荷美爾 (HRL) 2025 Q3 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to the Hormel Foods Corporation Third Quarter Earnings Conference Call. (Operator Instructions) This call is being recorded on Thursday, August 28, 2025.

女士們、先生們，早安，歡迎參加荷美爾食品公司第三季財報電話會議。（操作員指示）此通話於 2025 年 8 月 28 日星期四錄製。

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

現在，我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 third quarter of fiscal 2025. 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, along with supplemental slide materials.

早安.歡迎參加荷美爾食品 2025 財年第三季電話會議。我們今天早上在市場開盤前公佈了結果。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，以及補充幻燈片資料。

On our call today is Jeff Ettinger, Interim Chief Executive Officer; John Ghingo, President; and Jacinth Smiley, Executive Vice President and Chief Financial Officer. Jeff, John and Jacinth will review the company's fiscal 2025 third quarter results and provide a perspective on the remainder of the year. We will conclude with the Q&A portion of the call. The line will be open for questions following the prepared remarks. The line will be opened for questions following the prepared remarks. As a courtesy to the other analyst please limit yourself to one question with one followup. If you've additional questions you're welcome to get back into the queue. At the conclusion of this morning's call, a webcast replay will be posted to the Investors section of our website and archived for one year.

今天參加我們電話會議的有臨時執行長 Jeff Ettinger、總裁 John Ghingo 和執行副總裁兼財務長 Jacinth Smiley。Jeff、John 和 Jacinth 將回顧該公司 2025 財年第三季的業績並對今年剩餘時間做出展望。我們將以電話會議的問答部分結束。準備好的發言結束後，我們將開放式熱線回答您的提問。準備好的發言結束後，將開放熱線接受提問。為了尊重其他分析師，請只問一個問題並進行一次跟進。如果您還有其他問題，歡迎再次加入隊列。今天早上的電話會議結束後，網路直播重播將發佈到我們網站的「投資者」部分，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 on our website under the Investors section.

在我們今天早上開始之前，我想參考我們的安全港聲明。我們今天發表的一些評論將是前瞻性的，實際結果可能與我們將要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 表年度報告和 10-Q 表季度報告，可在我們網站的「投資者」部分查閱。

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 on our website.

此外，請注意，我們今天早上將討論某些非 GAAP 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。這些資訊的呈現並非旨在單獨考慮或取代根據 GAAP 呈現的財務資訊。有關我們的非公認會計準則財務指標（包括可比項目和對帳）的更多信息，請參閱我們的新聞稿，您可以在我們的網站上查閱。

I will now turn the call over to Jeff Ettinger.

現在我將電話轉給 Jeff Ettinger。

Thank you, Jess. Good morning, everyone, and thank you for joining us. Having been in my current role for just over a month, I am committed to building upon the strong foundation in place, rooted in an impressive portfolio of products, iconic brands and a great culture. Since returning to the company, I have been immersed in working with our leadership team and gaining a deeper understanding of our operations and strategic priorities.

謝謝你，傑西。大家早安，感謝大家的收看。擔任現職僅一個多月，我致力於鞏固現有基礎，以令人印​​象深刻的產品組合、標誌性品牌和偉大的文化為基礎。自從回到公司以來，我一直致力於與領導團隊合作，對我們的營運和策略重點有了更深入的了解。

It is clear to see our robust solutions-based portfolio and the protein-centric nature of our offerings work well in today's consumer landscape. Further, a major focus of mine has been learning about the Transform and Modernize initiative, its current trajectory, the key projects underway and how the work is progressing. I've been impressed to see the solid and demonstrable benefits of the program, not just financially, but through building capabilities for the future.

顯然，我們基於解決方案的強大產品組合和以蛋白質為中心的產品特性在當今的消費環境中發揮了良好的作用。此外，我的一個主要關注點是了解轉型和現代化計劃、其當前的發展軌跡、正在進行的重點項目以及工作的進展。我很高興看到該計劃帶來的實際而明顯的效益，不僅體現在經濟方面，也體現在未來的能力建設方面。

Our mission is clear; deliver profitable growth. And if we turn to this quarter's results, we are halfway there, having delivered organic net sales growth for three consecutive quarters. Building upon modest gains in the first and second quarters, we achieved an impressive organic net sales increase of 6% in the third quarter. What is equally notable is that this growth was broad-based, driven by all three of our segments. It is clearly disappointing that our top line results did not translate into the bottom line growth we expected. The unanticipated surges in commodity input costs that affected our industry absorbed not only the margin delivery from our top line growth, but also our incremental benefits from our T&M initiative.

我們的使命很明確：實現獲利成長。如果我們看一下本季的業績，我們已經完成了一半，連續三個季度實現了有機淨銷售額成長。在第一季和第二季取得適度成長的基礎上，我們在第三季實現了令人印象深刻的 6% 的有機淨銷售額成長。同樣值得注意的是，這種增長是廣泛的，由我們所有三個部門推動。顯然，我們的營業收入未能轉化為我們預期的利潤成長，這令人失望。影響我們產業的商品投入成本的意外飆升不僅吸收了我們營收成長帶來的利潤，也吸收了我們從 T&M 計畫中獲得的增量收益。

Regarding the fourth quarter, we expect continued net sales growth supported by our leading positions in the marketplace. To address commodity inflation, we are taking targeted pricing actions. We expect profit recovery, however, to lag into next year with the near-

關於第四季度，我們預計憑藉我們在市場中的領先地位，淨銷售額將繼續成長。為了應對大宗商品通膨，我們正在採取有針對性的定價措施。然而，我們預計利潤復甦將落後到明年，因為近

term pressures we experienced in the third quarter persisting through the fourth quarter. John will share more information on the progress being made in each of our segments and Jacinth will go into greater detail on the third quarter performance and our guidance for the remainder of the year.

我們在第三季經歷的期限壓力持續到了第四季。約翰將分享我們各個部門取得的進展的更多信息，而賈辛斯將更詳細地介紹第三季度的業績以及我們對今年剩餘時間的指導。

But before I turn the call over to them, I wanted to align on expectations regarding what you can anticipate from us today and moving forward. In line with what the team has stated previously, we plan to share holistic 2026 guidance on our fourth quarter earnings call, including the specifics around our expectations for the T&M initiative. What we will provide today is commentary related to our high- level vision for 2026, which Jacinth and I will cover later in today's call.

但在我將電話轉給他們之前，我想先了解你們對我們今天以及未來的期望。根據團隊先前所述，我們計劃在第四季度財報電話會議上分享 2026 年的整體指導，包括對 T&M 計畫的具體期望。今天我們將提供與我們對 2026 年的高層願景相關的評論，Jacinth 和我將在今天的電話會議稍後討論。

Beyond the word you hear from us today, I want you all to leave with the absolute confidence that driving sustainable growth, both on the top line and the bottom line is our top priority. I am confident in the capabilities of our team and the opportunities ahead for our company. I look forward to reengaging with this investment community over the next year.

除了今天我們向您傳達的訊息之外，我還希望大家能夠帶著絕對的信心離開，相信推動營收和利潤的可持續成長是我們的首要任務。我對我們團隊的能力和公司未來的機會充滿信心。我期待明年能再次與這個投資界合作。

Ahead of John's remarks, I'd like to extend my congratulations on his recent appointment as the 11th President of Hormel Foods. This marks a pivotal moment for our company, as John brings a fresh and energizing approach to leadership, one that is already resonating across the organization. His ability to balance strategic clarity with a collaborative people-first approach is exactly what we need as we continue to evolve and grow. I look forward to partnering with him and I am confident we will make meaningful progress in advancing our mission over the coming year.

在約翰發表演說之前，我想先對他最近被任命為荷美爾食品公司第 11 任總裁表示祝賀。這標誌著我們公司的關鍵時刻，因為約翰帶來了一種全新且充滿活力的領導方式，這種方式已經在整個組織中引起共鳴。他能夠平衡策略清晰度與以人為本的協作方式，而這正是我們不斷發展和成長所需要的。我期待與他合作，並相信我們將在來年推進我們的使命方面取得有意義的進展。

And with that, I will turn the call over to John.

說完這些，我會把電話轉給約翰。

Thank you, Jeff. I want to take a moment to congratulate you and welcome you back to the company. Many of you know Jeff already as a purpose-driven leader with a proven track record of successfully leading this company. In just a short time since his return, I've been impressed with his clarity of vision, the conviction with which he leads and the mentorship he's extended to me personally. He brings renewed energy and focus, and I'm excited to partner with him as we move forward.

