荷美爾 (HRL) 2024 Q4 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to the Hormel Foods Corporation Fourth Quarter Earnings Conference Call. (Operator Instructions) This call is being recorded on Wednesday, December 4, 2024.

早安，女士們、先生們，歡迎參加荷美爾食品公司第四季財報電話會議。 （操作員說明）此通話錄音時間為 2024 年 12 月 4 日星期三。

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

我現在想將會議交給投資者關係總監 Jess Blomberg。請繼續。

Good morning. Welcome to the Hormel Foods conference call for the fourth quarter of fiscal 2024. We released results this morning before the market opened. If you did not receive a copy of the release, you can find it on our website, hormelfoods.com under the Investors section.

早安.歡迎參加荷美爾食品 2024 財年第四季的電話會議。如果您沒有收到該新聞稿的副本，您可以在我們的網站 hormelfoods.com 的「投資者」部分找到它。

On our call today is Jim Snee, Chairman of the Board, President and Chief Executive Officer; Jacinth Smiley, Executive Vice President and Chief Financial Officer; John Ghingo, Executive Vice President of the Retail segment; and Nathan Annis, Vice President of Corporate Development.

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； John Ghingo，零售部門執行副總裁；和企業發展副總裁 Nathan Annis。

Jim and Jacinth will review the company's 2024 fourth quarter and full year results and provide a perspective on our outlook for fiscal year 2025. Then Jim, Jacinth and Nathan will provide a holistic update on our transform and modernize initiative, which was introduced at our 2023 Investor Day. John will join Jim, Jacinth and Nathan for the Q&A portion of the call.

Jim 和 Jacinth 將回顧公司 2024 年第四季和全年業績，並對我們 2025 財年的前景提出看法。投資者日。約翰將與吉姆、賈辛斯和內森一起參加電話會議的問答部分。

The line will be open for questions following Nathan'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 get back into the queue. At the conclusion of this morning's call, a webcast replay will be posted to our investor website and archived for one year.

內森發表演說後，該熱線將開放接受提問。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，歡迎您回到隊列。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 are 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所做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, we will be discussing certain non-GAAP financial measures 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，請注意，我們今天上午將討論某些非公認會計準則財務指標。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. In fiscal 2024, we demonstrated the solid execution of our strategy, the power of our portfolio and the resilience of our team. In our business segments, we navigated a dynamic macro consumer environment by reinvesting in our brands, expanding market presence and introducing innovative solutions across our portfolio. In doing so, we delivered solid results, coming in line with our adjusted diluted net earnings per share expectations for the year.

謝謝你，傑西。大家早安。 2024 財年，我們展現了策略的紮實執行、產品組合的力量以及團隊的韌性。在我們的業務領域，我們透過對品牌進行再投資、擴大市場份額並在我們的產品組合中引入創新解決方案，駕馭動態的宏觀消費環境。在此過程中，我們取得了穩健的業績，符合我們今年調整後稀釋後每股淨利潤的預期。

We made significant progress in the first year of our transform and modernize initiative, delivering an impressive $75 million in operating income benefit and setting our company up for growth and long-term success. With our disciplined financial approach, the strength of our value-added portfolio and the benefits from transform and modernize we delivered a record year of operating cash flow, enabling us to return a record amount of cash to our shareholders in the form of dividends. In retail, we leveraged the strength of our brands by prioritizing resources towards brands and categories where we know we can win.

我們在轉型和現代化計劃的第一年取得了重大進展，實現了令人印象深刻的 7500 萬美元營業收入效益，並為我們公司的成長和長期成功奠定了基礎。憑藉我們嚴格的財務方法、增值投資組合的實力以及轉型和現代化帶來的好處，我們實現了創紀錄的經營現金流，使我們能夠以股息的形式向股東返還創紀錄的現金數額。在零售領域，我們透過將資源優先分配給我們知道可以獲勝的品牌和品類，充分利用了我們品牌的優勢。

Flagship and rising brands such as Hormel Black Label, Jennie-O, SPAM, and Applegate delivered strong growth and expanded households across on-trend categories. We brought meaningful consumer-centric innovation to our brands and fuel their growth through increased advertising investments. We continue to expand our leadership in our foodservice segment, growing net sales by 6%, well above industry growth. This success highlighted the differentiated value and relevant offerings our dedicated team brings to the industry.

Hormel Black Label、Jennie-O、SPAM 和 Applegate 等旗艦品牌和新興品牌實現了強勁增長，並擴大了流行類別的家庭數量。我們為我們的品牌帶來了有意義的以消費者為中心的創新，並透過增加廣告投資來推動其成長。我們持續擴大在餐飲服務領域的領先地位，淨銷售額成長 6%，遠高於產業成長。這項成功凸顯了我們的專業團隊為產業帶來的差異化價值和相關產品。

The team executed on our strategic priorities by launching solution-based innovation for our operators and drove impressive growth in the convenience channel by expanding distribution of entertaining and snacking brands like Columbus and Gatherings. And as expected, we saw the strong recovery of our international segment. We increased branded exports for the SPAM family of products and Skippy Peanut Butter. We drove growth from investments in the Philippines and Indonesia and achieved a solid recovery of our China business. We remain well positioned to deliver growth and expand our global presence.

該團隊透過為我們的營運商推出基於解決方案的創新來執行我們的策略重點，並透過擴大 Columbus 和 Gatherings 等娛樂和零食品牌的分銷來推動便利通路的顯著成長。正如預期的那樣，我們看到了國際業務的強勁復甦。我們增加了 SPAM 系列產品和 Skippy 花生醬的品牌出口。菲律賓、印尼投資拉動成長，中國業務穩定復甦。我們仍然處於有利地位，可以實現成長並擴大我們的全球影響力。

In addition to delivering on expectations and driving momentum with our value-added portfolio, we accomplished other considerable milestones in fiscal 2024. We drove 140 basis point increase in our estimated net sales from innovation. Successful innovation underscores the importance of understanding consumer and operator needs and delivering effective solutions, especially in this dynamic macro environment. Our brand teams understand that consumers are hungry for new food experiences, both in home and away from home. Innovation will continue to be foundational to our growth strategy, supported by our exceptional R&D professionals, signature chefs and brand fuel team. And the safety of our employees will always remain a pillar of our culture.

除了透過我們的增值產品組合實現預期和推動勢頭外，我們還在 2024 財年實現了其他重大里程碑。成功的創新強調了了解消費者和營運商需求並提供有效解決方案的重要性，特別是在這個動態的宏觀環境中。我們的品牌團隊了解消費者無論在家或在外都渴望新的美食體驗。創新將繼續成為我們成長策略的基礎，並得到我們傑出的研發專業人員、招牌廚師和品牌燃料團隊的支持。我們員工的安全將永遠是我們文化的支柱。

I am proud to report that in fiscal 2024, we achieved our safest year in our company's history. This milestone is fundamental to our success and a testament to our team members' focus on our safety first culture. Cash flow has always been a bedrock of our company. And this year, we broke our all-time record for operating cash flow, delivering $1.3 billion for the year. The strength of our portfolio, the disciplined operation of our business and the success of our T&M initiative allowed us to deliver this significant achievement. As a result of our record operating cash flow and disciplined capital allocation strategy, we once again returned a record amount of cash to shareholders in the form of dividends. We also recently announced the 59th consecutive increase to our annual dividend, a record we are incredibly proud of.

我很自豪地向大家報告，2024 財年是我們公司史上最安全的一年。這個里程碑是我們成功的基礎，也證明了我們的團隊成員對安全第一文化的關注。現金流一直是我們公司的基石。今年，我們打破了營運現金流的歷史記錄，全年實現了 13 億美元的現金流。我們產品組合的優勢、業務的嚴格運營以及 T&M 計劃的成功使我們能夠取得這一重大成就。由於我們創紀錄的經營現金流和嚴格的資本配置策略，我們再次以股利的形式向股東返還創紀錄的現金金額。我們最近還宣布連續第 59 次增加年度股息，這是我們感到非常自豪的記錄。

There are a number of reasons to be excited about the position we are in today because in fiscal '24, we overcame significant headwinds to deliver our earnings guidance. We leveraged the strength of our value-added portfolio across our retail, food service and international [savings]. And we delivered $75 million of operating income benefits through our transform and modernize initiative. As we head into 2025, our brands continue to have either number 1 or number 2 share positions in over 40 retail categories. We are making strategic investments into flagship and rising brands like Hormel Black Label [bacon], planters, SPAM, Applegate and Jennie-O.

我們有很多理由對今天的處境感到興奮，因為在 24 財年，我們克服了重大阻力，實現了獲利指引。我們充分利用了零售、食品服務和國際[儲蓄]領域的加值投資組合的優勢。透過轉型和現代化計劃，我們實現了 7,500 萬美元的營業收入收益。進入 2025 年，我們的品牌在 40 多個零售類別中繼續保持第一或第二的份額地位。我們正在對 Hormel Black Label [培根]、planters、SPAM、Applegate 和 Jennie-O 等旗艦品牌和新興品牌進行策略性投資。

Our foodservice segment continues to provide unique value in the marketplace, and our international segment is well positioned to deliver growth and expand our global presence. Transform and modernize is on track, delivering value and helping to return the company to its historical earnings trajectory. There is a growth mindset embedded in our culture, allowing us to be more competitive, agile and capital efficient. We are fueling investments back into the business to drive growth and deliver shareholder returns. The momentum in our underlying business, coupled with the strength of our most transformative initiative ever gives me great confidence in our team, brands and companies.

我們的餐飲服務部門繼續在市場上提供獨特的價值，我們的國際部門處於有利地位，可以實現成長並擴大我們的全球影響力。轉型和現代化已步入正軌，將創造價值並幫助公司恢復歷史獲利軌跡。我們的文化中蘊藏著一種成長心態，使我們更具競爭力、敏捷性和資本效率。我們正在加大對業務的投資，以推動成長並為股東帶來回報。我們基礎業務的勢頭，加上我們有史以來最具變革性的舉措的力量，讓我對我們的團隊、品牌和公司充滿信心。

I will now transition the call to Jacinth for her remarks.

現在我將把電話轉給傑辛斯，請她發表演說。

Thank you, Jim. And to everyone joining us today, I would like to echo Jim's comments around the confidence in our business, the power of our portfolio and the strength of our global team and culture. Volume for the fourth quarter was [1.1 billion pounds], and the net sales were $3.1 billion. For the full year, volume was [4.3 billion pounds] and net sales were $11.9 billion. Gross margin in the fourth quarter and full year increased 50 basis points to 16.6% and 17%, respectively. This reflects the strength of our value-added portfolio and the early successes of our transform and modernize initiatives. Full year expenses increased compared to last year, primarily due to employee-related expenses and the T&M initiative.

謝謝你，吉姆。對於今天加入我們的每個人，我想回應吉姆關於我們業務的信心、我們產品組合的力量以及我們全球團隊和文化的力量的評論。第四季銷售量為 [11 億英鎊]，淨銷售額為 31 億美元。全年銷量為 [43 億英鎊]，淨銷售額為 119 億美元。第四季和全年毛利率分別成長50個基點至16.6%和17%。這反映了我們增值產品組合的實力以及我們轉型和現代化舉措的早期成功。全年費用與去年相比有所增加，主要是由於員工相關費用和 T&M 計劃。

We expect SG&A expenses to increase in fiscal 2025. Advertising investments for fiscal 2024 were $163 million, up 2% compared to last year. We have planned for double-digit percentage increases in advertising investments in fiscal 2025. For fiscal 2024, interest and investment income increased due to favorable Rabi Trust performance and higher interest rate. Interest expense increased due to higher rates on debt issued during the year. Our fiscal 2025 expectations assume lower interest and investment income and comparable interest expense.

