荷美爾 (HRL) 2023 Q2 法說會逐字稿

Good morning, and welcome to the Hormel Foods Second Quarter 2023 Earnings Conference Call.

早上好，歡迎來到 Hormel Foods 2023 年第二季度收益電話會議。

(Operator Instructions)

（操作員說明）

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 second quarter of fiscal 2023. We released our results this morning before the market opened, around 6:30 a.m. Eastern Time. If you did not receive a copy of the release, you can find it on our website at hormelfoods.com under the Investors section. 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.

早上好。歡迎來到 Hormel Foods 2023 財年第二季度電話會議。我們今天早上在東部時間早上 6:30 左右開市前發布了業績。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。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 will review the company's second quarter results and give a perspective on our outlook for the balance of fiscal 2023. Jacinth will provide detailed financial results and further commentary on our outlook and Deanna will join Jim and Jacinth for the Q&A portion of the call. The line will be open for questions following Jacinth's remarks. As a courtesy to other analysts, please limit yourself to one question with one follow-up. If you have additional questions, you are welcome to get back into the queue. At the conclusion of this morning's call, a webcast replay will be posted to our investor website and archived for 1 year.

Jim 將回顧公司第二季度的業績，並就我們對 2023 財年餘額的展望發表看法。Jacinth 將提供詳細的財務業績並對我們的前景進行進一步評論，Deanna 將與 Jim 和 Jacinth 一起參加電話會議的問答部分。在 Jacinth 發表講話後，該熱線將開放供提問。出於對其他分析師的禮貌，請將自己限制在一個問題和一個跟進中。如果您還有其他問題，歡迎您回到隊列中。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。

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. I will now turn the call over to Jim Snee.

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。我現在將把電話轉給 Jim Snee。

Thank you, David. Good morning, everyone. We had clear priorities heading into the second quarter, and our results demonstrate our team's ability to execute on those commitments, deliver results in line with our expectations for the quarter and most importantly, keep us on track to drive growth in the back half of the year. Before I dive deeper into our quarterly results and reaffirmed outlook for the year, I want to start this morning by providing an update on the progress we have made addressing inventory levels, improving our margin structure, stabilizing the Planters business and continuing the implementation of our Go Forward operating model.

謝謝你，大衛。大家，早安。進入第二季度，我們有明確的優先事項，我們的結果表明我們的團隊有能力履行這些承諾，交付符合我們對本季度預期的結果，最重要的是，讓我們保持在推動後半部分增長的軌道上年。在我深入探討我們的季度業績並重申今年的前景之前，我想從今天早上開始介紹我們在解決庫存水平、改善利潤率結構、穩定 Planters 業務以及繼續實施我們的計劃方面取得的進展的最新進展。 Go Forward 運營模式。

First, I'd like to discuss the progress we made rectifying the inefficiencies caused by elevated inventory levels. This was a top priority in the company during the second quarter, and we took immediate actions to sell excess nonproductive inventories to slow manufacturing in areas where supply was exceeding demand to bring back outside production into our facilities, allowing us to better utilize new and available internal capacity, and we implemented several changes to our demand and supply planning processes. As anticipated, these actions had a margin impact during the quarter, but were necessary to bring inventory levels into greater balance.

首先，我想討論一下我們在糾正庫存水平升高導致的低效率方面取得的進展。這是公司第二季度的首要任務，我們立即採取行動，出售過剩的非生產性庫存，以減緩供應超過需求地區的製造速度，從而將外部生產帶回我們的設施，使我們能夠更好地利用新的和可用的內部能力，我們對需求和供應計劃流程進行了多項更改。正如預期的那樣，這些行動對本季度的利潤產生了影響，但對於使庫存水平達到更大的平衡是必要的。

For the back half of the year, we have further plans in place to responsibly manage and lower inventory levels and all costs associated with these actions are accounted for in the outlook. As a result, we expect to begin fiscal 2024 with benefits from better process control, lower freight and warehousing expenses, lower distressed sales and higher investment income resulting from an improvement in our cash cycle.

對於今年下半年，我們制定了進一步的計劃來負責任地管理和降低庫存水平，並且與這些行動相關的所有成本都在展望中說明。因此，我們預計從 2024 財年開始，我們將受益於更好的流程控制、更低的運費和倉儲費用、更低的不良銷售以及現金周期改善帶來的更高投資收益。

Second, we continue to make progress improving our margin structure as evidenced by a sequential increase in operating margins during the quarter, even with our actions to reduce elevated inventory levels. In addition to managing costs and driving supply chain savings through continuous improvement programs, our inflation-justified pricing actions are leading to gradual margin improvement. We have announced targeted pricing actions effective at the end of the third quarter on additional retail items and are evaluating further pricing actions accordingly.

其次，我們繼續在改善我們的利潤結構方面取得進展，本季度營業利潤率的連續增長證明了這一點，即使我們採取了降低高庫存水平的行動。除了通過持續改進計劃管理成本和推動供應鏈節約外，我們的通貨膨脹合理定價行動正在逐步提高利潤率。我們已宣佈在第三季度末對其他零售商品採取有針對性的定價行動，並正在相應地評估進一步的定價行動。

Another way we are actively improving our margin structure is by optimizing promotional and advertising spend. We demonstrated that discipline this quarter by responsibly shifting some advertising spend to promotions, working with our retail partners to drive the best returns for our leading brands and growing the categories in which they compete. We are still expecting a year-over-year increase in advertising spend to support our leading brands. Specific to the second half of the year, our teams are focused on several projects aimed at reducing cost and complexity to further improve our margin structure, and we expect to see a return from some of these projects by the fourth quarter.

我們積極改善利潤結構的另一種方式是優化促銷和廣告支出。我們在本季度通過負責任地將一些廣告支出轉移到促銷活動、與我們的零售合作夥伴合作為我們的領先品牌帶來最佳回報並增加他們競爭的類別來證明這一紀律。我們仍然預計廣告支出將同比增長以支持我們的領先品牌。具體到今年下半年，我們的團隊專注於幾個旨在降低成本和復雜性以進一步改善我們的利潤結構的項目，我們預計到第四季度可以看到其中一些項目的回報。

Third, we took action to improve the Planters business. During the second quarter, we regained significant distribution and placements for the Planters brand, which started shipping at the end of the second quarter. We introduced much-needed innovation to the category with flavored cashews and new corn nuts varieties. And we shifted promotional resources to drive consumption for the Planters brand. The brand saw shipments increase 8% for the quarter, aided in part by the strong promotional execution. While early, data for the latest 13-week period on a volume basis indicates that the Planters brand is outpacing the packaged nuts and seeds category and is showing positive takeaway growth for peanuts and cashews.

第三，我們採取行動改善 Planters 業務。在第二季度，我們重新獲得了 Planters 品牌的大量分銷和展示位置，該品牌於第二季度末開始發貨。我們通過調味腰果和新的玉米堅果品種為該類別引入了急需的創新。我們還轉移了促銷資源來推動 Planters 品牌的消費。該品牌本季度的出貨量增長了 8%，這在一定程度上得益於強有力的促銷執行。雖然早期，但最近 13 週的銷量數據表明，Planters 品牌的增長速度超過了包裝堅果和種子類別，並顯示出花生和腰果的外賣增長。

This summer, we are also running a national campaign for our new flavored cashews to maintain momentum for this business. Our progress during the second quarter represents a positive proof point in the turnaround for Planters. Planters remains at the center of our snacking and entertaining strategy and we are fully committed to the Planters brand, Corn Nuts brand and the Snack Nuts category. We know what we need to do to change the trajectory of the business and our teams are focused on accelerating the pace of change.

今年夏天，我們還在全國范圍內宣傳我們的新口味腰果，以保持這項業務的發展勢頭。我們在第二季度取得的進展代表了 Planters 好轉的積極證據。 Planters 仍然是我們零食和娛樂戰略的核心，我們完全致力於 Planters 品牌、Corn Nuts 品牌和 Snack Nuts 類別。我們知道我們需要做什麼來改變業務的軌跡，我們的團隊專注於加快變革的步伐。

Finally, we made further progress implementing the Go Forward operating model and standing up our brand fuel center of excellence. With the structure now mostly in place, we can better resource other long-term projects including advancing the supply chain work stream of Project Orion. We temporarily scaled back some work streams as we prioritize the integration of the Planter Snack Nuts business, our transformational actions at Jennie-O Turkey Store and the implementation of Go Forward.

