荷美爾 (HRL) 2024 Q3 法說會逐字稿

(Operator Instructions) This call is being recorded on Wednesday, September 4, 2024.

（操作員說明）此通話錄音時間為 2024 年 9 月 4 日星期三。

I would now like to turn the conference over to Jess Blomberg. Please go ahead.

我現在想把會議交給傑西·布隆伯格。請繼續。

Good morning. Welcome to the Hormel Foods conference call for our third-quarter results of fiscal 2024. We released our results this morning before the market opened. A copy of the release can be found on our website, 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. Jim will review our third-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.

早安.歡迎參加荷美爾食品電話會議，了解 2024 財年第三季業績。新聞稿的副本可以在我們的網站 hormelfoods.com 的「投資者」部分找到。今天參加我們電話會議的是董事會主席、總裁兼執行長吉姆‧斯尼 (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 將回顧我們第三季的業績，並對 2024 財年剩餘時間提出看法。迪安娜將與吉姆和傑辛斯一起參加電話會議的問答部分。

The line will remain open for questions following Jacinth's remarks. As a courtesy to others, 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 investor website and archived for one year.

賈辛斯發表演說後，該熱線將繼續接受提問。出於對他人的禮貌，請限制自己只回答一個問題並進行一次跟進。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後，網路廣播重播將發佈到我們的投資者網站上並存檔一年。

Before we get started this morning, I'd like to reference our Safe Harbor statements. Some of the comments we make 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.

在今天早上開始之前，我想參考我們的安全港聲明。我們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。

Also, we will discuss certain non-GAAP financial results this morning. Management believes that doing so provides investors with a better understanding of the company's underlying operating performance. 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. Further information about our non-GAAP financial measures, including our comparability items and reconciliations, are detailed in our press release which can be accessed from our corporate or investor website.

此外，我們今天上午也將討論某些非公認會計準則財務表現。管理階層認為，這樣做可以讓投資人更了解公司的基本經營績效。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。有關我們的非公認會計準則財務指標的更多信息，包括我們的可比性項目和調節表，請參閱我們的新聞稿，您可以從我們的公司或投資者網站訪問該新聞稿。

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, Jess. Good morning, everyone. We delivered solid third-quarter results and another quarter of better-than-expected earnings. Our core business remains healthy, led by retail takeaway growth, topline growth in our foodservice business, further recovery in our international business, and continued progress on our transform and modernize initiative. Specifically, many of our key retail brands grew during the quarter, outperforming their categories and continuing to resonate with our customers and consumers.

謝謝你，傑西。大家早安。我們交付了穩健的第三季業績，並且又一個季度的收益優於預期。我們的核心業務保持健康，零售外送成長、餐飲服務業務收入成長、國際業務進一步復甦以及轉型和現代化計劃持續取得進展。具體來說，我們的許多主要零售品牌在本季度都實現了成長，表現優於其類別，並繼續與我們的客戶和消費者產生共鳴。

Our foodservice business delivered another quarter of above industry sales growth, highlighting the value of our solutions-based portfolio, direct selling team, and diverse customer and operator base. We continue to experience significant recovery in our international segment in the quarter, led by our global brands, and we continue to realize growing benefits from our transform and modernize initiatives. We remain on a realistic and achievable path to improve our business, deliver on our commitments, and execute against our long-term strategic priorities.

我們的餐飲服務業務銷售額成長又高於業界四分之一，凸顯了我們基於解決方案的產品組合、直銷團隊以及多元化客戶和營運商基礎的價值。在我們的全球品牌的帶領下，本季我們的國際業務繼續出現顯著復甦，並且我們繼續從我們的轉型和現代化舉措中獲得越來越多的收益。我們仍然走在一條現實且可實現的道路上，以改善我們的業務，兌現我們的承諾，並執行我們的長期策略重點。

Going a bit deeper into our performance for the quarter. I'll start with our foodservice segment. Our foodservice team delivered another quarter of above industry growth, marking our fifth consecutive quarter of year-over-year volume growth. We grew volume and net sales despite pockets of industry softness, proving the effectiveness of our differentiated value proposition. As expected, foodservice segment profit was generally in line with last year.

更深入了解我們本季的業績。我將從我們的餐飲服務部分開始。我們的餐飲服務團隊又實現了高於行業增長的一個季度，標誌著我們連續第五個季度實現銷量同比增長。儘管行業疲軟，但我們的銷售和淨銷售額仍然增長，證明了我們差異化價值主張的有效性。如預期，餐飲服務部門利潤與去年基本持平。

Foodservice segment profit remains historically strong and healthy, having grown 9 out of the last 11 quarters. Our balanced approach, including our portfolio, direct selling team, and the diverse channels we operate in, continue to protect our foodservice segment for many macro headwinds. We continue to see strong demand for our premium and solutions-based items including premium bacon and pepperoni, premium prepared protein, and turkey.

餐飲服務部門的利潤仍然保持歷史性的強勁和健康，在過去 11 個季度中有 9 個季度實現成長。我們的平衡方法，包括我們的投資組合、直銷團隊以及我們經營的多元化管道，將繼續保護我們的餐飲服務部門免受許多宏觀不利因素的影響。我們繼續看到對我們的優質和基於解決方案的產品的強勁需求，包括優質培根和義大利辣香腸、優質預製蛋白質和火雞。

Products such as Bacon 1 cooked bacon, Fire Braised meats, Jennie-O turkey, Cafe H globally inspired proteins, and Old Smokehouse bacon each delivered double-digit net sales gains. Additionally, innovative offerings such as Hormel FLASH 180 Sous Vide style chicken breast and Hormel Ribbon pepperoni contributed growth during the quarter. Our direct selling organization remains key in times of industry slowdown. Our team can connect directly with operators to strategically find solutions for their challenges, take costs out of their system, and create meaningful long-lasting relationships.

Bacon 1 熟培根、火燜肉、Jennie-O 火雞、Cafe H 全球靈感蛋白質和 Old Smokehouse 培根等產品均實現了兩位數的淨銷售額增長。此外，荷美爾 FLASH 180 真空低溫烹調法雞胸肉和荷美爾絲帶義大利辣香腸等創新產品也為本季的成長做出了貢獻。在產業放緩時期，我們的直銷組織仍然至關重要。我們的團隊可以直接與營運商聯繫，從策略上尋找應對挑戰的解決方案，降低系統成本，並建立有意義的長期關係。

We were once again named Selling Power's 60 best companies to sell for, recognizing the direct sales teams that support each of our segments. And we believe that our diverse channel presence in foodservice enables resilience in the face of industry pressures. We have continued to deliver steady topline growth in both our commercial and noncommercial businesses. Taken together, our foodservice business continues to be exceptionally well positioned to drive innovation, value, and operator engagement.

我們再次被評為 Selling Power 60 家最佳銷售公司，表彰了支持我們每個細分市場的直銷團隊。我們相信，我們在餐飲服務領域的多元化管道能夠幫助我們應對行業壓力。我們的商業和非商業業務持續實現穩定的營收成長。總而言之，我們的餐飲服務業務在推動創新、價值和營運商參與方面仍然處於非常有利的地位。

Transitioning to our international segment, our performance in the quarter shows continued improvement versus the challenging environment we experienced last year. From a profitability standpoint, the business generated impressive segment profit growth of 78% compared to prior year. Our results in the quarter were driven primarily by a greatly improved export environment. Branded exports performed well in the third quarter with SPAM luncheon meat delivering a second consecutive quarter of double-digit topline growth.

轉向我們的國際業務，我們本季的業績顯示出與去年我們經歷的充滿挑戰的環境相比持續改善。從獲利能力的角度來看，該業務的分部利潤較上年增長了 78%，令人印象深刻。我們本季的業績主要得益於出口環境的大幅改善。品牌出口在第三季表現良好，午餐肉連續第二季實現兩位數的營收成長。

Skippy peanut butter also had a strong quarter as we expanded distribution in the South Korean market. In addition, our branded refrigerated exports continue to perform well in global foodservice channels. Commodity exports, which have historically benefited the international segment's top line but delivered lower profitability given other elements of the portfolio, were down significantly year over year. This as a result of improved inventory management and a stronger sales of value-added turkey items in the domestic US market this year.

