荷美爾 (HRL) 2024 Q2 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to the Hormel Foods Corporation second-quarter earnings conference call. At this time, all lines are in a listen only mode. Following the presentation, we will conduct the question-and-answer session. (Operator Instructions)

早安，女士們先生們，歡迎參加荷美爾食品公司第二季財報電話會議。此時，所有線路都處於只聽模式。演講結束後，我們將進行問答環節。 （操作員說明）

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

我現在想將會議交給投資者關係總監 David Dahlstrom。請繼續。

Good morning. Welcome to the Hormel Foods conference call. For the second quarter of fiscal 2024. We released our results this morning before the market opened. A copy of the release can be found 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.

早安.歡迎參加荷美爾食品電話會議。 2024 財年第二季。新聞稿的副本可以在我們網站 hormelfoods.com 的「投資者」部分找到。今天與我們通話的是董事會主席、總裁兼執行長 Jim Snee； Jacinth Smiley，執行副總裁兼財務長；迪安娜·布雷迪 (Deanna Brady)，零售部門執行副總裁。

Jim will review the company's second quarter results and give a perspective on the rest of fiscal 2024, Jacinth will provide detailed financial results and further commentary on our outlook. 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 the other analysts, please limit yourself to one question with one follow-up. If you have additional questions, you are welcome to rejoin the queue. At the conclusion of this morning's call. A webcast replay will be posted to our website and archived for one year.

Jim 將回顧公司第二季度業績並對 2024 財年剩餘時間提出看法，Jacinth 將提供詳細的財務業績以及對我們前景的進一步評論。迪安娜將與吉姆和傑辛斯一起參加電話的問答部分，在傑辛斯發表講話後，該熱線將開放供提問。出於對其他分析師的禮貌，請限制自己只回答一個問題並進行後續跟進。如果您還有其他問題，歡迎您重新加入隊列。今天早上的電話會議結束時。網路廣播重播將發佈到我們的網站並存檔一年。

Before we get started this morning, 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.

在我們今天早上開始之前，我需要參考安全港聲明。今天發表的一些評論將具有前瞻性，實際結果可能與我們將發表的聲明中表達或暗示的結果有重大差異。請參閱我們最新的 10-K 表格年度報告和 10-Q 表格季度報告，您可以在 hormelfoods.com 的「投資者」部分存取該報告。

Additionally, please note the company uses non-GAAP results to provide investors with a better understanding of the company's operating performance on a consistent basis. The presentation of this information is not intended to be considered in isolation or as a substitute for the financial information presented in accordance with GAAP.

此外，請注意，公司使用非公認會計準則績效是為了讓投資人更了解公司的一致經營績效。此資訊的呈現不應被孤立地考慮或作為根據 GAAP 呈現的財務資訊的替代品。

Non-GAAP figures adjust for the costs associated with the company's transform and modernize initiative and pork antitrust litigation settlements. These non-GAAP measures include adjusted earnings before income taxes and adjusted diluted net earnings per share. Discussion on non-GAAP information, and reconciliations to the GAAP results are detailed in our press release, which can be accessed from our corporate or investor website.

非公認會計準則數據根據與公司轉型和現代化計劃以及豬肉反壟斷訴訟和解相關的成本進行了調整。這些非公認會計準則指標包括調整後的所得稅前利潤和調整後的稀釋每股淨利。有關非 GAAP 資訊的討論以及 GAAP 結果的調整詳見我們的新聞稿，您可以從我們的公司或投資者網站存取該新聞稿。

I will now turn the call over to Jim Snee.

我現在將把電話轉給吉姆·斯尼。

Thank you, David. Good morning, everyone. We delivered a strong first half of the year, with consecutive quarters of better-than-expected earnings, a significant improvement in operating cash flows, food service strength, recovery in our international business, and stable volumes across our business. Importantly, we made further progress on our strategic initiatives, and we remain on track to deliver on our commitments to drive long-term shareholder returns and growth.

謝謝你，大衛。大家，早安。今年上半年，我們的業績表現強勁，連續幾季的獲利好於預期，經營現金流顯著改善，餐飲服務實力增強，國際業務復甦，整個業務量保持穩定。重要的是，我們在策略舉措上取得了進一步進展，並且我們仍有望兌現推動股東長期回報和成長的承諾。

We entered the year with a realistic and achievable path to improve our business over the next three years, and our first half performance demonstrates meaningful progress. We are driving savings, minimizing complexity, and reducing costs. As a result of this work, we delivered meaningful gross profit improvement in both the second quarter and the first half of the year. We are also capturing incremental value from our investments. The best example of this is the momentum our team has generated for the Planters Snack Nuts business, which is responding positively to our brand-building and innovation efforts.

我們以現實且可實現的方式進入了新的一年，以改善未來三年的業務，我們上半年的業績顯示出有意義的進展。我們正在推動節約、最大限度地降低複雜性並降低成本。由於這項工作，我們在第二季和上半年都實現了顯著的毛利改善。我們也從投資中獲取增量價值。最好的例子就是我們的團隊為 Planters Snack Nuts 業務創造的動力，該業務對我們的品牌建立和創新努力做出了積極的回應。

Taken together, we are pleased to report first half adjusted diluted net earnings per share in line with last year. This represents improvement compared to our expectations heading into the year, given the uncertain consumer environment and significant headwinds in our Turkey business. Core to our success so far this year is strong execution against our six strategic priorities, which include driving growth for each of our business segments, executing our enterprise, entertaining and snacking vision and continuing to transform and modernize our company. We delivered an excellent first half within foodservice, growing volume, net sales, and segment profit mid-single digits, respectively.

綜上所述，我們很高興地報告上半年調整後的每股盈餘稀釋與去年一致。考慮到消費者環境的不確定性和土耳其業務的重大阻力，這比我們今年的預期有所改善。今年迄今為止，我們成功的核心是對六大戰略重點的強大執行，其中包括推動每個業務部門的成長、執行我們的企業、娛樂和零食願景以及繼續對我們的公司進行轉型和現代化。我們上半年的餐飲服務業務表現出色，銷售量、淨銷售額和部門利潤均達到中個位數成長。

The second quarter represented the fourth consecutive quarter. Our team achieved volume and segment profit growth and the foodservice team has now delivered year-over-year segment profit growth for 9 out of the last 10 quarters. We continue to leverage our highly differentiated business model to provide innovative solutions to solve operator challenges. In the second quarter, we once again saw strong contributions from bacon1, our premium prepared proteins, pepperoni and Jennie-O Turkey. With the help of our culinary collective and direct sales force. We continue to introduce innovative new offerings that are positioned to disrupt large foodservice categories.

第二季是連續第四個季度。我們的團隊實現了銷售量和部門利潤的成長，餐飲服務團隊在過去 10 個季度中有 9 個季度實現了年比部門利潤成長。我們繼續利用高度差異化的業務模式提供創新的解決方案來解決營運商的挑戰。在第二季度，我們再次看到培根1、我們的優質蛋白質、辣香腸和 Jennie-O 火雞的強勁貢獻。在我們的烹飪團隊和直銷團隊的幫助下。我們不斷推出創新產品，旨在顛覆大型餐飲服務類別。

Two of our newest items, Hormel Flash 180 sous vide chicken and Hormel ribbon pepperoni have already exceeded our fiscal 2024 sales projections. And our new CAFE H Pork Al Pastor product also has been well received in the marketplace. We recently featured these products at the National Restaurant Association Show, where the response from customers was overwhelmingly positive. We believe our foodservice business is exceptionally well positioned to drive category growth, brand value, and operator engagement well into the future.

我們的兩款最新產品 Hormel Flash 180 真空低溫烹調雞肉和 Hormel 帶狀義大利辣香腸已經超出了我們 2024 財年的銷售預測。我們的新產品CAFE H Pork Al Pastor也受到了市場的好評。我們最近在全國餐廳協會展上展示了這些產品，顧客的反應非常正面。我們相信，我們的餐飲服務業務處於非常有利的位置，能夠在未來推動品類成長、品牌價值和營運商參與度。

Transitioning to our international segment, our performance has been very encouraging given the challenging conditions the team faced last year. From a profitability standpoint, International had a strong first half of the year with segment profit up almost 30%. Our team drove growth in many areas, including our partnerships in Indonesia and the Philippines, our refrigerated export business and in-country operations in China and Brazil.

過渡到我們的國際部門，考慮到團隊去年面臨的充滿挑戰的條件，我們的表現非常令人鼓舞。從獲利能力的角度來看，國際業務上半年表現強勁，部門利潤成長近 30%。我們的團隊推動了許多領域的成長，包括我們在印尼和菲律賓的合作夥伴關係、我們的冷藏出口業務以及在中國和巴西的國內業務。

Notably in China, our foodservice business is performing relatively well, and our retail business continues to recover. We expect our retail business in China to improve in the back half of the year, led by distribution gains of SPAM singles, the launch of new Skippy spreads and innovation in our shelf-stable meat snacking portfolio. Overall, we remain confident that we have the right strategy and structure in place to drive growth in our international business and develop our global presence over the long term.

尤其是在中國，我們的餐飲服務業務表現相對較好，零售業務也持續復甦。我們預計在中國的零售業務將在今年下半年有所改善，這主要得益於 SPAM 單品的分銷收益、新的 Skippy 利差產品的推出以及我們耐儲存肉類零食產品組合的創新。總體而言，我們仍然相信我們擁有正確的策略和結構來推動我們的國際業務成長並長期發展我們的全球業務。

In our retail segment, we continue to navigate an environment characterized by an uncertain consumer backdrop and pressure from whole bird Turkey dynamics. That said, there are many proof points showing that our focus on winning with consumers, winning with customers, and driving profitable growth is delivering positive returns. According as our Circana, we gained share across several of our flagship brands during the second quarter, including Planters, Black Label, SPAM, and Jennie-O.