謝謝你，傑夫。我想花點時間向您表示祝賀並歡迎您重返公司。你們中的許多人已經知道傑夫是一位有目標的領導者，並且有著成功領導這家公司的良好記錄。他回來後不久，他的清晰願景、領導的堅定信念以及他對我個人的指導給我留下了深刻的印象。他帶來了新的活力和專注力，我很高興能與他合作，一起前進。

Further, I also want to take a moment to congratulate Jim Snee on his well-deserved retirement and thank him for all he has done for our company and for me personally. Jim was a transformative leader. He had a culture-first mentality and recognize the opportunity for greater potential for our company. He launched our journey of transformation, and I look forward to carrying that torch forward.

此外，我還想花點時間祝賀吉姆·斯尼 (Jim Snee) 當之無愧地退休，並感謝他為我們公司和我個人所做的一切。吉姆是一位變革型領導者。他具有文化至上的心態，並認識到我們公司更大的潛力。他開啟了我們的轉型之旅，我期待著將這火炬繼續傳承下去。

With that, let's jump in. In today's consumer landscape, there is a lot to be considered. Consumers are cautious, yet resilient. They have shown a willingness to spend when products and experiences meet their needs, but rising costs are forcing consumers to make trade-offs. That said, we believe the powerful combination of our protein-focused portfolio, leading positions across multiple channels and capabilities related to innovation, renovation, customer partnership, and strategic brand investment position us well to maintain the top line momentum that we've built over the last three quarters.

有了這些，我們就開始吧。在當今的消費環境中，有許多事情需要考慮。消費者雖然謹慎，但仍具有韌性。當產品和體驗滿足他們的需求時，他們表現出消費意願，但成本上漲迫使消費者做出權衡。儘管如此，我們相信，我們以蛋白質為中心的產品組合、跨多個管道的領先地位以及與創新、革新、客戶合作和戰略品牌投資相關的能力的強大組合，使我們能夠保持過去三個季度建立的營收成長勢頭。

Take our retail segment, for example, where our vision is focused, deliberate and is now in motion. We are building a consumer-led growth engine powered by protein-centric solutions that deliver meaningful value to customers and consumers. By modernizing our products to deliver category-leading differentiation, innovating bigger and bolder and taking a disciplined approach to investment and execution, our retail team is building strong brands. And I'm pleased with how these efforts are translating into results.

以我們的零售部門為例，我們的願景是專注的、深思熟慮的，並且正在付諸行動。我們正在建立一個以消費者為主導的成長引擎，以蛋白質為中心的解決方案為客戶和消費者提供有意義的價值。透過對我們的產品進行現代化改造以提供品類領先的差異化、進行更大膽的創新以及採取嚴謹的投資和執行方式，我們的零售團隊正在打造強大的品牌。我對這些努力所取得的成果感到高興。

In the third quarter, our flagship and rising brands delivered 3% dollar consumption growth. And taking a closer look at those results, I am particularly encouraged by the volume-led momentum across many of these brands. In fact, many of our category-leading brands showed impressive consumer volume demand in the third quarter, including brands like Wholly guacamole, SPAM, Black Label bacon, Herdez, Hormel pepperoni and Applegate to name a few. Each of these brands leveraged a personalized take on our common playbook. They started from a position of strength with consumers benefited from our ongoing renovation and innovation work which is focused on staying ahead of evolving consumer preferences and many received targeted marketing support to drive both relevance and measurable returns.

第三季度，我們的旗艦品牌和新興品牌實現了3%的美元消費成長。仔細觀察這些結果，我對許多品牌以銷量為主導的勢頭感到特別鼓舞。事實上，我們許多類別領先的品牌在第三季都表現出令人印象深刻的消費需求，其中包括 Wholly 酪梨醬、SPAM、Black Label 培根、Herdez、Hormel 義大利辣香腸和 Applegate 等品牌。每個品牌都利用了我們共同的策略的個人化視角。他們從一開始就佔據優勢地位，消費者受益於我們持續進行的革新和創新工作，這項工作專注於始終領先於不斷變化的消費者偏好，許多企業獲得了有針對性的營銷支持，以推動相關性和可衡量的回報。

Digging into one of these brands a bit further, the SPAM brand shows just how impactful our approach can be. Our ongoing modernization strategy for the SPAM brand delivered another strong quarter with year-over-year volume and net sales growth. We leverage the brand's iconic equity by partnering with customers on impactful summer promotions and launching a limited time offer designed to drive both volume and net sales growth, all reinforcing the SPAM brand's relevance in the marketplace.

進一步深入研究其中一個品牌，SPAM 品牌展示了我們的方法有多大的影響力。我們持續推行的 SPAM 品牌現代化策略再次為本季帶來了強勁表現，銷售量和淨銷售額均較去年同期成長。我們利用品牌的標誌性資產，與客戶合作進行有影響力的夏季促銷活動，並推出限時優惠，旨在推動銷售和淨銷售額的成長，所有這些都加強了 SPAM 品牌在市場上的相關性。

Another great example of the impact of brand modernization is the launch of the Hormel pepperoni brand renovation work. This 110-year-old brand is the number 1 retail pepperoni brand, and we would like to keep it that way for another century. Our team initiated a

品牌現代化影響的另一個很好的例子是荷美爾義大利辣香腸品牌革新工作的啟動。這個擁有 110 年歷史的品牌是排名第一的義大利辣香腸零售品牌，我們希望在未來的一個世紀中繼續保持這一地位。我們的團隊發起了

thoughtful renovation project on the brand, and we recently unveiled a refreshed package design. This update is more than cosmetic. It's an investment with customers to bring excitement to this important category and to signal to consumers that Hormel pepperoni is evolving with their taste and expectations. The launch is supported by our new campaign, boldly irresistible and we expect this renovation to drive stronger purchase intent, accelerate velocities and reinforce brand loyalty.

對品牌進行了周到的改造項目，最近我們推出了煥然一新的包裝設計。這次更新不只是表面的。這是一項針對客戶的投資，旨在為這一重要類別帶來興奮，並向消費者表明荷美爾義大利辣香腸正在隨著他們的口味和期望而不斷發展。此次發布得到了我們全新「大膽而不可抗拒」的活動的支持，我們預計此次革新將激發更強的購買意願、加快速度並加強品牌忠誠度。

I also want to spend a minute on our Jennie-O ground turkey business, which offers a clear illustration of how a strong brand that is well aligned with evolving consumer preferences for lean affordable protein wins in the marketplace. As we said previously, we needed to take inflation-based pricing which went into effect late Q2. Because of the strength of this brand, we were able to successfully navigate elasticities and capture dollar share and net sales growth.

我還想花一點時間介紹一下我們的 Jennie-O 火雞肉碎業務，它清楚地說明瞭如何讓一個強大的品牌與消費者對價格實惠的瘦肉蛋白質不斷變化的偏好保持一致，從而在市場上取勝。正如我們之前所說，我們需要採取基於通貨膨脹的定價，該定價於第二季末生效。由於這個品牌的實力，我們能夠成功駕馭彈性並獲得美元份額和淨銷售額的成長。

Before I conclude my comments for the retail segment, I want to give an update on the performance of our Planters business. I am pleased to report that by the end of the quarter, scanner data was now reflecting year-over-year growth in distribution, household penetration and dollar sales. With the foundation restored, the team is back on the offense, reengaging consumers with innovations like Nut Duos and flavored cashews, while also launching a limited-time bar nuts variety to spark excitement around summer snacking. With the capacity in place to fulfill demand and accelerating sales momentum as we enter Q4, I am encouraged by the top line recovery of the Planters business.

在結束對零售部門的評論之前，我想先介紹一下我們的 Planters 業務的表現。我很高興地報告，截至本季末，掃描器數據反映了分銷、家庭普及率和美元銷售額的同比增長。在恢復了基礎之後，團隊重新發起進攻，透過 Nut Duos 和調味腰果等創新產品重新吸引消費者，同時也推出限時供應的堅果棒品種，以激發人們對夏季零食的興趣。隨著我們進入第四季度，我們有能力滿足需求並加速銷售勢頭，我對 Planters 業務的營收復甦感到鼓舞。

Profitability on the other hand, is being impacted by mix and inflation. We are actively working on drivers to balance the evolving needs of consumers and drive profitability. Looking ahead for retail, we expect that our brand-building playbook will enable continued strong top line performance in the fourth quarter. However, we remain cautious on segment profitability. The ramp-up of commodity markets in the third quarter has created margin pressure that will continue through the fourth quarter.

