 週內一直保持不變。單位銷售額下降了這個數量。您是否預計本季度的單位銷售額和總銷售額會因更強勁的營銷和超級碗營銷而大幅回升，但結果卻沒有實現？

Yes, I think a couple of things there, Rob, and I'll turn it over to Deanna. As we think about Planters in the short term, it is about execution, driving demand and also the mix. We've said this multiple times, and it just bears restating is that we did deliver on our Year 1 commitments. We've maintained some stable distribution. And we've seen some channel shifting with the businesses as well. But the demand is certainly lower versus our expectations in Q1. And so as we're thinking about this business now, it's really what are we going to do in the short term from an execution perspective. And Deanna, I'll let you add some color there.

是的，我有一些想法，Rob，我會把它交給 Deanna。當我們在短期內考慮 Planters 時，它關乎執行、推動需求以及組合。我們已經多次說過這一點，值得重申的是我們確實兌現了第一年的承諾。我們保持了一些穩定的分佈。我們也看到一些渠道隨著企業而轉移。但需求肯定低於我們對第一季度的預期。因此，當我們現在考慮這項業務時，從執行的角度來看，這確實是我們在短期內要做的事情。迪安娜，我會讓你在那裡添加一些顏色。

Yes, sure. Thanks, Rob. Just as we think about it, we knew this business was where it was when we acquired it. And again, we were interested in this business from the snacking perspective and really is a long-term ambition for us. So when we think about plant-based protein, entertaining, snacking and our ambitions for C store, those still remain front and center.

是的，當然。謝謝，羅布。就在我們考慮的時候，我們知道這家公司在我們收購它時就在原地。再一次，從零食的角度來看，我們對這項業務很感興趣，這確實是我們的長期目標。因此，當我們考慮植物性蛋白質、娛樂性、零食以及我們對 C 店的雄心時，這些仍然是首要和中心。

In the short term, we do have execution challenges, in particular, our base business, which is a top priority for the team. When I also look to Q1, that was when we cut over the inventory from the prior owner. So there is some noise there and some things that happened in the quarter as well as we inherited some distribution losses right out of the gate that the team has been working against. And as we head into Q2, we'll recover some of those important distribution points that will really help stabilize the base business.

在短期內，我們確實面臨執行挑戰，特別是我們的基礎業務，這是團隊的重中之重。當我也看第一季度時，那是我們從前任所有者那裡削減庫存的時候。所以那裡有一些噪音和本季度發生的一些事情，以及我們繼承了團隊一直在努力應對的一些分銷損失。當我們進入第二季度時，我們會恢復一些真正有助於穩定基礎業務的重要分銷點。

We're really energized by the innovation. I was with our Planters R&D and marketing team earlier this week, and the pipeline of innovation that this team has in front of us for both the rest of '23, '24 and beyond is exceptional and really energizing in regards to where they see this business going.

我們真的對創新充滿活力。本週早些時候我和我們的 Planters 研發和營銷團隊在一起，這個團隊在 23 年、24 年及以後的剩餘時間裡擺在我們面前的創新渠道非常出色，就他們所看到的而言確實充滿活力業務進行中。

When we talk about innovation, you'll also see innovation launch in this quarter, both in the core business as well as in our C-store business. You mentioned Super Bowl. We did have a really fun Super Bowl ad that was really centered on peanuts because we do know that the consumers are thinking about the mix of nuts and snacking right now, and peanuts are really valuable item for them. So reminding them of how much fun Planters peanuts can be as well as the protein they deliver and a great snacking option.

當我們談論創新時，您還會看到本季度在核心業務和我們的 C 店業務中推出創新。你提到了超級碗。我們確實有一個非常有趣的超級碗廣告，它真正以花生為中心，因為我們知道消費者現在正在考慮堅果和零食的搭配，而花生對他們來說真的很有價值。因此，提醒他們 Planters 花生有多麼有趣，以及它們提供的蛋白質和一個很好的零食選擇。

We'll see that. It wasn't just a 30-second commercial. You'll see activation both before the event, after the event and really leads us into the quarter as we activate some of the other seasonal launches later in the year.