我們預計 2025 財年的 SG&A 費用將增加。我們計劃在 2025 財年實現廣告投資兩位數百分比的增長。由於年內發行的債務利率上升，利息支出增加。我們對 2025 財年的預期假設利息和投資收入以及可比較利息支出較低。

Operating income for fiscal 2024 was $1.1 billion. Operating margin was 9% and adjusted operating margin was 9.6%. The tax rate for fiscal 2024 was 22.3%, and the effective tax rate for fiscal 2025 is expected to be in the range of 22% to 23%. For the full year, diluted net earnings per share was $1.47 and adjusted diluted net earnings per share was $1.58. Turning now to the balance sheet.

2024 財年營業收入為 11 億美元。營業利益率為 9%，調整後營業利益率為 9.6%。 2024財年的稅率為22.3%，2025財年的有效稅率預計在22%至23%範圍內。全年稀釋每股淨利為 1.47 美元，調整後稀釋每股淨利為 1.58 美元。現在轉向資產負債表。

We remain committed to dividend growth, investing in our business and maintaining our investment-grade rating. Our record cash flows from operations of $1.3 billion in fiscal 2024 and disciplined financial strategy directly support these commitments. In fiscal 2024, we returned a record $615 million store shareholders in the form of dividends, including payment of our 385th consecutive quarterly dividend. We also recently announced an increase of our annual dividend of 3% to $1.16 per share for fiscal 2025. This will represent a remarkable 59th consecutive year of dividend increases. We invested $256 million in capital projects during fiscal 2024 and our largest projects were focused on capacity for value-added growth.

我們仍然致力於股息成長、投資於我們的業務並維持我們的投資等級評級。 2024 財年，我們創紀錄的營運現金流達 13 億美元，而嚴格的財務策略直接支持了這些承諾。 2024 財年，我們以股息的形式向商店股東返還了創紀錄的 6.15 億美元，其中包括連續第 385 次支付季度股息。我們最近也宣布將 2025 財年的年度股利增加 3%，達到每股 1.16 美元。 2024 財年，我們在資本項目上投資了 2.56 億美元，我們最大的項目重點在於增值成長能力。

We are targeting between $275 million and $300 million in capital projects for fiscal 2025. We ended the year with $2.9 billion of debt and over $765 million in cash and short-term securities. We remain comfortably within our stated goal of 1.5 to 2 times net debt to EBITDA. Inventories finished the year at $1.6 billion, a decrease of $104 million from the beginning of the year. We enter fiscal 2025 with responsible levels of inventory to service our customers and ample production capacity to grow our business. Finally, I would like to provide additional color on a few items for fiscal 2024.

我們的 2025 財年資本項目目標為 2.75 億至 3 億美元。我們仍然輕鬆地實現了淨債務佔 EBITDA 1.5 至 2 倍的既定目標。年終庫存為 16 億美元，比年初減少 1.04 億美元。進入 2025 財年，我們擁有可靠的庫存水準來服務我們的客戶，並擁有充足的產能來發展我們的業務。最後，我想為 2024 財年的一些項目提供額外的色彩。

First, as we noted during our third quarter earnings call, we experienced storm damage to our Patelin Nebraska facility in early Q4. This event resulted in approximately $9 million of negative impact to the fourth quarter. Second, we made significant progress during the quarter regarding the Suffolk production disruption. We are improving fill rates, regaining distribution refilling shelves and prioritizing innovation. At the same time, we do expect some near-term commercial impacts and higher costs, most notably in the first quarter of fiscal 2025.

首先，正如我們在第三季財報電話會議上指出的那樣，我們的內布拉斯加州帕特林工廠在第四季初遭受了風暴損壞。該事件為第四季度帶來了約 900 萬美元的負面影響。其次，我們在本季在薩福克生產中斷方面取得了重大進展。我們正在提高填充率，重新獲得分銷補貨貨架並優先考慮創新。同時，我們確實預期會出現一些短期商業影響和更高的成本，尤其是在 2025 財年第一季。

We expect to benefit from the recaptured momentum in the Planters brand starting in the second quarter of fiscal 2025. Lastly, in the final week of the fiscal year, we divested of our Hormel Health Labs business, which was reported in our foodservice segment and contributed [64 million pounds] and $108 million net sales to our top line and approximately $0.01 to adjusted EPS in fiscal 2024, which will not be repeated in future years. Shifting now to our fiscal 2025 outlook.

我們預計將從2025 財年第二季開始重新獲得Planters 品牌的勢頭。貢獻[6,400 萬英鎊] 和 1.08 億美元的淨銷售額，以及 2024 財年調整後每股收益約 0.01 美元，這在未來幾年不會重複。現在轉向我們的 2025 財年展望。

We expect each segment to deliver top line growth as we continue to provide innovative offerings in the marketplace and increase investments in our brands. For full year fiscal 2025, we expect the following in each of our segments. Retail comparable volume and low single-digit increases in net sales. Food service after adjusting for Hormel Health Labs divestiture, mid-single-digit increases in volume and mid-single-digit increases in net sales. And for international, low single-digit increases in volume and high single-digit increases in net sales. We also anticipate segment profit growth from each segment for the full year with growth weighted towards the back half of the year.

隨著我們繼續在市場上提供創新產品並增加對我們品牌的投資，我們預計每個細分市場都能實現營收成長。對於 2025 財年全年，我們預計每個細分市場將實現以下目標。零售可比銷售量和淨銷售額的低個位數成長。食品服務業在荷美爾健康實驗室剝離進行調整後，銷售量達到中個位數成長，淨銷售額實現中個位數成長。對於國際市場，銷售量的低個位數成長和淨銷售額的高個位數成長。我們也預計全年各部門的利潤成長，其中成長將集中在今年下半年。

Regarding key input cost assumptions in our fiscal 2025 outlook, we expect port input costs to be comparable to fiscal 2024 and remain above the five-year average. Beef costs continue to be a headwind, not input cost to be a drag year-over-year. Turkey markets to continue to be depressed for the full year with lower year-over-year whole-bird prices specifically in the first quarter. Our outlook also accounts for a moderate benefit due to favorable grain prices. I would also like to note that we expect $0.04 to $0.05 of unfavorable earnings per share impact in the first quarter from lower year-over-year whole bird prices and the suffer production disruption.

關於 2025 財年展望的關鍵投入成本假設，我們預期港口投入成本將與 2024 財年相當，仍高於五年平均水準。牛肉成本仍然是一個阻力，而不是投入成本逐年拖累。土耳其市場全年將繼續低迷，尤其是第一季整雞價格年減。由於有利的穀物價格，我們的前景也得到了適度的好處。我還想指出的是，我們預計第一季的每股收益將受到 0.04 至 0.05 美元的不利影響，原因是整雞價格同比下降以及生產中斷。

In total, we expect net sales of $11.9 billion to $12.2 billion, organic net sales growth of 1% to 3%. Adjusted diluted earnings per share in the range of $1.58 to $1.72. And an estimated $100 million to $150 million of incremental benefits from the T&M initiative. To the entire Hormel Foods team around the globe, I thank you for your dedicated efforts in fiscal 2024, and I look forward to achieving our fiscal 2025 goals working alongside you.

總體而言，我們預計淨銷售額為 119 億美元至 122 億美元，有機淨銷售額將成長 1% 至 3%。調整後稀釋每股收益在 1.58 美元至 1.72 美元之間。 T&M 計畫預計將帶來 1 億至 1.5 億美元的增量收益。對於荷美爾食品全球的整個團隊，我感謝你們在 2024 財年的奉獻努力，我期待與你們一起實現我們 2025 財年的目標。

With that, I'll turn the call over to Jim.

這樣，我就把電話轉給吉姆。

Thanks, Jacinth. Please advance to slide 13, where we will begin the next portion of our call and provide an update on our transformation initiatives. I will provide a brief introduction before turning the call over to Jacinth and Nathan. Just over one year ago, at our 2023 Investor Day, we announced the most transformative initiative in our company's history. Our commitment is to transform and modernize our processes, our portfolio and the way we create value. We are doing this by investing in our people, data and technology and our brands. Today, you will hear about the significant progress we made in 2024 against our commitment.

謝謝，賈辛斯。請前進到幻燈片 13，我們將在此處開始電話會議的下一部分，並提供有關我們轉型計劃的最新資訊。在將電話轉給 Jacinth 和 Nathan 之前，我將提供一個簡短的介紹。就在一年前，在 2023 年投資者日上，我們宣布了公司歷史上最具變革性的舉措。我們的承諾是對我們的流程、我們的產品組合以及我們創造價值的方式進行改造和現代化。我們透過投資我們的人員、數據、技術以及我們的品牌來做到這一點。今天，您將了解我們在 2024 年兌現承諾所取得的重大進展。

At Investor Day, we described three interconnected buckets of opportunity for earnings growth. As a reminder, the purpose of our growth initiative is to regain historical predictable earnings growth and drive long-term value. The transform and modernize benefits generate incremental investment to drive business growth. As our business grows, we expect to deliver even more benefits through our transformational initiatives. We are creating a sustainable growth engine for the company and watching year 1 unfold in such a powerful way gives me confidence in our future.

在投資者日，我們描述了三個相互關聯的獲利成長機會。提醒一下，我們成長計畫的目的是恢復歷史可預測的獲利成長並推動長期價值。轉型和現代化帶來的好處會產生增量投資，從而推動業務成長。隨著我們業務的成長，我們期望透過轉型舉措帶來更多收益。我們正在為公司創造一個可持續的成長引擎，看到第一年​​以如此強大的方式展開，讓我對我們的未來充滿信心。

With that, I'll turn the call back over to Jacinth for you to hear more about our progress.

接下來，我會將電話轉回給 Jacinth，以便您了解更多有關我們進展的資訊。

Thanks, Jim. As Jim noted, we have made significant progress in year 1. I will take a few minutes to talk about our successes today and our expectations over the next two years, inclusive of the investments we are making to drive those benefits. As a reminder, Transform and modernized is not just a cost savings exercise, although that certainly is a real and substantial benefit. Rather, transform and modernize is about the way we do business across the enterprise, and it involves every single member of the Hormel Foods team.

謝謝，吉姆。正如吉姆所指出的那樣，我們在第一年取得了重大進展。提醒一下，轉型和現代化不僅僅是節省成本，儘管這確實是一個真正的、實質的好處。相反，轉型和現代化是我們在整個企業開展業務的方式，它涉及荷美爾食品團隊的每一位成員。

It is about reshaping how we operate creating new opportunities for growth and generating a powerful growth flywheel. And to make all that happen, we're making strategic investments in key areas of the business. As we shared with you last year, we have organized the initiative into five pillars. Four of those pillars focus on supply chain efficiency. With plan, we are adopting a holistic approach to end-to-end planning with. With Buy, we're implementing new more sourcing events to reduce costs and improve our procurement structure and tools. With Make, we're standardizing ways of working to improve yields, increase capacity and avoid unnecessary CapEx. And with Move, we're assessing and addressing near-term capacity and long-term network optimization.