另一方面，獲利能力受到產品組合和通貨膨脹的影響。我們正在積極努力尋找平衡消費者不斷變化的需求並提高獲利能力的驅動因素。展望零售業的未來，我們預計我們的品牌建立策略將使第四季繼續保持強勁的營收表現。然而，我們對分部獲利能力仍保持謹慎。第三季大宗商品市場的回升給利潤率帶來了壓力，這種壓力將持續到第四季。

As Jeff shared, we are taking targeted pricing actions to help offset these pressures, which will go into effect throughout the fourth quarter and early in the first quarter of fiscal 2026. Our focus for retail is to build a consumer-led growth engine powered by protein- centric solutions that deliver meaningful value to customers and consumers.

正如傑夫所說，我們正在採取有針對性的定價行動來幫助抵消這些壓力，這些行動將在整個第四季和 2026 財年第一季初生效。我們對零售的重點是建立以消費者為主導的成長引擎，以蛋白質為中心的解決方案為客戶和消費者提供有意義的價值。

Let's now shift to our Foodservice segment. Our operators are facing a challenging environment. Industry-wide traffic has remained soft with overall visits slightly down year-over-year. Casual dining has showed relative resilience in recent months, but the broader food service industry continues to face headwinds from inflation and shifting consumer behavior. The dynamics of this environment, particularly the impact of commodity pressures in the third quarter led to margin compression for our business, but we believe that the pass-through nature of costs for much of our Foodservice portfolio will allow us to recover profitability over time. As a result, we believe that underlying volume health continues to be a good measure of success for the segment. And here, our team delivered strong results in the quarter.

現在讓我們轉向食品服務領域。我們的營運商面臨著充滿挑戰的環境。整個產業的客流量依然疲軟，整體訪客量較去年同期略有下降。近幾個月來，休閒餐飲表現出相對的韌性，但更廣泛的食品服務業繼續面臨通貨膨脹和消費者行為轉變所帶來的阻力。這種環境的動態，特別是第三季商品壓力的影響，導致我們業務的利潤率受到壓縮，但我們相信，大部分餐飲服務產品組合的成本轉嫁性質將使我們能夠隨著時間的推移恢復盈利能力。因此，我們相信，基礎銷售健康狀況仍然是衡量該部門成功的良好指標。我們的團隊在本季取得了強勁的業績。

Once again, organic volume and net sales growth for the Foodservice segment outpaced broader industry results in the third quarter. Our growth was broad-based, showcasing our great solutions-based portfolio and the power of our direct selling organization. While you've heard us highlight this team often, I did want to take a moment to congratulate both the retail and Foodservice selling teams for being recognized for the 24th consecutive year by Selling Power as one of the best companies to sell for. For Foodservice, this is certainly a testament to the value the team delivers to their customers and operators.

第三季度，餐飲服務部門的有機銷售和淨銷售額成長再次超過了整個行業的業績。我們的成長基礎廣泛，展示了我們基於解決方案的出色產品組合和直銷組織的力量。雖然您經常聽到我們強調這個團隊，但我還是想花點時間祝賀零售和餐飲服務銷售團隊連續 24 年被 Selling Power 評為最佳銷售公司之一。對於餐飲服務來說，這無疑證明了團隊為客戶和營運商提供的價值。

As I said, volume and net sales growth came from many of our Foodservice brands in the third quarter. Planters snack nuts, the Jennie-O turkey portfolio and Hormel premium pepperoni all delivered significant growth. For a bit of insight in a highly competitive category like pepperoni, we delivered 20% year-over-year volume growth for Hormel premium pepperoni. These results highlight the team's understanding of our customers and operators needs and the quality and value of our portfolio.

正如我所說，第三季我們的許多餐飲品牌的銷售和淨銷售額都實現了成長。Planters 零食堅果、Jennie-O 火雞產品組合和 Hormel 優質辣香腸均實現了顯著增長。為了深入了解義大利辣香腸這樣一個競爭激烈的類別，我們實現了荷美爾優質義大利辣香腸銷量較去年同期成長 20%。這些結果凸顯了團隊對客戶和營運商需求以及我們產品組合的品質和價值的理解。

A recovery in industry traffic would certainly create a more favorable operating environment for our Foodservice business, but we are not waiting for an industry recovery to return this powerful portfolio to the segment profit growth that we know it can deliver. Closing out the segments. In international, net sales growth in the third quarter was driven by our thriving China business. Overall, the China market is rebounding, and we grew our in-country business across both Foodservice and retail channels this quarter. This performance leaves me encouraged about the opportunities ahead for our proven in-country model. Another contributor to my optimism on China is its success as an innovation engine, which is helping to build our snacking portfolio. Meat snacking innovation out of China delivered solid performance in the quarter, and the team strategically launched Skippy cones into a new channel, further accelerating its distribution growth globally.

行業客流量的復甦無疑將為我們的餐飲服務業務創造更有利的經營環境，但我們不會等待行業復甦來讓這一強大的投資組合恢復到我們知道能夠實現的分部利潤增長。關閉各個部分。在國際市場，第三季淨銷售額的成長得益於我們蓬勃發展的中國業務。整體而言，中國市場正在反彈，本季我們在餐飲服務和零售通路的國內業務均有所成長。這一業績讓我對我們已證實的國內模式的未來機會充滿信心。我對中國持樂觀態度的另一個原因是，中國作為創新引擎的成功，有助於我們建立零食產品組合。本季度，中國肉類零食創新表現穩健，團隊策略性地將 Skippy 蛋筒引入新通路，進一步加速其全球分銷成長。

Beyond China, International's exports in the third quarter also delivered positive top line results led largely by our global SPAM brand exports. Profitability was down year-over-year, mainly due to our Brazil business, which remained under significant pressure in the quarter. The operating environment in Brazil continues to be challenged by competitive pricing dynamics. Our international team remains focused on expanding our global brands and portfolio with the same mission of returning to profitable growth.

除中國以外，國際出口在第三季也取得了積極的營收業績，這主要得益於我們全球 SPAM 品牌的出口。獲利能力較去年同期下降，主要原因是我們的巴西業務在本季仍然承受著巨大壓力。巴西的經營環境持續受到競爭性定價動態的挑戰。我們的國際團隊始終致力於擴大我們的全球品牌和產品組合，並肩負著恢復獲利成長的使命。

Turning back to our performance overall in the third quarter. While our top line results were impressive, the bottom line results were disappointing. The commodity inflationary pressures we felt were significantly greater than anticipated. But to be clear, I remain confident about our future. First, we have a terrific portfolio. Being a leader in protein solutions is valuable in today's consumer landscape. Consumer demand for protein is an enduring trend and showing no signs of slowing down. Our portfolio is positioned for achievable growth.

回顧我們第三季的整體表現。儘管我們的營收結果令人印象深刻，但淨利潤結果卻令人失望。我們感受到的大宗商品通膨壓力明顯超出預期。但要明確的是，我仍然對我們的未來充滿信心。首先，我們擁有出色的產品組合。在當今的消費領域，成為蛋白質解決方案的領導者非常有價值。消費者對蛋白質的需求是一個持久的趨勢，並且沒有放緩的跡象。我們的投資組合定位於實現可實現的成長。

Second, we are actively evolving to stay ahead of a dynamic and competitive marketplace. Transform and Modernize is enabling us to unlock the full value of our portfolio. This initiative is building long-lasting capabilities, future fitting our supply chain and further developing our processes, data and talent. Said differently, this is truly helping us modernize as a company.

其次，我們正在積極發展，以在充滿活力和競爭激烈的市場中保持領先地位。轉型和現代化使我們能夠充分發揮投資組合的價值。該計劃正在建立持久的能力，適應我們未來的供應鏈，並進一步發展我們的流程、數據和人才。換句話說，這確實幫助我們公司實現了現代化。

And third, we have a great team. As I recently shared internally, I believe in a we mindset. Because while no single person has all the answers, I firmly believe that together, we do. I am energized by the opportunity to lead this talented team as we unlock the full potential of our impressive portfolio and company.

第三，我們擁有一支優秀的團隊。正如我最近在內部分享的那樣，我相信「我們」的心態。因為雖然沒有一個人能夠解答所有問題，但我堅信只要我們齊心協力，就能解答所有問題。我很高興有機會領導這個才華橫溢的團隊，因為我們將充分發揮我們令人印象深刻的產品組合和公司的潛力。

With that, I will now turn the call over to Jacinth to provide details on our financial performance, our fourth quarter outlook and commentary leading into fiscal 2026.

現在，我將把電話轉給 Jacinth，讓她提供有關我們的財務業績、第四季度展望以及 2026 財年評論的詳細資訊。

Thank you, John, and good morning, everyone. We are pleased with the top line growth we delivered in the third quarter. All three segments showed its unique strength and the top line results emphasize the power of our globally diverse portfolio, leading brands and team. Organic net sales in the third quarter were $3 billion, a 6% increase over last year with organic volume up 4%.