隨著我們擴大韓國市場的分銷，Skippy 花生醬的季度業績也表現強勁。此外，我們的品牌冷藏出口在全球餐飲服務管道中持續表現良好。大宗商品出口歷來使國際業務的收入受益，但考慮到投資組合的其他要素，其獲利能力較低，但與去年同期相比大幅下降。這是由於今年美國國內市場庫存管理改善以及增值火雞產品銷售強勁的結果。

Our China business continued to rebound in the quarter and is off to a strong start for the fourth quarter. An important part of China's improvement is our strategy within the retail space. We saw positive results from innovation launches with our largest retail customers in the quarter, a direct result of our in-country Innovation Center. Finally, we are realizing strong results from our investments in the Philippines and Indonesia, delivering on our commitment to strategically expand our global presence and restore sustainable growth in our international business. Overall, we remain confident that we have the right strategy and structure in place to drive growth in our international business over the long term.

我們的中國業務在本季繼續反彈，並在第四季度取得了良好的開局。中國進步的一個重要部分是我們在零售領域的策略。我們在本季與最大的零售客戶合作推出的創新取得了積極成果，這是我們國內創新中心的直接成果。最後，我們在菲律賓和印尼的投資取得了強勁成果，兌現了我們策略性擴大全球業務並恢復國際業務可持續成長的承諾。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國際業務的長期成長。

Shifting now to retail, where our third-quarter results are a bit nuanced on the top line, so I'll spend some time explaining them. First and most importantly, there is strength in the underlying core business. We were pleased with the end-market performance of key brands in the quarter. According to Circana, brands such as Hormel Black Label bacon, Jennie-O lean ground turkey, SPAM luncheon meats, Skippy peanut butter, Selling Power, Mary Kitchen hash, Lloyd's barbecue, Lloyd barbecue, Applegate natural and organic meats and Holy Guacamole grew dollar sales in the third quarter. Additionally, we are outperforming in many of our categories. Our performance in key categories such as bacon, can meats, turkey, and peanut butter demonstrates that our investments in key brands are working.

現在轉向零售業，我們第三季的業績在營收上有點微妙，所以我將花一些時間解釋它們。首先也是最重要的是，基礎核心業務有實力。我們對本季主要品牌的終端市場表現感到滿意。據Circana 稱，Hormel Black Label 培根、Jennie-O 瘦肉火雞、SPAM 午餐肉、Skippy 花生醬、Selling Power、Mary Kitchen hash、Lloyd's BBQ、Lloyd BBQ、Applegate 天然有機肉類和Holy Guacamole 等品牌的銷售額成長了第三季的銷售情況。此外，我們在許多類別中都表現出色。我們在培根、罐頭肉、火雞和花生醬等關鍵類別上的表現表明，我們對關鍵品牌的投資正在發揮作用。

We are also optimistic about the trend line we are seeing in our convenient meals and proteins business, which has stabilized over the last quarter. We continue to support the center store with innovation including SPAM Korean barbecue during the third quarter, which is the 12th permanent variety in the SPAM family of products. This product is garnering a lot of excitement because the flavor profile is on trend and reaching new SPAM consumers.

我們對方便食品和蛋白質業務的趨勢線也持樂觀態度，該業務在上個季度已趨於穩定。我們在第三季繼續以創新方式支持中心店，其中包括 SPAM 韓國燒烤，這是 SPAM 產品系列中的第 12 個永久品種。該產品引起了極大的關注，因為其風味特徵正在流行並吸引了新的垃圾郵件消費者。

Second, business momentum continues in our important bacon and emerging brands verticals. The bacon vertical again delivered strong results both in terms of shipments and consumer takeaway. Black Label raw and convenient bacon products are resonating with consumers and showed growth in dollar sales, volume, and household penetration during the quarter. According to Circana, Black Label bacon is the leading growth brand in the baking category over the last 12 months.

其次，我們重要的培根和新興品牌垂直領域的業務動能仍在持續。培根垂直產業再次在出貨量和消費者外賣方面取得了強勁的業績。黑標生鮮方便培根產品引起了消費者的共鳴，並在本季的銷售額、銷售和家庭滲透率方面顯示出成長。據 Circana 稱，黑標培根是過去 12 個月烘焙類別中成長最快的品牌。

We expect these trends to continue into Q4 as we support our bacon brands through advertising investments and introduce exciting new innovations to the marketplace such as oven-ready bacon and Black Label Cinnamon Toast Crunch Bacon. Within the emerging brands vertical, Applegate items grew across all major categories in the quarter including bacon, breakfast sausage, hotdogs, deli meats, and breaded chicken. We also launched Applegate organic pepperoni, the first and only nationally available organic pepperoni. We are excited to see the results and development for this emerging category.

我們預計這些趨勢將持續到第四季度，因為我們透過廣告投資支持我們的培根品牌，並向市場推出令人興奮的創新產品，例如烤箱培根和黑標肉桂吐司脆培根。在新興垂直品牌中，Applegate 的產品在本季度的所有主要類別中均有所增長，包括培根、早餐香腸、熱狗、熟食肉類和麵包屑雞肉。我們還推出了 Applegate 有機辣香腸，這是第一個也是唯一一個全國銷售的有機義大利辣香腸。我們很高興看到這個新興類別的成果和發展。

Growth from our key brands, our overall category performance, and our innovative launches show the strength and health of our underlying core retail business. However, as we discussed during our second-quarter earnings call, overall topline results in our retail segment remain nuanced. We continue to be negatively impacted by turkey dynamics. The growth in branded Jennie-O items is being more than offset by whole bird commodity markets. Our expectations for the year have largely unfolded as discussed on our first-quarter earnings call.

我們的主要品牌的成長、我們的整體品類表現以及我們的創新產品展示了我們基礎核心零售業務的實力和健康狀況。然而，正如我們在第二季財報電話會議中所討論的那樣，我們零售部門的整體營收結果仍然存在細微差別。我們繼續受到土耳其動態的負面影響。 Jennie-O 品牌產品的成長被整鳥商品市場所抵消。正如我們在第一季財報電話會議上所討論的那樣，我們對今年的預期已基本實現。

Next, as we mentioned on our second-quarter earnings call, we experienced a production disruption at our Planters facility in Suffolk, Virginia, which was impactful to the third quarter. Production is back up and running as we have taken corrective action within the facility. As production continues to ramp up, we have secured co-packer partnerships to help support our snack nuts portfolio to improve fill rates while we finish upgrades within the Suffolk plant. By the end of this fiscal year, we believe the production disruption will be largely resolved, and we will be in a much better position to return the business to full service levels. Jacinth will provide more color on the financial impacts during her commentary.

接下來，正如我們在第二季財報電話會議上提到的，我們位於維吉尼亞州薩福克的 Planters 工廠出現了生產中斷，這對第三季度產生了影響。由於我們在工廠內採取了糾正措施，生產已恢復並運行。隨著產量的不斷增加，我們與代加工商建立了合作夥伴關係，以幫助支持我們的零食堅果產品組合，以提高填充率，同時完成薩福克工廠內的升級。在本財年結束時，我們相信生產中斷將基本解決，我們將能夠更好地使業務恢復到全面服務水準。 Jacinth 將在她的評論中提供更多有關財務影響的資訊。

I want to thank our broader team for their work they have done to help control the disruption, service the business, and protect the Planters brand. Lastly, we continue to see softness in our high-volume, low-margin contract manufacturing business. We expect continued topline headwinds in this business due to lower demand for some items.

我要感謝我們更廣泛的團隊為幫助控制干擾、為業務提供服務以及保護 Planters 品牌所做的工作。最後，我們的大批量、低利潤合約製造業務持續疲軟。由於某些商品的需求下降，我們預期該業務的營收將繼續面臨阻力。

So to wrap up our retail discussion, the underlying core business is healthy. We remain focused on working with our retail customers to drive category growth and create meaningful value for our end consumers.