它是關於重塑我們的營運方式，創造新的成長機會並產生強大的成長飛輪。為了實現這一切，我們正在業務的關鍵領域進行策略性投資。正如我們去年與大家分享的那樣，我們將該倡議分為五個支柱。其中四個支柱著重於供應鏈效率。透過計劃，我們採用整體方法進行端到端規劃。透過 Buy，我們正在實施更多新的採購活動，以降低成本並改善我們的採購結構和工具。透過 Make，我們正在標準化工作方式，以提高產量、增加產能並避免不必要的資本支出。透過 Move，我們正在評估和解決近期容量和長期網路優化問題。

Regarding portfolio optimization, we're finding new ways to reduce complexity, address low-margin items and create room in our portfolio for further innovation. This work is being done at both the brand and business level to ensure our portfolio reflects our company's strategy and leverages our core competencies. Nathan will be providing more detail and actual examples for each of these five pillars in just a few minutes.

關於投資組合優化，我們正在尋找新的方法來降低複雜性、解決低利潤項目並為我們的投資組合創造進一步創新的空間。這項工作在品牌和業務層面上進行，以確保我們的產品組合反映我們公司的策略並利用我們的核心競爭力。內森將在短短幾分鐘內為這五個支柱中的每一個提供更多細節和實際範例。

But before I turn it over to Nathan, I want to reiterate that year 1 of transform and modernize was a success, delivering $75 million in benefits. It is important to note, however, that this only reflects the benefits from the buy, make and move pillars of our T&M initiative. Specifically, we have seen the greatest savings from the improvements in logistics followed by raw materials and supplies and then manufacturing efficiencies.

但在將其交給 Nathan 之前，我想重申，轉型和現代化的第一年取得了成功，帶來了 7500 萬美元的收益。然而，值得注意的是，這僅反映了我們 T&M 計劃的購買、製造和移動支柱帶來的好處。具體來說，我們發現物流的改進帶來了最大的節省，其次是原材料和供應品，然後是製造效率。

Looking at fiscal 2025, we're expecting annualized operating income benefit from T&M to be in the range of $100 million to $150 million compared with 2024 operating income, and that is an addition to the $75 million we achieved this past year. In fiscal 2025, we expect the largest savings from these efforts to come through raw materials and supplies followed by significant benefits from manufacturing and logistics. We also made excellent progress with our plan and portfolio optimization pillars. With our planned pillar, we expanded on our end-to-end planning capabilities.

展望2025 財年，與2024 年營業收入相比，我們預期T&M 帶來的年化營業收入收益將在1 億至1.5 億美元之間，這是我們去年實現的7,500 萬美元營業收入的基礎上的增加。到 2025 財年，我們預計這些努力的最大節省將來自原材料和供應，其次是製造和物流帶來的顯著效益。我們的計劃和投資組合優化支柱也取得了巨大進展。透過我們計劃的支柱，我們擴展了我們的端到端規劃能力。

We are building an infrastructure that ensures a more accurate demand signal flows through to our supply planning, and that is absolutely critical. With portfolio optimization, we have made progress in harnessing the power of our portfolio, which is resulting in a more consumer-centric, less complex, more profitable product mix. More broadly, we believe that T&M initiative is enhancing Hormel Foods capabilities and unlocking our full potential.

我們正在建造一個基礎設施，以確保更準確的需求訊號流向我們的供應計劃，這絕對至關重要。透過產品組合優化，我們在利用產品組合的力量方面取得了進展，從而形成了更以消費者為中心、更簡單、利潤更高的產品組合。更廣泛地說，我們相信 T&M 計劃正在增強荷美爾食品的能力並釋放我們的全部潛力。

As I mentioned before, this is not just a cost savings initiative. We are making foundational investments in data and technology and people and processes to transform our company. In total, we're expecting to spend approximately $250 million through 2026. Taking a closer look at our spend, within the people and process category, we are investing in talent and upskilling our team members while creating a much more data-driven and analytical organization with modern processes. Importantly, we are driving complexity out of the organization.

正如我之前提到的，這不僅僅是一項節省成本的措施。我們正在數據、技術、人員和流程方面進行基礎性投資，以實現公司轉型。到 2026 年，我們預計總共花費約 2.5 億美元。組織。重要的是，我們正在消除組織的複雜性。

With our data and technology investments, we are building the analytical capabilities to make empower decisions based on strategic insights to gain a competitive edge across all of our businesses. Ultimately, we believe we are creating an incredibly powerful flywheel of sustained value creation. By focusing on investments, transformation and growth, we are laying the foundation for profitable and predictable growth, not just today but for years to come. With that, I'll turn the call over to Nathan Annis, our Vice President of Corporate Development, who will provide a deeper dive into our transformational initiatives.

透過我們的數據和技術投資，我們正在建立分析能力，以便根據策略洞察力做出決策，從而在我們所有業務中獲得競爭優勢。最終，我們相信我們正在創造一個極其強大的飛輪，能夠持續創造價值。透過專注於投資、轉型和成長，我們正在為獲利和可預測的成長奠定基礎，不僅是在今天，而且是在未來幾年。接下來，我將把電話轉給我們的企業發展副總裁內森·安妮斯 (Nathan Annis)，他將更深入地探討我們的轉型計劃。

Thank you, Jacinth. It has been a couple of years since 2021 when I was last in Investor Relations. And it's exciting to be back giving you an update on our transform and modernize initiative and to review some case studies that highlight our progress and the value we're creating. Our transform and modernize initiative is reshaping how we operate across the company in four key ways. First, our processes have historically been built on deep institutional knowledge and we're quite manual. As our company has grown, these processes became more complex and highly customized. We have started transforming these processes into streamlined enterprise-wide ways of working that leverage intelligent automation and digitization. I cannot overstate how critical this changes to all the work we are doing in our initiatives.

謝謝你，賈辛斯。距離我上次擔任投資者關係部門的 2021 年已經過了幾年。很高興能夠回來向您介紹我們的轉型和現代化計劃的最新情況，並回顧一些突出我們的進展和我們正在創造的價值的案例研究。我們的轉型和現代化舉措正在四個關鍵方面重塑我們整個公司的營運方式。首先，我們的流程歷來都是建立在深厚的機構知識之上的，而且我們非常手動。隨著我們公司的發展，這些流程變得更加複雜且高度客製化。我們已經開始將這些流程轉變為利用智慧自動化和數位化的簡化的企業範圍工作方式。我無法誇大這對我們在倡議中所做的所有工作的重要性。

Next, our key capabilities like business planning and execution used to be siloed and underleveraged. Over the recent years and quarters, we've moved to centralize these functions to capitalize on our scale while also strategically investing in areas where we are differentiated in the marketplace. Historically, our business was overly complex, bogged down by a lengthy list of vendors and SKUs. Looking ahead, we are simplifying our operations in a smart, data-driven way. We're also strategically segmenting our business to optimize our investments.

其次，我們的業務規劃和執行等關鍵能力過去是孤立的且未被充分利用。在最近幾年和幾個季度中，我們已經開始集中這些職能，以充分利用我們的規模，同時也對我們在市場上具有差異化的領域進行策略性投資。從歷史上看，我們的業務過於複雜，陷入了冗長的供應商和 SKU 清單之中。展望未來，我們將以智慧、數據驅動的方式簡化我們的營運。我們也策略性地分割我們的業務以優化我們的投資。

Last, where we once had a variety of methods for identifying and realizing value and savings, we now use a standardized, more disciplined approach. This new process ensures we are capturing value consistently with clear accountability tied to key metrics. These four strategic changes are integral to the work we are doing, and our team is setting a new standard for excellence in these areas. Now let's explore some specific examples of how these changes are making a difference in the five pillars, beginning with Buy.

最後，我們曾經有多種方法來識別和實現價值和節省，現在我們使用標準化、更嚴格的方法。這個新流程確保我們能夠始終如一地獲取價值，並具有與關鍵指標相關的明確責任。這四項策略變革是我們正在進行的工作不可或缺的一部分，我們的團隊正在這些領域制定卓越的新標準。現在讓我們探討一些具體的例子，說明這些變化如何對五個支柱產生影響，從購買開始。

This pillar represents a comprehensive enterprise effort to develop a new framework and tools for procuring goods and services across the entire organization. Our prior efforts of creating one supply chain and restructuring our segments through go forward are paying dividends as we scope opportunities. Viewing procurement through an enterprise-wide lens allows us to significantly transform how we operate.

此支柱代表了企業為開發新框架和工具以在整個組織內採購商品和服務而付出的全面努力。我們之前創建一個供應鏈並透過前進重組我們的細分市場的努力正在為我們尋找機會帶來紅利。從整個企業的角度審視採購使我們能夠顯著改變我們的營運方式。

For instance, we're establishing a new operating model that includes a modern structure, standardized training and updated policies and governance. Additionally, we're adopting new procurement systems such as advanced sourcing tools, should cost modeling capabilities and enhanced data visibility and analytics. In 2024, we began implementing the buy pillar by focusing on categories and cost of goods sold and indirect spend. For 2025, our goal is to target the remaining categories across our P&L.

例如，我們正在建立一種新的營運模式，其中包括現代化的結構、標準化的培訓以及更新的政策和治理。此外，我們正在採用新的採購系統，例如先進的採購工具、成本建模功能以及增強的資料可見性和分析。 2024 年，我們開始實施購買支柱，重點在於銷售商品的類別和成本以及間接支出。 2025 年，我們的目標是針對損益表中的其餘類別。

By 2026, we expect this new approach will be fully embedded in our culture. And we anticipate benefiting from consistent year-over-year productivity growth. A great example of our efforts with the by pillar is a recent sourcing event focused on routine supplies and parts for our manufacturing facilities. In the past, these items were procured through a fragmented process with hundreds of vendors and inconsistent purchasing methods. By streamlining our sourcing strategy and using enterprise-wide agreements, we've significantly reduced complexity and our number of vendors while targeting improvements in our inventory levels.

到 2026 年，我們預計這種新方法將完全融入我們的文化中。我們預計將受益於生產力的逐年持續成長。我們在各個支柱方面所做的努力的一個很好的例子是最近的一次採購活動，重點是我們製造設施的日常用品和零件。過去，這些物品的採購是透過數百家供應商的分散流程和不一致的採購方式進行的。透過簡化我們的採購策略並使用企業範圍的協議，我們大幅降低了複雜性和供應商數量，同時致力於提高庫存水準。

This project is just one of many that we are implementing to drive value. By incorporating these new tools and methodologies into our operations, we are developing a procurement function that delivers substantial financial savings, boost cash flow and sets the foundation for sustainable benefits well into the future. In the make pillar, we are transforming the way we manage our manufacturing network to boost efficiency increase capacity and reduce costs through the implementation of our proprietary Hormel production system or HPS.