最後，我們在實施 Go Forward 運營模式和建立品牌燃料卓越中心方面取得了進一步進展。現在結構基本就緒，我們可以更好地為其他長期項目提供資源，包括推進 Project Orion 的供應鏈工作流。我們暫時縮減了一些工作流程，因為我們優先考慮 Planter Snack Nuts 業務的整合、我們在 Jennie-O Turkey Store 的轉型行動以及 Go Forward 的實施。

The supply chain work stream represents some of the most important and highest-return deliverables on the entire Project Orion roadmap. We have also kicked off a series of multiyear projects such as a modernization of our order-to-cash system, improvements to the end-to-end planning processes and a pilot project to implement new ways of working across the manufacturing network. We plan to provide more detail on these large-scale and strategic projects as well as our continued evolution as a global branded food company at our Investor Day in October.

供應鏈工作流代表了整個 Project Orion 路線圖上一些最重要和回報最高的可交付成果。我們還啟動了一系列多年期項目，例如訂單到收款系統的現代化、端到端規劃流程的改進以及在整個製造網絡中實施新工作方式的試點項目。我們計劃在 10 月的投資者日提供更多關於這些大型戰略項目的詳細信息，以及我們作為全球品牌食品公司的持續發展。

Results for the second quarter were in line with our expectations. From a topline perspective, sales declined 4% on a volume reduction of 6%. Volume declines were largely attributed to impacts across the turkey supply chain due to highly pathogenic avian influenza or HPAI in our supply chain last fall. In addition to the large headwind from turkey, net sales were negatively affected by significant pork deflation during the quarter. This had the most profound effect on the retail bacon and foodservice value-added portfolios.

第二季度的業績符合我們的預期。從收入的角度來看，銷售額下降了 4%，銷量下降了 6%。銷量下降主要歸因於去年秋天我們供應鏈中高致病性禽流感或 HPAI 對整個火雞供應鏈的影響。除了來自土耳其的巨大逆風外，淨銷售額還受到本季度豬肉嚴重通貨緊縮的負面影響。這對零售培根和餐飲服務增值組合產生了最深遠的影響。

Diluted net earnings per share for the quarter was $0.40. Earnings' headwinds were understood heading into the quarter and included strategic investments to stabilize the Planters business, margin impact related to our actions to address inventory levels, challenging operating conditions in China, lower turkey sales, higher feed and pension costs and a higher tax rate. Turning to the segments. Strong bottom-line growth from the foodservice segment during the quarter and the benefit from cost relief in certain areas was offset by lower results from the Retail and International segments.

本季度稀釋後的每股淨收益為 0.40 美元。在進入本季度之前，人們了解收益的逆風，包括穩定 Planters 業務的戰略投資、與我們解決庫存水平的行動相關的利潤率影響、中國具有挑戰性的經營條件、火雞銷量下降、飼料和養老金成本上升以及稅率上升.轉向細分市場。本季度餐飲服務部門強勁的底線增長以及某些領域成本削減的好處被零售和國際部門的較低業績所抵消。

Again, this quarter, we leveraged our long-standing relationships, differentiated product portfolio and direct sales team to drive growth for our foodservice business. Volume and net sales growth in the sliced meats, pizza toppings and premium breakfast sausage categories was more than offset by the impact of lower turkey volumes and lower net pricing, reflecting raw material commodity deflation. Our foodservice business remains extremely well positioned. We have available capacity to regain business lost over the last 3 years due to constrained supply, especially in key categories such as bacon and pizza toppings.

同樣，本季度，我們利用我們的長期關係、差異化的產品組合和直銷團隊來推動我們餐飲服務業務的增長。肉片、披薩配料和優質早餐香腸類別的銷量和淨銷售額增長被火雞銷量下降和淨定價下降的影響所抵消，反映了原材料商品通縮。我們的餐飲服務業務仍然處於非常有利的地位。我們有能力挽回過去 3 年因供應受限而損失的業務，尤其是在培根和披薩配料等關鍵類別。

We will also continue to lean into our world-class culinary team, innovative items and Food Forward mentality, all which further differentiate our business from the competition. At retail, we benefited from pricing actions and the strength of our leading brands, helping to partially offset the impact of unfavorable mix and higher operating costs. During the quarter, net sales growth from the global flavors vertical was more than offset by lower net sales across the other retail verticals. Like the foodservice segment, the impact of lower turkey volumes and lower bacon pricing were the primary drivers of lower topline results as elasticities played out better than expected in most categories.

我們還將繼續依靠我們世界一流的烹飪團隊、創新產品和 Food Forward 心態，所有這些都進一步使我們的業務在競爭中脫穎而出。在零售方面，我們受益於定價行動和領先品牌的實力，有助於部分抵消不利組合和更高運營成本的影響。本季度，全球風味垂直行業的淨銷售額增長被其他零售垂直行業的淨銷售額下降所抵消。與餐飲服務領域一樣，火雞銷量下降和培根價格下降的影響是導致營收下降的主要驅動因素，因為大多數類別的彈性表現都好於預期。

The MegaMex business housed in our global flavors vertical had another strong quarter. Net sales growth was led by the Wholly, La Victoria and Herdez brands. The pricing actions we have taken across this business to combat inflationary pressures, coupled with commodity relief on avocado inputs are leading to significant year-over-year gains in equity and earnings. Elasticities on this portfolio remain favorable and we expect to benefit from continued distribution gains from our innovation pipeline, including Herdez brand and Guacamole and refrigerated sauces. The bacon vertical also delivered another quarter of outstanding results due to strong demand for Black Label items and lower belly prices.

位於我們全球風味垂直領域的 MegaMex 業務又迎來了一個強勁的季度。淨銷售額增長由 Wholly、La Victoria 和 Herdez 品牌引領。我們在該業務中為應對通脹壓力而採取的定價行動，加上對鱷梨投入的商品減免，導致股本和收益同比大幅增長。該產品組合的彈性仍然有利，我們預計將從我們的創新渠道（包括 Herdez 品牌和鱷梨調味醬以及冷藏醬汁）的持續分銷收益中受益。由於對黑標產品的強勁需求和較低的腹肉價格，培根垂直產品還取得了另外四分之一的優異成績。

Black Label raw bacon takeaway for the quarter exceeded 20% in volume sales. We are executing extremely well in the bacon category and anticipate continued growth in market share and household penetration, while benefiting from cost favorability. The convenient meals and protein verticals saw sales growth from many of its branded products, including chili, SKIPPY Peanut Butter, Square Table, refrigerated entrees, Dinty Moore Stew and Mary Kitchen hash.

本季度黑標生培根外賣銷量超過 20%。我們在培根類別中的表現非常出色，預計市場份額和家庭滲透率將繼續增長，同時受益於成本優勢。方便食品和蛋白質垂直領域的許多品牌產品的銷售額都出現了增長，包括辣椒、SKIPPY 花生醬、方桌、冷藏主菜、Dinty Moore Stew 和 Mary Kitchen 哈希。

Overall net sales for the vertical declined due to lower contract manufacturing results as we prioritize higher-margin branded businesses. The convenient meals and proteins business has secured additional customer distribution for the back half of the year. And our categories, brands and household penetration growth trends remain favorable. Net sales declined for the snacking and entertaining vertical, primarily due to strong promotional activity for the Columbus brand last year. Planters branded volume increased 8% for the quarter while the Hormel pepperoni and Hormel Gatherings brands grew net sales double digits compared to the previous year.

由於我們優先考慮利潤率較高的品牌業務，因此合同製造業績下降，垂直領域的整體淨銷售額下降。方便食品和蛋白質業務在今年下半年獲得了額外的客戶分銷。我們的類別、品牌和家庭滲透率增長趨勢仍然有利。零食和娛樂垂直領域的淨銷售額下降，這主要是由於去年哥倫布品牌的強勁促銷活動。 Planters 品牌銷量在本季度增長了 8%，而 Hormel 意大利辣香腸和 Hormel Gatherings 品牌的淨銷售額與上一年相比增長了兩位數。

As noted earlier, we expect to continue to benefit from favorable customer resets for the Planters business and from distribution gains on our pepperoni items in the back half of the year. In the emerging brands vertical, Applegate drove growth for its frozen breaded chicken and breakfast sausage items. And the Applegate business continued to diversify its channel exposure, which is key to its long-term growth. Distribution gains in the mass channel and the strength of its e-commerce business are helping offset some weaknesses in the natural and organic channel.

如前所述，我們預計將繼續受益於 Planters 業務的有利客戶重置以及今年下半年意大利辣香腸產品的分銷收益。在新興垂直品牌中，Applegate 推動了其冷凍麵包雞肉和早餐香腸產品的增長。 Applegate 業務繼續多元化其渠道敞口，這是其長期增長的關鍵。大眾渠道的分銷收益及其電子商務業務的實力正在幫助彌補自然和有機渠道的一些弱點。

The final vertical, value-added meats was most heavily affected by lower turkey availability, leading to volume and net sales declines. We expect a strong finish to the year from this vertical due to higher Jennie-O Turkey volumes and positive trends in the deli.