謝謝你，約翰，大家早安。我們對第三季實現的營收成長感到滿意。所有三個部門都展現了其獨特的優勢，而營收業績凸顯了我們全球多元化產品組合、領先品牌和團隊的力量。第三季有機淨銷售額為 30 億美元，比去年同期成長 6%，有機銷量成長 4%。

Our Retail segment grew volume and net sales 5% over last year, with five of our six retail pillars reporting top line growth above a year ago. Volume growth was significantly supported by the turkey portfolio, both in whole birds and value-added lean ground turkey. Excluding turkey, retail volumes also grew in total. Our Foodservice business once again outperformed the broader industry, with broad-based top line gains of 2% organic volume growth and 7% organic net sales growth.

我們的零售部門的銷售和淨銷售額比去年增長了 5%，我們的六大零售支柱中有五個都報告了高於去年的營收成長。火雞產品組合（包括整隻火雞肉和加值瘦火雞肉）顯著支持了銷售量的成長。除火雞外，整體零售量也有所成長。我們的餐飲服務業務再次超越了整個行業，營業收入普遍增長，有機銷量增長 2%，有機淨銷售額增長 7%。

Our international business delivered strong top line results with 8% volume growth and 6% net sales growth led by our thriving China business. Gross profit was relatively flat year-over-year as the positive impact from top line growth was offset by higher- than-expected input costs. Inflationary headwinds pressured margins. However, these were partially mitigated by savings from our Transform and Modernize initiative, which delivered in line with our quarterly expectations.

我們的國際業務取得了強勁的營收業績，在中國業務蓬勃發展的帶動下，銷量成長 8%，淨銷售額成長 6%。由於營業收入成長帶來的正面影響被高於預期的投入成本所抵消，毛利與去年同期相比相對持平。通膨逆風給利潤率帶來壓力。然而，這些損失被我們的「轉型與現代化」計劃節省下來的資金部分抵消，該計劃的成果符合我們的季度預期。

As we noted during our second quarter call, we anticipated upward pressure on input costs driven by pork, beef and nut market. However, during the third quarter, markets worsened significantly beyond our projections. To illustrate the order of magnitude of these external markets, as compared to last year, pork bellies were up approximately 30%. The pork cutout was up about 10% and pork trim was up 20%. Beef also remained a persistent inflationary headwind industry-wide and near all-time high. Collectively, we experienced approximately 400 basis points of raw material cost inflation in the third quarter alone, representing a notable increase relative to last year.

正如我們在第二季電話會議上指出的那樣，我們預計豬肉、牛肉和堅果市場將推動投入成本上升的壓力。然而，第三季市場狀況嚴重惡化，超出了我們的預期。為了說明這些外部市場的數量級，與去年相比，五花肉價格上漲了約 30%。豬肉分割價格上漲約 10%，豬肉邊角料價格上漲 20%。牛肉仍然是整個行業持續的通膨阻力，並且接近歷史最高水平。總體而言，僅第三季度，原物料成本就上漲了約 400 個基點，與去年相比有顯著成長。

As we have previously discussed, when commodity markets rise sharply, there is a delay between the impact of pricing actions and the resulting improvement of profitability. For the third quarter, adjusted SG&A increased 6%, primarily driven by employee-related expenses. Advertising investments were also higher for the quarter as we continued to strategically invest in our brands to support long-term brand health.

正如我們先前所討論的，當大宗商品市場大幅上漲時，定價行為的影響與由此帶來的獲利能力改善之間存在延遲。第三季度，調整後的銷售、一般及行政費用成長 6%，主要受員工相關費用推動。由於我們持續對品牌進行策略性投資以支持長期品牌健康，本季的廣告投資也有所增加。

Equity and earnings for the third quarter increased due to favorable results for MegaMex Foods and a modest benefit from our international investments. Interest and investment income increased due to performance from the Rabbi Trust. Overall, adjusted EPS for the third quarter was $0.35.

由於 MegaMex Foods 的業績良好以及我們國際投資的適度收益，第三季的股權和收益有所增加。由於拉比信託基金的業績，利息和投資收入增加。總體而言，第三季調整後的每股盈餘為 0.35 美元。

Cash flow from operations was $157 million for the quarter a sequential improvement from the second quarter but remained down compared to the prior year as we intentionally built additional seasonal inventory. Elevated commodity market also impacted our higher inventory balances. Capital expenditures were $72 million during the quarter with our largest investments directed towards capacity enhancement and new technology initiatives. We remain committed to strategic reinvestments and expect to deploy approximately $300 million in capital expenditures for fiscal 2025.

本季經營現金流為 1.57 億美元，較第二季度有所改善，但由於我們有意增加了季節性庫存，因此與去年相比仍處於下降趨勢。大宗商品市場的上漲也影響了我們較高的庫存餘額。本季資本支出為 7,200 萬美元，其中最大一筆投資用於產能提升和新技術計畫。我們將繼續致力於策略再投資，預計在 2025 財年投入約 3 億美元的資本支出。

I remain confident in our ability to generate strong, sustainable cash flows over the long term, which supports our continued execution of a disciplined and balanced capital allocation strategy. As a proud dividend aristocrat, dividends paid to shareholders in the third quarter were $159 million, totaling $474 million for the first nine months of fiscal 2025. We also declared and paid our 388th consecutive

我仍然對我們長期產生強勁、可持續現金流的能力充滿信心，這支持我們繼續執行嚴謹、均衡的資本配置策略。作為一個驕傲的股息貴族，第三季向股東支付的股息為 1.59 億美元，2025 財年前九個月的股息總額為 4.74 億美元。我們也宣布並支付了第 388 筆連續

quarterly dividend. We ended the quarter with our net debt leverage ratio well within our target range of 1.5 times to 2 times, reflecting our balance sheet discipline and financial flexibility.

季度股息。本季結束時，我們的淨債務槓桿率遠低於 1.5 倍至 2 倍的目標範圍，這反映了我們的資產負債表紀律和財務靈活性。

The Transform and Modernize initiative continued to perform well and met our expectations for the quarter, delivering incremental benefits to the bottom line. The team has executed impactful work to drive value, which totaled approximately 90 projects in the third quarter. As we have shared, this initiative is more than just a cost savings project. It is about the way we do business across the enterprise, building new capabilities and reshaping how we operate while creating a new path for growth.

轉型與現代化計劃持續表現良好，滿足了我們對本季的預期，為獲利帶來了增量效益。該團隊已開展了有影響力的工作來推動價值，第三季總計約 90 個項目。正如我們所分享的，這項措施不僅僅是一個成本節約項目。它涉及我們在整個企業開展業務的方式，建立新的能力並重塑我們的營運方式，同時創造新的成長道路。

An especially noteworthy project this quarter involves optimizing our manufacturing footprint, we announced the partial closure of one facility and the reallocation of production volume across our broader network aimed at enhancing operational efficiency and long- term scalability with a robust backlog of projects and confidence in our ability to deliver meaningful results, we are reaffirming our expected range of $100 million to $150 million of incremental benefits in fiscal year 2025 and believe we will finish the year near the high end of our T&M range.

本季一個特別值得注意的項目涉及優化我們的製造足跡，我們宣布部分關閉一家工廠，並在更廣泛的網絡中重新分配生產量，旨在通過大量積壓項目和對我們交付有意義成果的能力的信心來提高運營效率和長期可擴展性，我們重申我們預計 2025 財年的增量收益將在 1 億美元至 1.5 億美元之間達到高端

Shifting to the remainder of 2025. There are some considerations to keep in mind as we close the year. We continue to expect the top line growth in the fourth quarter and we expect our turkey portfolio, the Planters brand and our leading positions in the marketplace to continue to be a strong growth driver. For profitability, we have announced inflation-based pricing actions related to the third quarter market, which we expect to partially benefit the fourth quarter and carry into the first quarter of fiscal 2026.

轉移到 2025 年剩餘時間。在年末之際，我們需要牢記一些注意事項。我們繼續預計第四季度的營收將實現成長，並且我們預計我們的火雞產品組合、Planters品牌和我們在市場上的領先地位將繼續成為強勁的成長動力。為了獲利，我們宣布了與第三季市場相關的基於通膨的定價行動，我們預計這將部分惠及第四季並延續到 2026 財年第一季。

As the fourth quarter has begun, counter to our expectations, commodity markets have remained elevated across a variety of input. With that, we're assessing additional pricing actions. Our tariff estimate remains unchanged at a $0.01 to $0.02 EPS headwind for fiscal year 2025. Altogether, we expect fourth quarter adjusted EPS to be in the range of $0.38 to $0.40, reflecting a prudent outlook amid ongoing industry dynamics.