在我們的零售領域，我們繼續應對一個以不確定的消費者背景和來自全鳥火雞動態的壓力為特徵的環境。儘管如此，有許多證據表明，我們專注於贏得消費者、贏得客戶以及推動獲利成長正在帶來正回報。據我們的 Circana 稱，第二季度我們的幾個旗艦品牌的份額有所增加，包括 Planters、Black Label、SPAM 和 Jennie-O。

Additionally, we increased total points of distribution by 6% for our flagship brands and 4% for our rising brands, which includes brands such as Applegate, Herdez, Corn Nuts, and Hormel Square Table. From a vertical perspective, we delivered strong results both in terms of shipments and consumer takeaway with bacon Black Label raw convenience bacon products are resonating with consumers, and we expect this trend to continue in the back half of the year, supported by further advertising and innovation.

此外，我們將旗艦品牌的總經銷點增加了 6%，將新興品牌的經銷點總數增加了 4%，其中包括 Applegate、Herdez、Corn Nuts 和 Hormel Square Table 等品牌。從垂直角度來看，我們在培根的出貨量和消費者外賣方面都取得了強勁的業績，黑標生方便培根產品引起了消費者的共鳴，我們預計這一趨勢將在下半年繼續，在進一步的廣告和宣傳的支持下。

Emerging brands, which contains our Applegate and Justin's brands also delivered a strong quarter with mid single digit volume and net sales growth compared to last year. Similarly, within snacking and entertaining, we delivered net sales growth for Planters snack nuts. I'll provide more detail on our successes within this important category later in my remarks. Within convenient meals and proteins. We are experiencing mixed results our SPAM family of products and Square table entrees portfolios. Both delivered a strong first half even in response to pricing actions, but we did experience softer demand for other center-store canned and convenient items. We are also seeing similar softness across the global flavors vertical and within the Mexican categories in which we compete. These trends are not entirely new and our teams are actively working to address this in the back half of the year.

新興品牌（包括我們的 Applegate 和 Justin's 品牌）也實現了強勁的季度業績，與去年相比，銷量和淨銷售額均實現中等個位數增長。同樣，在零食和娛樂領域，我們實現了 Planters 零食堅果的淨銷售額成長。我將在稍後的發言中詳細介紹我們在這一重要類別中的成功。包含方便的餐點和蛋白質。我們的 SPAM 產品系列和方桌主菜產品組合的結果好壞參半。即使是為了應對定價行為，兩者都在上半年表現強勁，但我們確實經歷了對其他中心商店罐裝和方便食品的需求疲軟。我們還發現，全球口味垂直領域以及我們競爭的墨西哥類別也出現了類似的疲軟趨勢。這些趨勢並不是全新的，我們的團隊正在積極努力在今年下半年解決這個問題。

Lastly, our value added meats vertical continues to be negatively impacted by Turkey dynamics. While we did drive growth during the first half across the Jennie-O value added retail portfolio. These gains were more than offset by weaker whole Turkey markets. We expect this business to remain challenged for the rest of the fiscal year. Our objective in retail is to balance volume and net sales gains to drive consistent profitable growth. We are managing through challenges such as Turkey, pricing and pockets of software consumer demand. Longer-term, the team remains focused on winning with our consumers and our customers better allocating our resources and improving the margin structure of the business.

最後，我們的加值肉類垂直市場持續受到土耳其動態的負面影響。雖然我們在上半年確實推動了 Jennie-O 加值零售產品組合的成長。這些收益被整個土耳其市場的疲軟所抵消。我們預計該業務在本財年剩餘時間內仍將面臨挑戰。我們的零售目標是平衡銷售和淨銷售額收益，以推動持續的利潤成長。我們正在應對土耳其、定價和軟體消費者需求等挑戰。從長遠來看，該團隊仍然專注於贏得消費者和客戶的青睞，更好地分配我們的資源並改善業務的利潤結構。

Now moving on to our Enterprise-wide entertaining and snacking strategy, where we continue to win by unlocking the value of our brands across the channels where we compete. Within retail, we saw some of the most positive in-market data for the Planters and Corn Nuts brands since our acquisition of the business, including volume, sales and share gains during the quarter for mixed nuts, cashews and Corn Nuts. This momentum is a direct result of expanded distribution and our investments in innovation, higher ROI, advertising and brand-building.

現在轉向我們的企業範圍內的娛樂和零食策略，我們透過在我們競爭的管道中釋放我們品牌的價值來繼續獲勝。在零售領域，自從收購 Planters 和 Corn Nuts 品牌業務以來，我們看到了一些最積極的市場數據，包括本季混合堅果、腰果和玉米堅果的銷售、銷售額和份額成長。這一勢頭是擴大分銷以及我們在創新、更高投資回報率、廣告和品牌建立方面投資的直接結果。

Additionally, we released several new entertaining and snacking items, including Planters salt and vinegar, cashews, Planters Nuts, Duos loaded, Taco flavored corn nuts, and a summer themed hard salami and pepperoni tray under the Hormel Gatherings brand. And we are supporting Hormel pepperoni America's number one, pepperoni brand, our new national advertising campaign, boldly irresistible highlights the versatility and craveability of this popular snack and as expected, to help drive growth in the back half of the year.

此外，我們還發布了幾款新的娛樂和零食產品，包括Planters 鹽和醋、腰果、Planters 堅果、Duos 裝、Taco 味玉米堅果，以及Hormel Gatherings 品牌下的夏季主題硬薩拉米和意大利辣香腸托盤。我們正在支持荷美爾義大利辣香腸美國第一的義大利辣香腸品牌，我們新的全國性廣告活動，大膽、不可抗拒地強調了這種流行零食的多功能性和渴望性，正如預期的那樣，有助於推動今年下半年的成長。

In foodservice, our team delivered excellent growth during the quarter in the convenience channel, led by Planters, flavored cashews and corn nuts, innovation. And internationally, we recently announced that the Skippy brand is returning to the Canadian market in the form of five, all new peanut butter inspired snack products. This complements the work the team is doing to drive entertaining and snacking growth globally.

在餐飲服務方面，我們的團隊在本季以 Planters、風味腰果和玉米堅果、創新為主導的便利管道實現了出色的成長。在國際上，我們最近宣布 Skippy 品牌將以五種全新花生醬零食產品的形式重返加拿大市場。這補充了團隊為推動全球娛樂和零食成長所做的工作。

Turning now to our last two strategic priorities, future fitting our one supply chain and advancing our transform and modernize initiative. In the second quarter, our supply chain efforts once again resulted in lower overall logistics expenses, lower distressed sales and higher investment income from responsible capital management.

現在轉向我們的最後兩個策略重點，未來調整我們的單一供應鏈並推動我們的轉型和現代化計劃。第二季度，我們在供應鏈方面的努力再次帶來了整體物流費用的降低、不良銷售的減少以及負責任的資本管理帶來的投資收益的增加。

We also made further progress on our transform and modernize initiative in the areas of supply chain efficiency, portfolio optimization and data and analytics. Now within our planning work stream, we continue the implementation of a new end to end planning process and are integrating new planning technology in the buy work stream, we are broadening our efforts from our new procurement and productivity programs. For the balance of the year, we are broadening our efforts outside the supply chain to all procurement areas. Within May, we completed a major improvement project to expand the capacity for our retail canned portfolio, allowing us to limit external production.

我們在供應鏈效率、產品組合優化以及數據和分析領域的轉型和現代化計劃也取得了進一步進展。現在，在我們的規劃工作流程中，我們繼續實施新的端到端規劃流程，並將新的規劃技術整合到採購工作流程中，我們正在擴大新採購和生產力計畫的工作範圍。在今年剩下的時間裡，我們正在將工作範圍擴大到供應鏈以外的所有採購領域。五月份，我們完成了一項重大改進項目，以擴大我們零售罐裝產品組合的產能，從而使我們能夠限制外部生產。

Additionally, we launched a project to increase capacity for Bacon 1. Both projects use existing assets and infrastructure and are expected to generate strong returns. In the move work stream, we implemented analytics across our refrigerated network to further enhance our service levels. We are also exploring an expansion of our refrigerated network to drive added benefits, and we continue to advance our total company portfolio optimization effort. Leveraging our analytics tools and capabilities, we are finding opportunities to enhance and support margin profile improvement. We are eliminating lower margin SKUs, allowing us to maximize production time for more profitable items.

此外，我們也啟動了一個提高 Bacon 1 產能的計畫。在搬家工作流程中，我們在整個冷藏網路中實施了分析，以進一步提高我們的服務水準。我們也正在探索擴大我們的冷藏網路以帶來額外的效益，並繼續推進我們整個公司產品組合的優化工作。利用我們的分析工具和能力，我們正在尋找增強和支持利潤率改善的機會。我們正在消除利潤率較低的 SKU，從而使我們能夠最大限度地延長生產時間，生產利潤更高的產品。

Also, this quarter, we celebrated the opening of our new $5 million childcare center in Austin, Minnesota. Not only does this new facility assist the company's recruiting efforts in today's tight labor market. But more importantly, the center provides a needed service for our team members and our community. As transformational work is a key driver of our growth over the next several years and is essential for building significant and scalable capabilities for our future.