最終的垂直增值肉類受火雞供應量下降的影響最大，導致銷量和淨銷售額下降。由於 Jennie-O Turkey 的銷量增加和熟食店的積極趨勢，我們預計這一垂直領域今年將有一個強勁的收尾。

The retail environment remains extremely competitive and the benefits we've seen from Go Forward to better focus and resource our teams position us well to deliver our plans in the second half of the year. While the International segment remained challenged, the team drove excellent growth for the SKIPPY and Planters brands as well as another quarter of growth from the team in Brazil. Segment profit declined significantly due to lower sales in China and lower turkey export sales. In China, foodservice sales improved sequentially throughout the quarter, helping offset the difficult comparison to retail pantry loading and sales to food security programs last year.

零售環境仍然極具競爭力，我們從 Go Forward 中看到的好處是可以更好地集中精力和為我們的團隊提供資源，這使我們能夠在下半年實現我們的計劃。儘管國際市場仍然面臨挑戰，但該團隊為 SKIPPY 和 Planters 品牌帶來了出色的增長，並為巴西團隊帶來了另外四分之一的增長。由於中國銷售額下降和火雞出口銷售額下降，分部利潤大幅下降。在中國，整個季度的餐飲服務銷售額環比增長，幫助抵消了與去年食品安全計劃零售食品裝貨量和銷售額的艱難比較。

Though we have seen an acceleration in our foodservice business, a recovery in our retail business following the COVID-related policy changes earlier in the year has been slower than anticipated. The team in China has aggressive plans in place to drive improved results in the back half of the year. Limited commodity turkey supplies and restrictions on turkey exports continued to affect results as export turkey volumes declined 50% compared to last year. With the rebound in turkey supplies, we expect this headwind to lessen in magnitude in the back half of the year. The second quarter also marked the first full quarter of minority ownership in Garudafood, one of the largest food and beverage companies in Indonesia.

儘管我們看到我們的餐飲服務業務有所加速，但在今年早些時候與 COVID 相關的政策變化之後，我們的零售業務復甦速度低於預期。中國團隊制定了積極的計劃，以在今年下半年取得更好的成績。有限的商品火雞供應和火雞出口限制繼續影響結果，因為火雞出口量與去年相比下降了 50%。隨著火雞供應量的反彈，我們預計這種不利因素將在今年下半年減弱。第二季度也是印度尼西亞最大的食品和飲料公司之一 Garudafood 少數股權的第一個完整季度。

Garudafood delivered returns in line with expectations during the quarter, and we look forward to further leveraging the strengths and capabilities of both companies to expand the business in Indonesia and Southeast Asia. International business is structurally sound and increasingly balanced. We are confident that the near-term dynamics will gradually abate, allowing our teams to resume delivering accelerated growth. We expect sequential improvement in the back half of the year on contributions from our branded exports, multinational businesses and partnerships around the world.

Garudafood 在本季度實現了符合預期的回報，我們期待進一步利用兩家公司的優勢和能力來擴大在印度尼西亞和東南亞的業務。國際業務結構合理且日益平衡。我們相信，近期的動態將逐漸減弱，使我們的團隊能夠恢復加速增長。我們預計今年下半年我們的品牌出口、跨國企業和全球合作夥伴的貢獻將有所改善。

Finally, it's important to note that we are experiencing a direct benefit from our multi-year efforts to align resources to value-added platforms and reduce exposure to commodity businesses. Since 2017, we have made many decisions to align our pork supply chain to the long-term trends of the industry, guarantee supply for our value-added businesses and reduce the earnings' volatility from commodity exposure.

最後，重要的是要注意，我們通過多年努力將資源分配給增值平台並減少對商品業務的敞口，從而直接受益。自 2017 年以來，我們做出了許多決策，使我們的豬肉供應鏈與行業的長期趨勢保持一致，保證我們增值業務的供應，並減少商品敞口帶來的收益波動。

In this difficult commodity environment, we have benefited as a net buyer of trim and bellies. So we have absorbed significant losses on our harvest operations like others in the industry. We will continue to monitor long-term industry trends and where necessary, make adjustments that are supportive of our value-added growth strategies and our long-standing partnerships throughout the supply chain. Shifting to our outlook. We expect sales and earnings' growth in the back half of the year. Growth from the foodservice segment and an inflection in the International segment are expected to be the primary drivers of year-over-year gains.

在這種困難的商品環境中，我們作為修剪和腹部的淨買家而受益。因此，我們和業內其他公司一樣，在收割業務上承受了重大損失。我們將繼續監測長期行業趨勢，並在必要時做出調整，以支持我們的增值增長戰略和我們在整個供應鏈中的長期合作夥伴關係。轉向我們的前景。我們預計下半年銷售額和盈利將增長。餐飲服務部門的增長和國際部門的拐點預計將成為同比增長的主要驅動力。

All the businesses are expected to benefit from a rebound in turkey volumes and improved fill rates in key categories such as bacon, pepperoni, snack nuts, and for our SPAM family of products. Coupled with the progress we have made on Go Forward, including standing up brand fuel, restructuring our sales teams and resourcing the marketing teams to better support our leading brands, we remain confident in our growth outlook as we continue to meet the needs of our customers, consumers and operators. On a related front, we have made significant commitments and investments to ready the business to serve our customers in California.

預計所有企業都將受益於火雞銷量的反彈和關鍵類別（如培根、意大利辣香腸、零食堅果）以及我們的 SPAM 產品系列的填充率提高。加上我們在 Go Forward 上取得的進展，包括加強品牌燃料、重組我們的銷售團隊和為營銷團隊提供資源以更好地支持我們的領先品牌，我們在繼續滿足客戶需求的同時對我們的增長前景充滿信心、消費者和運營商。在相關方面，我們做出了重大承諾和投資，使企業能夠為我們在加利福尼亞的客戶提供服務。

As of January 2022, we have been Prop 12 compliant on a portion of our pork supply, absorbing the cost of compliance in our operations since that time. As we begin serving the important California market under new regulations later this month, we expect to begin recovering the cost from these investments. Considering these factors, we are reaffirming our full year net sales and diluted net earnings per share guidance ranges. We expect net sales growth of 1% to 3% and diluted net earnings per share of $1.70 to $1.82.

截至 2022 年 1 月，我們的部分豬肉供應已符合第 12 號提案，從那時起吸收了我們運營中的合規成本。本月晚些時候，隨著我們根據新法規開始為重要的加利福尼亞市場提供服務，我們預計將開始從這些投資中收回成本。考慮到這些因素，我們重申我們的全年淨銷售額和稀釋後每股淨收益指導範圍。我們預計淨銷售額增長 1% 至 3%，攤薄後每股淨收益為 1.70 美元至 1.82 美元。

We are encouraged by the progress we have made and our team's sense of urgency to address the near-term challenges impacting the business. At this time, I will turn the call over to Jacinth Smiley to discuss detailed financial information related to the second quarter and additional color on key drivers to our outlook.

我們對我們取得的進展以及我們的團隊應對影響業務的近期挑戰的緊迫感感到鼓舞。此時，我將把電話轉給 Jacinth Smiley，討論與第二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 second quarter were $3 billion. In the second half, the negative topline headwinds from our new pork supply agreement and the beginning of HPAI last year will have fully annualized. We expect a strong volume rebound in our turkey business in the back half of the year.

謝謝你，吉姆。大家，早安。第二季度的淨銷售額為 30 億美元。下半年，我們新的豬肉供應協議和去年開始的高致病性禽流感帶來的負面影響將完全年度化。我們預計今年下半年我們的火雞業務將出現強勁的銷量反彈。

Second quarter gross profit was $491 million. The benefit from pricing actions was more than offset by unfavorable mix and higher expenses. For the second quarter, SG&A expenses as a percentage of net sales decreased to 7.1% from 7.3%. Through the first half of the year, SG&A as a percentage of net sales is in line with last year, demonstrating our disciplined cost management.

第二季度毛利潤為 4.91 億美元。不利的組合和更高的費用抵消了定價行動帶來的好處。第二季度，SG&A 費用占淨銷售額的百分比從 7.3% 下降至 7.1%。今年上半年，SG&A 占淨銷售額的百分比與去年持平，表明我們嚴格的成本管理。

Advertising investments were $35 million during the quarter as we continued to support our leading brands in the marketplace. We expect full year advertising expenses to increase compared to the prior year. Equity and earnings of affiliates from the second quarter increased significantly compared to last year due to improved results from MegaMex. Operating income for the second quarter was $296 million. Operating margins of 9.9% improved from 9.7% in the first quarter. Net unallocated expenses in the second quarter increased 6% due to higher pension costs, which were partially offset by improved rabbi trust investment results.