該項目只是我們為推動價值而實施的眾多項目之一。透過將這些新工具和方法融入我們的營運中，我們正在開發一種採購功能，可以節省大量資金，增加現金流，並為未來的可持續效益奠定基礎。在製造支柱中，我們正在改變管理製造網路的方式，透過實施我們專有的荷美爾生產系統（HPS）來提高效率、提高產能並降低成本。

The essence of HPS lies in standardizing the ways of working across all our manufacturing facilities. By introducing consistent management processes backed by a maturity model that ensures accountability, we're embedding the right practices at every level of our organization. Initially, we've concentrated these efforts on facilities facing capacity limitations. HPS is not only enhancing production yields and improving capacity but also boosting team member engagement while reducing downtime, working capital and overall cost.

HPS 的本質在於標準化我們所有製造工廠的工作方式。透過引入由確保問責制的成熟度模型所支援的一致管理流程，我們在組織的各個層面嵌入了正確的實踐。最初，我們將這些努力集中在面臨容量限制的設施上。 HPS 不僅可以提高產量和產能，還可以提高團隊成員的參與度，同時減少停機時間、營運資金和整體成本。

A standout success story from the Hormel production system comes from our efforts to address production bottlenecks for Hormel Bacon 1, fully cooked bacon at our Wichita, Kansas facility. Our foodservice team has consistently driven growth for this differentiated and highly profitable brand, but our capacity limitations were hindering our ability to fully meet demand. A possible solution was to add new production lines, which would have been expensive and require significant lead time to implement. By deploying HPS at Wichita, we increased capacity by approximately 18%. This increase not only allows us to meet future demand, but also brings lasting improvements in productivity, cost efficiency and T morale.

荷美爾生產系統的一個傑出成功故事來自於我們在堪薩斯州威奇托工廠解決荷美爾培根 1（全熟培根）生產瓶頸的努力。我們的餐飲服務團隊始終如一地推動這個差異化且高利潤品牌的成長，但我們的能力限制阻礙了我們充分滿足需求的能力。一個可能的解決方案是增加新的生產線，但這不僅成本高昂，而且需要大量的交貨時間來實施。透過在威奇托部署 HPS，我們的容量增加了約 18%。這一成長不僅使我們能夠滿足未來的需求，而且還帶來生產力、成本效率和士氣的持久提高。

By extending these best practices to other facilities facing similar challenges, we are enhancing the agility and responsiveness of our manufacturing network. This shift not only helps us keep pace with current demand but also lays the groundwork for sustained long-term growth. Our move pillar is all about enhancing our logistics network and boosting distribution capacity. A significant achievement in this pillar has been the renegotiation of enterprise-wide freight rates.

透過將這些最佳實踐擴展到面臨類似挑戰的其他工廠，我們正在增強製造網路的敏捷性和回應能力。這種轉變不僅有助於我們跟上當前的需求，也為持續的長期成長奠定了基礎。我們的搬遷支柱是加強我們的物流網絡和提高配送能力。這項支柱的一項重大成就是對整個企業的運費進行了重新談判。

With a detailed freight RFP process supported by our procurement team we have secured immediate cost reductions. Additionally, we have optimized the flow of finished goods through our network, effectively lowering landed cost. Looking forward, A key milestone for the Move pillar will be the opening of a new distribution center in the Memphis metropolitan area. Scheduled to become operational in the second half of 2025, we expect this facility will greatly improve our inventory management and expand our distribution capability.

透過我們採購團隊支援的詳細貨運 RFP 流程，我們立即降低了成本。此外，我們也優化了網路中的成品流程，有效降低了到岸成本。展望未來，移動支柱的一個重要里程碑將是在孟菲斯大都會區開設一個新的配送中心。該設施計劃於 2025 年下半年投入運營，我們預計該設施將極大改善我們的庫存管理並擴大我們的分銷能力。

Reiterating what Jacinth shared, our investments go beyond just cutting cost they're crucial for creating a more robust and scalable logistics network. The plan pillar is perhaps the most extensive and complex of our five pillars. And we believe our work here will revolutionize our approach to end-to-end planning across the company. Historically, our planning processes have been overly manual dependent on spreadsheets, legacy technology and numerous different processes.

重申 Jacinth 分享的內容，我們的投資不僅僅是削減成本，它們對於創建更強大和可擴展的物流網絡至關重要。計劃支柱也許是我們五大支柱中最廣泛、最複雜的一個。我們相信我們在這裡的工作將徹底改變我們整個公司的端到端規劃方法。從歷史上看，我們的規劃流程一直過於手動依賴電子表格、遺留技術和眾多不同的流程。

Our efforts are fundamentally transforming our planning function by centralizing these activities, adopting integrated business planning across all business units and embedding more data analytics and AI to guide our decisions. We believe this comprehensive, integrated and scalable approach will enhance service levels reduce cost, decrease working capital and improve engagement for hundreds of team members across various functions.

我們的努力正在從根本上改變我們的規劃職能，透過集中這些活動、在所有業務部門採用整合式業務規劃並嵌入更多資料分析和人工智慧來指導我們的決策。我們相信，這種全面、整合和可擴展的方法將提高服務水平，降低成本，減少營運資金，並提高各職能部門數百名團隊成員的參與度。

This all sets the stage for a more efficient and responsive organization. Portfolio optimization is a critical element of this initiative and is designed to reshape our product portfolio to improve margins and drive top line growth. This strategic focus touches all pillars and ultimately enables us to streamline operations and concentrate on the most profitable and growth-oriented categories. Historically, we have had a long tail of unprofitable or low volume items, and we have managed these inconsistently across the enterprise.

這一切都為建立更有效率、反應更迅速的組織奠定了基礎。產品組合優化是該計劃的關鍵要素，旨在重塑我們的產品組合，以提高利潤並推動營收成長。這個策略重點涉及所有支柱，最終使我們能夠簡化營運並專注於最有利可圖和以成長為導向的類別。從歷史上看，我們有一個長尾無利可圖或低產量的項目，並且我們在整個企業內對這些項目的管理不一致。

The restructuring of our company through go-forward has allowed us to take a more enterprise approach. And during 2024, our efforts have centered on creating a rigorous process to consistently assess and manage every item in our portfolio. As a result of these strategic evaluations, we've taken decisive steps, including divesting a nonstrategic business, Hormel Health Labs. Additionally, we've taken action on a large number of low volume or unprofitable SKUs and we will continue to rightsize our portfolio.

我們公司的重組使我們能夠採取更企業化的方式。 2024 年，我們的工作重點是創建嚴格的流程，以一致地評估和管理我們投資組合中的每個項目。根據這些策略評估，我們採取了果斷措施，包括剝離非策略性業務荷美爾健康實驗室 (Hormel Health Labs)。此外，我們也對大量低銷售量或無利可圖的 SKU 採取了行動，並將繼續調整我們的產品組合規模。

Portfolio optimization is also about strategically reinvesting in innovation. And we are tailoring our portfolio to resonate with current consumer and operator trends to fuel sustainable growth. This ongoing process ensures that each product in our portfolio is capable of making a significant contribution to our revenues and margins, ensuring Hormel Foods remains the leader in the marketplace. We made excellent progress in 2024, and we're excited to continue our work and drive accelerated value in 2025 and 2026.

產品組合優化也涉及對創新的策略性再投資。我們正在調整我們的產品組合，以適應當前消費者和營運商的趨勢，以推動永續成長。這個持續的流程確保我們產品組合中的每種產品都能為我們的收入和利潤做出重大貢獻，確保荷美爾食品保持在市場領先地位。我們在 2024 年取得了巨大進展，我們很高興能夠在 2025 年和 2026 年繼續我們的工作並推動價值加速成長。

Through continued investments in data people, process and technology, we are unlocking the potential of our people across the enterprise and positively impacting all aspects of our financials. We're incredibly excited by how these five pillars have become increasingly interconnected and how the work has converged with other enterprise objectives, the merging of these activities means that they are rapidly becoming ingrained in our culture and helping to transform Hormel Foods into a more efficient, responsive and competitive company.

透過對數據人員、流程和技術的持續投資，我們正在釋放整個企業員工的潛力，並對我們財務的各個方面產生積極影響。我們對這五個支柱如何變得越來越相互關聯以及工作如何與其他企業目標融合感到非常興奮，這些活動的合併意味著它們正在迅速融入我們的文化中，並幫助荷美爾食品公司轉變為更有效率的組織。

And with that, I'll hand it back over to Jim.

有了這個，我會把它交還給吉姆。

Thanks, Nathan. As we wrap up our remarks this morning, I think it's important to recognize that we are a stronger company today because of the strategic actions we've taken in the past, like one supply chain and go forward. These actions, combined with our transform and modernize initiative, positions us for continuous improvement, profitable and predictable growth and sustainable long-term shareholder value creation. We remain committed to our long-term growth algorithm of generating between 2% to 3% organic net sales growth and between 5% to 7% operating income growth.

謝謝，內森。當我們結束今天早上的演講時，我認為重要的是要認識到，由於我們過去採取的策略行動（例如建立供應鏈）並繼續前進，我們今天是一家更強大的公司。這些行動與我們的轉型和現代化舉措相結合，使我們能夠持續改進、實現盈利和可預測的成長以及可持續的長期股東價值創造。我們仍然致力於實現 2% 至 3% 的有機淨銷售額成長和 5% 至 7% 的營業收入成長的長期成長演算法。

There are many reasons to believe in our long-term strategy. We have a portfolio of leading and differentiated brands, which are fueled by innovation. We are organized for long-term growth with an ability to deliver stable financial performance, and we do all of this with a focus on being a strong corporate citizen. We are building a more efficient, scalable and adaptable organization that is well positioned to meet the demands of an evolving marketplace. All of this would not be possible without the dedication and performance of our team members, and I want to thank them for their hard work and commitment.

有很多理由相信我們的長期策略。我們擁有一系列由創新推動的領先和差異化品牌。我們的組織宗旨是長期成長，有能力提供穩定的財務業績，我們做這一切的重點是成為一個強大的企業公民。我們正在建立一個更有效率、可擴展且更具適應性的組織，能夠很好地滿足不斷發展的市場的需求。如果沒有我們團隊成員的奉獻和表現，這一切都是不可能實現的，我要感謝他們的辛勤工作和承諾。

With that, Just, John, Nathan and I will take your questions.

接下來，賈斯特、約翰、內森和我將回答你們的問題。

(Operator Instructions) Rupesh Parikh, Oppenheimer.

（操作員說明）Rupesh Parikh，Oppenheimer。

So I wanted to go back to the FY25 guidance range. I know you guys gave some color in terms of how to think about some of the puts and takes, but I was hoping if you can go deeper into some of the variables to get you to the low or high end of the range. And then it sounds like Q1 will be the most challenged. So I just also want to get a sense of whether you think you can actually grow earnings in Q1.

所以我想回到 2025 財年指導範圍。我知道你們在如何思考一些看跌期權和看跌期權方面給出了一些建議，但我希望你們能更深入地研究一些變量，讓你們達到範圍的低端或高端。聽起來第一季將是最具挑戰性的。所以我也想了解您是否認為第一季的營收確實可以成長。

Yes. Thanks, Rupesh. It's the important thing for our 2025 outlook, right, is it demonstrates growth on top and bottom line. it's realistic, it's achievable, and it's consistent with how we've messaged about the business. As we're thinking about 2025, we expect growth in key retail categories, bacon, Applegate. We've talked about our flagship and rising brands and the success we're having there. Again, this successful pipeline of innovation is going to be really important.