因此，為了結束我們的零售討論，潛在的核心業務是健康的。我們仍然專注於與零售客戶合作，推動品類成長並為最終消費者創造有意義的價值。

Moving now to our enterprise-wide strategic initiatives, we are seeing a growing benefit from our transform and modernize initiatives. All of our pillars: plan, buy, make, move, and portfolio optimization progressed in the third quarter, and the work streams continue to mature. This quarter, we are highlighting two pillars: plan and make. For plan, significant work was done during the quarter on the implementation of our new end-to-end planning process and technology.

現在轉向我們的企業範圍策略計劃，我們看到我們的轉型和現代化計劃帶來的好處越來越大。我們的所有支柱：計劃、購買、製造、移動和投資組合優化在第三季度都取得了進展，工作流程繼續成熟。本季度，我們強調兩個支柱：計劃和製作。對於計劃，本季度在實施新的端到端規劃流程和技術方面完成了重要工作。

While this upgrade will have many benefits for years to come, we are quickly generating new insights which have helped in our focus on improved inventory management. For the make pillar, our operational improvements have generated encouraging results. We continue to unlock additional production capacity and realize cost savings across our network. These wins as well as our ongoing focus on continuous improvement across all our facilities are resulting in impactful advancements across our vast supply chain. On our fourth-quarter earnings call, we look forward to providing you with a comprehensive update on our transform and modernize initiatives including recaps from 2024 and our plans for 2025 and beyond.

雖然這次升級將在未來幾年帶來許多好處，但我們正在迅速產生新的見解，這有助於我們專注於改善庫存管理。對於製造支柱，我們的營運改善已經產生了令人鼓舞的成果。我們繼續釋放額外的生產能力並在整個網路中實現成本節約。這些勝利以及我們對所有設施的持續改進的持續關注正在為我們龐大的供應鏈帶來有影響力的進步。在我們的第四季度財報電話會議上，我們期待為您提供有關我們的轉型和現代化計劃的全面最新信息，包括 2024 年的回顧以及 2025 年及以後的計劃。

Shifting now to our fiscal 2024 outlook, we are updating our net sales guidance to account for commodity market conditions, impacts from the production disruption at our Suffolk facility, and continued softness in our contract manufacturing business within the retail segment. We are also narrowing our earnings guidance range as we approach the fourth quarter. This update includes an incremental impact from the production disruption at our Suffolk facility.

現在轉向我們的 2024 財年展望，我們正在更新我們的淨銷售指引，以考慮商品市場狀況、薩福克工廠生產中斷的影響以及零售領域合約製造業務的持續疲軟。隨著第四季的臨近，我們也將縮小獲利指導範圍。此更新包括我們薩福克工廠生產中斷帶來的增量影響。

In our retail segment, we expect continued momentum across our key brands and categories led by bacon, value-added turkey, and emerging brands. We are also committed to supporting our brands through strategic trade and advertising investments for the remainder of the year. We are expecting successful execution of our fourth-quarter innovations and improvements to our Planter service levels.

在我們的零售領域，我們預計以培根、增值火雞和新興品牌為首的主要品牌和類別將繼續保持成長勢頭。我們也致力於在今年剩餘時間內透過策略貿易和廣告投資來支持我們的品牌。我們期待第四季度創新的成功實施以及播種機服務水準的改進。

In foodservice, we expect continued broad-based volume and net sales growth led by bacon, turkey, pizza toppings, and our line of premium prepared proteins. We expect another quarter of significant segment profit growth in the international segment. And importantly, we expect continued benefits to net earnings from our transform and modernize initiative, which is expected to deliver its strongest level of savings in our fourth quarter.

在餐飲服務方面，我們預計在培根、火雞、披薩配料和我們的優質預製蛋白質系列的帶動下，銷量和淨銷售額將持續廣泛增長。我們預計國際業務部門的利潤將在另一個季度顯著成長。重要的是，我們預計我們的轉型和現代化計劃將繼續為淨利潤帶來好處，預計該計劃將在第四季度實現最強勁的節省水平。

Taking all these factors into account for the full year, we expect net sales in the range of $11.8 billion to $12.1 billion and diluted net earnings per share in the range of $1.45 to $1.51 and adjusted diluted net earnings per share of $1.57 to $1.63. We continue to demonstrate our ability to execute our clear and achievable plan and are on track to deliver on our earnings commitments for the year.

考慮到全年的所有這些因素，我們預計全年淨銷售額將在118 億美元至121 億美元之間，稀釋後每股淨利潤將在1.45 美元至1.51 美元之間，調整後稀釋後每股淨利潤將在1.57 美元至1.63 美元之間。我們繼續展示我們執行清晰且可實現的計劃的能力，並有望兌現我們今年的盈利承諾。

In closing, I'd like to take a moment to recognize Deanna Brady, Executive Vice President of Retail, leader, mentor, advocate, and friend. Last month, we announced Deanna's decision to retire after almost three decades of service to Hormel Foods. Deanna has impacted almost every area of our company. Her leadership during COVID and the go-forward reorganization was critical to our success, and the culture of accountability she has created will last for years. I wish her the best in her well-deserved retirement. Deanna's ambition, passion for our business, and leadership will be greatly missed.

最後，我想花一點時間向零售業執行副總裁、領導者、導師、倡導者和朋友迪安娜·布雷迪 (Deanna Brady) 致意。上個月，我們宣布迪安娜 (Deanna) 決定退休，她在荷美爾食品 (Hormel Foods) 工作了近三十年。 Deanna 幾乎影響了我們公司的每個領域。她在新冠疫情期間的領導力和前進的重組對於我們的成功至關重要，她創造的問責文化將持續多年。我祝福她在她當之無愧的退休生活中一切順利。我們將非常懷念迪安娜的雄心壯志、對我們業務的熱情和領導能力。

We also announced the return of John Gingo to Hormel Foods. Enabled by our intentional and well-developed succession process, we are fortunate to welcome John back to the organization to lead the retail group. John is a dynamic leader known for building strong teams and strong brands. He is the ideal person to drive continued focus, innovation, and growth within the retail segment and our company. John's deep expertise in the consumer packaged goods space, coupled with his understanding of our business, positions him perfectly for success.

我們也宣布約翰金戈 (John Gingo) 重返荷美爾食品公司。在我們有意且完善的繼任流程的支持下，我們很幸運地歡迎約翰回到組織領導零售集團。約翰是一位充滿活力的領導者，以建立強大的團隊和強大的品牌而聞名。他是推動零售領域和我們公司持續專注、創新和發展的理想人選。約翰在消費品領域的深厚專業知識，加上他對我們業務的了解，使他成為成功的完美人選。

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

此時，我將把電話轉給 Jacinth Smiley，討論與第三季相關的詳細財務資訊以及我們前景的其他資訊。

Thank you, Jim. Good morning, everyone. As Jim noted in his opening comments, we delivered another quarter of solid results and better-than-expected earnings. Volume for the third quarter was 1 billion pounds, and the net sales were $2.9 billion. Topline growth in foodservice was more than offset by declines in our international and retail segments.

謝謝你，吉姆。大家早安。正如吉姆在開場白中指出的那樣，我們又一個季度取得了穩健的業績和好於預期的收益。第三季銷量為 10 億英鎊，淨銷售額為 29 億美元。餐飲服務的營收成長被我們的國際和零售業務的下滑所抵消。

To provide more color on our retail segment's topline results, approximately 3/4 of the net sales decline were related to lower sales of whole bird turkeys, contract manufacturing, and Planters. Gross margin was comparable to the prior-year period at 16.8%. The benefits of our transform and modernize initiative offset headwinds from lower commodity turkey pricing and lower sales of Planters snack nut. SG&A decreased $31 million in the third quarter due to the lapping of our unfavorable arbitration ruling in the prior year. Adjusted SG&A increased 4% driven primarily by planned higher employee-related expenses.

為了讓我們的零售部門的營收業績更加生動，約 3/4 的淨銷售額下降與整隻火雞、合約製造和花盆的銷售額下降有關。毛利率與去年同期相當，為 16.8%。我們的轉型和現代化計劃的好處抵消了商品火雞價格下降和 Planters 零食堅果銷量下降帶來的不利因素。由於上一年不利的仲裁裁決的失效，第三季的銷售、管理和管理費用減少了 3,100 萬美元。調整後的 SG&A 成長 4%，主要是因為計畫增加的員工相關費用。

We continue to support our leading brands in the marketplace and expect to increase advertising expenses for the fourth quarter and full year including an advertising campaign to support our new Planters Nut Duos. Equity and earnings for third quarter decreased due to lower results from our MegaMex joint venture, partially offset by improvement from our international investments. MegaMex was impacted by higher avocado costs partially resulting from the temporary suspension of USDA inspections during the quarter. Interest and investment income from the third quarter increased as interest income from favorable market rates offset higher interest expense associated with the recent debt issuance.