由於我們繼續支持我們在市場上的領先品牌，本季度的廣告投資為 3500 萬美元。我們預計全年廣告費用將比上年增加。由於 MegaMex 的業績改善，第二季度附屬公司的股本和收益與去年相比顯著增加。第二季度營業收入為 2.96 億美元。營業利潤率從第一季度的 9.7% 提高到 9.9%。由於養老金成本增加，第二季度淨未分配支出增加了 6%，這部分被拉比信託投資業績的改善所抵消。

The effective tax rate for the quarter moved higher to 22.1% compared to 18.7% last year. As anticipated, we did not repeat last year's favorable rate, which reflected higher stock option exercises. The effective tax rate for fiscal 2023 is still expected to be 21% to 23%. The net result of all these factors was diluted net earnings per share of $0.40. Turning to cash flows and capital allocation. Our financial position remains an area of strength, allowing us to satisfy our required strategic and opportunistic uses of cash. Operating cash flow was $208 million for the second quarter compared to $193 million last year, an 8% increase.

本季度的有效稅率從去年的 18.7% 上升至 22.1%。正如預期的那樣，我們沒有重複去年的優惠率，這反映了更高的股票期權行使率。預計 2023 財年的有效稅率仍為 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。轉向現金流和資本配置。我們的財務狀況仍然是一個優勢領域，使我們能夠滿足我們對現金的戰略性和機會性使用的要求。第二季度的運營現金流為 2.08 億美元，而去年同期為 1.93 億美元，增長 8%。

We paid our 379th consecutive quarterly dividend effective May 15 at an annual rate of $1.10 per share, a 6% increase over last year. We also announced our August dividend payment earlier last week, which will represent 95 years of uninterrupted dividend payments to our shareholders. We are now targeting $280 million in capital projects, which is in line with our historical investment in CapEx. We continue to prioritize investments in capacity for growth, innovation, cost savings, automation and maintenance. Our current net leverage ratio remains within our stated goal of 1.5 to 2x. As a reminder, our next debt payment is due June of 2024.

自 5 月 15 日起，我們連續第 379 次支付季度股息，年利率為每股 1.10 美元，比去年增長 6%。上週早些時候，我們還宣布了 8 月份的股息支付，這將代表我們連續 95 年不間斷地向股東支付股息。我們現在的目標是 2.8 億美元的資本項目，這與我們對資本支出的歷史投資是一致的。我們繼續優先投資於增長能力、創新、成本節約、自動化和維護。我們目前的淨槓桿率仍在我們既定的 1.5 至 2 倍目標範圍內。提醒一下，我們的下一次債務支付將於 2024 年 6 月到期。

In April, we made an additional $15 million investment in Garudafood, bringing our minority ownership from approximately 29% to 30%. As noted last quarter, we do not expect the investment in Garudafood to have a material financial impact on fiscal 2023 results. Finished products inventory increased 1% compared to the first quarter as our actions to mitigate the impacts from higher inventory levels were offset by inventory build for SPAM promotions later this summer and as we restore SKIPPY inventories to healthy levels. As we responsibly work through higher inventory levels over the balance of the year, we expect a reduction in nonproductive inventory levels for days sales and inventory to return to a normalized range below 60 days.

4 月，我們對 Garudafood 追加投資 1500 萬美元，使我們的少數股權從大約 29% 增加到 30%。正如上個季度所述，我們預計對 Garudafood 的投資不會對 2023 財年的業績產生重大財務影響。與第一季度相比，成品庫存增加了 1%，因為我們為減輕較高庫存水平的影響而採取的行動被今年夏天晚些時候為 SPAM 促銷活動建立的庫存所抵消，並且我們將 SKIPPY 庫存恢復到健康水平。由於我們在今年餘下時間以負責任的方式應對較高的庫存水平，我們預計銷售天數和庫存的非生產性庫存水平將下降，恢復到 60 天以下的正常範圍。

Lastly, we repurchased 310,000 shares for $12 million during the quarter. We will continue to repurchase shares opportunistically based on our internal valuation with authorization to purchase roughly 3.7 million additional shares. As Jim detailed, we are reaffirming our net sales and diluted net earnings per share outlook for the year. In addition to successful execution against our plans for the Planter Snack Nut business and the recovery in China, growth for the balance of the year is dependent on continued improvement across the supply chain, including delivering on our internal cost reduction goals, year-over-year favorability in commodity and freight markets and a strong recovery in turkey volumes.

最後，我們在本季度以 1200 萬美元回購了 310,000 股股票。我們將繼續根據我們的內部估值機會主義地回購股票，並授權購買大約 370 萬股額外股票。正如吉姆所詳述的那樣，我們重申了我們今年的淨銷售額和稀釋後每股淨收益展望。除了成功執行我們的 Planter Snack Nut 業務計劃和中國的複甦之外，今年剩餘時間的增長取決於整個供應鏈的持續改進，包括實現我們的內部成本削減目標，同比商品和貨運市場的年度好感度以及火雞銷量的強勁復甦。

In the second quarter, our fill rates saw a meaningful improvement and are now exceeding 95% across the domestic businesses. With this came higher service levels and the financial benefit from on-time deliveries, a credit to our supply chain team and the strategic investments we have made in our business. I'm also proud to report that we remain on track for one of the safest years in our company's history. As Jim noted, our team has also committed to several projects aimed at reducing cost and complexity to improve our margin structure. These projects span many areas of the supply chain, including procurement, manufacturing and logistics to accelerate, identify and capture cost savings opportunities.

在第二季度，我們的填充率有了顯著改善，目前國內業務的填充率已超過 95%。隨之而來的是更高的服務水平和準時交貨帶來的經濟利益，這歸功於我們的供應鏈團隊以及我們在業務中進行的戰略投資。我也很自豪地向大家報告，我們仍處於公司歷史上最安全的年份之一。正如吉姆指出的那樣，我們的團隊還致力於幾個旨在降低成本和復雜性以改善我們的利潤結構的項目。這些項目跨越供應鏈的許多領域，包括採購、製造和物流，以加速、識別和抓住成本節約機會。

Specific to the back half of the year, we are assuming incremental freight and indirect supply savings and a higher than historical run rate from our legacy cost mitigation efforts. Signs of continued market stabilization and cost relief in areas such as raw materials and freight are also supportive of our gradual margin improvement for the business. As expected, prices on key protein inputs during the second quarter generally declined compared to last year and the first quarter.

具體到今年下半年，我們假設增加運費和間接供應節省，並且我們的遺留成本緩解措施的運行率高於歷史水平。原材料和運費等領域市場持續穩定和成本下降的跡像也支持我們業務利潤率的逐步提高。正如預期的那樣，與去年和第一季度相比，第二季度關鍵蛋白質投入的價格普遍下降。

The USDA composite cutout declined 23% compared to last year and was 7% lower than the first quarter. This decrease was driven primarily by bellies, which declined 50% compared to last year. Trim prices are also trending lower than the prior year and declined counterseasonally heading into Memorial Day.

與去年相比，美國農業部綜合分切下降了 23%，比第一季度下降了 7%。這一下降主要是由肚子造成的，與去年相比下降了 50%。修剪價格也低於上一年，並在陣亡將士紀念日前出現反季節下降。

The full financial impact of more favorable raw material prices will continue to lag as we work through the elevated inventory and absorb higher grain and beef costs. We have assumed lower freight expenses in the back half of the year due to the actions of the supply chain team, softening industry demand for trucks and increased carrier capacity. Driver participation is above pre-COVID levels and has remained stable. These savings will be partially offset by continued headwinds from warehousing expenses as industry-wide cold storage constraints persist. The overall impact of HPAI on domestic poultry supply chain in the U.S. this spring was minimal. The risk associated with the return of the virus now appear to be low heading into the summer months.

隨著我們努力解決高庫存並吸收更高的穀物和牛肉成本，更有利的原材料價格的全面財務影響將繼續滯後。由於供應鏈團隊的行動、行業對卡車的需求疲軟和承運人運力增加，我們假設下半年的運費較低。駕駛員參與度高於 COVID 之前的水平，並且一直保持穩定。由於整個行業的冷藏限制持續存在，這些節省將部分被倉儲費用的持續不利因素所抵消。今年春天，HPAI 對美國家禽供應鏈的總體影響微乎其微。進入夏季後，與病毒捲土重來的風險現在似乎很低。

Turkey markets moved lower in the second quarter and have continued to decline due to a rapid recovery in supply. We are again producing full assortment of turkey items, and our teams are selling with confidence into the retail, foodservice and international markets. As we said last quarter, demand for Jennie-O Turkey products remains positive, and we expect improved 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 fee positions.