我們會看到的。這不僅僅是一個 30 秒的廣告。您會在活動開始前和活動結束後看到激活，並真正帶領我們進入本季度，因為我們會在今年晚些時候激活其他一些季節性發布。

The other thing to think about is not only that this business was starved and we've been investing both from an advertising perspective, from an innovation standpoint, as I mentioned, and then also from a capacity standpoint. So for us to grow this business, we need to add capacity, which we've invested in, in regards to 2 nuts for the c-store channel as well as the club channel, and we'll see that come online here later this year and into next.

另一件要考慮的事情不僅是這項業務處於飢餓狀態，而且我們一直在從廣告的角度、創新的角度（正如我提到的）以及產能的角度進行投資。因此，為了發展這項業務，我們需要增加我們投資的容量，關於 c-store 渠道和俱樂部渠道的 2 個堅果，我們會看到它稍後在這裡上線年和明年。

We also have work to do with the portfolio. Frankly, the assortment and price pack architecture. It's a big portfolio, and we know there's optimization that will allow us to unlock growth in really, again, just thinking about where we're at with this business. We acquired the business. Last year, we integrated the business. And right now, we're executing the business, and we know we've got work to do, but really confident in what I saw this week with the teams and where we're headed into Q2 and the rest of the year.

我們也有與投資組合有關的工作。坦率地說，品種和價格包架構。這是一個很大的投資組合，我們知道有優化可以讓我們再次真正釋放增長，只是想一想我們在這項業務中所處的位置。我們收購了這家公司。去年，我們整合了業務。現在，我們正在執行業務，我們知道我們有工作要做，但我對本週與團隊以及我們進入第二季度和今年餘下時間的情況充滿信心。

The next question comes from Eric Larson, Seaport Research Partners.

下一個問題來自 Seaport Research Partners 的 Eric Larson。

So just a couple of questions. Can you provide a little bit more detail again or just remind us kind of the cadence of turkey volumes? I think turkey volumes on a year-over-year basis still have a difficult comp in Q2. And then I believe you were expecting those to start rebounding in the second half. And then also do the same thing for us with your commodity pork volumes. You should be starting to anniversary, I think when you offloaded with the new contracts, some of that commodity volume. When do we sort of anniversary sort of the adverse comp that you would have on your commodity pork?

所以只有幾個問題。您能否再次提供更多細節，或者只是提醒我們火雞捲的節奏？我認為第二季度的火雞銷量與去年同期相比仍然很困難。然後我相信你期待那些在下半場開始反彈。然後對您的商品豬肉量也為我們做同樣的事情。你應該開始週年紀念，我想當你卸載新合同時，一些商品量。我們什麼時候對您的商品豬肉進行週年紀念？

Yes. So on the Turkey side, the numbers that we've been talking about have come through that Turkey has been down high 20s, 30% in terms of volume, and we expect that through the first half or now the second quarter of this year and expect volumes to rebound in the back half of the year. And that's all with the assumption that we don't have another significant AI outbreak like we did last year and then, of course, some events into the winter months.

是的。因此，在土耳其方面，我們一直在談論的數字已經過去了，土耳其的銷量下降了 20 %，下降了 30%，我們預計今年上半年或現在第二季度，預計下半年銷量將反彈。這一切都假設我們沒有像去年那樣發生另一次重大的人工智能爆發，當然，還有一些事件進入冬季。

On the pork side, we are now just lapping that supply agreement. And so as we go throughout the balance of the year, the comps will be more normalized.

在豬肉方面，我們現在剛剛簽署供應協議。因此，隨著我們在今年餘下時間的推移，補償將更加規範化。

Okay. And then just a quick follow-up, and this is maybe for Deanna. Can you give us a little -- you mentioned elasticities and where you were seeing some of the maybe more elasticity in some of your retail products. Can you give us a little bit more color on where those are and whether you may have to have some promotional adjustments on that, that was mentioned, I believe, in some of the prepared comments.

好的。然後只是快速跟進，這可能是給迪安娜的。你能給我們一點嗎 - 你提到了彈性以及你在某些零售產品中看到的一些可能更具彈性的地方。你能不能給我們更多關於這些在哪裡的顏色，以及你是否需要對此進行一些促銷調整，我相信，在一些準備好的評論中提到了這一點。

Yes. So it's very interesting because it's a bit bipolar in that you've got some categories where the elasticities are playing out exactly as expected. We've got other categories where the consumer has acknowledge the change in price on shelf and continues to purchase in their regular cycles. I would say where we're seeing more elasticity would be in areas that could be higher rings. So thinking of like a fully cooked rack of ribs, we've seen some demand declines there. Obviously, having other areas for the consumer to shift to, so take a tub of barbecue or a dinner entree that has a lower price ring, but still allows or meets the same consumer need of putting dinner on the table.