第四季開始以來，與我們的預期相反，各種商品市場依然保持高位。為此，我們正在評估額外的定價行動。我們對 2025 財年的關稅預測保持不變，每股收益為 0.01 美元至 0.02 美元。總體而言，我們預計第四季度調整後的每股收益將在 0.38 美元至 0.40 美元之間，這反映出在持續的行業動態中保持審慎的前景。

As we look ahead to fiscal 2026, we are approaching the time line for delivering on the long-term financial goals we outlined at our 2023 Investor Day. Over the past two years, we have numerous achievements to be proud of, especially within our Transform and Modernize initiative where we have extracted value and invested in developing processes, talent and the capabilities that will help propel us into the future.

展望 2026 財年，我們正接近實現 2023 年投資者日所概述的長期財務目標的時間表。在過去的兩年裡，我們取得了許多值得驕傲的成就，特別是在我們的轉型和現代化計劃中，我們提取了價值並投資於開發流程、人才和能力，這將有助於推動我們走向未來。

However, the growth goals we previously set for 2026 were based on certain assumptions that have not been realized. Among those assumptions or expectations of a more stable input cost environment, stronger consumer sentiment and earnings growth in the second half of fiscal 2025. That being said, as Jeff and John have mentioned, we are aligned and focused on returning to profitable growth.

然而，我們先前設定的2026年成長目標是基於某些尚未實現的假設。這些假設或預期包括：2025財年下半年投入成本環境更穩定、消費者信心更強勁、獲利成長。話雖如此，正如傑夫和約翰所提到的，我們一致致力於恢復獲利成長。

We are in the early days of our annual planning process. And while we are not providing fiscal 2026 guidance today, our belief is that our long-term growth algorithm is a better metric to use when considering our go-forward results. As we look ahead, we expect the top line to benefit from pricing actions, growth across our brands and product mix improvements.

我們的年度規劃流程正處於早期階段。雖然我們今天沒有提供 2026 財年的指導，但我們相信，在考慮未來結果時，我們的長期成長演算法是更好的指標。展望未來，我們預期營收將受惠於定價舉措、品牌成長和產品組合改善。

On the bottom line, we expect continued meaningful benefits from our Transform and Modernize initiative, benefits from the manufacturing footprint decisions we have made this year and possible cost reductions related to SG&A spend, which has outpaced growth in recent years. We will provide our holistic 2026 guidance on our fourth quarter earnings call.

總的來說，我們預計我們的轉型和現代化計劃將繼續帶來有意義的收益，我們今年做出的製造足跡決策也將帶來收益，並且可能降低與銷售、一般和行政費用 (SG&A) 支出相關的成本，而這些成本近年來一直高於增長速度。我們將在第四季財報電話會議上提供 2026 年的整體指引。

Before we transition to Q&A, I want to leave you with a clear message. We are not just navigating the presence. We are building a better company for the future. My confidence in our future is grounded in the strength of our robust protein-centric portfolio, the resilience of our team and the long-term capabilities we are building to drive sustainable growth. At the same time, we recognize that our bottom line performance did not reflect the potential of our business this quarter. We are committed to driving growth and enhancing long-term profitability.

在我們進入問答環節之前，我想給你們留下一個明確的訊息。我們不只是在探索存在。我們正在為未來打造一家更美好的公司。我對我們未來的信心源於我們強大的以蛋白質為中心的產品組合的實力、我們團隊的韌性以及我們為推動永續成長而建立的長期能力。同時，我們也意識到本季我們的底線業績並未反映出我們業務的潛力。我們致力於推動成長並提高長期獲利能力。

Our balance sheet is strong, and we believe our top line growth is sustainable. We remain focused on delivering lasting value for our shareholders through consistent top line and bottom line performance aligned with our long-term growth algorithm. With that, I will turn the call over to the operator to begin our Q&A portion of the call.

我們的資產負債表強勁，我們相信我們的營收成長是可持續的。我們始終致力於透過與我們的長期成長演算法一致的持續的頂線和底線表現為我們的股東提供持久的價值。接下來，我將把電話轉給接線員，開始電話的問答部分。

(Operator Instructions)

（操作員指示）

Ben Theurer, Barclays.

巴克萊銀行的 Ben Theurer。

Good morning, Jeff, John. Well, Jeff, first of all, welcome back, I guess, and John congrats on the new role. First question really is, as we look back, call it, three months ago when you did the call for the second quarter, you really sounded very confident as to the outlook for the second half. And there was a lot of like data points you gave out to kind of like believe things are going into the right direction.

早安，傑夫、約翰。好吧，傑夫，首先，歡迎回來，我想，恭喜約翰獲得新的職位。第一個問題實際上是，當我們回顧時，三個月前當您對第二季度進行預測時，您聽起來對下半年的前景非常有信心。您提供了許多類似的數據點，讓人相信事情正在朝著正確的方向發展。

So really within the last three months and then particularly as you kind of like look into the next three months, what has changed so much versus, call it, late May, early June when the last time was when you updated the market. What has driven this revision?

因此，實際上在過去三個月內，特別是當您展望未來三個月時，與上次更新市場時的五月下旬、六月初相比，發生了很大變化。是什麼促使了這次修訂？

Yes. Obviously, a very fair question. Thank you, Ben. So I'll start off by kind of bringing us back to the expectations we had three months ago. And clearly, we had confidence entering the second half, and we had that for good reason. If you kind of looked at our growth targets in the back half, we had four critical drivers of performance and what we were expecting.

是的。顯然，這是一個非常公平的問題。謝謝你，本。因此，我首先要回顧我們三個月前的期望。顯然，我們對進入下半場充滿信心，而且我們有充分的理由這樣做。如果你看我們下半年的成長目標，你會發現我們有四個關鍵的業績驅動因素以及我們的預期。

One was we had mentioned that we had landed or announced significant pricing on our value-added turkey business at the end of the second quarter that would take hold in the third quarter. Two, we were expecting improved Foodservice industry traffic in the back half of the year, which you know is important for our company and for our business. Three, we knew the sequential recovery of Planters was going well. And when we hit the back half of the year, we were going to be lapping the supply disruption, and so we saw the clear opportunity in Planters. And then four, our Transform and Modernize initiative was on track, and we had significant expectations for the back half on T&M.

一是我們曾提到，我們在第二季末確定或宣布了增值火雞業務的重要定價，並將在第三季生效。第二，我們預計下半年餐飲業的客流量會有所改善，這對我們公司和業務都很重要。第三，我們知道 Planters 的後續復甦進展順利。當我們進入下半年時，我們將要克服供應中斷的問題，因此我們在 Planters 中看到了明顯的機會。第四，我們的轉型和現代化計劃進展順利，我們對 T&M 的後半部分抱有很高的期望。

So those are kind of the four building blocks would set our expectations for the back half as the third quarter unfolded, a few of those things went well and actually continued to meet our expectations and come to fruition. So the turkey pricing, for example, our turkey business has been strong, on track with our expectations. We landed the pricing. We've delivered strong growth on our value-added turkey business, and we have recovered the profitability we needed to. We also have seen in the third quarter, broad-based top line growth across the portfolio. So that was a check.

因此，這四個基本要素將為我們對第三季後半段的預期奠定基礎，其中一些事情進展順利，實際上繼續滿足我們的預期並取得成果。以火雞定價為例，我們的火雞業務一直很強勁，符合我們的預期。我們確定了價格。我們的增值火雞業務實現了強勁增長，並恢復了所需的盈利能力。我們也看到，第三季整個投資組合的營收普遍成長。所以那是一張支票。

And our T&M delivery actually has remained on track. In fact, we expect to finish the year toward the top end of the range we've been providing on T&M. So all three of those things were in line with our expectations. What we didn't expect, and what changed dramatically the first one, there are three things, but the first one is the most significant, which was the steep run-up in commodity markets, and that has very much pressured our earnings. That run-up in commodity markets was both sudden and it was major as it occurred across inputs that are major for our business. That was sort of the first and biggest factor.

我們的測試與測量交付實際上一直保持正常進行。事實上，我們預計今年年底我們的 T&M 服務將達到最高水準。所以這三件事都符合我們的預期。我們沒有想到的是，第一個發生巨大變化的有三件事，但第一個是最重要的，那就是大宗商品市場的急劇上漲，這對我們的盈利造成了很大的壓力。大宗商品市場的上漲既突然又影響重大，因為它發生在對我們的業務至關重要的投資上。這是第一個也是最重要的因素。

But there were two other elements that were important that unfolded. Foodservice traffic did not recover the way we expected it to. The industry remains soft, traffic still declining. And then the third one is Planters recovery is very much on track from a top line perspective. We're very, very pleased with how that is going. But the profit recovery has lagged somewhat, profit on Planters did grow in the third quarter, but not at the same rate as the top line has grown in that recovery.