此外，本季度，我們還慶祝了位於明尼蘇達州奧斯汀、耗資 500 萬美元的新托兒中心的開幕。這個新設施不僅有助於公司在當今緊張的勞動力市場中進行招募工作。但更重要的是，中心為我們的團隊成員和社區提供所需的服務。因為轉型工作是我們未來幾年成長的關鍵驅動力，對於為我們的未來建立重要且可擴展的能力至關重要。

Now shifting to our updated 2024 outlook. We are reaffirming our full year top line outlook and updating our earnings outlook, we continue to expect net sales growth of 1% to 3%, assuming volume growth in key categories of benefit from higher brand support and innovation and our current assumptions for raw material input costs.

現在轉向我們更新的 2024 年展望。我們重申全年營收展望並更新獲利展望，假設關鍵類別的銷售成長受益於更高的品牌支援和創新以及我們目前對原材料的假設，我們繼續預期淨銷售額將成長 1% 至 3%投入成本。

In foodservice, we expect continued volume growth led by bacon, Turkey, pizza toppings and our line of premium prepared proteins we expect net sales increases in our international business driven by branded exports and further recovery in China. In retail, we expect higher net sales for our bacon and emerging brands verticals we have assumed net sales will be negatively impacted by volume and pricing headwinds in whole bird turkeys and higher elasticities in our center store business, as previously discussed.

在餐飲服務方面，我們預計培根、火雞、披薩配料和我們的優質預製蛋白質系列將帶動銷售持續成長，我們預計國際業務的淨銷售額將在品牌出口和中國進一步復甦的推動下成長。在零售方面，我們預期培根和新興品牌垂直市場的淨銷售額將更高，我們假設淨銷售額將受到整隻火雞的數量和定價逆風以及我們中心商店業務彈性較高的負面影響，如前所述。

From a bottom-line perspective, we have increased the lower end of our diluted net earnings per share and adjusted diluted net earnings per share ranges to reflect our solid first half performance and our expectations for growth from our food service and international segments, ongoing improvements across our supply chain and benefits from our transform and modernize initiative.

從獲利角度來看，我們提高了稀釋每股淨利潤的下限，並調整了稀釋每股淨利潤範圍，以反映我們上半年穩健的業績以及我們對食品服務和國際業務增長的預期，持續改進整個供應鏈，並從我們的轉型和現代化措施中受益。

Consistent with our prior guidance, our full year outlook assumes higher salaries, normalized employee related expenses and costs associated with planned investments in the business, including higher advertising investments, an additional factor expected to impact both our net sales and earnings guidance ranges as an unplanned production interruption at our Planters facility in Suffolk, Virginia. We discovered a food safety issue in April, which has since been resolved.

與我們先前的指導一致，我們的全年展望假設更高的工資、正常化的員工相關費用以及與計劃的業務投資相關的成本，包括更高的廣告投資，這是預計將影響我們的淨銷售額和盈利指導範圍的另一個因素，作為計劃外的因素我們位於弗吉尼亞州薩福克的 Planters 工廠生產中斷。我們在四月發現了一個食品安全問題，現在已解決。

Jacinth since will provide more detail regarding the financial impact in her comments. Taking all these factors into account for the full year, we expect net sales growth of 1% to 3%. Diluted net earnings per share of $1.45 to $1.55 and adjusted diluted net earnings per share of $1.55 to $1.65 and benefits to net earnings from our transform and modernize initiative, which is expected to deliver its strongest level of savings in our fourth quarter.

Jacinth 此後將在她的評論中提供有關財務影響的更多詳細資訊。考慮到全年的所有這些因素，我們預計淨銷售額將成長 1% 至 3%。稀釋後每股淨利潤為1.45 美元至1.55 美元，調整後稀釋後每股淨利潤為1.55 美元至1.65 美元，我們的轉型和現代化計劃將為淨利潤帶來好處，預計該計劃將在第四季度實現最強勁的節省水準。

In closing, our first half performance demonstrates our team's ability to execute our clear and achievable plan. We have line of sight to a strong second half of the year as we make further progress on the initiative we laid out last fall our team remains focused on growing operating income, driving savings through our transform and modernize initiative and capturing incremental value from our investments. At this time, I will turn the call over to Jacinth Smiley to discuss detailed financial information related to the second quarter and first half and additional color on our outlook.

最後，我們上半年的表現證明了我們團隊執行清晰且可實現的計劃的能力。隨著我們在去年秋天制定的計劃上取得進一步進展，我們預計下半年將實現強勁增長，我們的團隊仍然專注於增加營業收入，透過我們的轉型和現代化計劃節省開支，並從我們的投資中獲取增量價值。此時，我將把電話轉給 Jacinth Smiley，討論與第二季和上半年相關的詳細財務資訊以及我們前景的其他資訊。

Thank you, Jim, and good morning, everyone. As Jim noted, in his opening comments, we delivered a strong first half of the year. Volume for the first half was GBP2.2 billion, comparable to last year. Broad-based volume growth in foodservice and growth in international offset a decline in our retail segment. Of the GBP29 million decline in retail, approximately two thirds of the decline was related to lower sales across whole bird therapies. Net sales for the second quarter and first half of the year were $2.9 billion and $5.9 billion, respectively.

謝謝吉姆，大家早安。正如吉姆在開場白中指出的那樣，我們上半年的業績表現強勁。上半年成交量為 22 億英鎊，與去年持平。餐飲服務的廣泛銷售成長和國際業務的成長抵消了零售業務的下滑。在零售額 2900 萬英鎊的下降中，大約三分之二的下降與整隻鳥療法的銷售額下降有關。第二季和上半年的淨銷售額分別為29億美元和59億美元。

Similar to volume there is some nuance in the numbers. The approximate negative impact in net sales for the first half of the year related to whole birds turkeys was 1% weighted more heavily against the second quarter. We increased gross profit by 3% in the second quarter and first half, driven by strength across the supply chain and benefits from our transform and modernize initiative gross profit margin improved 90 basis points to 17.4% in the second quarter.

與成交量類似，數字也存在一些細微差別。與第二季相比，上半年與整隻火雞相關的淨銷售額受到的負面影響約為 1%。在整個供應鏈的實力以及我們的轉型和現代化舉措的推動下，我們第二季和上半年的毛利成長了 3%，第二季毛利率提高了 90 個基點，達到 17.4%。

All segments delivered higher gross profit margins during the first half of the year. SG&A increased $54 million in the second quarter and $73 million during the first half of the year. These increases include the settlement of port anti-trust litigation, higher employee related expenses and higher external expenses, including $19 million related to incremental investments in our transform and modernize initiatives. Advertising investments were up 27% in the second quarter and up 9% for the first half.

上半年所有業務部門的毛利率均實現較高成長。第二季的 SG&A 增加了 5,400 萬美元，上半年增加了 7,300 萬美元。這些增加包括港口反壟斷訴訟的和解、更高的員工相關費用和更高的外部費用，其中包括與我們的轉型和現代化計劃增量投資相關的 1,900 萬美元。第二季廣告投資成長 27%，上半年成長 9%。

We continued to support our leading brands in the marketplace with new advertising, creatives and stepped-up spending for the balance of the year, including for the SPAM Hormel pepperoni, planters and black label brands. Equity in earnings for the second quarter and first half decreased due to lower results from MegaMex, partially offset by improvement from our international partnerships. Interest and investment income for the second quarter and first half increased as interest income from higher cash balances and favorable market interest rates offset higher interest expense associated with the recent debt issuance.

在今年剩餘的時間裡，我們繼續透過新的廣告、創意和增加支出來支持我們在市場上的領導品牌，包括 SPAM Hormel 義大利辣香腸、種植園和黑標品牌。由於 MegaMex 業績下降，第二季和上半年的股本收益有所下降，但部分被我們國際合作夥伴關係的改善所抵消。第二季和上半年的利息和投資收入增加，因為較高的現金餘額和有利的市場利率帶來的利息收入抵消了與近期債務發行相關的較高利息支出。

Earnings before income taxes were $244 million for the second quarter and $530 million for the first half. On an adjusted basis earnings before income taxes for the first half were $564 million, a 1% increase compared to the first half of last year. The effective tax rate was 22.5% for the second quarter and 23% for the first half, which were higher than last year. Our prior year effective tax rate benefited from higher federal deductions. Given the higher rate to date, the effective tax rate for the fiscal 2024 year is now expected to be between 22% and 23%. The net result of all these factors was second quarter and first half diluted net earnings per share of $0.34 and $0.74 respectively.

第二季所得稅前利潤為 2.44 億美元，上半年為 5.3 億美元。調整後的上半年所得稅前利潤為 5.64 億美元，比去年上半年成長 1%。第二季有效稅率為22.5%，上半年有效稅率為23%，高於去年同期。我們上一年的有效稅率受益於聯邦扣除額的提高。鑑於迄今為止較高的稅率，2024 財年的有效稅率目前預計在 22% 至 23% 之間。所有這些因素的綜合結果是第二季和上半年稀釋後每股淨利潤分別為 0.34 美元和 0.74 美元。

First half adjusted diluted net earnings per share were $0.79 in line with last year. We also delivered strong operating cash flow during the first half of the year and year to date, cash flow from operations was $640 million, an increase of 55%. We remain committed to dividend growth, investing in our business and maintaining an investment grade rating. We paid our 383rd consecutive quarterly dividend effective May 15, at an annual rate of [$1.13] per share. We also announced our August dividend, which will represent our 96th year have on interrupted dividends.