是的。所以這很有趣，因為它有點兩極，因為你有一些類別的彈性完全按照預期發揮作用。我們還有其他類別的產品，消費者已經意識到貨架上的價格變化並繼續按照他們的常規週期購買。我會說我們看到更多彈性的地方可能是更高的環。所以想想完全煮熟的排骨，我們已經看到那裡的需求有所下降。很明顯，有其他區域供消費者轉移，所以拿一盆燒烤或價格較低的主菜，但仍然允許或滿足將晚餐放在餐桌上的相同消費者需求。

So making sure that, as you mentioned, that we're promoting our products and pulsing in some of those areas and that we're advertising and making sure our consumers understand the value of our products and how they can utilize them speaks to the breadth of our portfolio. We've always talked about why it's valuable to have products at different price points and that meet different consumer need states, and it's exceedingly important right now.

因此，正如您提到的那樣，確保我們正在推廣我們的產品並在其中一些領域發揮作用，我們正在做廣告並確保我們的消費者了解我們產品的價值以及他們如何利用它們，這說明了廣度我們的投資組合。我們一直在談論為什麼擁有不同價位的產品並滿足不同的消費者需求狀態是有價值的，現在它非常重要。

The next question comes from Ben Theurer of Barclays.

下一個問題來自巴克萊銀行的 Ben Theurer。

Just one I had on the different demand drivers, retail versus food service, in particular, because if we look into it, they're both somewhat equally down in sales, but then at the same time, in food service, you were actually able to expand margins on retail, we saw the margin contraction. So if we come back to the whole inventory and the misalignment and demand kind of exceeding -- well supply kind of exceeding demand. Is that particularly in retail where you got these issues and this misalignment, which caused the margins to be under pressure? Or is that also something you saw in food service just not at the same magnitude, maybe because of mix footfalls into foodservice?

我有一個關於不同需求驅動因素的問題，特別是零售與食品服務，因為如果我們調查一下，它們的銷售額在某種程度上同樣下降，但與此同時，在食品服務中，你實際上能夠為了擴大零售利潤率，我們看到了利潤率收縮。因此，如果我們回到整個庫存以及錯位和需求超出的情況 - 以及供應超出需求的情況。是不是特別是在零售業，你遇到了這些問題和這種錯位，導致利潤率受到壓力？或者這是否也是您在餐飲服務中看到的不同程度的東西，也許是因為餐飲服務的人潮混合？

Yes, Ben, I think the way you described it there at the end of your question is correct. I mean there are inventory issues in both, but retail is currently more. As you talked about the food service pricing and sales, the element of that is, and we've talked about this frequently is we have seen some commodity relief and on the foodservice side of the business, they're able to price closer to the market. The pricing is a lot more fluid.

是的，本，我認為你在問題末尾的描述方式是正確的。我的意思是兩者都存在庫存問題，但零售目前更多。正如你談到食品服務定價和銷售，其中的要素是，我們經常談論這個是我們已經看到一些商品救濟，並且在業務的食品服務方面，他們能夠定價更接近市場。定價更加流暢。

Okay. And then my follow-up, just quickly on China. I mean we all know fourth quarter, particularly December, was a very tough one with the whole reopening and cases, et cetera. But as of today, early March, have you seen like particularly in February and like signs of consumers being in a more normal environment of consumption? Is it fair to assume that, that could be an easier fix go forward than maybe some of the issues you have on the inventory side over in North America?

好的。然後是我的後續行動，很快就談到了中國。我的意思是我們都知道第四季度，尤其是 12 月，是一個非常艱難的季度，整個重新開放和案件等等。但截至今天，即三月初，您是否看到特別是二月份和類似的跡象表明消費者處於更正常的消費環境中？可以公平地假設，這可能比北美庫存方面的一些問題更容易解決嗎？

Yes. Again, Ben, that's a very fair assessment. And we said that, that we have seen early in the second quarter. The China foodservice business has seen a nice uptick or a nice rebound as consumer or Chinese population seems to be making their way through COVID and are now heading back out. So we've seen food service up on the retail side of the business. We're really excited about the continued innovation that we've been able to deliver.