土耳其市場在第二季度走低，並且由於供應迅速恢復而繼續下滑。我們再次生產種類齊全的火雞產品，我們的團隊滿懷信心地向零售、餐飲服務和國際市場銷售產品。正如我們上個季度所說，對 Jennie-O 火雞產品的需求仍然積極，我們預計今年下半年肉類供應的改善將推動我們火雞業務的銷量增加，抵消市場下滑和費用增加的影響。

Our team is delivering on the commitments we laid out last quarter, and is continuing to lead in the area of social responsibility. Recently, we were recognized as one of Barron's 100 Most Sustainable companies named as one of the top 5 conscientious CPG companies by Progressive Grocer and honored with the distinction of being named one of America's most trustworthy companies by Newsweek for the second year in a row.

我們的團隊正在兌現我們上個季度做出的承諾，並繼續在社會責任領域發揮領導作用。最近，我們被《巴倫周刊》評為 100 家最具可持續性的公司之一，被 Progressive Grocer 評為前 5 名盡責的 CPG 公司之一，並榮幸地連續第二年被《新聞周刊》評為美國最值得信賴的公司之一。

We strive to earn and keep the trust of our customers and stakeholders every day through our actions and commitments to transparency, accountability and integrity. All of these recognitions are a testament to the dedication and hard work of our team members who are the foundation of our continued success. At this time, I'll turn the call over to the operator for the question-and-answer portion of the call.

我們每天都努力通過我們對透明度、問責制和誠信的行動和承諾來贏得併保持客戶和利益相關者的信任。所有這些認可都證明了我們團隊成員的奉獻精神和辛勤工作，他們是我們持續成功的基礎。此時，我會將電話轉給接線員進行電話的問答部分。

(Operator Instructions)

（操作員說明）

Your first question comes from Michael Lavery of Piper Sandler.

你的第一個問題來自 Piper Sandler 的 Michael Lavery。

So you had been pretty clear about the headwinds in the second quarter and the focus, I think, really is more in the second half. You've reiterated your outlook there. Can you just give us a sense for -- you've laid out a lot of drivers for the sales and earnings growth, you pointed to foodservice as a key contributor there. And obviously, its earnings grew in the second quarter, but turkey and bacon pricing weighted down from -- on the top line. Is it just turkey availability improvement that really moves the needle? And if that's a key factor, can you give a sense of just your visibility on that into the second half? And just how much risk there may or may not be?

所以你已經很清楚第二季度的逆風，我認為下半年的重點確實更多。你在那裡重申了你的觀點。你能否給我們一個感覺 - 你已經為銷售和收入增長制定了很多驅動因素，你指出餐飲服務是那裡的主要貢獻者。顯然，它的收益在第二季度有所增長，但火雞和培根的定價從收入中下調。真正起到推動作用的僅僅是火雞可用性的提高嗎？如果這是一個關鍵因素，你能說下你對下半場的可見性嗎？可能有或沒有多少風險？

Yes, Michael, thanks for the question. I mean there's a combination of things as we think about the back half of the year. foodservice will continue to be a driver in our business as it has been this year and previous years. But as we think about the availability of turkey, when we think about some of the capacity that we now have with projects that have come online, our most recent SPAM line or expansion of pepperoni, the continued growth and performance of the Planters business, and then the other variable to consider is as we think about the back half of the year, although they're not there today, we've built in some higher markets for the back half of the year.

是的，邁克爾，謝謝你的提問。我的意思是我們在考慮今年下半年時會綜合考慮多種因素。與今年和往年一樣，餐飲服務將繼續成為我們業務的推動力。但是當我們考慮火雞的可用性時，當我們考慮我們現在已經上線的項目的一些能力時，我們最近的 SPAM 生產線或意大利辣香腸的擴張，Planters 業務的持續增長和業績，以及那麼另一個要考慮的變量是我們考慮今年下半年，雖然他們今天不存在，但我們已經在今年下半年建立了一些更高的市場。

So especially for those items where the pricing is more pass-through, you're going to have a topline impact but then all those other things contribute to both top line and bottom line. So those are the things that we really can control and that's what we're focused on as we head into the back half of the year.

因此，特別是對於那些定價更多的項目，你將產生頂線影響，但所有其他因素都會對頂線和底線產生影響。因此，這些是我們真正可以控制的事情，也是我們進入下半年時關注的重點。

Okay. That's great color. And just to follow up on the pricing comment that you mentioned the pricing in 3Q, in most of the group, the pricing really seems to have peaked and there's fewer and fewer announcements like that. Have you gotten a lot of pushback? How broad of a price increase is it? Can you just give a little more color on how that -- how we should think about that?

好的。那是很棒的顏色。只是為了跟進你提到的第三季度定價的定價評論，在大多數人中，定價似乎真的已經達到頂峰，而且這樣的公告越來越少。你有很多阻力嗎？漲價幅度有多大？您能否就我們應該如何考慮這一點給出更多的顏色？

Michael, thanks for the question. This is Deanna. Relative to retail, we've taken pricing in Q2 in a few categories. We have a few categories we're looking at as we head into Q3. But we're being extremely mindful to protect both our margins, but also to protect our relationship with our customers and our consumers. I think when we approach the retailers with the right information that support the price increase, we've been able to come to terms and move forward. We've always -- obviously, it's their job to protect their margin. It's their job to protect the consumer. Those aren't new conversations to us in regards to approaching pricing. So it's really about having all the data and the facts to support what you're doing and why.

邁克爾，謝謝你的提問。這是迪安娜。相對於零售，我們在幾個類別中對第二季度進行了定價。在進入第三季度時，我們正在研究幾個類別。但我們非常注意保護我們的利潤，同時也保護我們與客戶和消費者的關係。我認為，當我們以支持價格上漲的正確信息與零售商接觸時，我們已經能夠達成協議並向前邁進。我們一直 - 顯然，保護他們的利潤是他們的工作。保護消費者是他們的工作。這些對我們來說並不是關於接近定價的新對話。所以這真的是關於擁有所有數據和事實來支持你正在做的事情和原因。

And just as a reminder, Michael, our foodservice business tends to be closer to the market with pricing than retail.

提醒一下，邁克爾，我們的餐飲服務業務在定價方面往往比零售更接近市場。

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 following along these lines, and I wanted to understand a little bit if you could elaborate what you're seeing more recently and what your expectations are as it relates to volume. I mean, with the pricing actions being taken, how do you feel about the volume reaction into the back half? And how much of that maybe volume recovery is then ultimately going to help you to drive some of the profit recovery you're looking for? That would be my first question.

沿著這些思路，我想了解一點，如果你能詳細說明你最近看到的是什麼，以及你對數量的期望是什麼。我的意思是，在採取定價行動後，您如何看待後半部分的成交量反應？那麼，其中有多少可能是銷量恢復最終會幫助你推動你正在尋找的一些利潤恢復？那將是我的第一個問題。

Similar to the previous question, the turkey volume is volume that's coming back. And so as we -- as Jacinth mentioned, the impact of HPAI this spring has been minimal. We're now producing a full slate of items. We've got our sales teams focused and reengaged on selling turkey. You don't just flip a switch after a year of not having turkey, but they are focused and reengaged. And so that is, call it, new replacement volume, whatever the right term is, that's, that returning volume on the turkey side of the business.

與上一個問題類似，火雞量是指正在回歸的量。因此，正如 Jacinth 提到的那樣，今年春天 HPAI 的影響微乎其微。我們現在正在生產一整套產品。我們已經讓我們的銷售團隊專注於並重新參與銷售火雞。在一年沒有吃火雞之後，你不會只是撥動開關，但他們會專注並重新參與。所以這就是所謂的新替換量，無論正確的術語是什麼，那就是業務土耳其方面的返回量。

We have been capacity-constrained on a couple of the categories I mentioned earlier. So having those freed up, allow the sales team to go out and sell. And then the really good work that our team has done on Planters really has the opportunity to drive additional top line and bottom line in the back half of the year. And maybe Deanna can add some color on some of the -- maybe some of the categories.

我們在我之前提到的幾個類別上一直受到容量限制。因此，騰出這些資源，讓銷售團隊出去銷售。然後，我們的團隊在 Planters 上所做的真正出色的工作確實有機會在今年下半年推動額外的收入和利潤。也許 Deanna 可以為某些——也許某些類別添加一些顏色。

Sure. As we think about volume in the back half, we're really encouraged to have turkey back with the ability to promote. So we're out actively setting up promotions for the back half of the year with our retailers. Bacon continued to enjoy growth in the first half, and we don't see anything stopping that in the back half. The brand performed really well in regards to gaining new households as well as gaining growth in the marketplace. We'll continue to support those brands with both promotions, with advertising as well as innovation, which was planned as we added capital in the areas of bacon, pepperoni and as we think about Columbus and Planters, you'll see really advertising, promotion and media across all of those as well as innovation.