我們將繼續支持我們在市場上的領先品牌，並預計增加第四季度和全年的廣告費用，包括支持我們新的 Planters Nut Duo 的廣告活動。由於我們的 MegaMex 合資企業業績下降，第三季的股本和收益有所下降，但部分被我們國際投資的改善所抵消。 MegaMex 受到酪梨成本上漲的影響，部分原因是美國農業部在本季暫停檢查。第三季的利息和投資收入增加，因為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 $226 million, an increase of 9% compared to the prior year. On an adjusted basis, earnings before income taxes for the third quarter were $256 million. The effective tax rate was 21.7% for the third quarter in line with last year. We continue to expect our effective tax rate for fiscal 2024 to be between 22% and 23%. Our third-quarter performance resulted in diluted net earnings per share of $0.32. Third-quarter adjusted diluted earnings per share was $0.37.

所得稅前利潤為 2.26 億美元，比上年增長 9%。調整後，第三季所得稅前利潤為 2.56 億美元。第三季的有效稅率為21.7%，與去年同期持平。我們仍預期 2024 財年的有效稅率將在 22% 至 23% 之間。我們第三季的業績導致攤薄後每股淨利潤為 0.32 美元。第三季調整後攤薄每股收益為 0.37 美元。

We have delivered strong operating cash flow during the year. Year-to-date cash flow from operations was $858 million, an increase of 18%. We remain committed to dividend growth, investing in our business, and maintaining an investment-grade credit rating. We paid our 384th consecutive quarterly dividend effective August 15 at an annual rate of $1.13 per share. This dividend marks the 96th year of uninterrupted dividends returned to our shareholders.

我們在這一年中實現了強勁的營運現金流。年初至今，營運現金流為 8.58 億美元，成長 18%。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信用評級。自 8 月 15 日起，我們連續第 384 次支付季度股息，年利率為每股 1.13 美元。此次股利標誌著我們連續第 96 年向股東返還股利。

We invested $65 million in capital projects during the third quarter. Our outlook for capital expenditures in 2024 remains at $280 million. During the quarter, we used a combination of cash on hand and proceeds from debt issued in the second quarter to pay off a $950 million note that came due. With this debt repayment, we remain comfortably within our stated long-term leverage ratio range.

第三季我們在資本項目上投資了 6,500 萬美元。我們對 2024 年資本支出的展望仍為 2.8 億美元。在本季度，我們結合使用手頭現金和第二季度發行的債務收益來償還 9.5 億美元的到期票據。透過償還債務，我們可以輕鬆地保持在規定的長期槓桿率範圍內。

Shifting to our outlook. We're updating full-year net sales range and narrowing our earnings expectations. Our revised topline range encompasses the current projection for the business, including declines due to; one, updated commodity to market expectations as third-quarter pork cost did not rise to the level as expected; two, the impact of the Suffolk disruption; and three, continued softness in our contract manufacturing business. We expect fourth quarter pork input cost to decrease seasonally. We continue to assume full-year pork input costs to be higher than the last year and above five-year averages.

轉向我們的觀點。我們正在更新全年淨銷售額範圍並縮小我們的獲利預期。我們修訂後的營收範圍涵蓋了目前的業務預測，包括由於以下原因造成的下降：一、更新大宗商品市場預期，因第三季豬肉成本未升至預期水準；二、薩福克中斷的影響；第三，我們的合約製造業務持續疲軟。我們預計第四季豬肉投入成本將季節性下降。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。

In turkey, our supply remains healthy, and we are in a strong position to service our customers and attract new business opportunities. We are projecting growth across several parts of our Jennie-O 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, the Suffolk production disruption impacted our third-quarter earnings. We realized a $0.03 earnings per share drag during the third quarter and are now estimating an additional $0.03 earnings per share impact in the fourth quarter. This update accounts for a slower production restart than was originally estimated commercial impacts, facility and maintenance expenses, incremental co-packer costs, and reduced marketing expenses.

在土耳其，我們的供應保持健康，我們在服務客戶和吸引新商機方面處於有利地位。我們預計 Jennie-O 品牌火雞業務的多個部分都會成長，包括零售業的瘦肉火雞和餐飲服務業的增值火雞。商品整火雞的銷售和價格下降預計將繼續給獲利帶來壓力。正如吉姆指出的那樣，薩福克的生產中斷影響了我們第三季的收益。我們意識到第三季每股收益下降了 0.03 美元，目前預計第四季每股收益將受到 0.03 美元的額外影響。此次更新考慮到了生產重啟速度比最初估計的要慢的商業影響、設施和維護費用、增量代加工廠成本以及減少的營銷費用。

Additionally, we experienced storm damage to our Papillion Nebraska facility early in the fourth quarter. We are assessing the financial impact resulting from this event. 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 year-over-year advertising investments. Finally, our earnings per share guidance assumes the strongest contribution of the year from our transform and modernize initiative in the fourth quarter. Taken together, we are maintaining the midpoint of our EPS guidance and narrowing the range.

此外，我們的 Papillion 內布拉斯加州工廠在第四季度初遭受了風暴損壞。我們正在評估此事件造成的財務影響。與我們先前的指導一致，我們的全年展望假設工資、員工相關費用正常化以及與業務計劃投資相關的成本（包括同比廣告投資增加）。最後，我們的每股盈餘指引假設第四季我們的轉型和現代化舉措將帶來今年最強勁的貢獻。總的來說，我們維持每股收益指引的中點並縮小範圍。

To conclude my remarks, I would like to highlight the release of our 2023 Global Impact Report, a comprehensive update to our 20 By 30 Challenge. The report highlights meaningful progress against our goals, and I would like to mention four key wins that I'm particularly proud of. One, we achieved the safest year in our company's history, our lowest recordable incident rate ever. Two, our packaging team's sustainability initiatives resulted in nearly 1.7 million pounds in material savings, resulting from optimized package designs and improved shifting efficiencies.

在結束我的演講時，我想強調我們發布的 2023 年全球影響報告，這是對 20 By 30 挑戰的全面更新。該報告強調了我們在實現目標方面取得的有意義的進展，我想提及令我特別自豪的四項關鍵勝利。第一，我們實現了公司歷史上最安全的一年，實現了有史以來最低的可記錄事故率。第二，我們的包裝團隊的永續發展計畫透過優化包裝設計和提高轉移效率節省了近 170 萬磅的材料。

Three, more than 200 dependents of our US team members are utilizing the opportunity for a free two-year college education through the company's groundbreaking tuition program, Inspired Pathways. Four, we continue to invest in the communities in which we operate contributing more than $12.5 million in cash and products to uplift communities. This includes investment in the hometown food security project, a cross-sector coalition working to alleviate food insecurity in Mower County, Minnesota. There are many other meaningful updates featured in our Global Impact report and encouraged you to take a look.

第三，我們美國團隊成員的 200 多名家屬正在利用該機會透過公司開創性的學費計畫 Inspired Pathways 接受免費的兩年大學教育。第四，我們繼續投資於我們經營所在的社區，貢獻超過 1,250 萬美元的現金和產品來改善社區。這包括對家鄉糧食安全計畫的投資，這是一個跨部門聯盟，致力於緩解明尼蘇達州莫爾縣的糧食不安全狀況。我們的全球影響力報告中還有許多其他有意義的更新，鼓勵您查看。

I would like to extend my thanks to the teams committed to achieving our corporate responsibility goals and completing our 20 By 30 Challenge.

我要向致力於實現我們的企業責任目標並完成 20 By 30 挑戰的團隊表示感謝。

Now I will turn the call over to the operator for the question-and-answer section.

現在我將把電話轉給接線員進行問答部分。

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

謝謝。女士們、先生們，我們現在開始問答環節。 （操作員說明）

Ben Theurer, Barclays.