是的。再一次，本，這是一個非常公平的評估。我們說過，我們在第二季度初就看到了。隨著消費者或中國人口似乎正在通過 COVID 走出困境，現在正在退出，中國的餐飲服務業務出現了良好的增長或反彈。因此，我們已經看到食品服務在業務的零售方面有所提升。我們對能夠提供的持續創新感到非常興奮。

The other thing when we built that plant several years ago, we put in a SPAM line and our SPAM business has done really well, especially our SPAM singles business. And so we've seen that continue to grow on the retail side to the point where we'll be making some additional investments to support that growth. But your take on China is exactly what we're seeing and how we're thinking about it.

另一件事是幾年前我們建造那家工廠時，我們安裝了一條垃圾郵件生產線，我們的垃圾郵件業務做得非常好，尤其是我們的垃圾郵件單業務。因此，我們已經看到零售方面繼續增長，以至於我們將進行一些額外投資以支持這種增長。但你對中國的看法正是我們所看到的以及我們正在思考的。

The next question comes from Tom Palmer of JPMorgan.

下一個問題來自摩根大通的湯姆帕爾默。

I'm sorry to belabor the inventory discussion. I just want to clarify something a bit. So it sounded like in the prepared remarks, there were some constraints in terms of sourcing pork and turkey right now, and that you're unable to produce enough peanut butter. So maybe I heard this wrong, but I don't think Planters can account for a lot of the inventory issue. So I just hope to better understand what types of products you've built up too much inventory of? And is it certain pork products that fall into that equation?

很抱歉打擾庫存討論。我只是想澄清一點。所以在準備好的發言中聽起來，現在在採購豬肉和火雞方面存在一些限制，而且你無法生產足夠的花生醬。所以也許我聽錯了，但我認為 Planters 不能解釋很多庫存問題。所以我只是希望更好地了解您建立了過多庫存的哪些類型的產品？是不是某些豬肉產品屬於這個等式？

Yes. So Tom, I'll start with that first question. So we didn't have any difficulty sourcing pork products for production. What we've said is it's just the decline is what we would have normally had coming at us that we don't today. So we used to have to sell it. Today, we don't. That's what we're talking about for the pork decline.

是的。湯姆，我將從第一個問題開始。因此，我們在採購豬肉產品方面沒有任何困難。我們所說的只是下降，這是我們通常會遇到的情況，而今天卻沒有。所以我們過去不得不賣掉它。今天，我們沒有。這就是我們所說的豬肉下降的原因。

The turkey is absolutely not enough turkey coming through to support the business. But as we think about the inventory across the entire portfolio, you're right, I mean it's not all Planters. I mean that's part of it. When we think about -- as I described earlier, some of it is inventory that has been built for promotion. So think SPAM as we get into bigger promotions throughout the year. We do have elevated inventories of ribs. We have some elevated inventories of complete bacon bits. So it is a mixed bag, other perishable refrigerated items. So it's a mixed bag across the inventory that we have and the portfolio. And so yes, we're not trying to pin this on any one item or one category. I mean, it is broad-based.

火雞絕對不夠火雞來支持業務。但當我們考慮整個投資組合的庫存時，你是對的，我的意思是它不全是 Planters。我的意思是那是其中的一部分。當我們考慮時——正如我之前所描述的，其中一些是為促銷而建立的庫存。因此，隨著我們全年開展更大的促銷活動，想想 SPAM。我們確實增加了排骨庫存。我們有一些完整的培根塊庫存增加。所以它是一個混合袋，其他易腐爛的冷藏物品。因此，我們擁有的庫存和產品組合是一個混合包。所以是的，我們並沒有試圖將其固定在任何一個項目或一個類別上。我的意思是，它具有廣泛的基礎。

Okay. And maybe just followup on the price increases you mentioned retail. Just any detail on how much of the portfolio is being addressed with pricing? Any help on the magnitude, the timing, and then just -- are there certain commodity types that need to be addressed in particular?