上半年調整後攤薄每股淨利為 0.79 美元，與去年同期持平。上半年和年初至今，我們也實現了強勁的營運現金流，營運現金流為 6.4 億美元，成長了 55%。我們仍然致力於股息成長、投資於我們的業務並維持投資等級評級。我們連續第 383 個季度股利自 5 月 15 日起生效，年利率為每股 [1.13 美元]。我們也宣布了 8 月的股息，這將是我們第 96 年中斷股息。

We invested $60 million in capital projects during the second quarter. The largest capital projects for the quarter included the packaging projects for Planters and investment in our new order to cash system. Our outlook for capital expenditures in 2024, remains at 280 million. We ended the quarter with 1.5 billion in cash and short-term securities and $3.8 billion of debt. During the quarter, we completed a debt offering of $500 million. We plan to use the proceeds of the issuance and the cash on hand to pay off the $950 million notes that is due in June of this year.

第二季我們在資本項目上投資了 6,000 萬美元。本季最大的資本項目包括 Planters 的包裝項目以及新訂單現金系統的投資。我們對 2024 年資本支出的展望仍為 2.8 億美元。截至本季末，我們擁有 15 億美元的現金和短期證券以及 38 億美元的債務。本季度，我們完成了 5 億美元的債務發行。我們計劃使用發行收益和手頭現金償還今年 6 月到期的 9.5 億美元票據。

As Jim shared, we are reaffirming our full year net sales expectations and updating our earnings expectations. We expect third quarter pork input costs to increase seasonally and are seeing this pattern play out for key inputs such as bellies, trim and hogs. We continue to assume full year pork input costs to be higher than last year and above five-year averages. In turkey supply disruption this spring from HPAI. was minimal, and we remain in a strong position to service our customers and attract new business opportunities.

正如吉姆所說，我們重申全年淨銷售預期並更新我們的獲利預期。我們預計第三季豬肉投入成本將季節性增加，並且看到這種模式在豬肚、豬肉和生豬等關鍵投入中發揮作用。我們繼續假設全年豬肉投入成本高於去年並高於五年平均。今年春天，火雞供應因高致病性禽流感而中斷。是最小的，我們仍然處於服務客戶和吸引新商機的有利地位。

We are projecting growth across several parts of our genuine branded turkey business, including lean ground turkey in retail and value-added turkey in foodservice, lower volumes and pricing for commodity whole turkeys are expected to continue to pressure earnings. As Jim noted, we experienced an unplanned production interruption at our planted facility in Suffolk, Virginia. This issue is expected to affect service levels on some of our highest volume and innovative items, primarily impacting the third quarter. We have included in our updated earnings outlook, an estimated $0.03 impact related to this issue.

我們預計我們正宗品牌火雞業務的多個部分都會實現增長，包括零售業的瘦肉火雞和餐飲服務業的增值火雞，商品整隻火雞的銷量和定價下降預計將繼續給盈利帶來壓力。正如吉姆指出的那樣，我們位於維吉尼亞州薩福克的種植工廠經歷了計劃外的生產中斷。預計此問題將影響我們一些產量最高的創新產品的服務水平，主要影響第三季。我們已將與此問題相關的預計影響 0.03 美元納入最新的盈利展望中。

In terms of our back half cadence, we expect third quarter adjusted diluted net earnings per share to be lower compared to last year and the second quarter. The primary drivers are continued whole Turkey headwinds and the Suffolk production interruption we expect adjusted diluted net earnings per share growth in the fourth quarter, anticipating growth from all business segments and the strongest contribution of the year from our transform and modernize initiative.

就我們的下半年節奏而言，我們預計第三季調整後稀釋每股淨利將低於去年和第二季。主要驅動因素是整個土耳其的持續逆風和薩福克郡的生產中斷，我們預計第四季度調整後的稀釋後每股淨利潤將增長，預計所有業務部門都會增長，並且我們的轉型和現代化計劃將做出今年最強勁的貢獻。

And conclude my remarks, I would like to thank the entire team for their contributions to a solid first half of the year and for their continued commitments. There is more work ahead, and we're confident that we have the right strategy, people and balanced portfolio to drive the business forward and deliver long-term sustainable value.

在結束我的演講時，我要感謝整個團隊為今年上半年的堅實貢獻以及他們的持續承諾。未來還有更多的工作要做，我們相信我們擁有正確的策略、人員和平衡的投資組合來推動業務發展並提供長期可持續的價值。

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

此時，我會將通話轉交給接線生進行通話的問答部分。

Thank you. Ladies and gentlemen, we will now begin the question-and-answer session.

謝謝。女士們、先生們，我們現在開始問答環節。

(Operator Instructions)

（操作員說明）

Ken Goldman, JPMorgan.

肯‧戈德曼，摩根大通。

Hi, good morning and thank you. I wanted to ask about the EPS guide range, a $0.02 increase roughly at the midpoint. Your first half EPS alone came in $0.08 or $0.09 above consensus. You mentioned that the Virginia plant interruption is expected to affect on earnings by about $0.03 or so still is a little bit of a gap between how much the first half beat and I think it beat your own expectations you said and what you're we're looking for from the back half in terms of guidance.

你好，早安，謝謝你。我想詢問 EPS 指導範圍，大約在中點增加 0.02 美元。僅上半年每股收益就比預期高出 0.08 美元或 0.09 美元。您提到弗吉尼亞工廠的中斷預計將對收益產生約 0.03 美元左右的影響，與上半年的業績相比仍有一點差距，我認為這超出了您所說的預期和我們的預期。半部分尋找指導。

So just wanted to get a little bit of idea of if there's any prudence that you might call out in your guidance or just how you're thinking about some of the puts and takes in the back half of the year from a bottom line perspective that might be holding back your guidance range from what it otherwise could have been?

因此，我只是想了解您在指導中是否需要謹慎，或者您如何從底線的角度考慮今年下半年的一些看跌期權和買入期權可能會阻礙您的指導範圍，否則可能會達到預期範圍？

Yeah, good morning, Ken. Thanks for the question. You know, as we sit here today, yes, we're ahead of expectations. We feel we feel good about the business. And as you commented, you saw this morning, we took up the low end of our adjusted EPS range, increase the midpoint. We also delivered stronger margins for the second quarter and first half, which really demonstrates the progress we're making on our key initiatives.

是的，早安，肯。謝謝你的提問。你知道，當我們今天坐在這裡時，是的，我們超出了預期。我們對這項業務感覺良好。正如您所評論的，您今天早上看到，我們佔據了調整後每股收益範圍的低端，增加了中點。我們在第二季和上半年也實現了更高的利潤率，這確實顯示了我們在關鍵措施上所取得的進展。

And if it wasn't for the Suffolk issue that we talked about in our prepared remarks, we would be having a more positive conversation today. A couple of the more specific items to think about, we mentioned Planters on Suffolk. We would also think about on our first quarter call, we talked about the incremental impact of the full year Turkey, which was roughly $0.05.

如果不是我們在準備好的發言中談到的薩福克問題，我們今天的對話將會更加積極。我們提到了薩福克郡的種植園，需要考慮一些更具體的事項。我們也會考慮在第一季的電話會議上，我們討論了土耳其全年的增量影響，約 0.05 美元。

And then also, we talked about the tax rate as well. That will have an impact of $0.01 to $0.02. So when you take all those things together, we feel like the raise is -- the increase in the raises as appropriate. When we think about what's really positive, we're going to still expect strong performance from foodservice and international. We've got a path to growth in retail.

然後我們也討論了稅率。這將產生 0.01 至 0.02 美元的影響。因此，當你把所有這些因素放在一起時，我們覺得加薪是－適當增加加薪。當我們思考真正積極的方面時，我們仍然期望餐飲服務和國際業務表現強勁。我們有一條零售業成長之路。

We still expect our strongest transform and modernize delivery in the back half of the year. But clearly, we've got some things that we're watching, talking about the Planters business and then also really keeping a close eye on what's happening with the Turkey market overall. But when you boil it all down to the bottom line, we're really pleased with our half one performance and a clear line of sight to growth in the back half of the year.

我們仍然預計今年下半年將實現最強勁的轉型和現代化交付。但顯然，我們正在關註一些事情，談論種植者業務，然後也真正密切關注土耳其市場的整體情況。但當你把這一切歸結為底線時，我們對上半年的表現和下半年成長的清晰願景感到非常滿意。

Okay. Thank you for that. And then for my follow-up, your guidance for top line growth was reiterated of course, for the year, it does imply a pretty decent step-up in the back half rate despite comparisons that are slightly more difficult. You talked about better innovation, more advertising. You talked about your current assumptions for raw material inputs. Can you elaborate a little bit though, on what the key drivers will be to maybe accelerate that top line in the back half of the year? Just how do we think about bucketing the most important of those drivers, especially in retail, where you said the whole bird turkey business will remain challenged.? Thank you.

好的。謝謝你。然後，對於我的後續行動，您對今年營收成長的指導當然得到了重申，這確實意味著後半成長率相當不錯，儘管比較稍微困難一些。您談到了更好的創新、更多的廣告。您談到了目前對原料投入的假設。不過，您能否詳細說明今年下半年加速營收成長的關鍵驅動因素是什麼？我們如何看待這些驅動因素中最重要的因素，特別是在零售業，您說整個火雞業務仍將面臨挑戰。謝謝。

Yeah. Thanks, Kennen, for the follow up, I think there's -- one of the things I would say is let's take foodservice and international. Maybe off the table, foodservices got broad-based strength outperforming the industry, really expect that momentum to continue for the balance of the year. The international business, we expect to have strong sales growth in the back half of the year as well. So I think those two businesses are going to provide strong growth and really that the story is in retail. And so as we said, it is a bit of a mixed bag. We've got a lot of verticals that are doing just fine. You talk about Turkey and the impact that that will have in the back half of the year.