但還有另外兩個重要的因素正在顯現。餐飲服務客流量並沒有如我們預期的恢復。產業依然疲軟，客流量仍在下降。第三點是，從營收角度來看，Planters 的復甦非常順利。我們對目前進展非常滿意。但利潤復甦有些滯後，Planters 的利潤在第三季確實有所成長，但成長速度與營收的成長速度不同。

So when you look at those three factors, they were kind of the new news in the third quarter. We also adjusted our expectations based on those same factors for the fourth quarter because we see them persisting through the fourth quarter. And while we're encouraged by the momentum on the top line, we are obviously aligned on the urgency for driving profitable growth, and we have both made adjustments to our near-term plan. But also just to reiterate, we do remain confident in our future and our team overall.

因此，當你看這三個因素時，它們就是第三季的新消息。我們也根據相同的因素調整了對第四季的預期，因為我們認為這些因素將持續整個第四季。雖然我們對營收的成長動能感到鼓舞，但我們顯然對推動獲利成長的緊迫性有著一致的看法，並且我們都對近期計劃做出了調整。但我還要重申的是，我們對我們的未來和整個團隊仍然充滿信心。

And I think, Jacinth, you may want to add some more detail?

我認為，Jacinth，您可能想添加更多細節？

Yes, certainly. Ben, we are certainly disappointed in terms of where we are from a profitability standpoint. And as John touched on, the major change that happened here is relating to commodity markets and just a significant run-up that happened in the middle of the

是的，當然。本，從獲利能力的角度來看，我們確實對目前的狀況感到失望。正如約翰所提到的，這裡發生的重大變化與商品市場有關，只是在中期發生的重大上漲。

third quarter as we went in. And then when we think about what we have done to respond to that, we have announced pricing relating to the impact for the third quarter. However, given where markets remain, we have -- we are continuing to evaluate additional pricing actions.

我們進入第三節時。然後，當我們思考我們為應對這一問題所採取的措施時，我們宣布了與第三季影響相關的定價。然而，考慮到市場現狀，我們正在繼續評估額外的定價行動。

So that has really informed how we're thinking about the rest of the year and also as we think about 2026 because we expect the fourth quarter to continue to be pressured by the significant market pressures and then just the consumer sentiment where it sits at the moment. So in our mind, right, we are in a spot where we need to be responsible with how we rebase our 2026 target. Overall, we recognize the second half did not meet our expectations. We understand the disappointment this brings. And as Jeff mentioned, we remain firmly committed to driving sustainable growth and enhancing long-term profitability.

因此，這確實影響了我們對今年剩餘時間以及 2026 年的看法，因為我們預計第四季度將繼續受到巨大市場壓力以及當前消費者情緒的影響。所以在我們看來，我們需要對如何重新設定我們的 2026 年目標負責。整體而言，我們承認下半年沒有達到我們的期望。我們理解這會帶來的失望。正如傑夫所說，我們始終堅定地致力於推動永續成長和提高長期獲利能力。

And what really do matters in this time that's so dynamic is how we respond and the team is responding and staying focused on executing with discipline, investing in our strength and positioning ourselves for the future.

在這個如此充滿活力的時代，真正重要的是我們如何應對，團隊如何應對，如何專注於有紀律地執行，投資我們的實力，為未來做好準備。

Okay. Got it. And then my follow-up is really -- I would describe it more as a strategic question. So Jeff, for you, obviously, you've been at the company and then you kind of like went on and came back just a few months ago, first on the Board and then now more recently as interim CEO. So as you kind of come with fresh eyes, with fresh thoughts as you look at the business, what are you seeing? How do you feel about the company? How do you feel about the different business segments? And where do you think Hormel offers the greatest opportunities from a shareholder return perspective as you take on your role over the next coming months?

好的。知道了。然後我的後續問題是——我會將其更多地描述為戰略問題。傑夫，顯然，您一直在公司工作，然後幾個月前又回來了，先是擔任董事會成員，最近又擔任臨時執行長。那麼，當您以全新的視角、全新的思維來看待業務時，您看到了什麼？你對這家公司的感覺如何？您對不同的業務部門有何看法？在接下來的幾個月裡，您上任後，從股東回報的角度來看，您認為荷美爾在哪些方面能提供最大的機會？

Yes. Thanks for the question, Ben. As I look at it coming back after a number of years, I believe Hormel is still an enviable position to grow from. I mean you look at sort of the traditional process meat categories. We are the innovation leader in bacon and pepperoni in both the retail and Foodservice segments. We're a leader in more healthy new age proteins with portfolio such as Jennie-O and Applegate. We're a leader in protein solutions for the food service industry with Café H and Fire Braised and FLASH 180, which I had a chance to see at the restaurant show when I joined the Board.

是的。謝謝你的提問，本。當我看到它幾年後的回歸時，我相信荷美爾仍然擁有令人羨慕的發展地位。我的意思是看看傳統的加工肉類類別。我們是零售和餐飲服務領域培根和義大利辣香腸的創新領導者。我們是更健康的新時代蛋白質領域的領導者，擁有 Jennie-O 和 Applegate 等產品組合。我們是食品服務業蛋白質解決方案的領導者，擁有 Café H 和 Fire Braised 以及 FLASH 180，我在加入董事會時有機會在餐飲展上看到這些產品。

We have two great global brands in SPAM and Skippy, plus a growing business in China on the international front. And we're strong in certain nonmeat protein areas, such as Planters and Skippy and our Mexican portfolio and our partnership with MegaMex. Frankly, we intend to be able to expand on this sort of strategic side been at your conference next week, the Barclays Back to School Conference. And so we'll give you more details on kind of what we're excited about there.

我們擁有 SPAM 和 Skippy 兩個優秀的全球品牌，此外，在中國的國際業務也不斷成長。我們在某些​​非肉類蛋白質領域表現強勁，例如 Planters 和 Skippy 以及我們的墨西哥產品組合和與 MegaMex 的合作。坦白說，我們打算在下週的巴克萊返校會議上進一步闡述這種策略面。因此，我們將向您提供更多有關我們感到興奮的事情的詳細資訊。

Now to answer sort of the second part of your question, the very first day, John and I assume these new roles, we had a town hall with our team and we really talked to the team about, hey, what does winning look like, frankly, in this industry or frankly to me almost in any business. And it's all about growing your top line and your bottom line. Growth in your top line shows that your products are connecting with consumers and customers, and I'm encouraged that in this recent quarter, we delivered on just that. So we're kind of halfway there in that regard.

現在來回答你問題的第二部分，第一天，約翰和我擔任這些新角色，我們與團隊進行了一次全體會議，我們真的和團隊討論了，嘿，坦率地說，在這個行業或坦率地說對我來說幾乎在任何行業中，勝利是什麼樣子的。這一切都是為了增加你的收入和利潤。您的營業額成長表明您的產品正在與消費者和客戶建立聯繫，我很高興在最近這個季度我們實現了這一點。因此從這個方面來說我們已經完成了一半了。

But you also have to grow the bottom line. You have to grow the bottom line to show that you're actually getting paid for all the hard work you're doing in a total system basis and you also need to do it because it serves the interest of our shareholders, who we understand have other options in terms of their investments, and so growth is imperative. So that's -- our focus is going to be consistently driving top and bottom line growth.

但你也必須增加底線。你必須增加底線利潤，以表明你在整個系統基礎上所做的所有辛勤工作確實得到了回報，你也需要這樣做，因為它符合我們股東的利益，我們知道他們在投資方面還有其他選擇，所以成長是必不可少的。所以，我們的重點將是持續推動營收和利潤的成長。

Okay. Thank you very much.

好的。非常感謝。

Tom Palmer, JPMorgan.

摩根大通的湯姆·帕爾默。

Morning. Thanks for the question. Congratulations, Jeff, on your return and John on your recent promotion. In your prepared remarks, you noted that your long-term growth algorithm is a better metric to use for forward earnings. I just want to make sure I understood to what extent this applies to 2026 because given some of the cost headwinds this year and also what seems to be emerging tailwinds from areas like turkey, Planters and the T&M program, I think there was some hope that next year could be more of an above algorithm type here?