好的。也許只是跟進你提到的零售價格上漲。關於定價解決了多少投資組合的任何細節？是否有任何關於規模、時間的幫助，然後是——是否有某些商品類型需要特別解決？

Yes, Tom, thanks. This is Deanna. I'll jump in there. So we still have wraparound pricing that's flowing through. We took several price increases last year, and some of those are still flowing through. We have a chunk of the portfolio that is currently in price increases, roughly about 5%. We've taken a very mindful approach to our pricing and thinking about elasticities, volumes, where we've added capacity. Obviously, we want to make sure that we're able to leverage that capacity. And so we've tried to be very mindful. So we've taken multiple price increases probably in smaller increments than some of our competitors have announced. And really, the increases we're taking are justified for inflation. And so -- and we'll continue to monitor that. We've got the ones, as I mentioned, that are already in the quarter happening, and we've got a few other categories that we're evaluating as we sit today.

是的，湯姆，謝謝。這是迪安娜。我會跳進去。所以我們仍然有正在流通的環繞定價。去年我們進行了幾次提價，其中一些仍在進行中。我們有很大一部分投資組合目前價格上漲，大約上漲 5%。我們對我們的定價和考慮彈性、數量以及我們增加容量的地方採取了非常謹慎的方法。顯然，我們希望確保我們能夠利用這種能力。因此，我們試圖非常注意。因此，我們多次提價，漲幅可能比我們的一些競爭對手宣布的要小。實際上，我們採取的增加措施對於通貨膨脹是合理的。所以 - 我們將繼續對此進行監控。正如我所提到的，我們已經在本季度發生了一些事情，而且我們還有其他一些我們正在評估的類別。

The next question comes from Peter Galbo of Bank of America.

下一個問題來自美國銀行的 Peter Galbo。

Maybe just a first question, more of a technical question around the resegmentation. And just to level set everybody on the call, have you disclosed at all, just what percentage of the new retail business will be captured in Scanner data so in Nielsen and IRI. And I think you had a helpful breakout for retail, particularly just on the different verticals. Is there anything you can do to help us on the foodservice side? I don't think there was anything in the slide deck from Tuesday.

也許只是第一個問題，更多的是關於重新細分的技術問題。為了讓每個人都參與進來，你有沒有透露過，新零售業務的百分比將在 Scanner 數據中捕獲，在 Nielsen 和 IRI 中也是如此。我認為你對零售業的突破很有幫助，尤其是在不同的垂直領域。在餐飲服務方面，您能做些什麼來幫助我們？我認為周二的幻燈片中沒有任何內容。

So in terms of the retail component, it will be somewhere around 80%. And then on the foodservice side, I mean, there wouldn't be anything that you would actually see.

因此，就零售部分而言，它將在 80% 左右。然後在餐飲服務方面，我的意思是，你實際上不會看到任何東西。

Sorry, go ahead.

對不起，繼續。

No, that's okay. Peter, we're not going to have the same kind of vertical structure within food service just because it doesn't -- I mean the industry doesn't even really think about it that way. What we will try to do over time is provide you more color. So for example, in this quarter as we integrated the JOTS business, and we've talked about how that is going to be a benefit to both the JOTS business and the Hormel business, a channel like K-12, our school business, had a really good quarter. So we'll continue to try to provide that type of color but from a, I'll say, a typical reporting, it will all roll up just into foodservice.

不，沒關係。彼得，我們不會在食品服務中採用同樣的垂直結構，因為它沒有——我的意思是這個行業甚至沒有真正考慮過它。隨著時間的推移，我們將嘗試做的是為您提供更多顏色。因此，例如，在本季度，我們整合了 JOTS 業務，我們討論了這將如何對 JOTS 業務和 Hormel 業務都有好處，像我們的學校業務 K-12 這樣的渠道，有一個非常好的季度。所以我們將繼續嘗試提供這種顏色，但我會說，從一個典型的報告來看，它會全部捲入餐飲服務。

Okay. And then again, just to go back to the inventory side and maybe just to think about it in a little bit of a different manner. If you are going to be selling through more of your inventory or trying to get it more rightsized. I guess why wasn't there an adjustment to the sales line as well? Just thinking about if you're going to sell into more discount channels or whatever you're going to have to do?