本‧瑟雷爾，巴克萊銀行。

So I just wanted to start off maybe with the update to the guidance. And if you could give us a little bit more clarity in what you're seeing in terms of like the high end versus the low end. I mean, you took down sales by about $300 million, but there's still a range of about $300 million. So what are the potential outcomes here as it relates to the top line? And then if you can break this down, why the lower top line has no impact down on the profit line as EPS was essentially just narrowed but not changed.

所以我只想從更新指南開始。如果您能讓我們更清楚地了解您所看到的高端與低端情況。我的意思是，銷售額減少了約 3 億美元，但仍有約 3 億美元的波動範圍。那麼，與營收相關的潛在結果是什麼？然後，如果你能分解這一點，為什麼較低的頂線對利潤線沒有影響，因為每股收益基本上只是縮小但沒有改變。

Obviously, there's a lot there. Look, it's important for us to start with the third quarter and the performance in the third quarter on the top line. The decline really is driven by three primary things. We talked about the three quarters of the top line being driven by turkey contract manufacture in Planters.

顯然，那裡有很多東西。看，對我們來說重要的是從第三季開始，第三季的表現在營收。這種下降實際上是由三個主要因素所驅動的。我們談到了四分之三的營收是由 Planters 的火雞合約製造推動的。

We still have -- the second thing is we still have some impact in our convenient meals and proteins pricing that we've taken. We're seeing the benefit of the pricing, but that is still having some minimal impact. And then the third factor in the quarter is the comparison in our international group, where we're really lapping some high-volume, low-margin commodity business from last year in the third quarter. So that's the decline in there for the third quarter. And as we look forward into the fourth quarter, there's a couple of things that are similar, but also some things that are different.

我們仍然 - 第二件事是我們對我們所採取的方便餐和蛋白質定價仍然有一些影響。我們看到了定價的好處，但這仍然產生了一些最小的影響。本季的第三個因素是我們國際集團的比較，我們在第三季確實超越了去年的一些高產量、低利潤率的商品業務。這就是第三季的下降。當我們展望第四季時，有一些相似之處，但也有一些不同之處。

From a market perspective, they're high, but they're not as high as we expected. So that will continue to impact us. Jacinth and I both talked about the impact of our Suffolk plant disruption. That has an impact in the third quarter, will continue to have an impact in Q4 as we continue to ramp back up, and we get improved fill rates, the continued headwind of our contract manufacturing. And then, again, there's a lapping in HFIC.

從市場角度來看，它們很高，但沒有我們預期的那麼高。所以這將繼續影響我們。賈辛斯和我都談到了薩福克工廠中斷的影響。這對第三季度產生了影響，並將繼續對第四季度產生影響，因為我們繼續回升，並且我們的填充率得到改善，這是我們合約製造的持續阻力。然後，HFIC 再次出現研磨現象。

So I mean, you put all those things together, and that's how we get to the range. when we think about what could take us one way or another and why we're able to really keep the bottom line the same is a lot of the declines were high volume, low margins, in some cases, negative margin pieces of the business. And what we're talking about in terms of improvement on the bottom line, we've got our international business, which continues to rebound and improve off of last year.

所以我的意思是，你把所有這些東西放在一起，這就是我們達到這個範圍的方式。當我們思考什麼可以帶我們走這樣或那樣的路，以及為什麼我們能夠真正保持底線不變時，很多下降是因為銷量大、利潤率低，在某些情況下，業務的利潤率是負的。我們所說的利潤改善方面，我們的國際業務比去年繼續反彈和改善。

In our retail business, there's strength in the underlying core business. I mean, we're seeing key retail brands, bacon, Jennie-O, Skippy, Applegate, SPAM, all performed really, really well. We talked about -- we expect Q4 to continue to build in terms of our transform and modernize initiative, and we'll have an opportunity to speak in more detail on the Q4 call.

在我們的零售業務中，基礎核心業務具有優勢。我的意思是，我們看到主要零售品牌 bacon、Jennie-O、Skippy、Applegate、SPAM 的表現都非常非常好。我們談到——我們預計第四季度將繼續推進我們的轉型和現代化計劃，我們將有機會在第四季度的電話會議上更詳細地發言。

So all of those things, it's a long answer, but when you package all those things, that's what gets us to that topline guide while still being able to maintain the bottomline midpoint and being able to narrow the range.

因此，所有這些事情，這是一個很長的答案，但是當你將所有這些事情打包時，這就是讓我們達到頂線指南的原因，同時仍然能夠保持底線中點並能夠縮小範圍。

Okay. Perfect. And then I have one quick follow-up on just the foodservice dynamics. I mean, we're still seeing volume growth but not as elevated as at the beginning of the year. So as you look into the fourth quarter, what are you seeing from your customers in foodservice as it relates to like the momentum in volume?

好的。完美的。然後我對餐飲服務動態進行了快速跟進。我的意思是，我們仍然看到銷量成長，但沒有年初那麼高。因此，當您展望第四季度時，您從餐飲服務領域的客戶那裡看到了什麼，因為它與數量的成長勢頭有關？

Yeah. I mean, we still expect solid volume and sales growth from our foodservice business. That topline growth has been really broad-based which has been encouraging, not only across our product categories but the different segments within foodservice in which we compete. Foodservice is on track for a record year. So foodservice remains strong and well positioned to drive value for us.

是的。我的意思是，我們仍然預計我們的餐飲服務業務的銷售和銷售額將實現穩健成長。這種收入成長的基礎非常廣泛，這令人鼓舞，不僅在我們的產品類別中，而且在我們競爭的餐飲服務的不同領域。餐飲服務今年可望創紀錄。因此，餐飲服務依然強勁，並且處於有利地位，可以為我們帶來價值。

Ken Goldman, JPMorgan.

肯‧戈德曼，摩根大通。

First question, I was unclear. Does your guidance include any potential financial impact from the storm damage? And I wanted to get a sense of what may be the range of possibilities to your bottom line was from the storm.

第一個問題，我沒說清楚。您的指導是否包括風暴損害造成的任何潛在財務影響？我想了解風暴對你的底線的可能性範圍是多少。

So yes, we did have this unfortunate damage from the storm earlier in the quarter, and our production is fully back up and running. In addition, we also have redundant capacity as well for our plants. And when we think about impact from a sales perspective, then that doesn't at all impact sales. The costs that we're talking about and calling out is really to repair our facility, so it has no impact at all on our top line.

所以，是的，我們確實在本季早些時候遭受了風暴造成的不幸損害，但我們的生產已完全恢復正常運作。此外，我們的工廠還有多餘的產能。當我們從銷售角度考慮影響時，這根本不會影響銷售。我們正在談論和呼籲的成本實際上是為了修復我們的設施，因此它對我們的營收沒有任何影響。

Okay. I'll follow up on that one. And then my second question, and maybe this is a little more direct than I intended to be, but why are you selling product for zero or negative margin? Is it mainly to spread fixed overhead over a bigger revenue base? And I guess the broader question there is, how do we think about the potential down the road for maybe incremental supply chain efficiencies that could allow you to reduce your need or desire to sell product from a co-man or commodity perspective that doesn't really help your bottom line directly?

好的。我會跟進那個。然後是我的第二個問題，也許這比我想要的更直接一些，但是為什麼你要以零利潤或負利潤銷售產品？主要是為了將固定管理費用分攤到更大的收入基礎上嗎？我想更廣泛的問題是，我們如何考慮未來可能提高的供應鏈效率的潛力，這可以讓您從合作者或商品的角度減少銷售產品的需求或願望，而這並不需要這樣做。能直接幫助您獲利嗎？

Yes. Ken, there's a couple of things there. So the first part of it is, we do have, on the pork side and the turkey side, live harvest. And when you're harvesting animals, we sell everything. And so our goal, and we've been very successful at it is to continue to move up that value-added ladder. And so we feel really good about the progress we've made over the decades. But there's still always going to be elements of that that are more commodity driven, and depending on what the market conditions are, we may find ourselves in that situation, so that part isn't going to change.