早晨。謝謝你的提問。恭喜傑夫回歸，恭喜約翰最近升職。在您準備好的發言中，您指出長期成長演算法是衡量未來收益的更好指標。我只是想確保我理解這在多大程度上適用於 2026 年，因為考慮到今年的一些成本阻力，以及來自土耳其、種植園和 T&M 計劃等領域似乎出現的順風，我認為明年可能會更多地採用上述演算法類型，這是有希望的？

Happy to take the question. Tom, this is Jeff. I personally have always found it important to have clear and measurable goals for the team. And indeed, Hormel Foods has communicated its current goals of 2% to 3% growth in net sales and 5% to 7% growth in operating income for the past several years. We think these are aggressive but reasonable goals in today's food industry environment. And I personally agree that these are the appropriate goals for our general future expectations.

很高興回答這個問題。湯姆，這是傑夫。我個人一直認為為團隊設定明確且可衡量的目標非常重要。事實上，荷美爾食品公司已經公佈了目前的目標，即過去幾年淨銷售額成長 2% 至 3%，營業收入成長 5% 至 7%。我們認為，在當今的食品產業環境下，這些都是積極但合理的目標。我個人也同意這些是適合我們整體未來期望的目標。

We want the team to focus on the long term on hitting these on both the top and bottom line, frankly, I'd like to see it quarter after quarter but these are not intended as our fiscal 2026 guidance. That will come on the Q4 call when we weigh all the considerations, including some that you mentioned in your question.

我們希望團隊能夠著眼於長期目標，實現營收和利潤雙豐收。坦白說，我希望看到這個目標逐季實現，但這並不是我們 2026 財年的指導方針。這將在第四季度電話會議上公佈，屆時我們將權衡所有考慮因素，包括您在問題中提到的一些因素。

Okay. Understood. And then, look, traditionally, there is some degree of seasonality in import costs. I think during the third quarter, it's not totally unusual to see some seasonal increase and then some easing as we look at the fourth quarter, to what extent is this seasonal decline embedded in your outlook if it were to occur, would that be as expected or that could be an incremental tailwind?

好的。明白了。然後，傳統上，進口成本具有一定程度的季節性。我認為在第三季度出現一些季節性增長，然後在第四季度出現一些放緩的情況並不完全不尋常，如果出現這種季節性下降，您的預測將在多大程度上體現這種下降趨勢？這是否符合預期，或者可能是漸進的順風？

And then I guess just kind of thinking through the comment about strategically building inventory in the quarter, maybe what areas were built because I'm a little curious why when commodities are so elevated that strategic decision was made?

然後我想只是透過對本季策略性地建立庫存的評論進行思考，也許是在哪些領域進行了建設，因為我有點好奇為什麼當商品價格如此高漲時要做出戰略決策？

Tom, so if I start with your first question, so you're a little cheeky there. You've got three questions in, but -- so that first part of your question around the commodity markets and seasonality. Yes, it typically indeed, there is seasonality, and it starts to come down in the fourth. I mean, as we sit here today, right, markets are still elevated above the five-year average. And that's what's really informing where we sit and the guide that we're giving for Q4. That being said, even when markets -- if market starts to come down, given the fact that we have built inventory that we are not going to necessarily see positive impacts from that because we already have inventory in place.

湯姆，如果我從你的第一個問題開始，那麼你有點厚臉皮了。您有三個問題，但是—您的問題的第一部分是關於商品市場和季節性的。是的，通常確實存在季節性，並且從第四季度開始下降。我的意思是，當我們今天坐在這裡時，市場仍然高於五年平均。這實際上告訴我們我們目前的處境以及我們為第四季度提供的指導。話雖如此，即使市場——如果市場開始下滑，考慮到我們已經建立了庫存，我們不一定會從中看到積極的影響，因為我們已經有庫存了。

And so when we think about where we're guiding, right, we are expecting again the seasonality to be there, but the markets again, staying elevated, and we are not expecting that to have any material impact. And when we think about the inventories from an inventory standpoint, we did build inventory for back to school. We also -- which is mainly around Skippy, then another piece around our center store as we're trying to get our fill rate to where they need to be to service our customers.

因此，當我們考慮我們的指導方向時，我們預計季節性會再次出現，但市場會再次保持高位，我們預計這不會產生任何實質影響。當我們從庫存的角度考慮庫存時，我們確實為返校建立了庫存。我們也主要圍繞 Skippy，然後圍繞我們的中心商店，因為我們正試圖將我們的填充率提高到為我們的客戶提供服務所需的水平。

And then in general, given the significant inflation that also has impacted the balance that you'll see on our balance sheet from an inventory perspective.

總體而言，考慮到嚴重的通貨膨脹，從庫存角度來看，這也影響了我們資產負債表上的餘額。

Thank you for addressing the multi-part question.

感謝您回答這個多部分的問題。

Leah Jordan, Goldman Sachs.

高盛的利亞喬丹 (Leah Jordan)。

Good morning.

早安.

Thank you for taking my question. I wanted to ask about pricing in retail. You took pricing for value-added turkey in the quarter. But pricing overall wasn't really a driver for the top line. So what's the offsetting pressure you're seeing there? And just how are you thinking about your ability to pass through more pricing given the targeted actions you're planning over the next couple of quarters? What are you planning in terms of elasticity? And just on those pricing actions, how much of the portfolio will be impacted in the fourth quarter versus 1Q of '26?

感謝您回答我的問題。我想詢問零售定價。您在本季度對增值火雞進行了定價。但整體而言，定價並不是推動營收成長的真正因素。那麼您看到的抵銷壓力是什麼？考慮到您計劃在未來幾季採取的有針對性的行動，您如何看待自己傳遞更多定價的能力？您在彈性方面有何計畫？僅從這些定價行動來看，與 26 年第一季相比，第四季的投資組合會受到多大影響？

Yes. Thank you for the question, Leah. This is John. I'll tackle pricing, and I'll pull back a little bit to just to talk about pricing in general because the markets are dynamic, and obviously, pricing is a critical topic. So -- and I will get into retail, but I'll just start by kind of grounding in Foodservice as well since that's a big important part of our business. So from an overall perspective, when we talk about our Foodservice pricing, generally, the vast majority of the pricing passes through based on movements in commodity markets, whether those movements are up or down.

是的。謝謝你的提問，利亞。這是約翰。我將討論定價問題，然後我將稍微退後一步，只討論一般的定價問題，因為市場是動態的，顯然定價是一個關鍵話題。所以 — — 我將進入零售業，但我也會從餐飲服務的基礎開始，因為這是我們業務的重要組成部分。因此，從整體角度來看，當我們談論餐飲服務定價時，一般來說，絕大多數定價都是根據商品市場的變動而定的，無論這些變動是上漲還是下跌。

Now there is typically a timing lag and so in a period of escalating markets, there tends to be some compression and then that margin gets restored on the way back down. So that's kind of the Foodservice aspect. From a retail perspective, to your point, there are two very fundamental differences with pricing when it comes to retail. First, the lag time tends to be longer. When we do announce pricing

現在通常存在時間滯後，因此在市場不斷升級的時期，往往會出現一些壓縮，然後在回落的過程中恢復該利潤率。這就是餐飲服務方面的事。從零售的角度來看，正如您所說，零售定價有兩個非常根本的區別。首先，滯後時間趨於延長。當我們公佈定價時

actions to our retailers, there's a longer lag to actually get the pricing implemented. And the second fundamental difference is we need to be very measured with the decisions on if we do or don't take prices up and by how much we take them up when we do.

對我們的零售商採取行動，實際實施定價需要更長的時間。第二個根本區別是，我們需要非常慎重地決定是否要提高價格，以及要提高多少價格。

In that retail case, we're triangulating across three different fundamental variables to guide those decisions. So one is commodity markets and COGS. Obviously, we want to maintain and improve profitability. But we also have to balance two other variables, anticipated consumer response is critical. And so we know the consumer environment right now is challenging. The consumer is strained for a variety of reasons. And then third variable is brand health and our support behind our brands to withstand pricing, right? That's the third piece.

在這個零售案例中，我們透過三個不同的基本變數進行三角測量來引導這些決策。一個是商品市場和 COGS。顯然，我們希望保持並提高獲利能力。但我們還必須平衡另外兩個變量，預期消費者的反應至關重要。因此我們知道當前的消費環境充滿挑戰。消費者因各種原因而感到緊張。第三個變數是品牌健康狀況以及我們對品牌的支持以承受定價，對嗎？這是第三件。

So when you talk about elasticity, you're really talking about those second two elements, consumer response and the particular brand and category and the support plan behind the brand of how do we measure and estimate what will be the elasticity impact. So to come back to the point about turkey, we mentioned in the last call that we were seeing an increase across our supply chain and cost on turkey. And we said we had announced pricing in Q2 that we had to implement in Q3. And I bring it up as an example because we were able to kind of triangulate around those variables and successfully implement that pricing in the third quarter.