好的。再一次，只是回到庫存方面，也許只是以一種不同的方式來考慮它。如果您打算出售更多庫存或試圖使其更合理化。我想為什麼不對銷售線也進行調整？只是想一想您是否要向更多折扣渠道銷售或您將不得不做什麼？

And then the second part of that question is just in your conversations with retailers, how should we think about what they're asking you to do? Is it to carry more of the burden of working capital, carry more inventory for them because they want to have less in terms of their working capital needs and just the implications as how you're thinking about it on cash flow? So I know that's a lot, kind of as a 2-part question, but I appreciate the thoughts.

然後這個問題的第二部分就是在你與零售商的對話中，我們應該如何考慮他們要求你做的事情？是否要承擔更多的營運資金負擔，為他們增加庫存，因為他們希望減少營運資金需求，以及您如何考慮現金流量的影響？所以我知道這很多，有點像一個由兩部分組成的問題，但我很欣賞這些想法。

Yes. No, it's a really good question. And so no, we have not moved off of our top line guidance. We know that there's a turkey uncertainty and expect that to come back in the back half of the year. The other part of this is our foodservice business. And so even though we had some softness for a period of time in the first quarter, we expect growth for the balance of the year. So those really are 2 drivers.

是的。不，這是一個非常好的問題。所以不，我們沒有離開我們的頂線指導。我們知道存在火雞不確定性，並預計它會在今年下半年回歸。另一部分是我們的餐飲業務。因此，儘管我們在第一季度的一段時間內表現疲軟，但我們預計今年餘下時間會增長。所以那些真的是 2 個驅動程序。

And then as we expect our international business to come back with some of those challenges abating, we do believe that we'll be able to deliver that top line.

然後，當我們預計我們的國際業務會隨著其中一些挑戰的減輕而回歸時，我們確實相信我們將能夠實現這一目標。

And then the second part of that question, we're not getting that pressure from retailers in terms of keep more inventory. As Jacinth said earlier, we know how to run this business. And historically, we've had very, very strong fill rates. It's obviously some of the supply chain challenges that we've had over the last 2, 3 years that have prevented us from getting to those fill rates. But slowly but surely, we are getting those fill rates back to where they were. And so we were able to operate the way that we did pre-pandemic. That's really the expectation.

然後是這個問題的第二部分，我們沒有從零售商那裡獲得保持更多庫存的壓力。正如 Jacinth 之前所說，我們知道如何經營這項業務。從歷史上看，我們的填充率非常非常高。顯然，我們在過去 2、3 年中遇到的一些供應鏈挑戰使我們無法達到這些填充率。但緩慢但肯定的是，我們正在將這些填充率恢復到原來的水平。因此，我們能夠像大流行前那樣運作。這真是令人期待。

The next question comes from Michael Lavery of Piper Sandler.

下一個問題來自 Piper Sandler 的 Michael Lavery。

I just want to come back to Planters specifically, when you detail some of these challenges, it's one of the 3 things you call out as a focus area in terms of optimizing promotional support and everything else. But then you also called out the capacity expansion, even though those volumes have been down kind of mid or more single digits for some time. Can you just maybe elaborate on what pain point the capacity expansion solves given the current situation?

我只想具體回到 Planters，當你詳細說明其中一些挑戰時，這是你在優化促銷支持和其他一切方面作為重點領域提出的三件事之一。但隨後你也呼籲進行產能擴張，儘管這些數量在一段時間內已經下降了中位數或更多個位數。您能否詳細說明一下在當前情況下擴容解決了哪些痛點？

Sure. Thanks, Michael. The capacity expansion specifically addressed the continued evolution of snacking as well as c-store and club channel. So the capacity we're adding a specific packaging. That really is on trend with how consumers want to snack today. When you think about the tube nut in particular, both in a singular purchase as well as in a club variety. The additional capacity is really designed to help us continue to meet the demand, which is exceptional there.

當然。謝謝，邁克爾。產能擴張特別針對零食以及便利店和俱樂部渠道的持續發展。因此，我們正在添加特定包裝的容量。這確實是當今消費者想要吃零食的趨勢。當您特別考慮管螺母時，無論是單次購買還是球桿品種。額外的容量實際上是為了幫助我們繼續滿足需求，這在那裡是非常特殊的。

And then the other area of growth that we haven't talked about that is really a hidden gem in the portfolio is the core nut business, and some really great flavors that are coming to market. And as we think of the convenience store business, really the 100 days of summer is where that business really comes to life. So adding capacity both for c-store and club store is where we're leaning into right now.