是的。謝謝，魯佩什。這對我們 2025 年的展望來說很重要，對吧，它展示了營收和利潤的成長。它是現實的、可實現的，並且與我們傳達的有關業務的訊息一致。當我們考慮 2025 年時，我們預計培根、Applegate 等關鍵零售類別將會成長。我們討論了我們的旗艦品牌和新興品牌以及我們在那裡的成功。同樣，這條成功的創新管道將非常重要。

The value we create in a unique manner with our food service business, continued growth from international after an impressive rebound in 2024, we do expect growth again in 2025. Our value-added turkey business is an area of the business that's really, really strong, whether it's our lean ground turkey or the business in food service. The other part, I think, that is really important to call out is the additional brand support that we are planning in 2025. So we've got a strong double-digit increase plan to support our brands.

我們透過食品服務業務以獨特的方式創造價值，在2024 年實現令人印象深刻的反彈後，國際業務將持續成長，我們預計2025 年將再次成長。業務領域，無論是我們的瘦肉火雞還是餐飲服務業務。我認為，真正需要指出的另一部分是我們計劃在 2025 年提供的額外品牌支援。

And then we'll be making other additional investments as part of this transformation initiative, whether it's the people, the processes, the data and technology, and we have available capacity to support all of this growth that we're expecting. And so we do expect some near-term impacts in Q1, commercial impacts for planters, wraparound impacts on the whole bird turkey business. And then the other part is really this transformation and modernization initiative, over delivering strong performance in year 1 acceleration in year 2.

然後，作為這項轉型計劃的一部分，我們將進行其他額外投資，無論是人員、流程、數據和技術，而且我們有能力支持我們預期的所有成長。因此，我們確實預計第一季會出現一些短期影響，對種植者的商業影響，對整個火雞業務的全面影響。另一部分實際上是這種轉型和現代化舉措，在第一年加速第二年提供強勁的業績。

And when we put all of that together, that's what really gives us confidence. And so we're entering 2025 with momentum in this underlying business with really great support all around it. And when you couple that with the performance and the strength of the transformation initiative, that's really where we are and why we have confidence in our ability to grow top and bottom line in 2025.

當我們把所有這些放在一起時，這才是真正給我們信心的東西。因此，進入 2025 年，我們在這項基礎業務方面勢頭強勁，周圍得到了真正的大力支持。當你將其與轉型計畫的績效和實力結合起來時，這就是我們真正所處的位置，也是我們對 2025 年實現收入和利潤成長的能力充滿信心的原因。

Yes. And in terms of the guide, what Jim just articulated is really what gives us confidence to hit the midpoint. So when we think about what gets us to the higher end of the range, it's a couple of key things, right? Higher volume, a better product mix and improved turkey market, planters over delivery. And certainly, as Jim talked about, just the strength in overdelivery on our T&M initiative certainly gives us the opportunity to get to that higher end.

是的。就指南而言，吉姆剛剛闡述的內容確實讓我們有信心達到中點。因此，當我們思考是什麼讓我們達到更高的範圍時，有幾個關鍵的事情，對嗎？更高的產量、更好的產品組合以及改善的火雞市場、播種機的交付過剩。當然，正如吉姆所說，我們的 T&M 計劃超額交付的實力肯定讓我們有機會達到更高的目標。

Ken Goldman, J.P. Morgan.

肯‧戈德曼，摩根大通。

And just a follow-up on that question. Your underlying EBIT growth, and we just exclude T&M this coming year is expected to decline. I think the math works out that way. You do have -- you talked about some of the headwinds in 1Q. You talked about the investments that you're making. Is there an element of conservatism or prudence or whatever word you want to use. I know, Jim, you had talked over the last year about maybe wanting to add, I don't know, a [dash] or $1 of incremental conservatism into your guidance. I'm just trying to get a sense of if you feel like this range does factor in some unforeseen events to the downside that in a way that maybe you hadn't as a company in the longer term past?

這只是這個問題的後續行動。您的基本息稅前利潤成長（我們只是排除 T&M）預計明年會下降。我認為數學就是這樣計算的。您確實談到了第一季的一些不利因素。您談到了您正在進行的投資。是否有保守主義或謹慎的元素或任何你想使用的字眼。我知道，吉姆，你去年曾談到也許想在你的指導中添加，我不知道，[破折號]或 1 美元的增量保守主義。我只是想了解一下，您是否覺得這個範圍確實會導致一些不可預見的事件的負面影響，而從長遠來看，您作為一家公司可能沒有這樣做？

Ken, thanks for the question. starting with the transform and modernize initiative. I think one thing that's really important, and I'm sure we'll talk more about it over the balance of the call. is this really isn't a like standalone dollar amount that we should be looking at because this really is interconnected into the business. And the term that we've started to use internally is this flywheel to generate growth because it is, as business grows, we get more benefits. And as we get more benefits, we're able to reinvest in the business.

肯，謝謝你的提問。從轉型和現代化措施開始。我認為有一件事非常重要，我相信我們會在電話會議中更多地討論它。這確實不是我們應該關注的獨立美元金額，因為這確實與業務相互關聯。我們開始在內部使用的術語是“飛輪以產生成長”，因為隨著業務的成長，我們會獲得更多的利益。當我們獲得更多利益時，我們就能夠對業務進行再投資。

And so this is a holistic look at our business and the growth that we expect to achieve in 2025. Your comment on conservatism, I think from where we sit, we want to make sure that we're always appropriate. And when we think about items that have had a lot of volatility, we've talked probably unnecessarily about turkey in the last couple of years. And so we want to make sure that given that recent volatility, we are appropriate in how we plan and guide the business.

因此，這是對我們的業務以及我們期望在 2025 年實現的增長的全面審視。當我們想到波動性很大的商品時，我們在過去幾年中可能不必要地談論了火雞。因此，我們希望確保考慮到最近的波動，我們能夠適當地規劃和指導業務。

The other part is this planters rebound. And we want to make sure, again, that we get this right as we start to really scale the commercial piece of this. as we've navigated our way through the production concerns that are largely resolved. And so our ability to fill holes faster, right? We're turning on advertising, we're turning on innovation. That's what really, in my mind, makes this plan realistic, achievable and appropriate.

另一部分是播種機的反彈。當我們開始真正擴展其商業部分時，我們希望再次確保我們做對了。因為我們已經解決了大部分生產問題。所以我們有能力更快填補漏洞，對嗎？我們正在開啟廣告，我們正在開啟創新。在我看來，這才是真正使這個計劃現實、可實現和適當的原因。

Great. And if I could ask a quick follow-up -- are you still planning on -- I think you are $250 million of net operating income improvement from '23 to '26. And the reason I'm asking is it just mathematically requires a reasonably high step up in 2026 at this point. Just curious if that's still the case. And if so, kind of what you think without obviously providing '26 guidance some of those factors might be?

偉大的。如果我可以問一個快速的後續行動——你還在計劃嗎——我認為從 23 年到 26 年，你的淨營業收入增加了 2.5 億美元。我之所以問這個問題，是因為從數學角度來看，目前需要在 2026 年實現相當高的進步。只是好奇情況是否仍然如此。如果是這樣，在沒有明確提供 26 年指導的情況下，您的想法是什麼？

Yes. Thanks, Ken. You're right. We're not guiding '26. But we are on track for the $250 million. And there are a lot of things to feel good about and that we're excited about, it's this trajectory of T&M after a successful year 1, which is now interconnected into the flywheel. And we are creating this long-term lasting value. We're building processes. We're building capabilities. But underpinning that is the strength of the brand and the business. we're talking more about flagship and rising brands and how important they are to our portfolio and they're growing our foodservice business continuing to be differentiated and growing in the marketplace and then our international piece.

是的。謝謝，肯。你說得對。我們不是在指導'26。但我們有望籌集 2.5 億美元。有很多事情讓人感覺良好，讓我們感到興奮，這就是 T&M 在成功的第一年之後的軌跡，現在已經與飛輪互連。我們正在創造這種長期持久的價值。我們正在建立流程。我們正在建立能力。但支撐這一點的是品牌和業務的實力。我們更多地談論旗艦品牌和新興品牌，以及它們對我們的產品組合的重要性，它們正在發展我們的餐飲服務業務，繼續保持差異化並在市場上不斷增長，然後是我們的國際業務。

So yes, we're on track and what gives us confidence is really the strength of the underlying business, coupled with that transformative initiative. So really, really good progress. And I know you heard from Nathan in the prepared remarks, and I'm sure we'll get some additional questions, but we're in a really good place.

所以，是的，我們正在走上正軌，給我們信心的實際上是基礎業務的實力，加上這項變革舉措。所以真的非常非常好的進步。我知道您在準備好的發言中聽到了內森的意見，我相信我們還會收到一些其他問題，但我們處於一個非常好的位置。

Thomas Palmer, Citi.

托馬斯·帕爾默，花旗銀行。

At the midpoint, your guidance implies around $85 million operating profit growth you expect [125] from cost savings and also organic sales growth. I just want to make sure I'm thinking through the pieces you laid out that might limit the flow-through of these two items to operating profit. So it sounds like advertising could be higher in the $20 million range. I think turkey plus Suffolk could net out for the year to maybe a slight headwind? I mean I'm just trying to bridge what else is kind of limiting this flow through to make sure as we think through this year.

在中點，您的指導意味著您預計 [125] 由於成本節約和有機銷售增長而實現約 8500 萬美元的營業利潤增長。我只是想確保我正在仔細考慮您列出的可能會限制這兩個項目的營業利潤的流通的部分。所以聽起來廣告費可能會更高，在 2000 萬美元範圍內。我認為土耳其加上薩福克今年可能會遇到輕微的逆風？我的意思是，我只是想彌合其他限制這項流程的因素，以確保我們今年的想法。

Yes. Tom. I just want to just clarify that our transform and modernize initiative isn't just a cost savings initiative. It is about reinvesting in the business for growth. And Jim mentioned this flywheel, and that's exactly how we're thinking about it as we go through what is -- we're targeting as a three-year initiative, but really, it is -- it goes beyond that. And it's a foundation to set the company up for long-term growth, and we're getting value beyond 2026.

是的。湯姆.我只是想澄清一下，我們的轉型和現代化計劃不僅僅是一項成本節約計劃。這是關於對業務進行再投資以實現成長。吉姆提到了這個飛輪，這正是我們在經歷時所考慮的方式——我們的目標是一項為期三年的計劃，但實際上，它超越了這一目標。這是公司實現長期成長的基礎，我們將在 2026 年後獲得價值。

But in terms of your specific questions as to what's in -- what's included in the midpoint there. Jim mentioned already how we're thinking about whole bird turkey and how we're thinking about turkey pricing. Certainly, prices were depressed coming out of Q4, and we are expecting that to what we've baked in is for the full year that Turkey will remain at those lower levels for 2025. And in addition to the fact that we are making double-digit investment in our brand for 2025, and that's included as well in that guide in addition to investing in capabilities for our business as it relates to the T&M initiative from data and technology and also around our people.

但就你的具體問題而言，中間點包含什麼。吉姆已經提到我們如何考慮整隻火雞以及我們如何考慮火雞定價。當然，從第四季度開始，價格就受到了抑制，我們預計土耳其全年的價格將在 2025 年保持在較低水平。 ，這也包含在該指南中，因為它與數據和技術以及我們員工的T&M 計劃相關。

Okay. And then just on what's going on with Suffolk. It's kind of been a couple of quarters now delaying the restart. I guess what's really contributing to that slower ramp? And why the confidence now that kind of 1Q will be the end of the issues?