是的。謝謝凱南的跟進，我想我想說的一件事是讓我們以餐飲服務和國際服務為例。也許在談判之外，餐飲服務業的廣泛實力超越了整個行業，真的預計這一勢頭將在今年餘下的時間裡持續下去。國際業務，我們預計下半年的銷售也將強勁成長。因此，我認為這兩項業務將提供強勁的成長，而這確實是零售業的故事。正如我們所說，這是一個魚龍混雜的情況。我們有很多垂直行業都做得很好。您談到了土耳其及其在今年下半年產生的影響。

And then we also said in our prepared remarks, just watching what happens in the convenient meals and protein vertical. And so we have had bright spots with SPAM refrigerated entrees Skippy, but we've got some other brands and categories that we're watching. We do have really strong syndicated data over the last four weeks, which is really encouraging. And so there is a lot a lot of good news, and we do expect to be able to deliver in that range. What I would say is as we think about it, the most likely scenario would be towards the low end of that net range for the net sales guide.

然後我們在準備好的演講中也說過，只要看看方便餐和蛋白質垂直領域會發生什麼事。因此，我們在 SPAM 冷藏主菜 Skippy 中找到了亮點，但我們還有一些其他品牌和類別值得關注。過去四個星期我們確實擁有非常強勁的聯合數據，這確實令人鼓舞。因此，有很多好消息，我們確實希望能夠在這個範圍內交付。我想說的是，正如我們所考慮的那樣，最有可能的情況是淨銷售指南的淨範圍的低端。

Understood. Thank you.

明白了。謝謝。

Peter Galbo, Bank of America.

彼得‧加爾博，美國銀行。

Hey, guys, good morning. Thanks for taking the questions and for all the color actually on the quarter and go forward. Maybe just for my first question, a little bit of a two-parter. I just wanted to clarify. I think you said that that Turkey accounted for two thirds of the volume decline in US retail. I wasn't sure if that was a first half or a 2Q comment specifically. And then Jim, maybe if you can just elaborate a bit more on the convenient meals and protein side.

嘿，夥計們，早安。感謝您提出問題以及本季實際的所有內容，然後繼續前進。也許只是針對我的第一個問題，有點兩方的問題。我只是想澄清一下。我想你說過土耳其占美國零售額下降的三分之二。我不確定這是上半部還是第二季的具體評論。然後吉姆，也許你可以詳細說明一下方便的膳食和蛋白質方面。

I mean, obviously, we've now gone through lapping the lower snap benefits that would seem to be a category that maybe would be a bit more exposed to that. Just what's the playbook from here to trying to improve the volume forward as that perceived tailwind is maybe not as much of a tailwind as we would have thought. And I think that's probably a broader question across food, but would love your thoughts there?

我的意思是，顯然，我們現在已經經歷了較低的快速福利，這似乎是一個可能更容易受到這種影響的類別。試著提高銷量的策略是什麼，因為感知到的順風可能不像我們想像的那麼順風。我認為這可能是整個食品中一個更廣泛的問題，但你會喜歡你的想法嗎？

Yeah, hi. Good morning, Peter. Yes, indeed. So the volume impact for the first half on is related to -- two- thirds of that is related to Turkey. And then Deanna will take the next part of your question.

是的，嗨。早安，彼得。確實是的。因此，上半年的銷售影響與──其中三分之二與土耳其有關。然後迪安娜將回答你問題的下一部分。

Yeah. I think, Pete. Relative to convenient meals on protein, I think it's important to tease apart, there was strong growth in SPAM and on-trade as well as Skippy, which we bucket under convenient meals and protein, where we're really seeing the softer demand and the consumer pull back as then on the canned or center store area. When we think about the quarter and some of the impacts, as you mentioned, it really was direct related to SNAP, whether weather being softer historically, that's a quarter that has and colder weather and influences the purchase of those types of products.

是的。我想，皮特。相對於蛋白質方便餐，我認為區分很重要，SPAM 和 on-trade 以及 Skippy 都有強勁增長，我們將其歸入方便餐和蛋白質類別，我們確實看到了需求疲軟和消費者隨後撤回罐裝或中心商店區域。當我們考慮這個季度和一些影響時，正如您所提到的，它確實與 SNAP 直接相關，無論歷史上天氣是否較軟，這個季度的天氣是否較冷，都會影響這些類型產品的購買。

And competition and promotion to have heated up in the boat category. So as we think about it heading into Q3, that is seasonally a lower quarter for convenient meals and protein. But that doesn't mean our team is hard at work attacking some of the opportunities that they're thinking about is making sure our promotions are in place, making sure our promotions are driving depth of pulling up on frequency to make sure we're getting to those promoted price points that are going to encourage purchase.

船舶類別的競爭和晉升也日趨白熱化。因此，當我們考慮進入第三季時，方便食品和蛋白質的季節性較低季度。但這並不意味著我們的團隊正在努力抓住他們正在考慮的一些機會，以確保我們的促銷活動到位，確保我們的促銷活動能夠推動提高頻率的深度，以確保我們達到那些將鼓勵購買的促銷價格點。

We're also working close with our retailers on displays and getting product out of center store and out into the other areas where we disrupt people on their path to purchase. We're also shifting some dollars into the category to be speaking with consumers about the value that these items play, especially as consumers are thinking about value options as they're shopping. And then I think the final pieces of thinking about as we head into the fall and making sure that we already have really significant promotions in place for a heavy holiday season. Back-to-school, what have you.

我們也與零售商密切合作進行展示，並將產品從中心商店轉移到我們擾亂人們購買路徑的其他區域。我們也將一些資金投入到這個類別中，與消費者談論這些商品所發揮的價值，特別是當消費者在購物時考慮價值選擇時。然後我想到了在進入秋季時要考慮的最後一些問題，並確保我們已經為繁忙的假期做好了真正重要的促銷活動。回學校了，你有什麼。

Got it. That's super helpful, then. Thanks, Deanna. And then, Jim, maybe just to follow up on Ken's question on around the back half sales guidance and understanding the low end of the range is helpful and any thoughts just as we as we now have the back half volume relative to price mix, how we should think about that?

知道了。那麼這非常有幫助。謝謝，迪安娜。然後，吉姆，也許只是跟進肯關於後半部銷售指導的問題並了解該範圍的低端是有幫助的，任何想法就像我們現在相對於價格組合的後半部銷量一樣，如何我們應該考慮一下嗎？

I think given what you've said about some of the raw materials and maybe the pass-through nature. Just want to understand some of those components in the back half. Thanks very much.

我認為考慮到你所說的一些原材料以及可能的傳遞性質。只是想了解後半部的一些組件。非常感謝。

Yeah sure. And we can do that for you, Peter you know, as just as we go through the segments of foodservice, we expect volume mid single digits of sales in the high single digit range. International will be a bit more a bit more nuanced where volume will probably be down high single digits. And a lot of that is lower fresh pork, some of the commodity businesses, but sales because the mix improves will be up high single digits. And then the retail business, we do expect volume and sales to be up to be in that mid single digit range down. I'm sorry, low single digit range down. And then all of that, there's still that path to get us into that guided range. But we do think the most likely scenario would be to be at the low end of the range.

好，當然。我們可以為您做到這一點，彼得，您知道，正如我們瀏覽餐飲服務細分市場一樣，我們預計銷量將達到高個位數範圍。國際市場的情況會更加微妙，交易量可能會下降高個位數。其中很大一部分是生鮮豬肉和一些大宗商品業務的下降，但由於產品組合的改善，銷售額將出現高個位數成長。然後是零售業務，我們確實預期銷量和銷售額將下降到中間個位數範圍內。抱歉，低個位數範圍。然後所有這些，仍然有一條路可以讓我們進入那個引導範圍。但我們確實認為最有可能的情況是處於該範圍的低端。

Got it, very helpful. Thanks, Jim.

明白了，非常有幫助。謝謝，吉姆。

Rupesh Parikh, Oppenheimer.

魯佩什·帕里克，奧本海默。

Good morning. Thanks for taking my question. So just on the advertising front, so we know there's an increase this quarter in advertising. Just curious how the returns are applying out thus far versus your expectations?

早安.感謝您提出我的問題。就廣告方面而言，我們知道本季廣告有所增加。只是好奇到目前為止的回報率與您的預期相比如何？

Yeah. Thanks, Rupesh. This Deanna, as we introduced back at Investor Day, we talked about our flagship and our rising brands and resourcing those brands to drive higher growth rates. When you think about the performance of SPAM, BLACK Label Bacon, Jennie-O and where we're spending our advertising, we're seeing really strong performance in both volume and market share gains. In addition to the advertising, we're also introducing innovation and all of those categories. And so it's really a one-two punch of not only reminding the consumers about the products, but when they get to shelf that they're seeing some innovation there as well.

是的。謝謝，魯佩什。正如我們在投資者日介紹的那樣，迪安娜談到了我們的旗艦產品和新興品牌，以及為這些品牌提供資源以推動更高的成長率。當您考慮 SPAM、BLACK Label Bacon、Jennie-O 的表現以及我們的廣告支出時，我們會發現在銷售和市場份額成長方面都表現強勁。除了廣告之外，我們還推出創新和所有這些類別。因此，這實際上是一擊二擊，不僅提醒消費者有關產品的信息，而且當他們上架時，他們也看到了一些創新。

So we're excited about the advertising. We've also introduced a lot of new advertising with new brand positioning, backing it up and happy that as we think about the quarter coming up, pepperoni goes already in market with new packaging as well as new advertising. And we're really excited about what that's going to continue to do as one of our other flagship brands. So working well for strong returns and continuing to get stronger and stronger as we progress greater.