當然。當我們考慮後半部分的數量時，我們真的很高興讓火雞回歸併有能力提升。因此，我們正在積極與我們的零售商一起為今年下半年設置促銷活動。培根在上半場繼續享受增長，我們看不出有什麼能阻止下半場的增長。該品牌在獲得新家庭以及在市場上取得增長方面表現非常出色。我們將繼續通過促銷、廣告和創新來支持這些品牌，這是我們在培根、意大利辣香腸領域增加資本時計劃的，當我們想到 Columbus 和 Planters 時，你會看到真正的廣告、促銷所有這些以及創新的媒體。

So we feel good about the volume through, again, turkey, bacon, pepperoni, Columbus, Applegate and Planters as we saw some improvement in Planters most recently at the end of the quarter and have plans as we head into the back half.

因此，我們再次對火雞、培根、意大利辣香腸、哥倫布、Applegate 和 Planters 的銷量感到滿意，因為我們最近在本季度末看到了 Planters 的一些改善，並製定了進入後半部分的計劃。

Okay. And then just one quick housekeeping as it relates to CapEx and the reduction here in the new target. Can you explain the reason why you're lowering the CapEx? Is it the delay? Is it not execution? Is it just being more cautious on capital allocation in general? Just a few comments around that would be appreciated.

好的。然後只是一個快速的內務管理，因為它與資本支出和新目標的減少有關。你能解釋一下你降低資本支出的原因嗎？是延遲嗎？不是處決嗎？只是總體上對資本配置更加謹慎？僅對此發表一些評論，我們將不勝感激。

Thanks for your question, Ben. So just to start off, we are in a very strong financial position and continue to be. As we look at the spend, the spend is absolutely in line with our historical levels. And quite frankly, I mean we've gone into the year with an expanded CapEx spend, and this is just a natural fallout that happened as you go to execute for different reasons, there is slippage that actually happens when we try to execute so many projects during the year.

謝謝你的問題，本。因此，剛開始時，我們的財務狀況非常強勁，並將繼續如此。當我們查看支出時，支出絕對符合我們的歷史水平。坦率地說，我的意思是我們進入了這一年，資本支出支出有所增加，這只是您出於不同原因執行時發生的自然後果，當我們嘗試執行這麼多時，實際上會發生延誤年內的項目。

That being said, we're in a great position in terms of what we've invested in our capacity for the business and also what we need to do from a maintenance perspective.

話雖如此，就我們對業務能力的投資以及從維護角度來看我們需要做的事情而言，我們處於有利地位。

The next question comes from Ben Bienvenu of Stephens.

下一個問題來自 Stephens 的 Ben Bienvenu。

I wanted to ask about mix across each of the segments. It was a factor that unfavorably influenced the retail business, favorably influenced the foodservice business. I'm curious to understand the factors influencing mix, how much of them were externally driven? And what are the things that you all can do from an initiative or internal perspective that either amplifies the benefits that you're getting in foodservice or combats the challenges you're facing in retail?

我想問一下每個細分市場的混合情況。這是一個對零售業務產生不利影響的因素，對餐飲服務業務產生有利影響。我很想知道影響組合的因素，其中有多少是外部驅動的？從主動性或內部角度來看，你們所有人都可以做哪些事情來擴大你們在餐飲服務中獲得的好處或應對你們在零售業中面臨的挑戰？

Sure. Thanks, Ben. On the retail side, when we think about the mix, again, it's always a mixed bag. We've had our bacon business, which has had a positive impact. Planters has had a dilutive effect on mix. When we think about what's happened in China, and so -- there's a lot of moving parts across the entire portfolio even when we think about the commodity side of the business and what's happened. But I think the retail team is focused on the right opportunities to drive and improve mix. And when we think about the sales and volume opportunities in the back half of the year, a lot of those are improved mixed items.

當然。謝謝，本。在零售方面，當我們再次考慮組合時，它總是魚龍混雜。我們的培根業務產生了積極影響。播種機對混合有稀釋作用。當我們考慮在中國發生的事情時，即使我們考慮業務的商品方面以及發生的事情，整個投資組合中也有很多變動的部分。但我認為零售團隊專注於推動和改善組合的正確機會。當我們考慮下半年的銷售和銷量機會時，其中很多都是改進的混合項目。

The foodservice team does a great job historically of really laddering up and increasing the value-added proposition of their portfolio. And so we expect that to continue. And then in the International business, just as China moderates and we see that inflection point and improvement as markets open up for them to be able to move more product. We see that mix improving as well.

從歷史上看，餐飲服務團隊在真正提升和增加其產品組合的增值主張方面做得非常出色。因此，我們希望這種情況會繼續下去。然後在國際業務中，正如中國經濟放緩一樣，我們看到了拐點和改善，因為市場開放讓他們能夠轉移更多產品。我們看到這種組合也在改善。

Okay. Great. On International, you talked about availability of turkey getting better. HPAI seems to be mostly in the rearview. I know it's still -- we're still in monitor mode. What is the pace of improvement that you're expecting in that business and then exports in particular?

好的。偉大的。在 International 上，您談到了火雞的可用性越來越好。 HPAI 似乎主要處於後視狀態。我知道它仍然 - 我們仍處於監控模式。您期望該業務的改進速度如何，尤其是出口業務？

Ben, I think probably the most important piece here is when we think back to the back half of last year, and where our volume was down of 30%. That was very, very significant. And so as we're looking at the back half of this year, we do expect Q3 to be relatively flat, maybe a slight increase. And then in Q4, would expect an increase. Specifically on the International business, there are some nuances with the Jennie-O Turkey business as we've restructured the business and moved into our Go Forward model. A lot of that responsibility was in Jennie-O this year.

本，我認為這裡最重要的一點可能是我們回想去年下半年的時候，當時我們的銷量下降了 30%。那非常非常重要。因此，當我們展望今年下半年時，我們確實預計第三季度將相對持平，可能會略有增長。然後在第四季度，預計會有所增加。特別是在國際業務方面，隨著我們重組業務並進入我們的 Go Forward 模式，Jennie-O Turkey 業務存在一些細微差別。今年，很多責任都落在了 Jennie-O 身上。

It's in the International business, and they've been negatively impacted by market closures tied to AI. And so we've already started to see some markets reopen, which will allow them to move additional volume and then also, obviously, additional margin with that.

它屬於國際業務，他們受到與人工智能相關的市場關閉的負面影響。因此，我們已經開始看到一些市場重新開放，這將使它們能夠增加交易量，然後顯然還會增加利潤。

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 wanted to maybe just touch on the expected cadence of earnings in the second half of the year. If we go back many years, your third quarter earnings have typically been the lowest quarter of the year. I know the first couple of quarters of this year had some unusual headwinds, but it does sound like pricing actions, some operational improvements and some of the volume recovery, right, is a bit more weighted to the fourth quarter. It also sounded like maybe there's a bit more work to do on working down inventory in the third quarter.

我可能只想談談今年下半年的預期收益節奏。如果我們回溯多年，您的第三季度收入通常是一年中最低的一個季度。我知道今年前幾個季度遇到了一些不尋常的逆風，但聽起來確實像是定價行動、一些運營改進和一些銷量恢復，對吧，第四季度的權重更大一些。這也聽起來好像在第三季度減少庫存方面還有更多工作要做。

So I guess with respect to that third quarter, should we expect 3Q to follow this historical cadence, meaning something below the $0.40 in the past 2 quarters? Or just given some of the improvements is more of a rebound expected this year?

所以我想關於第三季度，我們是否應該期望第三季度遵循這一歷史節奏，這意味著過去兩個季度低於 0.40 美元？或者僅僅考慮到今年的一些改善更多是預期的反彈？

Yes. Thanks for the question, Tom. I think there's a couple of things to consider. And historically, I get the point of reference, but I would say this is a fundamentally different business that we're operating today. And so as we think of Q3 in terms of cadence, we do expect to be marginally higher than last year. To your point about the work that remains as we said on our first quarter call, we had very clear priorities and team did a great job executing against them, but the work is not done. And so we do expect to see some of those benefits in Q3, additional benefits in Q4. So we'll -- the work is not done, team is doing a great job, but the priorities remain the same for us.

是的。謝謝你的問題，湯姆。我認為有幾件事需要考慮。從歷史上看，我得到了參考點，但我會說這是我們今天經營的一項根本不同的業務。因此，當我們從節奏方面考慮第三季度時，我們確實預計會略高於去年。關於我們在第一季度電話會議上所說的剩餘工作，我們有非常明確的優先事項，團隊在執行這些工作方面做得很好，但工作還沒有完成。因此，我們確實希望在第三季度看到其中一些好處，在第四季度看到更多好處。所以我們將 - 工作尚未完成，團隊做得很好，但我們的優先事項保持不變。

Okay. Thanks for the detail. And then maybe just on the pricing side, you mentioned it's inflation-justified pricing. Maybe just some color on what commodities are the general focus for this pricing? And is this related to inflation that's cropped up in recent months? Or is this more catch-up for something that happened in past quarters?