好的。然後就是薩福克發生的事情。現在重啟已經推遲了幾個季度。我想到底是什麼導致了緩慢的斜坡上升？為什麼現在有信心第一季問題將得到解決？

Yes. That's an important part of 2025, Tom. And it is -- it's important to know that we've made significant progress in Q4 regarding the situation. So our production concerns are largely resolved. And we're in a good place from a supply perspective, that's ramping up and continuing to build.

是的。這是 2025 年的重要組成部分，湯姆。重要的是要知道我們在第四季度在這一情況方面取得了重大進展。這樣我們的生產問題就基本解決了。從供應角度來看，我們處於一個良好的位置，供應量正在增加並持續增加。

A couple of other pieces that I think are important, and I'm going to let John probably get into more specifics. But as a reminder, right, we had tremendous momentum in the planters business last year, right? And since the time of acquisition, we've had a lot of positive data, right? The work that we've done, whether it's volume, sales, shares, that's what gives us the confidence about where we were and where we know we can get this business back to. And a lot of that work is, obviously, it happens in retail and foodservice, but an outsized portion is in retail.

我認為還有一些重要的內容，我可能會讓約翰詳細介紹。但提醒一下，去年我們的花盆業務勢頭強勁，對嗎？自收購以來，我們已經獲得了很多積極的數據，對吧？我們所做的工作，無論是銷量、銷售額或份額，都讓我們對自己的處境充滿信心，也讓我們知道我們可以讓這項業務恢復到原來的水平。顯然，許多工作都發生在零售和餐飲服務領域，但其中很大一部分是在零售領域。

Thanks, Jim. Tom. So I'll just comment briefly on the planners recovery and kind of next steps around planters. This quarter, the first quarter is largely refilling retailer shelves, replenishing retailer inventories replenishing our own inventory, essentially refilling all of those gaps that were created in the back half of last year as we dealt with the supply disruption. By the end of the first quarter, we will be in a position to fully meet retailer demand across the entire planters portfolio. In the meantime, we are seeing some progress in our scanner data. So our baseline trends are improving sequentially over the past 2, 4-week periods, meaning baseline declines are lessening versus prior year.

謝謝，吉姆。湯姆.因此，我將簡要評論規劃者的恢復以及圍繞種植者的後續步驟。本季度，第一季主要是補充零售商的貨架，補充零售商的庫存，補充我們自己的庫存，基本上填補了去年下半年我們在應對供應中斷時產生的所有缺口。到第一季末，我們將能夠充分滿足零售商對整個花盆產品組合的需求。同時，我們看到掃描器數據取得了一些進展。因此，我們的基線趨勢在過去 2、4 週內連續改善，這意味著基線下降與去年相比正在減少。

And what's driving that is a restoration of lost distribution on those items that were impacted by the supply disruption at retail. In fact, more than half of that distribution has been recovered at this point versus where we were at our low point. So we still have more to do over 2025 on that recovery, but we are very encouraged by the good progress at this point. We have chosen in the near term to scale back some of the merchandising activity in particular in November and December.

推動這一趨勢的是那些受零售供應中斷影響的商品的分銷損失的恢復。事實上，與我們處於低點時相比，此時超過一半的分佈已經恢復。因此，2025 年我們在復甦方面仍有更多工作要做，但目前的良好進展讓我們深受鼓舞。我們選擇在短期內縮減一些促銷活動，特別是在 11 月和 12 月。

So our Q1 data will be a little bit choppy from the scanner, but we're prioritizing getting the base replenished and getting the shelf back to where it needs to be. Now as we get into the second quarter, we will start to dial back up promotions. We will dial back up advertising. We will start to attract consumers back to the brand and begin to recapture that momentum that Jim commented on. I mean, in general, planters is a great platform for us. It's sitting in a wonderful space. The macro snacking space continues to be a great consumer space.

因此，掃描器顯示的第一季數據會有點不穩定，但我們會優先考慮補充底座並將貨架放回所需的位置。現在，隨著進入第二季度，我們將開始加強促銷。我們將回撥廣告。我們將開始吸引消費者回到品牌，並開始重新抓住吉姆評論的勢頭。我的意思是，總的來說，Planters 對我們來說是一個很好的平台。它坐落在一個美妙的空間中。宏觀零食領域仍然是一個巨大的消費領域。

The substantial nature of Planters portfolio really fits with what consumers are looking for in terms of more substantive, fuel-oriented snacks. We have a leading brand that's very responsive to advertising to promotions on its core with a lot of innovation potential, just looking at some of the innovation we were driving behind our flavored cashews and [duos] lines. They were attracting new households, bringing in younger consumers. We're going to continue driving that. And we have restoration of advertising spend on planters that will help us do that.

Planters 產品組合的實質性質確實符合消費者對更實質、以燃料為導向的零食的需求。我們擁有一個領先品牌，該品牌對廣告和促銷反應非常敏感，其核心具有很大的創新潛力，只要看看我們在風味腰果和[雙核]系列背後推動的一些創新即可。它們吸引了新的家庭，帶來了年輕的消費者。我們將繼續推動這一趨勢。我們恢復了花盆廣告支出，這將有助於我們做到這一點。

And just a reminder, I mentioned it in my prepared remarks, but in Q1, as the John is mentioning here that's going to be a period of right, recovering from a financial impact standpoint, there is going to be $0.04 to $0.05 of impact unfavorably in the quarter. split between whole bird, turkey and planters and that's about a 50-50 split. But the key takeaway here is Planters is a brand that is strong, and we expect to benefit from recaptured momentum in Q2.

只是提醒一下，我在準備好的發言中提到了這一點，但在第一季度，正如約翰在這裡提到的那樣，這將是一段從財務影響角度來看正確恢復的時期，將會產生0.04至0.05 美元的不利影響在本季度。分成整隻雞、火雞和花盆，大約是 50-50 份。但這裡的關鍵要點是 Planters 是一個強大的品牌，我們預計將從第二季度重新獲得的勢頭中受益。

Heather Jones, Heather Jones Research.

希瑟瓊斯，希瑟瓊斯研究。

I guess my first question, I was wondering, it sounds like as part of the T&M initiative, there could be further SKU rationalization. So I was just wondering if the sales and volume guidance you gave, I know it excludes the Hormel Health Labs, but does it anticipate further SKU rationalization?

我想我的第一個問題是，我想知道，聽起來作為 T&M 計劃的一部分，可能會有進一步的 SKU 合理化。所以我只是想知道您給出的銷售和銷售指導是否不包括荷美爾健康實驗室，但它是否預計會進一步合理化 SKU？

Yes. I think all of that's embedded in our guidance, Heather. I think your call out on Hormel Health Labs is important. When you think about the top line impact of $100 million, the bottom-line impact of it's $0.01 EPS, but that does figure into the year-over-year comparison. The work that we are doing on TPO is included in our guide. Maybe to ask Nathan to comment a little bit more about it to give you some additional color.

是的。我認為所有這些都包含在我們的指導中，希瑟。我認為您對荷美爾健康實驗室的呼籲很重要。當你考慮 1 億美元的頂線影響時，它對每股收益的底線影響是 0.01 美元，但這確實計入了同比比較中。我們在 TPO 方面所做的工作包含在我們的指南中。也許可以請內森對此發表更多評論，以便為您提供一些額外的色彩。

Yes. Heather, this is Nathan. As we think about portfolio optimization and how it's built into next year, I would think about it in two different ways. First, it's all baked into the guidance. And as we think about what SKUs are coming out, they're usually unprofitable SKUs or SKUs that are adding complexity -- and I think the key takeaway for us is that we're creating the right room in the portfolio to drive innovative new items and the right profitable items.

是的。希瑟，這是內森。當我們考慮投資組合優化以及如何將其納入明年時，我會以兩種不同的方式思考。首先，所有這些都已納入指南中。當我們思考即將推出的SKU 時，它們通常是無利可圖的SKU 或增加複雜性的SKU——我認為對我們來說最重要的收穫是我們正在產品組合中創造合適的空間來推動創新的新產品以及正確的獲利項目。

Okay. And then as my follow-up, I just want to talk about turkey. So over the years, since I've followed you guys, I mean, you've taken all these steps in your pork business to make it more and more value added and to reduce your exposure to the more commodity elements. In the turkey side, because of HPAI, that business has just become even more cyclical and just the impact on exports, et cetera.

好的。接下來，我只想談談火雞。因此，多年來，自從我關注你們以來，我的意思是，你們在豬肉業務中採取了所有這些步驟，以使其增值越來越多，並減少對更多商品元素的接觸。在土耳其方面，由於高致病性禽流感，該業務變得更具週期性，並且對出口等產生影響。

But just wondering, I know it's an important value-added business for you, the ground turkey. But just was curious as to your thoughts about taking steps on that side to do similarly to what you've done on the port side of like focusing more on the value add and maybe enter into partial ships that would limit your exposure to the more commodity volatile side. So I know it's a wide-ranging question, but just broadly, which -- how you're all thinking about that strategically?

但只是想知道，我知道這對你，火雞來說，是一項重要的增值業務。但只是很好奇你是否想在這方面採取措施，類似於你在港口方面所做的那樣，比如更多地關注增值，也許進入部分船舶，這會限制你接觸更多商品不穩定的一面。所以我知道這是一個廣泛的問題，但只是廣泛而言，你們都是如何策略性地思考這個問題的？

Yes, Heather, it's wide ranging, but it's an important question in terms of the work that we have been doing on as an organization and where we see this going. And so I think if you do start with that pork analogy that you have, and I think back to my early days in the chair and how frequently we talked about pork operating margins.

是的，希瑟，它的範圍很廣，但就我們作為一個組織一直在做的工作以及我們對這一趨勢的看法而言，這是一個重要的問題。所以我認為，如果你確實從你所擁有的豬肉類比開始，我會回想起我擔任主席的早期以及我們如何頻繁地談論豬肉營業利潤率。

And fast forward eight, nine years, we're not talking about that because of those steps that we took, it still exists, but it's obviously a small portion of the portfolio and the impact that it has. I want to remind you that several years ago, right? We did a lot of work on Jennie-O, Turkey Store, our turkey portfolio. We called it Project Tower. I can't remember if we said that publicly, but it really was all about right, appropriately sizing the supply side of the business. And the phrase that we used was creating a demand-driven business. with a goal of exactly what you're saying, right, reduce or minimize the volatility because we don't get any credit for that.

快進八、九年，我們不會談論這個，因為我們採取了這些步驟，它仍然存在，但它顯然只是投資組合及其影響的一小部分。我想提醒你，幾年前，對吧？我們在 Jennie-O、土耳其商店、我們的火雞產品組合上做了很多工作。我們稱之為「塔樓計劃」。我不記得我們是否公開說過這句話，但這確實是正確的，適當地調整了業務的供應方規模。我們使用的短語是創建需求驅動的業務。目標正是你所說的，對吧，減少或最小化波動性，因為我們沒有因此而得到任何榮譽。

And so we had a plan -- there's a lot of work that's been done to get that supply to the right size. What has hindered that is the most recent avian influenza outbreak because supply then became obviously very disruptive. And we weren't able to fully execute some of the actions that we had planned and wanted to put in place. But we are on that track.