所以我們對廣告感到興奮。我們還推出了許多具有新品牌定位的新廣告，並很高興地看到，當我們想到即將到來的季度時，義大利辣香腸已經以新包裝和新廣告進入市場。我們對作為我們其他旗艦品牌之一將繼續做的事情感到非常興奮。因此，努力工作以獲得豐厚的回報，並隨著我們取得更大的進步而繼續變得越來越強大。

Maybe just one follow-up question. As you look to your retail segment, how would you describe the current promotional competitive backdrop? I know some of the retailers out there are talking about are reducing prices so I just want to get a sense of how you guys would characterize that backdrop right now.

也許只是一個後續問題。當您展望零售領域時，您如何描述目前的促銷競爭背景？我知道一些零售商正在談論降價，所以我只是想了解你們現在如何描述這種背景。

So it depends by category. You know, I think in most categories were comfortable. And for us, we're really thinking about the desired outcome. And as our promotional dollars really driving returns for us and in some cases, under the new structure that we have we're able to shift dollars from trade into advertising or into other areas to support growth if it's not providing the right return.

所以這取決於類別。你知道，我認為在大多數類別中都很舒服。對我們來說，我們真正考慮的是期望的結果。由於我們的促銷資金確實為我們帶來了回報，在某些情況下，在我們擁有的新結構下，如果不能提供適當的回報，我們可以將資金從貿易轉移到廣告或其他領域以支持成長。

We're also though then shifting dollars, like I said, on convenient meals and protein into convenient meals and protein to help support the right promoted price points that we need in this particular lower seasonality for us and convenient meals and proteins. That category in particular is seeing more competition. But across the board we're I'm not saying anything that's out of the ordinary relative to our customers, they get to control price at shelf. We can influence and we can have conversations we can make sure they understand based on our insights and analytics on what is going to drive growth and profitability and we can inform as a category leader in a category supporter. That's our role.

不過，就像我說的那樣，我們也會將方便膳食和蛋白質上的美元轉移到方便膳食和蛋白質上，以幫助支持我們在這個特殊的較低季節性和方便膳食和蛋白質中所需的正確促銷價格點。該類別的競爭尤其激烈。但總的來說，我並沒有對我們的客戶說任何不尋常的話，他們可以控制貨架上的價格。我們可以影響，我們可以進行對話，我們可以根據我們對推動成長和獲利能力的洞察和分析，確保他們理解，我們可以作為類別支持者中的類別領導者提供資訊。這就是我們的角色。

Great. Thank you.

偉大的。謝謝。

Michael Lavery, Piper Sandler.

麥可萊弗里、派珀桑德勒。

Thank you. Good morning. Just looking at the retail scanner data and how it compared to your reported figures, there was little bigger gap than we had expected. And I guess first was curious how much SKU rationalizations might be a factor there? Or you've touched on the turkey weakness. Is that maybe more unmeasured on a piece of the business relative to others and just how we should think about that and how that might look over the rest of the year? How the gap might look like, how they would compare?

謝謝。早安.只要看看零售掃描器數據以及它與您報告的數據的比較，就會發現差距比我們預期的要大一些。我想首先很好奇 SKU 合理化可能在多大程度上是其中的一個因素？或者你已經觸及了火雞的弱點。與其他業務相比，這是否可能在某項業務上更加難以衡量？差距可能是什麼樣的，他們會如何比較？

Yeah, good morning. Thanks for the question, Michael. I think as you've talked about really positive trends in our scanner data with five of the six verticals showing growth. And really the decline is in turkeys and in some of the non-tracked areas of the business, we still do have some contract manufacturing business that has showing declines in addition to the Turkey that we discussed. But hose are really the drivers for the volume decline.

是的，早安。謝謝你的提問，麥可。我認為正如您所談到的，我們的掃描器數據中存在真正積極的趨勢，六個垂直行業中有五個顯示出增長。實際上，下降的是火雞和一些未跟踪的業務領域，除了我們討論的土耳其之外，我們仍然有一些合約製造業務出現下降。但軟管確實是銷量下降的驅動因素。

Okay, great. That's helpful. And then when you talk about the pressure in the center store on certain categories, can you point to any common thread with the brands where there's weakness? Is it, but ones that face more private label exposure? Do they have higher price gaps or is it higher absolute price points? Is there any sort of consumer read there that you can get from what you're seeing in the center store part of the business that you called out?

好的，太好了。這很有幫助。然後，當您談到中心商店在某些類別上面臨的壓力時，您能否指出這些品牌存在弱點的共同點？是嗎，但是那些面臨更多自有品牌曝光的企業呢？它們的價格差距是更大還是絕對價格點更高？您是否可以從您在您所呼籲的業務的中心商店部分中看到的內容中獲得任何類型的消費者讀物？

Yeah. Thank you. And there's going to be a couple of things. One, there's a lot more competition in those categories. We are also seeing the rate price elasticities play out based on the price increases we took in Q2 based on beef markets and a strong component and the majority of those items. So the price elasticities was something that we anticipated and expected. The competition obviously, and the heavier promotional activity is something that we're working to counteract as well.

是的。謝謝。將會有一些事情。第一，這些類別的競爭更加激烈。我們也看到，利率價格彈性是基於我們在第二季度基於牛肉市場和強勁成分以及其中大部分產品的價格上漲而發揮出來的。因此，價格彈性是我們預期和預期的。顯然，競爭和更激烈的促銷活動也是我們正在努力應對的。

Okay. Thanks so much.

好的。非常感謝。

Adam Samuelson, Goldman Sachs.

亞當·薩繆爾森，高盛。

Yeah, thank you. Good morning, everyone. So I guess I want to maybe dig in on the retail side. And Jim, I appreciate the clarity you gave around the sales and volume expectation for the retail segment in the second half of the year? I know there were some parts of the business where there was targeted price increases that you are putting in place for the end of the second quarter. I just wanted to maybe hone in on those because they do seem to be touching on some of the categories having more weakness right now.

是的，謝謝。大家，早安。所以我想我可能想深入零售方面。吉姆，我很欣賞您對下半年零售部門的銷售和銷售預期的明確說明？我知道你們在第二季末對某些業務部門進行了有針對性的漲價。我只是想專注於這些，因為它們似乎確實觸及了一些目前存在更多弱點的類別。

And are you seeing the elasticities proving to be higher than you thought going in? Are you seeing pushback from retailers on just not taking the price increases or how do we think about how that is on the -- how successful those actions are relative to the plans you might have had three or six months ago?

您是否發現彈性比您想像的還要高？您是否看到零售商拒絕接受漲價，或者我​​們如何看待這些行動相對於您三、六個月前的計劃有多成功？

Yeah, I think Adam, I'll start with the pricing with retailers. And clearly, there's a heightened level of discussions in terms of pricing, and that's not anything new. We've talked about that in the past and the retail, the retail team does a really nice job making sure that there's solid rationale and clarification on why the pricing it was needed. The other part of this is the team is working to address those issues now. And there's it's a combination of short term and also really the long-term vision of where we see some of these things playing out, and I'll let Deanna add some additional color on that as well.

是的，我想亞當，我將從零售商的定價開始。顯然，定價方面的討論程度很高，這不是什麼新鮮事。我們過去已經討論過零售問題，零售團隊做得非常好，確保有充分的理由並澄清為什麼需要定價。另一方面，團隊現在正在努力解決這些問題。這是短期和長期願景的結合，我們看到其中一些事情正在發生，我也會讓迪安娜對此添加一些額外的色彩。

When I think back to Planters, as an example a year ago where we took a really thorough approach to thinking about what short-term actions do we need to take to address that in the quarter, maybe in the half. But longer term, we were also doing work and similar work that we're doing against the convenient meals and protein. When we think about our revenue growth management team and price pack architecture and really evaluating our price points evaluating our promotional productivity, again, as I mentioned, shifting some of our promotions to a more productive strategy perhaps, we're also thinking about innovation. You know, we mentioned some of our flagship brands that performed so well in the first half and that we expect to continue to perform well.

當我回想起一年前的 Planters 的例子時，我們採取了非常徹底的方法來思考我們需要採取哪些短期行動來解決本季（也許是半年）的問題。但從長遠來看，我們也在做一些與方便飲食和蛋白質相關的工作和類似的工作。當我們考慮我們的收入成長管理團隊和價格包架構並真正評估我們的價格點並評估我們的促銷生產力時，正如我所提到的，也許將我們的一些促銷活動轉向更有成效的策略，我們也在考慮創新。你知道，我們提到了我們的一些旗艦品牌在上半年表現非常好，我們預計將繼續表現出色。

And the drivers of the performance were really three things. It was advertising and refreshed advertising, in many cases are based on our brand positioning work that was done based on innovation as so when we've got consumers to the shelf, they are also excited to trying new flavors, new pack sizes, new shapes, forms, what have you? So we're also thinking about innovation and advertising and really some great work that drove a lot of progress in the first half was our retail selling organization and the total points of distribution that they've been able to gain in both our flagship and our rising brands.

性能的驅動因素實際上是三件事。這是廣告和更新的廣告，在許多情況下都是基於我們基於創新完成的品牌定位工作，因此當我們將消費者帶到貨架上時，他們也很高興嘗試新口味、新包裝尺寸、新形狀，表格，你有什麼？因此，我們也在考慮創新和廣告，實際上，我們的零售銷售組織以及他們在我們的旗艦店和我們的旗艦店中獲得的總分銷點推動了上半年的巨大進步。

In the 5% range of increase. And so we expect to that important work to do, which comes through sitting down with what they're category managers and usually can be six months to a year out as both we sell a new total distribution points. So it's going to be a very thorough approach that we've again execute in the short term through promos displays turning on social media as well as long-term through PPA innovation, advertising and gaming distribution.