好的。謝謝你的詳細信息。然後也許只是在定價方面，你提到它是通貨膨脹合理定價。也許只是關於什麼商品的一些顏色是這種定價的普遍關注點？這與最近幾個月突然出現的通貨膨脹有關嗎？或者這是對過去幾個季度發生的事情的追趕？

Thanks for the question. It's really a couple of different things. Some of it will be catch up, not necessarily based on markets, but it will be a collection of the input costs going into our items. We also have to factor in, we've invested into capacity, and obviously, depreciation comes at us as a result of that. So we're always thinking where we need to grow and obviously, growth has to be paid for. The other piece would be looking forward in regards to some of our markets that are a bit more annualized as we start looking into next year and where we're expecting some input increases and positioning ourselves for that to maintain our margins as well as to be able to ensure we can invest in our brands through trade and advertising.

謝謝你的問題。這真的是幾件不同的事情。其中一些會被趕上，不一定基於市場，但它將是我們項目中投入成本的集合。我們還必須考慮到，我們已經投資於產能，顯然，折舊是我們的結果。所以我們一直在思考我們需要在哪裡成長，顯然，成長必須付出代價。另一部分是關於我們的一些市場，隨著我們開始展望明年，這些市場的年化程度更高一些，我們預計會增加一些投入，並為此做好準備，以維持我們的利潤率，同時能夠確保我們可以通過貿易和廣告投資於我們的品牌。

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。

Jim, I know we've kind of beat this topic over the head. But just on the sales and revenue cadence for the year, I just want to make sure I have it clearly -- the guidance, even to get to the low end of the range kind of implies you go from like a minus 3% in the first half to actually accelerating the sales to like 5% plus in the second half. And understanding you're lapping Jennie-O and there's a lot of other moving pieces on the volume side from the WholeStone contract from last year.

吉姆，我知道我們已經解決了這個話題。但就今年的銷售和收入節奏而言，我只想確保我清楚地了解它——指導，即使是達到範圍的低端，也意味著你從負 3% 開始上半年實際上加速了下半年銷售額的 5% 以上。並且了解您正在對 Jennie-O 進行研磨，並且從去年的 WholeStone 合同中還有很多其他移動的部分。

Just can you help us understand what's actually embedded in your volume assumptions by segment, if possible, but even at the full level would be helpful. And the second part to that would be just like how much of this is you need demand to reaccelerate from a volume standpoint versus you know because of pipeline fill and I think you said shelf resets that allows you to kind of get there on the volume side. So just if you could really unpack that for us, it would be very helpful.

如果可能的話，您能否幫助我們了解按細分市場實際嵌入您的體積假設中的內容，但即使在完整級別也會有所幫助。第二部分就像你需要多少需求來從數量的角度重新加速而不是你知道的因為管道填充，我想你說貨架重置允許你在數量方面到達那裡.所以，如果你真的能為我們打開包裝，那將非常有幫助。

That's a lot to unpack, Peter. I'll do my best here. I think, again, starting at the end, demand is always important. But this idea that we need some unbelievable demand acceleration, that's not necessary for us to be able to deliver growth in the back half of the year. And I know it's going to sound repetitive, but a big part of this is getting turkey back, getting that full assortment back, being able to now sell in some categories that were capacity-constrained, stabilizing and growing that Planters business. I mean those are all the things, in addition to the other parts of the business that are growing already.

有很多東西要解開，彼得。我會在這裡盡力而為。我認為，再次從頭開始，需求始終很重要。但是我們需要一些令人難以置信的需求加速的想法，對於我們能夠在今年下半年實現增長來說並不是必需的。而且我知道這聽起來會重複，但其中很大一部分是讓火雞回來，讓完整的分類回來，現在能夠在一些產能受限的類別中銷售，穩定和發展 Planters 業務。我的意思是，除了已經在增長的業務的其他部分之外，這些就是所有的東西。

And as we think about the segments that you asked about, Retail has got a lot of dynamics and a lot of puts and takes. So even if we said retail volume will be relatively flat, we do expect volume growth in foodservice and International. And when we roll all of that up, your number or your estimate is appropriate, and we've got the ability to get there with all the dynamics I mentioned.

當我們考慮您詢問的細分市場時，零售業有很多動態和很多投入和投入。因此，即使我們說零售量將相對持平，我們也確實預計餐飲服務和國際業務的銷量會增長。當我們匯總所有這些時，您的數字或估計是合適的，並且我們有能力以我提到的所有動態實現目標。

Okay. No, that's very helpful, and I appreciate that. And then maybe just for Deanna, and I know we've talked about pricing a lot as well, but like your largest customer has come out and said, hey, we need food companies to bring pricing down and again, with incremental pricing actions going in, understanding it's inflation-justified, just -- how do you reconcile kind of those comments?

好的。不，這很有幫助，我很感激。然後也許只是為了 Deanna，我知道我們也討論了很多定價問題，但就像你最大的客戶出來說，嘿，我們需要食品公司一次又一次地降低價格，並採取增量定價行動在，理解它是通貨膨脹合理的，只是 - 你如何調和這些評論？

Yes. So as we think about the back half, if you recognized last year, we didn't have trade promotions in place. So a lot of the work we're doing with our retailers is jointly talking about category growth as well as where are the consumers at and really trying to pull strategies that leverage trade. We've shifted some dollars from below the line to above the line to continue to support promotions as well as a lot of in-store activation, coupled with advertising.

是的。因此，當我們考慮後半部分時，如果您去年認識到，我們沒有適當的貿易促銷活動。因此，我們與零售商所做的很多工作都是共同討論品類增長以及消費者在哪裡，並真正試圖制定利用貿易的策略。我們已將部分資金從線下轉移到線上，以繼續支持促銷活動以及大量店內活動和廣告。

And so while we may start with a price request, we can come to the table and talk about price is only one factor and what else do we need to do together to really think about category growth as well as ensuring that the consumer is remembering what value our brands play in their life. And price doesn't do that alone. And so we really tend to come to the conversation with them, really focusing on -- that's one thing. Let's talk about that. But let's talk about how we can bring in pricing promotion as well as displays into the store, and that's what you'll see from us in the back half.

因此，雖然我們可能會從價格請求開始，但我們可以坐下來討論價格只是一個因素，我們還需要一起做些什麼才能真正考慮類別增長並確保消費者記住什麼重視我們的品牌在他們生活中的作用。價格並不能單獨做到這一點。因此，我們真的傾向於與他們進行對話，真正專注於——這是一回事。我們來談談吧。但讓我們談談我們如何將價格促銷和展示引入商店，這就是您將在後半部分看到的內容。

The next question comes from Rupesh Parikh of Oppenheimer.

下一個問題來自奧本海默的 Rupesh Parikh。

So I just want to get your thoughts on a consumer backdrop. I know there's snap reduction in the market that could be impacting retail. So curious just what you guys are seeing in retail. And then just in foodservice, I think late last year, you guys may have seen a slowdown, but just curious what you're just seeing right now on the demand side in foodservice.

所以我只想了解您對消費者背景的看法。我知道市場急劇減少可能會影響零售業。很好奇你們在零售業看到了什麼。然後就在餐飲服務方面，我想去年年底，你們可能已經看到了放緩，但只是好奇你們現在在餐飲服務的需求方面看到了什麼。

Yes, Rupesh. So when we think about just the consumer dynamics in general, and I'll let Deanna add some color on the retail space. But I think the one thing that we don't want to lose sight of is the fact that we've counted and we've built very intentionally this balanced business model. And so in this really dynamic environment, dynamic is probably an understatement, we really benefit from that balanced business model, whether it's premium tier, value tier, think about the alternate channels, protein inputs. I mean, there's a lot of balance across everything that we do. And that really benefits us in this environment.

是的，魯佩什。因此，當我們考慮一般的消費者動態時，我會讓 Deanna 在零售空間上添加一些顏色。但我認為我們不想忽視的一件事是我們已經計算並且我們已經非常有意地建立了這種平衡的商業模式。因此，在這個真正動態的環境中，動態可能是一種輕描淡寫的說法，我們真正受益於這種平衡的商業模式，無論是優質層、價值層，還是考慮替代渠道、蛋白質輸入。我的意思是，我們所做的一切都有很多平衡。在這種環境下，這確實使我們受益。

From a foodservice perspective, the volume and then the business remain strong. And so the team -- recently at the National Restaurant Show and the feeling there is a level of maybe cautious optimism, but optimism, nonetheless. And as you think about, people are still traveling. And what we're seeing in all the different segments, which again, is the balance that we've built in that foodservice business as well, really serves us well. So that's why we're still optimistic about the foodservice business. We believe the demand is there. And then we also -- we believe that our focus on the different segments allows us to capitalize on opportunities as that business can shift from segment to segment.