然後我們還沒有談到的另一個增長領域是投資組合中真正隱藏的寶石是核心堅果業務，以及一些即將上市的非常棒的口味。當我們想到便利店業務時，夏季的 100 天才是該業務真正發揮作用的地方。因此，增加 c-store 和 club store 的容量是我們現在正在努力的方向。

And I think it's important to know, Michael, these are things that we knew when we bought the business. We knew that there was going to have to be some packaging innovation, which we did last year with the new bottle and then also some capacity investments. So it was existing packaging, but we saw that as an opportunity. It was just a matter of what the timing was that we were going to need it. And then as Deanna mentioned, we've seen really, really strong growth since Day 1 for the corn nuts business, and we don't expect that to slow down.

我認為重要的是要知道，邁克爾，這些是我們在收購公司時就知道的事情。我們知道必須進行一些包裝創新，我們去年對新瓶子進行了創新，然後還進行了一些產能投資。所以它是現有的包裝，但我們認為這是一個機會。這只是我們需要它的時間問題。然後正如 Deanna 提到的那樣，自第一天以來，我們已經看到玉米堅果業務實現了非常非常強勁的增長，我們預計這種增長不會放緩。

Okay. That's helpful. And just coming back to Garuda, did you have an option for a bigger stake there? Or could you at some point? How do we think about whether or not that ever becomes part of above the line in operations?

好的。這很有幫助。剛回到嘉魯達，你有沒有選擇在那裡獲得更大的股份？或者你可以在某個時候嗎？我們如何考慮這是否會成為運營線以上的一部分？

Yes. I think for now, it was -- we took out the previous private equity owner. That was the big stake that was for sale. So for us, it was the right size at the right time. And again, I mean, we've been a partner with them, but it's early days, and we still need to learn about the business, about the market. We know it supports our 2 strategic initiatives. First, adding scale and snacking, entertaining and developing that global presence. And so as we go along, we certainly think there will be opportunities for us to -- if the business delivers for us to take a bigger position.

是的。我想現在，它是——我們去掉了以前的私募股權所有者。那是待售的大筆股份。所以對我們來說，這是在合適的時間合適的尺寸。再一次，我的意思是，我們一直是他們的合作夥伴，但現在還為時尚早，我們仍然需要了解業務和市場。我們知道它支持我們的 2 項戰略舉措。首先，增加規模和零食，娛樂和發展全球影響力。因此，在我們前進的過程中，我們當然認為我們會有機會 - 如果業務能夠讓我們佔據更大的位置。

Our last question comes from Adam Samuelson of Goldman Sachs.

我們的最後一個問題來自高盛的亞當薩繆爾森。

So I guess first question just on Jennie-O, or turkey, I should say, you're talking about volumes improving and starting to normalize in the back half, assuming no further HPAI, but I think -- and you already started to see this commodity breast in pricing coming down and that would continue if there is no further supply disruptions in the turkey market. Commodity breast meat pricing was actually a big margin uplift to that business last year. I know it's now getting -- it's now split between retail and foodservice international, so it's not as visible. But did your full year outlook for your turkey business profitability actually come down with this update? I just it's not clear because it would seem like turkey breast meat pricing is a pretty big -- could be a pretty big headwind over the balance of the year?

所以我想第一個問題只是關於 Jennie-O 或火雞，我應該說，你正在談論體積的改善並在後半部分開始正常化，假設沒有進一步的 HPAI，但我認為 - 你已經開始看到如果土耳其市場沒有進一步的供應中斷，這種大宗商品價格下降的趨勢將繼續下去。商品胸肉定價實際上是去年該業務的大幅提升。我知道它現在越來越 - 它現在在國際零售和餐飲服務之間分裂，所以它不那麼明顯。但是，這次更新是否真的降低了您對火雞業務盈利能力的全年展望？我只是不清楚，因為火雞胸肉的定價似乎相當高——這可能是今年餘下時間的一個相當大的逆風？

Yes, Adam, we have not changed the outlook for the turkey business at all. You're right that we've seen lower breast meat markets. But the turkey business is still in a very favorable position. Turkey demand is strong. The value-added portion of the business continues to do well. And as we get more meat, we'll be able to fill more of that. We know that whole birds cleared really well this holiday season. And that bodes well as we head into the next holiday season. And then I do think for us, this is all about what happens with AI, and we'll know a lot more here in the next couple of months as to what, if any, impact it will have in the business. But yes, we've not changed our outlook and feel like there's still plenty of opportunities to drive a strong performance even as the breast meat market has gone lower.