在5%的增幅範圍內。因此，我們希望完成這項重要的工作，這需要與他們的品類經理坐下來進行，通常可能需要六個月到一年的時間，因為我們都出售新的總分銷點。因此，這將是一種非常徹底的方法，短期內我們將再次透過社群媒體上的促銷展示來執行，長期則透過 PPA 創新、廣告和遊戲發行來執行。

Again, that's very helpful color. And then just taking a step back on the on the SG&A side this quarter, obviously, there's a bigger year-on-year increase in employee incentive payments on top of the advertising that you more clearly break out as we think about the full year, how what's the right range of non-advertising related SG&A growth that we should be thinking about? And presumably that growth would moderate next year because you're not going to have the year-on-year expansion or the same magnitude of year-on-year expansion and employee compensation as you are this year. But just helps us frame that, that trajectory going into through the end of the second half and next year.

再說一遍，這是非常有用的顏色。然後，在本季度的 SG&A 方面退一步，顯然，除了廣告之外，當我們考慮全年時，您會更清楚地看到，員工獎勵金同比增長更大，我們應該考慮的非廣告相關SG&A 增長的正確範圍是多少？明年的成長可能會放緩，因為今年不會出現同比擴張或同比擴張和員工薪酬幅度相同的情況。但這只是幫助我們建立這一軌跡，直到下半年末和明年。

Yeah, hi, good morning. So the perspective that we are thinking about you should have relative to SG&A. It's certainly the biggest component year over year is going to be the expenses related to our transform and modernize. And so that will drive a double digit increase year over year in the back half of this year, but also going into into next year as well.

是的，嗨，早安。因此，我們對您的看法應該與 SG&A 相關。同比而言，最大的組成部分肯定是與我們的轉型和現代化相關的費用。因此，這將推動今年下半年乃至明年的年比兩位數成長。

In addition to the fact that we do have that higher compensation that we outlined in our prepared remarks.

除此之外，我們確實擁有我們在準備好的評論中概述的更高的薪酬。

That's helpful color. I'll pass it on, thanks.

這是有用的顏色。我會轉發的，謝謝

Tom Palmer with Citi.

花旗銀行的湯姆·帕爾默。

Good morning. Thank you. You noted lower whole Turkey volumes, especially at retail. How does this align with your turkey production. Are you pulling back that as well? Or is this more a reference to what you're selling to customers because if you're not cutting supply by as much, I guess where is the Turkey essentially going? And is there a point where maybe volumes inflect a bit more?

早安.謝謝。您注意到土耳其整體銷售下降，尤其是零售量。這與您的火雞生產有何關係？你也把它拉回來嗎？或者這更多的是指你向客戶銷售的產品，因為如果你不削減那麼多供應，我猜火雞基本上會去哪裡？是否存在某一點，成交量可能會出現更多變化？

Yeah, Tom, good morning. I think the biggest takeaway in Turkey from where we sit today is there really is no change in our outlook We've got strong internal supply and capacity, the teams are doing a great job both at retail and foodservice. We're gaining share with our lean ground turkey, our foodservice team, as we've talked about, they've been hard at work, regaining some of the lost business that we had during the AI. events. And so there's really no change to how we're thinking about the business for the rest of the year. Really, we think that we've derisked the Turkey outlook for the rest of the year.

是的，湯姆，早安。我認為從我們今天坐的位置來看，土耳其最大的收穫是我們的前景確實沒有改變，我們擁有強大的內部供應和能力，團隊在零售和餐飲服務方面都做得很好。正如我們所談論的，我們正在與我們的精益火雞和我們的餐飲服務團隊一起獲得份額，他們一直在努力工作，重新奪回了我們在人工智慧期間失去的一些業務。事件。因此，我們對今年剩餘時間業務的看法實際上並沒有改變。確實，我們認為我們已經消除了土耳其今年剩餘時間的前景風險。

Thank you. Just on the foodservice side, at an industry level, we've seen a pullback in traffic. It seems like you're really not seeing the effect of this and the guidance you gave would appear that you don't really expect a whole lot of pressure in the second half of the year, either could you just give any detail on what's really driving this growth in terms of are you seeing your customers not seeing the traffic pressure just given maybe a different mix than the broader industry? Are there new customer wins to be thinking about offsetting detail there? Thank you.

謝謝。僅在餐飲服務方面，在產業層面，我們就看到了流量的回落。看來你真的沒有看到這一點的影響，而且你給出的指導似乎表明你並不真正預計下半年會有很大的壓力，或者你能提供一些關於真正的細節嗎？的方式是，您是否看到您的客戶沒有看到流量壓力，因為可能與更廣泛的行業不同的組合？是否有新的客戶需要考慮抵銷細節？謝謝。

Yes, thanks, Tom. Obviously, the foodservice team had another excellent start to the year and it remains well positioned for the balance of the year. And so just as a reminder, we compete both in the commercial and noncommercial elements of the business. And so we've really got a broad array of customer base. When we think about who we're targeting and who we're selling to, we talked about the great work happening in the convenience channel, not only with our Planters business, but also thinking about some of the grab-and-go opportunities for us, where we're more of an ingredient. And so it's those things we're thinking about the channels or diversification we've talked at length about the competitive advantage.

是的，謝謝，湯姆。顯然，餐飲服務團隊今年又取得了良好的開局，並且在今年餘下的時間裡仍然處於有利地位。因此，提醒一下，我們在業務的商業和非商業元素上都存在競爭。因此，我們確實擁有廣泛的客戶群。當我們思考我們的目標客戶和銷售對象時，我們談到了便利管道中發生的偉大工作，不僅涉及我們的種植者業務，而且還考慮了一些即搶即走的機會我們，我們更多的是其中的一個成分。因此，我們正在考慮通路或多元化，我們已經詳細討論了競爭優勢。

We think our direct sales force offers us being front and center with the customer talking to them about their challenges. What's happening in their business. And then last but certainly not least, is just a continued innovation pipeline as the team has been able to build. We've again, talked for many years about Bacon 1 and how that business continues to grow this quarter, we're talking about our flash 180 sous vide fully cooked chicken item that we're bringing to operators to help them have high quality chicken items on their menu when maybe they don't have the right equipment or staff to do it. So there's a lot of things at play that again, we believe puts us in a very advantaged position and helps us in, especially in the face of some of the data that you're seeing. Our team is still out there able to drive results.

我們認為，我們的直銷團隊使我們能夠站在客戶的前沿和中心位置，與客戶談論他們面臨的挑戰。他們的生意發生了什麼事。最後但同樣重要的是，團隊已經能夠建立持續的創新管道。我們再次談論了很多年關於培根 1 以及該業務如何在本季度繼續增長，我們正在談論我們的 Flash 180 真空低溫烹調全熟雞肉產品，我們將其提供給運營商以幫助他們獲得高品質的雞肉當他們可能沒有合適的設備或員工來完成菜單上的項目時。因此，有很多因素再次發揮作用，我們相信這使我們處於非常有利的位置並幫助我們，特別是面對您所看到的一些數據。我們的團隊仍然能夠推動成果。

Thank you.

謝謝。

Ben Theurer, Barclays.

本‧瑟雷爾，巴克萊銀行。

Yeah, good morning, Jim, and thanks. Thanks for taking my question. Obviously, a lot's been asked already. Just wanted to follow up first on on some of your expectations on the international business. Clearly was it was good on the profit side, but top line was down did I miss? Did I hear this right that you said like volume down high single digit, but sales should be up high single-digits. Just wanted to clarify that, that commentary and to understand a little bit, if you can share with us a regional what as to the performance in international? That would be my first question. Thank you.

是的，早上好，吉姆，謝謝。感謝您提出我的問題。顯然，已經有很多人問了。只是想先跟進您對國際業務的一些期望。顯然，利潤方面不錯，但營收下降了，我錯過了嗎？我沒聽錯吧，你說的是銷量下降高個位數，但銷售額應該要上升個位數。只是想澄清一下，那篇評論並了解一點，您是否可以與我們分享一下區域性的表現以及國際性的表現？這是我的第一個問題。謝謝。

Yeah. So Ben, you did hear that correctly in terms of volume being down high single digits and sales being up high single digits. And a big part of that is mix when we think about some of the lower commodity sales that we'll have. And we'll have a lot more branded business going through that segment. As we think about China and the retail business is continuing to improve, if not where it has been in the past. But there's a lot of great work happening in terms of regaining distribution innovation in our shelf-stable meat snacking portfolio.

是的。所以，本，你確實聽對了，銷量下降了高個位數，銷售額上升了高個位數。當我們考慮到我們將擁有的一些較低的商品銷售時，其中很大一部分是混合。我們將有更多的品牌業務進入該細分市場。就我們而言，中國的零售業務即使沒有達到過去的水平，也持續改善。但在我們的耐儲存肉類零食產品組合中重新獲得分銷創新方面，有許多偉大的工作正在發生。

But the foodservice business is really, really strong and continues to gain momentum in China. We've been pleased with the results of the investments that we've made in Indonesia, our partners in the Philippines continue to have a strong performance. So again, it really is, as we've said, that going into the year and even in Q1 is that the business has continued to improve throughout the year as we expected, we do expect some acceleration in half two. And I would remind you again that when we think about especially Q4, international is lapping a pretty weak Q4 comp. That's something else to think about.

但餐飲服務業務在中國確實非常強勁，並且持續成長。我們對在印尼的投資結果感到滿意，我們在菲律賓的合作夥伴繼續表現強勁。所以，正如我們所說，進入今年甚至第一季度，業務正如我們預期的那樣在全年持續改善，我們確實預計下半年會出現一些加速。我想再次提醒您，當我們特別考慮第四季時，國際航空的第四季業績相當疲軟。這是另一個需要考慮的事情。

Okay. Perfect. And then my follow-up, if I may, just real quick around the volume performance in retail. And you gave already a lot of detail, but just wanted to understand like, what is your approach in terms of thinking to recover these -- this lost volume? Is there any way of considering certain isolated (inaudible) pricing more temporary through promotion and trying to stimulate the volume? So what is your playbook to get the volumes going again particularly in retail?