從餐飲服務的角度來看，數量和業務仍然強勁。因此，團隊 - 最近在全國餐廳展上感覺有一定程度的謹慎樂觀，但仍然樂觀。正如您所想，人們仍在旅行。我們在所有不同的細分市場中看到的是，我們在餐飲服務業務中建立的平衡也確實為我們提供了良好的服務。所以這就是為什麼我們仍然對餐飲服務業務持樂觀態度。我們相信需求是存在的。然後我們 - 我們相信我們對不同細分市場的關注使我們能夠利用機會，因為該業務可以從一個細分市場轉移到另一個細分市場。

Great. And maybe just one follow-up question just on the available...

偉大的。也許只是一個可用的後續問題......

(inaudible) commentary on the retail side, Rupesh.

（聽不清）零售方面的評論，Rupesh。

Okay. Perfect.

好的。完美的。

Rupesh, what I'd add for the retail side is we're seeing consumers be extremely intentional about their spending, not only where they're shopping, how they're shopping, and then what types of items they're buying. As a result, we continue to see consumers gravitate towards -- surprisingly, our premium offerings. And when you think about -- so think about a party tray or Columbus circuitry board, those are items that are bringing value to their lives and are a part of their family and something that they're extremely proud of.

Rupesh，對於零售方面，我要補充的是，我們看到消費者對他們的消費非常有意識，不僅是他們在哪裡購物，他們如何購物，還有他們購買什麼類型的商品。因此，我們繼續看到消費者傾向於——令人驚訝的是，我們的優質產品。當你想到 - 所以想想派對托盤或哥倫布電路板，這些都是為他們的生活帶來價值的物品，是他們家庭的一部分，也是他們引以為豪的東西。

So parts of our portfolio may have some near-term impact, but a lot of our brands are really still very, very important. And as I mentioned earlier, that's why we continue to pulse advertising and promotions and then store activation. So that I remember the role that the brands play.

因此，我們的部分產品組合可能會產生一些短期影響，但我們的許多品牌確實仍然非常非常重要。正如我之前提到的，這就是為什麼我們繼續脈衝廣告和促銷，然後激活商店。這樣我就記住了品牌所扮演的角色。

The next question comes from Adam Samuelson of Goldman Sachs.

下一個問題來自高盛的亞當薩繆爾森。

I guess my first question is on turkey. And Jim, you clarified kind of that volumes kind of normalizing without HPAI, I mean there was an allusion to commodity turkey pricing, which has fallen pretty meaningfully kind of since the start of the year. How do we think about the profit kind of contribution of turkey at this point? I think kind of coming into the year, kind of (inaudible) its own business. I think the framing have been that, that was going to be roughly flat with volume growth and offsetting or volume normalization in the back half offsetting kind of feed costs, but kind of the commodity turkey environment has kind of come in pretty meaningfully since where you guys were in November and December.

我想我的第一個問題是關於火雞的。吉姆，你澄清了在沒有 HPAI 的情況下那種數量正常化的情況，我的意思是有一個暗示商品火雞定價，自今年年初以來已經大幅下降。在這一點上，我們如何看待土耳其的利潤貢獻？我認為有點進入這一年，有點（聽不清）它自己的業務。我認為框架是這樣的，隨著後半部分的體積增長和抵消或體積正常化抵消了某種飼料成本，這將大致持平，但某種商品火雞環境已經變得非常有意義，因為你在哪裡伙計們在十一月和十二月。

And I'm just trying to think about how that would impact the profitability of your total turkey business, which is obviously now standing between 2 different businesses.

我只是想考慮這將如何影響您的整個火雞業務的盈利能力，這顯然現在處於兩個不同的業務之間。

Got it. Thanks for the question, Adam. And I do think it's the offset in terms of the return of the volumes and that tonnage increase in the back half. And you're right, we've seen markets come down, but there is that corresponding offset because we just haven't had that volume to sell. And so our ability to be able to now have the value-added products on a regular basis, whether it's the lean ground turkey and retail or having a full product offering on the foodservice side of the business, that's really a differentiator.

知道了。謝謝你的問題，亞當。而且我確實認為這是體積返回和後半部分噸位增加的抵消。你是對的，我們已經看到市場下跌，但也有相應的抵消，因為我們只是沒有那麼多的銷量。因此，我們現在能夠定期提供增值產品的能力，無論是瘦肉火雞和零售，還是在企業的餐飲服務方面提供完整的產品，這確實是一個差異化因素。

And the bottom line to all of this is that it is great to have turkey back. Right? So fundamentally, in our portfolio, turkey is a very, very important part of what we want to get done. And so we're glad to have this volume back, the ability to regain focus on the value-added portion of the business is what our team is focused on right now. And like I said, you don't just flip a switch when you haven't had something that's held for a year, but the teams, retail, foodservice are very aligned and focused on moving turkey again in the back half of the year.

所有這一切的底線是火雞回來真是太好了。正確的？所以從根本上說，在我們的投資組合中，火雞是我們想要完成的工作中非常非常重要的一部分。因此，我們很高興能夠恢復這一數量，重新關注業務增值部分的能力是我們團隊目前關注的重點。就像我說的那樣，當你沒有舉辦一年的活動時，你不會只是按下開關，但團隊、零售、餐飲服務非常一致，並專注於在今年下半年再次移動火雞。

The other piece I'll also add there, Adam, is that the team has done a really, really good job from a supply chain standpoint. And as we -- as you think about the profitability, the yields have been really good and have improved the bird performance. And so that will definitely help us as you think about margins.

亞當，我還要補充的另一點是，從供應鏈的角度來看，團隊做得非常非常好。正如我們 - 當你考慮盈利能力時，產量非常好並且提高了鳥類的表現。因此，當您考慮利潤率時，這肯定會對我們有所幫助。

Okay. And then I had a follow-up on cash flow. And just I think there was another question about the CapEx reduction. But in some discussion also about kind of inventory dollars improving over the balance of the year. Has the cash flow kind of performance through the quarter and year-to-date actually hit your own expectations? And can you dimensionalize kind of by the end of the year, kind of what the anticipated release of working capital dollars should be?

好的。然後我對現金流進行了跟進。我認為還有另一個關於資本支出減少的問題。但在一些討論中，也有一些關於庫存美元在今年餘下時間有所改善的討論。本季度和年初至今的現金流表現是否真的達到了您自己的預期？你能否在年底之前確定某種維度，即預期釋放的營運資金美元應該是多少？

Yes. So I'll start off by saying, I mean, we continue to generate really strong cash flow, and we expect that to continue and improve through the rest of the year. And so that continues to give us that healthy balance sheet I talk about and just being able to flex as needed from a cash utilization standpoint for the business. So we're not feeling any different about our cash flow and our availability and ability to generate cash.

是的。所以我首先要說，我的意思是，我們將繼續產生非常強勁的現金流，我們預計在今年餘下的時間裡這種情況會繼續並有所改善。因此，這繼續為我們提供我所說的健康的資產負債表，並且能夠從業務的現金利用角度根據需要靈活調整。因此，我們對我們的現金流量以及我們產生現金的可用性和能力沒有任何不同。

Okay. But did the cash flow performance in the period kind of actually that is what you were expecting? And how much kind of -- what is the anticipated kind of working capital release as we think about the balance of the year?

好的。但是，該期間的現金流量表現是否真的符合您的預期？當我們考慮今年的餘額時，預計會釋放多少類型的營運資金？

Yes. So definitely met expectations for the quarter and the detail around your second piece of the question, Adam, you can definitely follow up with David on that piece.

是的。因此，絕對達到了對本季度的期望以及關於問題第二部分的細節，亞當，你絕對可以跟進大衛的那部分。

There are no further questions. I will turn the call back to Jim Snee for closing remarks.

沒有其他問題了。我會將電話轉回 Jim Snee 以作結束語。

Well, thank you. While very dynamic, the second quarter demonstrates our team's ability to do what we say we're going to do with the appropriate sense of urgency. I'm very proud of the work the team did this quarter to set us up to deliver sales and earnings' growth in the back half of the year. We are still focused on the same priorities and remain confident in our team's ability to deliver the results that we expect. Thanks to all of you for joining us this morning.

嗯，謝謝。雖然充滿活力，但第二季度展示了我們團隊以適當的緊迫感去做我們所說的事情的能力。我為團隊本季度所做的工作感到非常自豪，這些工作使我們能夠在今年下半年實現銷售和收益增長。我們仍然專注於相同的優先事項，並對我們團隊交付預期結果的能力充滿信心。感謝大家今天早上加入我們。

Ladies and gentlemen, this does conclude the 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。