所以我們制定了一個計劃——為了使供應量達到合適的規模，我們已經做了很多工作。阻礙這一目標的是最近爆發的禽流感，因為供應顯然變得非常具有破壞性。我們無法完全執行我們計劃並想要實施的一些行動。但我們正走在這條軌道上。

And we agree with your assessment that our goal is to create a demand-driven business. And that demand is our focus on the value-added business, right? When we think about the success of lean ground turkey, that is the number 1 scanned item in our company. And when we think about how that aligns with today's consumer, that opportunity is only going to continue to increase.

我們同意您的評估，即我們的目標是創建需求驅動型業務。而這個需求就是我們重點關注的加值業務，對嗎？當我們想到瘦肉火雞的成功時，這是我們公司排名第一的掃描項目。當我們考慮如何與當今的消費者保持一致時，這種機會只會繼續增加。

The work that we've done to integrate the business into foodservice has yielded very positive results. And so you can see how we are setting this business up for long-term success while minimizing the volatility. And so we are focused on the value-added business, lean ground turkey and retail, broad offerings in food service. And it is a very important part of this portfolio. Just as -- again, as we think about what's happening in the consumer environment.

我們為將業務整合到餐飲服務中所做的工作取得了非常積極的成果。因此，您可以看到我們如何讓這項業務長期成功，同時最大限度地減少波動性。因此，我們專注於增值業務、精益火雞和零售以及廣泛的食品服務產品。它是這個產品組合中非常重要的一部分。正如我們再次思考消費者環境中正在發生的事情。

Max Gumport, BNP Paribas.

馬克斯‧岡波特，法國巴黎銀行。

I just wanted to turn back to the question on '26 because you did reaffirm that the $250 million of growth from 2023. It does imply about $200 million of EBIT growth in FY26. It sounds like you only have $25 million or so left of the T&M program in strategic value, I think, was only supposed to contribute $25 million over the three-year period.

我只是想回到 26 年的問題，因為您確實重申了從 2023 年開始的 2.5 億美元的增長。聽起來你的 T&M 計劃的戰略價值只剩下 2500 萬美元左右，我認為，在三年期間只應該貢獻 2500 萬美元。

And the goal is to get the base business to grow 5% to 7% in '26 or about $75 million. So it feels like there's a pretty big hole out I'm missing in terms of what would get you to that target in '26. So I'm just hoping you could provide a bit of color, just high level given you have reaffirmed the target, and you've discussed it previously.

我們的目標是讓基礎業務在 26 年成長 5% 到 7%，約 7,500 萬美元。所以感覺我在如何讓你在 26 年實現這個目標方面缺少了一個相當大的漏洞。所以我只是希望你能提供一些顏色，只是高水平，因為你已經重申了目標，並且你之前已經討論過它。

Max, thanks for the question. And we have indeed reaffirmed our $250 million of expanded operating income by 2026. And I just want to clarify that, that number is a net number. So net of our reinvestment in the business, net of inflation. And so going back to what we're calling the growth flywheel, this is all interconnected in terms of the delivery, what we're delivering to get to that $250 million. So it is indeed not just a growth number. So when you think about it, we are delivering more than $250 million from our initiatives to be able to actually yield a net $250 to get to the operating income expansion of the $250 million by 2026.

麥克斯，謝謝你的提問。我們確實重申了在 2026 年擴大營業收入 2.5 億美元的目標。扣除我們對業務的再投資，扣除通貨膨脹。回到我們所謂的成長飛輪，這一切在交付方面都是相互關聯的，我們為實現 2.5 億美元而交付的東西。所以這確實不只是一個成長數字。因此，如果你仔細想想，我們的舉措將提供超過 2.5 億美元的資金，以便能夠實際產生 250 美元的淨收益，從而在 2026 年之前將營業收入擴大到 2.5 億美元。

Got it. But just any other drivers you would point to in terms of what helps you get there? I think if it's a net number, there is probably an even bigger halt that I hadn't considered. So just any other key drivers you could point to.

知道了。但您會指出哪些其他驅動因素可以幫助您實現這一目標？我認為，如果這是一個淨數字，那麼可能會有一個我沒有考慮到的更大的停頓。因此，您可以指出任何其他關鍵驅動因素。

Yes. I mean, it goes back to the items that Jim talked about when we kicked this off in terms of our portfolio, our brand, right, our underlying business driving that our flagship in rising brands continuing to deliver food service continuing to deliver the recovery of our international business and all of the other initiatives within our T&M as well. are really driving those. So I mean, it's everything together and that we will -- I mean, certainly, Jim can add additional color here, but it is beyond just the pieces underneath our T&M initiative.

是的。我的意思是，這可以追溯到吉姆在我們開始時談到的項目，包括我們的投資組合、我們的品牌、我們的基礎業務，推動我們在新興品牌中的旗艦繼續提供餐飲服務，繼續實現經濟復甦。正在真正推動這些。所以我的意思是，這一切都是在一起的，我們會——我的意思是，吉姆當然可以在這裡添加額外的色彩，但這不僅僅是我們 T&M 計劃下的部分。

Yes. And Max, first off, it's nice to meet you. And I think the math that you're doing you might imply that there's only so much left in the work that we're doing. And that's not at all how we're thinking about this, right? The work that we're doing successful in accelerating in '25, continuing to accelerate in '26 with benefits to the organization that go well beyond 2026. And you heard from Nathan some of the successes that we've had in 2024, but he may want to elaborate on a few more points.

是的。麥克斯，首先，很高興認識你。我認為你所做的數學計算可能意味著我們正在做的工作只剩下這麼多了。我們根本不是這麼想的，對吧？我們正在做的工作在 25 年成功加速，並在 26 年繼續加速，為組織帶來的好處將遠遠超出 2026 年。還想詳細說明幾點。

Yes. Max, this is Nathan. As you think about what we're doing in '25, that sets us up for continued success in '26 and beyond in the by pillar, where we will have RFP virtually every category. Some categories multiple times, we'll have implemented over a dozen different modules in our end-to-end planning system like demand planning, scheduling, deployment, that will yield benefits well into the future.

是的。麥克斯，這是內森。當您思考我們在 25 年所做的事情時，這將為我們在 26 年及以後的各個支柱領域繼續取得成功做好準備，我們將在幾乎每個類別中都有 RFP。有些類別多次，我們將在我們的端到端規劃系統中實施十多個不同的模組，如需求規劃、調度、部署，這將在未來帶來好處。

We'll have fully implemented our Hormel production system across all of our different facilities. We'll have an optimized logistics network, and we have really done -- made more progress reshaping our portfolio, picking up steam, driving more innovation. So we feel really confident about what we're doing now and how that will deliver value in '26 and beyond.

我們將在所有不同的工廠中全面實施荷美爾生產系統。我們將擁有一個優化的物流網絡，我們確實做到了——在重塑我們的產品組合、加速發展、推動更多創新方面取得了更多進展。因此，我們對我們現在正在做的事情以及這將如何在 26 年及以後創造價值充滿信心。

Peter Galbo, Bank of America.

彼得‧加爾博，美國銀行。

Again, Jim, not to ask this question six ways to Sunday. But again, I think there's just a lot of confusion now about what this net $250 million means? And maybe just to ask it in a slightly different manner, if I just take the midpoint of your guidance for this year, you'd be up, call it, $40 million in EBIT relative to your 2023 starting point, and that's on $200 million of savings kind of program to date. So forgetting about '26 for a moment, maybe we can just clarify that that's the right way to think about kind of the '25 relative to '23 as a starting point.

再說一遍，吉姆，不要在周日之前用六種方式問這個問題。但同樣，我認為現在對這 2.5 億美元的淨額意味著什麼存在很多困惑？也許只是以稍微不同的方式問這個問題，如果我只取今年指導的中點，相對於 2023 年的起點，您的息稅前利潤將達到 4000 萬美元，即 2 億美元迄今為止的儲蓄計劃。因此，暫時忘記“26”，也許我們可以澄清，這是考慮“25”相對於“23”作為起點的正確方式。

Yes, that's correct, Peter.

是的，這是正確的，彼得。

Okay. So whatever our assumption is on '26, whether that additional $210 million that would have to come through in '26, that's kind of the toggle as to how you would get to your '26 target, and that's how we should think about it?

好的。因此，無論我們對 26 年的假設是什麼，是否必須在 26 年實現額外的 2.1 億美元，這都是如何實現 26 年目標的切換，這就是我們應該如何考慮的問題？

Yes. And I think it's -- that's correct, Peter. And there's a couple of pieces as you are thinking about it. is this strength of the performance, right, of our growth initiative, strong '24, accelerating in '25, continuing to accelerate in '26, the recovery of our planters business, right, the opportunity to grow that business now that we work through the situation and our filling on the supply side and getting that business back on track.

是的。我認為這是正確的，彼得。當你思考的時候，有幾個部分。這就是我們的成長計畫的表現優勢嗎？填補並使業務重回正軌。

And then the strength of the underlying business, the brands, the business, right? We talked again about flagship and rising brands, foodservice, international. So it is all interconnected. The math you're doing is right, but those opportunities are there as we look into, obviously, '25, which we have, and as we're thinking about 2026 right? That's why we're saying we're on track because we're doing the same type of thinking behind the scenes.

然後就是基礎業務、品牌、業務的實力，對吧？我們再次討論了旗艦品牌和新興品牌、餐飲服務、國際化。所以這一切都是相互關聯的。你所做的數學計算是正確的，但顯然，當我們研究 25 年以及我們思考 2026 年時，這些機會就在那裡，對嗎？這就是為什麼我們說我們已經步入正軌，因為我們在幕後進行著同樣的思考。

Okay. Okay. And then if I can just -- just on turkey, I guess I get the -- I think it's $0.025 headwind in the first quarter. I think there was a mention on some benefit from lower grain prices that you're expecting. So maybe I have this wrong, but is the expectation in '25 that turkey on the full year basically ends up being neutral, again, offsetting the first quarter weakness against kind of a grain benefit? Do we have that correct?

好的。好的。然後，如果我能——就火雞而言，我想我明白了——我認為第一季的逆風是 0.025 美元。我認為有人提到了您所期望的穀物價格下降帶來的一些好處。所以也許我錯了，但是 25 年土耳其全年的預期基本上最終會保持中性，再次抵消第一季度的疲軟與穀物收益的影響嗎？我們的說法正確嗎？

From a grain perspective or maybe I'll start first with turkey. I mentioned before that we're expecting Turkey pricing to be comparable to our Q4. So we haven't assumed any upside there. for the year. From a grains perspective, just a reminder, we strategically hedge our grains to reduce volatility, and we've done that for 2025. So we're well bought into 2025. And so we'll see moderate benefits from grains in 2025. And so that's really what's baked into our guide here.

從穀物的角度來看，也許我會先從火雞開始。我之前提到過，我們預計土耳其的定價將與第四季相當。所以我們沒有假設那裡有任何好處。今年。從穀物的角度來看，提醒一下，我們策略性地對沖我們的穀物以減少波動性，我們已經在2025 年做到了這一點。 2025 年看到穀物帶來的適度收益。

Yes. And I think just if you do break it apart into the different components, obviously, we -- as Jacinth said, there's some moderate benefit to the grain our value-added business, we expect growth. And then the commodity side of the business, again, we feel like we've planned it appropriately thinking about it with being flat to slightly down.