是的。肯，有幾件事。所以第一部分是，我們確實有豬肉和火雞的活收穫。當您收穫動物時，我們會出售所有東西。因此，我們的目標（而且我們在這方面非常成功）是繼續提升增值水平。因此，我們對過去幾十年來所取得的進步感到非常滿意。但仍然總是會有一些更多的商品驅動因素，而且根據市場狀況，我們可能會發現自己處於這種情況，所以這部分不會改變。

I guess the second part is an important part of the work that we're doing in transform and modernize is the total portfolio optimization because it is exactly what you say is that we don't want to find ourselves in that position where we're selling nonstrategic items at negative margin. And so our team has been hard at work at that over this last year, and we'll start to see the effects of that towards the end of this year into '25 and '26.

我想第二部分是我們在轉型和現代化方面所做的工作的一個重要部分，就是總體投資組合優化，因為這正是你所說的，我們不想發現自己處於這樣的境地。戰略項目。因此，我們的團隊在去年一直在努力工作，我們將在今年年底到 25 年和 26 年開始看到其影響。

We'll again be able to provide more clarity on the Q4 call. But it is, in our minds, two distinct different areas. There's a part of the business that just naturally flows. The second part is a piece that we can and will take action on.

我們將再次對第四季度的電話會議提供更清晰的資訊。但在我們看來，這是兩個截然不同的領域。有一部分的業務是自然流動。第二部分是我們能夠並且將會採取行動的部分。

Peter Galbo, Bank of America.

彼得‧加爾博，美國銀行。

I maybe just wanted to start with turkey. I believe previously you had said it was about a $0.15 headwind into the earnings for fiscal '24. So I just wanted to confirm that that's still the number. And then the second part of that question, just, Jim, if Turkey fundamentals just don't improve from here, right?

我也許只是想從火雞開始。我相信您之前曾說過，這對 24 財年的收益產生了約 0.15 美元的不利影響。所以我只是想確認這仍然是這個數字。然後這個問題的第二部分，吉姆，如果土耳其的基本面沒有從現在開始改善，對吧？

Let's say they don't get worse, they don't get better, they just kind of flat line, is there any sense of how much of that $0.15 you can recover next year simply if the supply-demand situation stays the same, but maybe some other inputs or supply chain get better at this point?

假設它們沒有變得更糟，也沒有變得更好，它們只是一條平線，如果供需狀況保持不變，明年您可以收回 0.15 美元的多少，但是也許其他一些投入或供應鏈此時會變得更好？

Peter, the first part of your question, really there's no change, and it goes back to what we guided on the Q1 call that everything has played out the way we thought and that $0.15 is still the number. The second part of your question obviously is a lot more nuanced, and it's not to avoid the question, but there really are so many moving parts in terms of what's happening in the marketplace right now. As we start to look into '25, there's still many, many unknowns. And it's fair to say we've all seen that egg sets are way down.

Peter，你問題的第一部分確實沒有任何變化，這可以追溯到我們在第一季電話會議中所指導的內容，一切都按照我們的想法進行，0.15 美元仍然是這個數字。你的問題的第二部分顯然更加微妙，這並不是要迴避這個問題，但就目前市場上發生的情況而言，確實有很多變化的部分。當我們開始展望 25 世紀時，仍然有很多很多的未知數。公平地說，我們都看到了產蛋量大幅下降。

There's always the uncertainty that (technical difficulty) our focus, as we've said, probably two years ago now as we worked through the [JOT's] integration was our goal is to become a more demand-driven organization. And we've had a lot of success doing that. We're continuing on that journey, both in retail and foodservice. Obviously, there has been some dynamics in '24 that have negatively impacted the whole bird business. But really, as we go to '25, it's still a bit too early given all of the moving parts.

正如我們所說，我們的重點（技術難度）始終存在不確定性，可能是兩年前，當我們進行 [JOT's] 整合時，我們的目標是成為一個更以需求為導向的組織。我們在這方面取得了巨大的成功。無論是在零售業還是餐飲服務業，我們都將繼續這趟旅程。顯然，24 年發生的一些動態對整個鳥類業務產生了負面影響。但實際上，當我們進入 25 世紀時，考慮到所有的變化因素，現在還為時過早。

And then, Jim, if I go back to when the Planters deal was initially announced, I think a lot of the thesis that you -- that the management team had was if we invested more in marketing and this is a business that was kind of starved for capital that the results could improve pretty dramatically. And I guess there has been an improvement on the marketing side, but just as you've kind of evaluated and now with the recall and the issues at the plant, what levels of underinvestment were there in the operations or in the facility as we just think about if this is truly contained at this point from an impact standpoint on the next few quarters.

然後，吉姆，如果我回到 Planters 交易最初宣佈時，我認為管理團隊的許多論點是，如果我們在行銷方面投入更多，那麼這是一項業務渴望資金，結果可以顯著改善。我想行銷方面有所改善，但正如您所評估的那樣，現在隨著召回和工廠的問題，運營或設施中的投資不足程度如何，因為我們剛剛從對未來幾個季度影響的角度考慮，目前這種情況是否真正得到遏制。

The thesis going back to -- for the business at the time of acquisition, I mean, still holds. And I think we, just prior to the production disruption, we're demonstrating the value of what we could do for the business. And it was hitting on all cylinders. When we think about distribution gains, innovation gains, really connecting with younger different consumers on the retail side, driving the C-store business not only just for the Planters business, but having that synergistic effect across our entire food safety portfolio, it's playing out. It is playing out the way that we thought.

我的意思是，對於收購時的業務，這個論點仍然成立。我認為，就在生產中斷之前，我們正在展示我們可以為業務做的事情的價值。它正在全力以赴。當我們考慮分銷收益、創新收益、真正與零售方面的年輕不同消費者建立聯繫、推動便利商店業務時，不僅是為了種植園業務，而且在我們整個食品安全產品組合中產生協同效應，它正在發揮作用。它正在按照我們想像的方式進行。

And when you acquire facilities, obviously we did significant due diligence and felt like we were in a good position. But as we took over the business, we were able to implement a lot of our food safety protocols, which were enhanced environmental and product testing since we've owned the business. And that allowed us to find this issue early and to be able to address it.

當您獲得設施時，顯然我們進行了大量的盡職調查，並感覺到我們處於有利地位。但當我們接手該業務時，我們能夠實施許多食品安全協議，自從我們擁有該業務以來，這些協議就加強了環境和產品測試。這使我們能夠及早發現這個問題並能夠解決它。

So while we could talk about the financial impact and what was right, what was wrong, the fact is our system worked. We found what we needed to find, we addressed it, and we're doing the right thing. The plant was down for five weeks. The ramp-up has taken us a little longer than we thought. But as we're ramping back up, obviously we expect demand to correct, and we'll be able to get back on track to really deliver on that original thesis, which was to drive our whole enterprise entertaining and snacking portfolio.

因此，雖然我們可以討論財務影響以及什麼是正確的、什麼是錯誤的，但事實是我們的系統有效。我們找到了我們需要找到的東西，我們解決了它，我們正在做正確的事情。該工廠已停產五週。升級花費的時間比我們想像的還要長。但隨著我們的恢復，顯然我們預計需求會得到糾正，我們將能夠回到正軌，真正實現最初的論點，即推動我們整個企業娛樂和零食產品組合。

So we're still very excited about the business. Obviously, this disruption is never a good thing, but the team has done great work and feel like we'll be able to get back to hitting on all cylinders in the not too distant future.

所以我們仍然對這項業務感到非常興奮。顯然，這種破壞從來都不是一件好事，但團隊已經做了出色的工作，並且感覺我們將能夠在不久的將來恢復到全速運轉。

Rupesh Parikh, Oppenheimer.

魯佩什·帕里克，奧本海默。

Good morning. Thanks for taking my question. And Deanna, also congrats on your retirement. Just starting out with volumes, how did volumes play out versus your expectations for the quarter?

早安.感謝您提出我的問題。迪安娜，也祝賀你退休。剛從銷售開始，與您對本季的預期相比，銷售表現如何？

The biggest things for us, Rupesh, in the third quarter was the Planters volume was lower than we expected. We talked about the contract manufacturing piece. That was another part that was significantly lower than we expected. Turkey was a decline year over year but largely in line with what we did expect.