是的，亞當，我們根本沒有改變火雞業務的前景。你是對的，我們看到了較低的胸肉市場。但火雞業務仍處於非常有利的地位。火雞需求旺盛。該業務的增值部分繼續表現良好。隨著我們獲得更多的肉，我們將能夠填滿更多的肉。我們知道在這個假日季節，整隻鳥的出欄率都非常高。這預示著我們將進入下一個假期。然後我確實為我們認為，這就是人工智能所發生的一切，在接下來的幾個月裡，我們將在這裡了解更多關於它會對業務產生什麼影響（如果有的話）的信息。但是，是的，我們並沒有改變我們的前景，並且認為即使胸肉市場走低，仍有很多機會推動強勁的表現。

Okay. And then if I could just ask one last follow-up, and this inventory question has come up in a lot of different ways. But I guess I'm struck with the new reporting structure and the new segment structure kind of there's a little bit less kind of connectivity between some of the plants and [at] the end sales channels than there might have been before. There's always some disparity, but you now have like bacon going through 2 different channels versus 1 previously or 2 reporting units? And how are you thinking about kind of the ownership on working capital and kind of tying performance of business leaders to not just segment profit or sales but also whether it's a cash flow return on net asset kind of metric that I don't think has been a big part of the incentive compensation structure previously.

好的。然後，如果我可以問最後一個跟進問題，這個庫存問題已經以很多不同的方式出現了。但我想我對新的報告結構和新的細分結構感到震驚，因為一些工廠和終端銷售渠道之間的聯繫比以前少了一點。總會有一些差異，但你現在有像培根一樣通過 2 個不同的渠道，而不是以前的 1 個或 2 個報告單位？您如何看待營運資本的所有權類型以及企業領導者的績效不僅與細分利潤或銷售額掛鉤，還與淨資產現金流量回報率掛鉤，我認為這不是一種指標以前激勵薪酬結構的很大一部分。

Yes. So Adam, I mean, the flow of the product through the sales side really hasn't changed. And we've had the bacon example you mentioned, we've had it going into retail, and we've had it going into food service the same way that we always have. If anything, this structure actually centralizes and creates less confusion in terms of who has responsibility with Deanna now overseeing retail. And it's really, really helpful.

是的。所以亞當，我的意思是，產品在銷售方面的流動確實沒有改變。我們有你提到的培根例子，我們已經將它進入零售業，我們已經以與以往相同的方式進入食品服務業。如果有的話，這種結構實際上是集中的，並且在誰負責監督零售方面由 Deanna 負責減少混亂。這真的非常有幫助。

We do have elements of our incentive that are -- that do take into account return on invested capital. We use that more as a modifier to make sure that the team continues to keep an eye on that because we know how important it is. But we're not -- we don't have any plans to change the rate of that as an element of compensation. We feel like we've got the proper oversight to drive improvement over time.

我們確實有一些激勵因素——確實考慮了投資資本回報率。我們更多地使用它作為修飾符，以確保團隊繼續關注它，因為我們知道它的重要性。但我們不是——我們沒有任何計劃將其作為補償的一部分來改變。我們覺得我們得到了適當的監督，可以隨著時間的推移推動改進。

Yes. And just for -- just to clarify or just to emphasize, the go-forward structure hasn't in any way mudded up the waters in terms of how we look at the business and how incentives are aligned to drive the results. It actually does a complete opposite. And now there is very clear delineation and transparency in terms of objectives in driving the results and the outcome for the business.

是的。只是為了 - 只是為了澄清或只是為了強調，就我們如何看待業務以及激勵措施如何調整以推動結果而言，前進的結構並沒有以任何方式混淆水域。它實際上完全相反。現在，在推動結果和業務成果的目標方面，有了非常明確的界定和透明度。

Ladies and gentlemen, this does conclude your conference call for today. We thank you for your participation and ask that you please disconnect your lines.

女士們，先生們，今天的電話會議到此結束。我們感謝您的參與，並請您斷開您的線路。