是的。我認為，如果你確實將其分解為不同的組成部分，顯然，正如賈辛斯所說，我們的穀物增值業務有一些適度的好處，我們預計會成長。然後是業務的商品方面，我們再次覺得我們已經適當地考慮了它的計劃，使其持平到略有下降。

Michael Lavery, Piper Sandler.

麥可萊弗里、派珀桑德勒。

Just risking the laboring this a little bit further. I want to come back I guess it was partly answering Max's question, Nathan, I think it was -- you were given some examples beyond just sort of the T&M maybe program or initiatives, but I think they seem to fall under things like portfolio optimization or better procurement or better efficiencies that kind of felt like they're under the umbrella of exactly those initiatives.

只是冒著進一步努力的風險。我想回來，我想這在一定程度上回答了麥克斯的問題，內森，我想是——你得到了一些例子，不僅僅是T&M 可能是計劃或舉措，但我認為它們似乎屬於投資組合優化之類的範疇或更好的採購或更高的效率，感覺就像是在這些措施的保護下。

And so I know there's some blurry lines, especially the deeper you get into it, just in terms of it's not like simply closing a plant, for example, where there's quite discrete costs. But can you just maybe help us understand if you do have most of the savings in hand by the end of fiscal '25. Is it just more sort of similar type things to come next that help keep pushing the upside to EBIT even if you haven't necessarily identified those out of the gate kind of starting fiscal '24. Is that the right way to think about it? Or maybe just help us understand kind of how we should bucket some of these in our head.

所以我知道有一些模糊的界限，特別是當你深入了解它時，這並不像簡單地關閉一家工廠，例如，那裡有相當離散的成本。但是，您能否幫助我們了解，到 25 財年末您是否確實擁有大部分儲蓄？是否接下來會出現更多類似的事情，幫助繼續推動息稅前利潤的上升，即使你不一定確定那些在 24 財年開始的事情？這是正確的思考方式嗎？或者也許只是幫助我們理解應該如何將其中的一些內容記在腦子裡。

Yes. Michael, this is Jim. I think the first thing I just want to clarify to your comment about we have all the savings in hand by the end of 2025. that's not what we said nor do we intend that because there's an acceleration in 2026. And so obviously, there's two components of this. There's a three-year initiative that we've laid out, knowing full well that the benefits of this program go well beyond 2026. And maybe just for additional color, Nathan, do you want to just maybe go back to some of the things you were talking about and how you expect the programs to follow through.

是的。邁克爾，這是吉姆。我想我想澄清的第一件事是，到 2025 年底，我們手頭有所有的節省。組成部分。我們已經制定了一項為期三年的計劃，我們深知該計劃的好處將遠遠超出 2026 年。以及您期望這些計劃如何進行。

Yes. Michael, this is Nathan. As you think about all of the different projects that we're doing many of them are creating value, but a lot of them are driving new capabilities that will support our business and really help us beyond and into the future.

是的。邁克爾，這是內森。當你想到我們正在做的所有不同項目時，其中許多項目都在創造價值，但其中許多項目正在推動新的功能，這些功能將支持我們的業務，並真正幫助我們超越和走向未來。

Okay. That's helpful. And just back on planters, I think initially, you felt like you didn't have distribution at risk. It sounds like, obviously, you're regaining it now. Maybe what's changed a little bit in terms of how the distribution evolved? And maybe one part I want to make sure I understand is in the rebuild, did it get to the point where now there's slotting fees we should be thinking about as you restore that? Or maybe just help us understand kind of how that -- those moving parts look.

好的。這很有幫助。回到種植園，我想最初，你會覺得分配沒有風險。聽起來，顯然，你現在正在重新獲得它。也許發行版的演變方式已經發生了一些變化？也許我想確保我理解的一部分是在重建中，現在我們在恢復重建時是否應該考慮收取進場費？或者也許只是幫助我們了解那些活動部件的外觀。

Yes. I want to handle the first part of that, Michael, because on the last call, we did say that we have not lost any distribution -- since that time, we have had a couple of instances where we have lost distribution. But there are two components to this. And the other component is the loss distribution by not being able to supply the product on the shelf. And I think the work that -- or the comments that John made earlier really demonstrate kind of the significance or how that splits apart John, do you want to maybe comment on that?

是的。我想處理第一部分，邁克爾，因為在上次通話中，我們確實說過我們沒有失去任何分配——從那時起，我們已經發生了幾次失去分配的情況。但這有兩個組成部分。另一個組成部分是由於無法供應貨架上的產品而造成的損失分配。我認為約翰之前所做的工作或評論確實展示了某種意義或如何分裂約翰，你想對此發表評論嗎？

Sure. So if you think about the distribution of planters, those short term, I'll call them, shelf gaps that resulted from the supply shortage on the SKUs, in particular, that were impacted out of Suffolk, that recovery has been going well, right? That's where we have more than half of that distribution back at this point. And largely, that distribution comes without slotting and without investment.

當然。因此，如果你考慮一下花盆的分佈，那些短期的，我稱之為，由於 SKU 供應短缺而導致的貨架缺口，特別是受到薩福克郡的影響，復甦進展順利，對吧？目前，我們已經有超過一半的分佈回到這裡。而且在很大程度上，這種分配無需分配時間段，也無需投資。

Where we have other issues, let's say, that might be some distribution that we're going to have to work to get back longer term. there could be some investment required to do that, but that's not a major factor in our plan. We're very confident and comfortable that the investments we have built in the plan at this point will get planters back to growth beginning in the second quarter.

如果我們還有其他問題，比如說，可能是我們必須努力恢復更長期的一些分配。為此可能需要一些投資，但這不是我們計劃中的主要因素。我們非常有信心和放心，我們目前在計劃中建立的投資將使種植園主在第二季開始恢復成長。

Kuran Sharma, Stephens, Inc.

庫蘭夏爾馬，史蒂芬斯公司

This is Kuran's associate, Adam. Can you talk about the key drivers of growth within Foodservice. And if you could highlight any bright spots for the quarter or maybe how we should think about achieving that mid-single-digit growth next year?

這是庫蘭的同事亞當。您能談談餐飲服務業成長的主要動力嗎？您可以強調本季的任何亮點，或者我們應該如何考慮明年實現中個位數成長？

Yes, Adam, thanks for the question. I think for food service, the playbook, so to speak, really remains the same. The business remains historically strong and healthy. 24, we had really good volume and net sales growth. We expect good, strong growth across the board in 2025. And that growth will be -- it will be broad-based and across a number of different categories.

是的，亞當，謝謝你的提問。我認為對於餐飲服務來說，可以說，劇本確實保持不變。該業務歷來保持強勁和健康。 24 日，我們的銷量和淨銷售額成長非常好。我們預計 2025 年將出現全面、強勁的成長。

As we've said many times, we continue to operate from a position of strength through that direct sales team that we have the portfolio of ongoing innovative product solutions that really are helping operators with their pain points. The diversified channels that we operate in, we've always had really strong presence in commercial or the restaurant segment. But over the years, we've built out so many capabilities when you think about lodging, college and university with planters adding the convenience store muscle. So there's a lot of really good opportunities.

正如我們多次說過的，我們繼續透過直銷團隊保持優勢地位，我們擁有持續創新的產品解決方案組合，真正幫助營運商解決他們的痛點。我們經營的通路多元化，在商業或餐飲領域一直擁有強大的影響力。但多年來，當你想到住宿、學院和大學時，我們已經建立瞭如此多的功能，其中包括種植園和便利商店功能。所以有很多非常好的機會。

Now that's not to say we don't understand what's happening in the macro environment. but we're well positioned to address that and overcome that with this really differentiated business that we have. It's the direct selling organization, innovation and a keen operator focus that will allow us to deliver really good results in 2025.

這並不是說我們不了解宏觀環境中正在發生的事情。但我們有能力透過我們擁有的真正差異化的業務來解決這個問題並克服這個問題。直銷組織、創新和對營運商的敏銳關注將使我們能夠在 2025 年取得真正良好的業績。

Rahi Parikh, Barclays.

拉希·帕里克，巴克萊銀行。

I'm on for Ben Theurer. Just for T&M, kind of a different question is, where are you at the end of your full year '24 guidance versus the -- where are you right now versus your initial budget plan? I think you mentioned over delivery in year one. Maybe more hardcore numbers is possible there? And how does the incremental $100 million to $150 million next year compared to your original time line?

我代表本·瑟雷爾。就 T&M 而言，另一個不同的問題是，與您最初的預算計劃相比，您在 24 年全年指導結束時的情況如何？我想你在第一年就提到過交付。也許那裡可能有更多的硬核數字？與原定時間表相比，明年增加的 1 億至 1.5 億美元如何？

Yes, I think the big thing, Rahi, is we're on track, right? I mean, as we thought about what we're going to be able to deliver, we're on track. And again, it's the momentum and the acceleration that we're gaining really in this, again, we'll call it, interconnected business, the flywheel really being able to create that value as an organization. And obviously, the further we get along the more capabilities that we build, the more confidence that we gain. And so we feel really good about what we did in '24, acceleration in '25 and continued acceleration in 2026. Nathan, do you want to add anything?

是的，我認為拉希，最重要的是我們走上了正軌，對嗎？我的意思是，當我們思考我們將能夠提供什麼時，我們就走上了正軌。再說一遍，我們在這方面真正獲得了動力和加速，我們再次稱之為互聯業務，飛輪真正能夠作為組織創造這種價值。顯然，我們相處得越深入，我們建立的能力就越多，我們獲得的信心就越多。因此，我們對 24 年所做的事情、25 年的加速以及 2026 年的持續加速感到非常滿意。

Yes. I would just say that in fiscal '24, we spent a lot of time just standing up all of the different projects. And as we go into fiscal '25, we have a running start. We've got more and bigger projects pushing the team to think bigger. So a lot of things in the pipeline and pretty excited about how it's all shaping up and feel like we're on track.

是的。我只想說，在 24 財年，我們花了很多時間支持所有不同的專案。當我們進入 25 財年時，我們有了一個好的開始。我們有更多、更大的項目，促使團隊思考更大的問題。很多事情都在醞釀中，我們對一切的進展感到非常興奮，感覺我們正在步入正軌。

There are no further questions at this time. I will now hand the call back to Mr. James Snee for any closing remarks.

目前沒有其他問題。現在我將把電話轉回詹姆斯·斯尼先生以供結束發言。

Well, I want to thank all of you for joining us today. As you can tell, we are incredibly proud of what we accomplished in 2024 and even more excited about the momentum that we have as we enter 2025. There is a lot of great work being done by our amazing team. I want to wish all of you a safe, healthy and happy holiday season. Have a great rest of your week.

好的，我要感謝大家今天加入我們。如您所知，我們對 2024 年所取得的成就感到無比自豪，對進入 2025 年時所呈現的勢頭更加興奮。我祝福大家有個安全、健康、快樂的假期。祝你一週好好休息。

Thank you. And this concludes today's call. Thank you for participating. You may all disconnect.

謝謝。今天的電話會議到此結束。感謝您的參與。你們都可以斷開連線。