Rupesh，第三季對我們來說最重要的事情是播種機的銷售量低於我們的預期。我們討論了合約製造部分。這是另一部分明顯低於我們預期的部分。土耳其年減，但基本上符合我們的預期。

Great. And then I'm not sure how much you can comment on this. But as we look to next fiscal year, does any initial puts and takes you can share? Obviously, Planters could be a tailwind as we go into next year. I also want to get a sense of whole bird turkey and just contract manufacturing, if we -- maybe those could be net neutral or even positive as we look out to next year?

偉大的。然後我不確定你對此有何評論。但是，當我們展望下一個財年時，您可以分享一些初步的看跌期權嗎？顯然，當我們進入明年時，Planters 可能會成為一股順風。我還想了解整隻火雞和合約製造，如果我們——也許這些在我們展望明年時可能是淨中性甚至積極的？

Yeah. I mean, you know I'm going to say that it's early for us to be to be talking about 2025. But I do think there are some specific areas that we're starting to look into that timeframe and think about it. To the comments I just made, obviously we expect Planters to be able to rebound and hit again on all cylinders, both retail, foodservice, the continued build in our transform and modernize initiative. We expect to be able to maintain some of the momentum in our key retail brands. Our international business is really hitting its stride, and we expect that to continue to grow.

是的。我的意思是，你知道我會說我們現在談論 2025 年還為時過早。對於我剛才發表的評論，顯然我們希望 Planters 能夠反彈並再次衝擊所有方面，包括零售、餐飲服務、持續建設我們的轉型和現代化計劃。我們預計能夠保持我們主要零售品牌的部分發展勢頭。我們的國際業務正在蓬勃發展，我們預計這項業務將繼續成長。

The other part in all of this is to make sure you have the available capacity to grow. And so we have spent a lot of time on that as well to make sure that we have the necessary capacity to support some of our strategic growth areas. And then as I commented on Peter's question, the turkey part just is so dynamic and has so many moving parts that it's really early at this point. But yeah, there's a lot of puts and takes, but there's a lot to like about the work that we've been doing, and that's why we're excited about the position we're in even though we're navigating some of these identified headwinds.

所有這一切的另一部分是確保您擁有可用的成長能力。因此，我們也花了很多時間來確保我們有必要的能力來支持我們的一些策略成長領域。然後，當我評論彼得的問題時，火雞部分是如此充滿活力，並且有如此多的活動部分，所以現在還為時過早。但是，是的，有很多的取捨，但是我們一直在做的工作有很多值得喜歡的地方，這就是為什麼我們對我們所處的位置感到興奮，儘管我們正在應對其中一些問題確定了不利因素。

Michael Lavery, Piper Sandler.

麥可萊弗里、派珀桑德勒。

Just one more back on Planters. You mentioned with the additional $0.03 expected impact and stretching into 4Q, you had said, I think the term was commercial impact, along with some of the other things you cited, and I just want to make sure I understand exactly what that means? And is that -- does that point to any potential distribution losses you might have to recover? And if so, could that stretch into fiscal '25.

又回到《種植園主》了。您提到額外 0.03 美元的預期影響並延伸到第四季度，您曾說過，我認為這個詞是商業影響，以及您引用的其他一些事情，我只是想確保我確切地理解這意味著什麼？這是否意味著您可能需要彌補任何潛在的分銷損失？如果是這樣，這種情況是否會延續到 25 財年。

Yeah, Michael, it is. The commercial impact is the sales impact that we're missing out on. At this point, we have not had any distribution losses. Obviously, we've been able to work through inventory. We're ramping up production, supplementing that with co-manufacturing.

是的，邁克爾，確實如此。商業影響就是我們錯過的銷售影響。目前，我們還沒有出現任何分銷損失。顯然，我們已經能夠處理庫存。我們正在提高產量，並透過聯合製造來補充。

And although we're not where we need to be, we're certainly navigating the situation and in constant communication with our customers. The part that we don't want to lose sight of is that Planters is a very, very important brand in this category. And so when we're talking to customers, there is that recognition. They always want us back up and running faster. We want to be back up and running faster.

儘管我們還沒有達到我們需要達到的目標，但我們確實正在應對這種情況，並與客戶保持持續溝通。我們不想忽視的一點是，Planters 是這個類別中非常非常重要的品牌。因此，當我們與客戶交談時，就會得到這種認可。他們總是希望我們能夠恢復並運行得更快。我們希望恢復並運行得更快。

But it's an important part of the category. And we can't tell you today exactly what type of spillover there might be into 2025. But again, we're doing everything that we can to make sure that we're filling those needs.

但它是該類別的重要組成部分。今天我們無法準確告訴您 2025 年可能會出現哪種類型的溢出效應。

And just on the CapEx guide that you're holding, it points to a pretty big spend in 4Q. Is that correct? And just what -- maybe what would some of that be? Is it -- you didn't change it. So I guess it's not the sort of fix up costs for the storm damage. What -- any color on just the what seems like a big spike up late in the year in CapEx?

就您所持有的資本支出指南而言，它表明第四季度的支出相當大。這是正確的嗎？到底是什麼——也許其中一些是什麼？是嗎——你沒有改變它。所以我想這不是風暴破壞的修復費用。什麼——今年稍後資本支出似乎大幅上漲，有什麼顏色嗎？

So you are correct. This is fairly consistent actually with how it sequences during the year. And so Q4, we typically do see a big spend. And so we're comfortable with achieving that amount, the $280 million that we have put out for the year. So nothing really unusual in terms of the spend this time of the year.

所以你是對的。這實際上與一年中的順序相當一致。因此，第四季度，我們通常確實會看到大量支出。因此，我們對實現這筆金額感到滿意，也就是我們今年投入的 2.8 億美元。因此，就一年中這個時候的消費而言，並沒有什麼特別的。

And our our engineering team does a really good job of scrubbing the projects and the spend rate throughout the year. So yeah, we feel like we're in a good position.

我們的工程團隊在全年清理專案和支出率方面做得非常好。所以，是的，我們感覺自己處於有利位置。

Heather Jones, Heather Jones Research.

希瑟瓊斯，希瑟瓊斯研究。

My first question is going back to the whole bird turkey and co-man comments. I think you all said they represent roughly 3/4 of the net sales decline. But given their lower price points, is it fair to think that they were a bigger chunk of the volume decline? And just wondering when those comparisons will be cycled.

我的第一個問題是回到整隻火雞和同事的評論。我想你們都說過它們約佔淨銷售額下降的 3/4。但考慮到它們的價格較低，認為它們在銷售下降中所佔的比例更大，是否公平？只是想知道這些比較何時會循環。

Yeah. I mean, I think it's -- from a volume perspective, it's fairly equal. As we're working through the holiday season for 2024, we'll get better visibility in terms of what the demand is, what the sell-through is, what the supply side of the business is. And so while it would be nice to say that you're going to have a clear read heading into 2025, those read-throughs tend to be a bit delayed. So it will be probably spring of 2025 before we're really able to give a better view of how that cycle looks.

是的。我的意思是，我認為從數量的角度來看，這是相當平等的。在 2024 年假期期間，我們將更了解需求、銷售情況以及業務供應方面的情況。因此，雖然很高興地說您將在 2025 年之前有一個清晰的閱讀，但這些通讀往往會有點延遲。因此，可能要到 2025 年春天，我們才能真正更了解該週期的情況。

And what about the co-man side, is that -- are you talking about that as well? Or just were your comments more on the whole bird side?

那麼搭檔方面呢——你也在談論這個嗎？或者只是你的評論更多的是在整個鳥類方面？

That was more on the whole bird side. I'm sorry, Heather, I missed your co-man question. Could you go ahead and elaborate on that again?

這更多的是在整個鳥類方面。抱歉，希瑟，我錯過了你的搭檔問題。能再詳細說明一下嗎？

Well, you were -- you all said that co-man, Planters, and whole bird were roughly 3/4 of the net sales decline in the quarter, and their lower price points, I was assuming they're a bigger chunk of the volume decline, and then I was wondering when you think you'll cycle the co-man softness.