好的。完美的。然後，如果可以的話，我的後續行動只是圍繞零售業的銷售表現快速進行。您已經提供了很多細節，但只是想了解，您在恢復這些丟失的捲方面的想法是什麼？有沒有什麼方法可以透過促銷並嘗試刺激銷售量來考慮更臨時的某些孤立（聽不清楚）定價？那麼，您有何策略可以讓銷售量再次回升，特別是在零售業？

Yeah. And, I think the one thing I don't want to have lost in this conversation is that there are some brands in that vertical that are doing really well. We talked about SPAM our refrigerated on trays, SKIPPY peanut butter. And so there is some really strong performance there. I think Deanna has talked, and I'll maybe let her reiterate the fact that the team is thinking about this in two buckets. There's in the short term work that we can do and then really the long term opportunities for the teams. And that's really where we want to spend our time to make sure that we've got parts of the businesses that need the support that we have them on solid ground. So Deanna just maybe reiterate some of that?

是的。而且，我認為我不想在這次談話中失去的一件事是，在這個垂直領域中有一些品牌做得非常好。我們談論了冷藏在托盤上的垃圾郵件、SKIPPY 花生醬。所以那裡有一些非常強大的表現。我認為迪安娜已經談過了，我也許會讓她重申一個事實，即團隊正在兩方面考慮這個問題。我們可以做一些短期的工作，然後為團隊提供真正的長期機會。這確實是我們想要花時間的地方，以確保我們的部分業務需要我們為他們提供堅實的支援。那麼迪安娜也許只是重申了其中的一些內容？

Yeah, beyond what I've already said about our flagship brands, which had nice volume growth supported by advertising innovation in the first half. We'll continue to see that support as we head into the back half. The other areas that you'll see is continued innovation, and we've got numerous innovation launches. I believe they were in the pre read deck that were launched in the first half and are launching in the second half. And what we're really happy to see what the innovation is that we're bringing in new consumers.

是的，除了我已經說過的關於我們的旗艦品牌的內容之外，我們的旗艦品牌在上半年的廣告創新的支持下實現了良好的銷售增長。當我們進入後半場時，我們將繼續看到這種支持。您將看到的其他領域是持續創新，我們推出了許多創新產品。我相信它們在上半年推出的預讀套牌中，並將在下半年推出。我們非常高興看到我們引入新消費者的創新。

So think about the new (inaudible) entrees and the House of Tsang entrees bringing in multicultural and younger consumers into the portfolio, seeing the same thing with the Planters innovation, both the flavored cashews and the Duos. So we'll continue to drive new consumers. Obviously, those things the not only our baseline business, but incremental business as well. You can see us continue to advertise on throughout the back half of the year.

因此，想想新的（聽不清楚）主菜和 House of Tsang 主菜將多元文化和年輕消費者帶入產品組合，在 Planters 創新中看到同樣的事情，包括風味腰果和 Duo。因此，我們將繼續吸引新消費者。顯然，這些不僅是我們的基準業務，也是增量業務。您可以看到我們在今年下半年繼續投放廣告。

And then finally, from a promotional standpoint, we've got a lot of promotional activity already secured through Q3 working on Q4 right now as our teams lock up back-to-school and think about the holiday programming. So those are some of the key things the team will be executing both in the short term as well as continuing to think about the long term.

最後，從促銷的角度來看，隨著我們的團隊鎖定返校並考慮假期計劃，我們已經透過第三季和第四季確保了許多促銷活動。因此，這些是團隊將在短期內執行以及繼續考慮長期的一些關鍵事情。

The one that I don't want to forget to talk about because it's really important work as the price pack architecture work through our revenue growth management team and the data and insights that we're bringing to the table to really think about overall category growth based on having the right prices on shelves, having the right promotions in place as well as the right assortment. And that work does take some time to not only do the studies, but also to then get out and execute with customers and then get that new set on and new sizing and new pricing and promotions on shelf.

我不想忘記談論這一點，因為這是非常重要的工作，因為價格包架構是透過我們的收入成長管理團隊以及我們提供的數據和見解來真正考慮整體類別成長的基於貨架上有合適的價格、有合適的促銷活動以及合適的品種。這項工作確實需要一些時間，不僅需要進行研究，而且還需要與客戶一起執行，然後將新的套裝、新的尺寸、新的定價和促銷上架。

Thank you very much.

非常感謝。

Heather Jones, Heather Jones Research.

希瑟瓊斯，希瑟瓊斯研究。

Morning. Thanks for the question. My first question is just a really quick two-part details. Was wondering what the Turkey impact in Q2 was on volumes and on the Suffolk impact for q three on even assuming a really high contribution margin, it seems like that $0.03 would translate into about a 3% maybe 4% impact to retail sales for Q3. But just wanted to check my math on that?

早晨。謝謝你的提問。我的第一個問題只是一個非常簡短的兩部分細節。想知道土耳其在第二季對銷售的影響以及薩福克對第三季的影響，即使假設貢獻率非常高，似乎0.03 美元也會對第三季的零售額產生約3% 甚至4% 的影響。但只是想檢查一下我的數學？

Yeah. So Heather, I'll start with the Turkey volume. We've been talking about it in the first half. David can get you the specific Q2 number in your in your follow-up call and then your estimate in terms of the range, of impact and planters Suffolk that, that's probably pretty close.

是的。希瑟，我將從火雞捲開始。我們在上半場就一直在討論這個問題。大衛可以在您的後續電話中向您提供具體的第二季度數字，然後您對範圍、影響和種植者薩福克的估計，這可能非常接近。

Okay. And so then I just wanted to step back and just make sure I'm understanding the big picture clearly. So relative to when you gave guidance at the beginning of the year. In Q2, I think, if I remember correctly, increased the negative impact from Turkey by about a nickel and then now we've got this $0.01 to $0.02 impact from taxes and then a $0.03 impact from Suffolk. So that's a pretty large number relative to your initial guidance. And so what have been the primary drivers of that the -- much greater strength than the other -- in the other components of your earnings?

好的。所以我只是想退後一步，確保我清楚地理解了大局。相對於您在年初提供指導時而言。在第二季度，如果我沒記錯的話，我認為土耳其的負面影響增加了大約 5 美分，現在我們受到稅收的 0.01 至 0.02 美元的影響，然後來自薩福克的 0.03 美元的影響。因此，相對於您最初的指導，這是一個相當大的數字。那麼，在你的收入的其他組成部分中，比其他方面更強大的主要驅動因素是什麼？

Yeah, Heather, we've seen really strong performance from our foodservice business and our international business has rebounded in a really strong way. The other part that we do want to mention when we bring into this conversation is the work that we've been doing and transform and modernize. And so we've talked about that at our Investor Day. We'll have the opportunity here at the end of the year to provide some additional clarity.

是的，希瑟，我們的餐飲服務業務表現非常強勁，而且我們的國際業務也以非常強勁的方式反彈。當我們進入這次對話時，我們確實想提及的另一部分是我們一直在做的、轉型和現代化的工作。我們在投資者日討論了這個問題。今年年底我們將有機會在這裡提供一些額外的澄清。

But I think that's a piece of the work that the team is doing. And we again had that in our prepared remarks, the work that we're doing to plan the business, how we buy for the business, how we make it, how we move it. All of those things have been really, really effective for us. And so that would really be the third driver and our ability to overcome what you described those are pretty good headwinds. But and the bottom line is that we're ahead of expectations. We feel good about the business, pleased with half one and a clear line of sight for half two growth.

但我認為這是團隊正在做的工作的一部分。我們在準備好的發言中再次提到了這一點，我們正在做的業務規劃工作，我們如何為業務購買，我們如何製造，我們如何移動它。所有這些事情對我們來說都非常非常有效。因此，這確實是第三個驅動因素，我們有能力克服你所描述的這些非常好的阻力。但最重要的是，我們超出了預期。我們對業務感覺良好，對上半年感到滿意，並對下半年的成長有清晰的視野。

Okay. Thank you so much.

好的。太感謝了。

Yeah. Thank you.

是的。謝謝。

Thank you. There are no further questions at this time. I will now hand the call back to Jim Snee.

謝謝。目前沒有其他問題。我現在將把電話轉回吉姆·斯尼。

CEO for the closing remarks.

首席執行官致閉幕詞。

Yeah. So I want to thank all of you for joining us this morning. We're really pleased by our overall performance and the strong first half of the year we were able to deliver. This is a result of a total team effort, and I want to take the opportunity to thank all of our teams. We have made a lot of progress on our initiatives, but we still have a lot of work to do. But as I said earlier, we have confidence, and our business will keep moving in the right direction for the balance of fiscal 2024. Thank you and have a great day.

是的。我要感謝大家今天早上加入我們。我們對我們的整體表現和上半年的強勁表現感到非常滿意。這是整個團隊共同努力的結果，我想藉此機會感謝我們所有的團隊。我們的措施已經取得了很大進展，但仍有許多工作要做。但正如我之前所說，我們有信心，我們的業務將在 2024 財年的餘額中繼續朝著正確的方向發展。

Thank you. Ladies and gentlemen, the conference has now ended. Thank you all for joining.

謝謝。女士們、先生們，會議現已結束。感謝大家的加入。

You may all disconnect.

你們都可以斷開連線。