好吧，你們都說過，co-man、Planters 和 Whole Bird 大約佔本季度淨銷售額下降的 3/4，而且它們的價格點較低，我假設它們佔了更大的份額。下降，然後我想知道你什麼時候會循環CO-MAN的柔軟度。

Yeah. So, Heather, what we've said is contract manufacturing. And so that is a facility, Century Foods, that we own. And so we're constantly working on that business to drive demand and bring new business into the facility. So that is not a co-manufacturing issue. It's a facility that we own, and we refer to it as contract manufacturing.

是的。所以，希瑟，我們所說的是合約製造。這就是我們擁有的一家工廠，世紀食品公司。因此，我們不斷致力於該業務，以推動需求並為該設施帶來新業務。所以這不是聯合製造的問題。這是我們擁有的工廠，我們稱之為合約製造。

Okay. And then my second question is going back to Yale's Analyst Day last year and targeting $250 million in EBIT improvement by '26. It seems like this year is likely to be down year on year, so a decline of greater lift by '26. And just wondering, given what has happened with Planters and whole birds, et cetera, is there anything that changes your view as to the achievability of that?

好的。然後我的第二個問題是回到耶魯大學去年的分析師日，目標是到 26 年實現 EBIT 改善 2.5 億美元。看來今年可能會年減，所以到26年降幅更大。只是想知道，考慮到種植者和整隻鳥等發生的事情，是否有什麼事情會改變您對實現這一目標的看法？

Just in terms of clarity, you mentioned that we're down year over a year. I'm not sure I'm clear on that piece of it. What I can tell you is that we are tracking really well towards achieving that $250 million by 2026, and we'll definitely give more color on the Q4 call. As we talked about during our investor call October last year, we called this year as being 2024 a year of investment for sure. And so there will be a pretty good ramp, '25 to '26.

就清楚而言，您提到我們的業績逐年下降。我不確定我是否清楚這一點。我可以告訴你的是，我們正在很好地跟踪到 2026 年實現 2.5 億美元的目標，我們肯定會在第四季度的電話會議上提供更多資訊。正如我們在去年 10 月的投資者電話會議上談到的那樣，我們稱 2024 年無疑是投資年。因此，從 25 年到 26 年將會有一個相當好的斜坡。

That being said, we are seeing really meaningful impact to our margins and our bottom line here in 2024 irrespective of that.

話雖如此，無論如何，我們都看到 2024 年我們的利潤率和淨利潤受到了真正有意義的影響。

Adam Samuelson, Goldman Sachs.

亞當·薩繆爾森，高盛。

Maybe kind of following up on Heather's question in a slightly different way. I know you're going to give a bigger discussion of the transform and modernize initiatives on the fourth quarter call. But can you help dimensionalize the amount of savings that you have realized year to date from those initiatives? You talked about the fourth quarter being the strongest contributor from those initiatives of the year, so what ballpark are those expected to be on a year-on-year basis as we start to then think about that annualized run rate into 2025?

也許以稍微不同的方式跟進希瑟的問題。我知道您將在第四季度的電話會議上對轉型和現代化計劃進行更廣泛的討論。但您能否幫助具體說明今年迄今為止您透過這些舉措實現的節省金額？您談到第四季度是今年這些舉措的最大貢獻者，那麼當我們開始考慮 2025 年的年化運行率時，預計這些舉措的同比情況會是怎樣？

Yeah. And Adam, we are going to provide a deeper dive in Q4. And so that is going to be the better opportunity for us to talk about what we've been able to achieve financially in '24 and how we're thinking about '25. What I would say is we talked today in the prepared remarks about planning the business and making the business. But equally important is the work that we're doing on the buy side, and we are realizing benefits from our procurement savings, expected logistics supplies from a move perspective, having the analytics across our refrigerated network to enhance our service levels.

是的。 Adam，我們將在第四季進行更深入的探討。因此，這將是我們談論 24 年我們在財務上的成就以及我們如何思考 25 年的更好機會。我想說的是，我們今天在準備好的發言中談到了規劃業務和開展業務。但同樣重要的是我們在買方所做的工作，我們正在從採購節省、從移動角度預期的物流供應、對我們的冷藏網絡進行分析以提高我們的服務水平中實現效益。

And just -- I mean, just in general, our processes are really developing and maturing. We'll also have the opportunity to talk about portfolio optimization. And so we're not in a position to get into the financial part today. But rest assured, we will do that on the Q4 call.

我的意思是，總的來說，我們的流程確實正在發展和成熟。我們還將有機會討論投資組合優化。因此，我們今天無法進入財務部分。但請放心，我們將在第四季的電話會議上做到這一點。

Yeah, no. And I'll just add as well, Adam, you'll see -- some of the benefits that you see showing up here in terms of the margin expansion in the business is a direct result of those savings that's falling through the bottom line from different places in the P&L, whether that's from a gross margin standpoint or truly to earnings where we're driving that savings and efficiency in our supply chain. So stay tuned here for our call in Q4 for us to really give you a lot more color there.

是的，不。我還要補充一點，亞當，你會看到——你在這裡看到的在業務利潤擴張方面出現的一些好處是那些從底線下降的節省的直接結果。毛利率的角度來看，還是從真正的收益角度來看，我們都在推動供應鏈的節省和效率。因此，請繼續關注我們在第四季度的電話會議，以便我們真正為您提供更多的色彩。

Okay. I appreciate that. And if I can just ask a follow-up just on the sales guidance for the fourth quarter, kind of implies down 6% to up 4% year over year. Just any kind of rough framing on the split there between kind of volume versus price mix and kind of company level by segment for the fourth quarter as you're thinking about it? I know there can be a lot of noise with the commodity turkey whole birds and some of the fresh meat exports and the co-mans, so just help clarify kind of where those are going to kind of flow through the P&L or through the sales line in the different businesses?

好的。我很欣賞這一點。如果我能詢問第四季度銷售指導的後續情況，那就意味著同比下降 6% 到增長 4%。正如您所考慮的那樣，對第四季度的銷售與價格組合以及按細分市場劃分的公司類型之間的劃分有任何粗略的框架嗎？我知道商品火雞整隻鳥以及一些新鮮肉類出口和合作夥伴可能會產生很多噪音，因此請幫助澄清這些產品將流經損益表或銷售線在不同的業務中？

So as we're thinking about the Q4 outlook, we expect the retail business to be down mid-single digits. A lot of the retail dynamics will be similar. We talked about contract manufacturing, not co-mans. Some of the market impact that we had originally thought was going to be there as we continue to work through the Planter situation.

因此，當我們考慮第四季度的前景時，我們預計零售業務將下降中個位數。許多零售動態將是相似的。我們談論的是合約製造，而不是合作製造。當我們繼續解決 Planter 問題時，我們最初認為的一些市場影響將會存在。

But mid-single digits is a good number for retail. We expect foodservice to be up mid-single digits. International will be lapping on the volume side, commodity business again, but we do see improved mix that will get sales to low single digits, and it gets us to the range you're describing, which is really low-single digits. But I think the takeaway here is we can do that math, but the core business is very healthy for retail, foodservice, and international.

但對於零售業來說，中個位數是一個不錯的數字。我們預計餐飲服務將成長中個位數。國際業務將再次在銷售方面、大宗商品業務上有所突破，但我們確實看到了組合的改善，這將使銷售額降至低個位數，這使我們達到您所描述的範圍，這確實是低個位數。但我認為這裡的要點是我們可以進行數學計算，但核心業務對於零售、餐飲服務和國際業務來說非常健康。

There are no further questions at this time. I will now turn the call over to Jim Snee for closing remarks.

目前沒有其他問題。現在我將把電話轉給吉姆·斯尼 (Jim Snee) 致閉幕詞。

We are pleased to deliver another quarter of better-than-expected earnings. While we continue to navigate several identified headwinds, our team remains focused on finishing the year strong and delivering on our commitments. I want to thank all of you for joining us this morning and hope you have a good rest of the week.

我們很高興又一個季度的獲利好於預期。雖然我們繼續克服一些已知的不利因素，但我們的團隊仍然專注於強勁地結束這一年並兌現我們的承諾。我要感謝大家今天早上加入我們，並希望你們本週休息愉快。

Ladies and gentlemen, this concludes your conference call for today. We thank you for participating 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，並請您斷開線路。