因此，當您談論彈性時，您實際上是在談論後兩個要素，即消費者反應、特定品牌和類別以及品牌背後的支援計劃，我們如何衡量和估計彈性影響。回到關於火雞的問題，我們在上次電話會議中提到，我們看到火雞的供應鏈和成本都在增加。我們說過，我們已經在第二季宣布了定價，必須在第三季實施。我之所以舉這個例子，是因為我們能夠圍繞這些變數進行三角測量，並在第三季成功實施該定價。

Our Jennie-O turkey business right now, ground turkey business is up 13% in the latest 13 weeks, so through Q3. The category continues to be up as well. We have recovered the margin we needed to. And the reason we're able to do that is because of the strong product quality, the brand investments we've made, the overall execution behind the business, we've been able to get through that pricing successfully. So now to come back to kind of the here and now, we have recently announced targeted pricing actions across other parts of our portfolio based on the escalation we've seen in the markets that Jacinth referred to.

我們目前 Jennie-O 的火雞業務，碎火雞業務在最近 13 週內成長了 13%，因此到第三季為止。該類別也持續上升。我們已經恢復了所需的利潤。我們之所以能夠做到這一點，是因為我們的產品品質過硬，我們投入了大量的品牌資金，業務背後的整體執行力強，所以我們能夠成功實現定價。現在回到現在，我們最近根據 Jacinth 提到的市場升級情況，宣布了對我們投資組合其他部分採取有針對性的定價行動。

So we will begin to see the benefits of that pricing in the latter part of Q4 and really into 2026. And as we continue to see these persistently elevated markets, we are evaluating additional targeted pricing actions as warranted. However, what I will say is we will continue to be thoughtful and measured to make sure the consumer can withstand additional pricing, that the pricing is constructive for the respective categories and that our brands are well supported through communications, quality and innovation to best mitigate those elasticity impacts.

因此，我們將在第四季度後半段以及 2026 年開始看到該定價的好處。隨著我們繼續看到這些持續走高的市場，我們正在評估是否有必要採取額外的有針對性的定價行動。然而，我想說的是，我們將繼續深思熟慮，慎重考慮，確保消費者能夠承受額外的定價，確保定價對於各自的類別來說是建設性的，並確保我們的品牌透過溝通、品質和創新得到良好的支持，以最好地減輕這些彈性影響。

What I feel good about is that this measured approach has allowed us to keep our consumption increasing. So if you look at our overall consumption results in retail, over 3% growth on our flagship and rising brands, 1.5% growth for total Hormel, we want to make sure we stay vibrant and growing with the consumer.

令我感到高興的是，這種有節制的做法使我們能夠維持消費的成長。因此，如果你看看我們在零售業的整體消費業績，我們的旗艦品牌和新興品牌成長了 3% 以上，荷美爾整體成長了 1.5%，我們希望確保我們保持活力並與消費者一起成長。

Very helpful. Thank you.

非常有幫助。謝謝。

Michael Lavery, Piper Sandler.

麥可拉弗里、派珀桑德勒。

Thank you. Good morning. I wanted to just come back to how to think about some of what's ahead. And I appreciate you don't want to give fiscal '26 guidance, but you had set out a three-year plan 1.5 years ago, that you haven't explicitly updated. So how should we think about just your latest thinking on the T&M savings and the net EBIT growth that you've put a bit of a stake in the ground for. Obviously, that would suggest some amount of kind of guidelines for where '26 would land unless it's changed, is that under review?

謝謝。早安.我只是想回過頭來思考如何看待未來的一些事情。我知道您不想給 26 財年的指導，但您在 1.5 年前就制定了三年計劃，但還沒有明確更新。那麼，我們應該如何看待您對 T&M 節省和淨 EBIT 成長的最新想法呢？您為此付出了極大的努力。顯然，這將為 26 號法案的落地提供某種指導方針，除非法案改變，這是否正在審查中？

Michael, so as we mentioned in our prepared remarks, we'll certainly give a robust update on our Q4 call. That being said, right, when we had our Investor Day, there were certain assumptions that we had at that time. And so those targets were grounded in those assumptions. There has been changes, certainly, as we have seen the last couple of years unfold, some of which we're talking about here today, right? This significant rise in commodity market was not what we anticipated at that time, in addition to the fact that we expected and anticipated a really strong second half in 2025.

邁克爾，正如我們在準備好的發言中提到的那樣，我們肯定會在第四季度電話會議上提供強有力的更新。話雖如此，當我們舉辦投資者日時，我們當時有一些假設。因此這些目標是基於這些假設的。確實發生了一些變化，正如我們在過去幾年中看到的那樣，其中一些我們今天正在這裡討論，對嗎？大宗商品市場的大幅上漲並非我們當時所預期的，此外，我們預計2025年下半年將會出現非常強勁的成長。

The consumer is also pressured. That was not contemplated in addition to what John mentioned before as well in terms of the Planters that cover while it's recovering on the top line the profitability is certainly lagging. So those are some of those key assumptions that's different than when we really talked about our projections for 2026. And again, we will give you further updates as we talk about it in Q4.

消費者也面臨壓力。除了約翰之前提到的之外，對於種植園主而言，雖然其收入正在恢復，但盈利能力肯定滯後，這也是沒有考慮到的。因此，這些關鍵假設與我們真正談論 2026 年的預測不同。再次強調，我們將在第四季度討論此事時向您提供進一步的更新。

Okay. That's helpful. And just a follow-up on some of the pricing thinking and maybe slightly in two parts. One is just we've covered a little more on the retail side, but you had mentioned some noncore pressure in Foodservice. Maybe if -- sorry if I missed it, but could you specify some of what that was? And then on the pricing in response to the commodity pressure, you've mentioned that there's some under consideration. I know we're getting closer to the end of the year. What's in guidance in terms of -- is any new pricing actions really primarily affecting fiscal '26? Or could there be a little bit of upside still left in the rest of the year to go?

好的。這很有幫助。這只是一些定價想法的後續討論，可能分為兩部分。一是我們在零售方面已經討論得比較多，但您提到了餐飲服務的一些非核心壓力。也許如果——抱歉我錯過了，但你能具體說明一下那是什麼嗎？然後關於應對商品壓力的定價，您提到有一些正在考慮中。我知道我們離年底越來越近了。指導意見是什麼——任何新的定價行動是否真的主要影響 26 財年？或者在今年剩餘時間內是否還會有一點點上漲空間？

Yes. So what I would -- to answer the second part of your question first, additional pricing actions at this point would largely impact 2026. I really wouldn't have a material impact on Q4. In terms of Foodservice, just to take a step back on Foodservice a bit. The Foodservice business for us does remain quite resilient, and we're pleased with the top line growth and net sales growth. It's broad- based across numerous categories. We've seen organic volume growth being driven by several categories. So we feel very good about that.

是的。所以我想——先回答你問題的第二部分，此時的額外定價行動將對 2026 年產生很大影響。我確實不會對第四季產生實質影響。就餐飲服務而言，我們稍微回顧一下餐飲服務。我們的餐飲服務業務確實保持了相當強的彈性，我們對營業收入成長和淨銷售額成長感到滿意。它涉及眾多類別，範圍廣泛。我們發現有機銷售的成長是由多個類別所推動的。因此我們對此感到非常高興。

To come to the question about margins. So we are -- we mentioned noncore business -- the point that we had mentioned earlier this year, the divestiture of Hormel Health Labs is the point we were making there around some of the margin coming out due to that divestiture. Foodservice, we feel very good about our plot and our ability to continue to drive growth despite a challenging industry. The traffic is down. If you look at it, we're growing the business, we're leveraging our direct sales team, and we're leveraging our portfolio of value-added solutions.

回到關於利潤的問題。因此，我們提到了非核心業務，也就是我們今年早些時候提到的觀點，即剝離荷美爾健康實驗室，就是我們所說的由於剝離而產生的部分利潤。在餐飲服務領域，儘管行業充滿挑戰，但我們對自己的佈局和繼續推動成長的能力感到非常滿意。交通不暢。如果你看一下，你會發現我們正在發展業務，我們正在利用我們的直銷團隊，我們正在利用我們的增值解決方案組合。

We have our diversified sales channel mix, right? We're going to continue to drive on those things. And on top of that, we're going to continue to navigate the headwinds. One of those, when you look at our Foodservice business is convenience stores. So the convenience store channel also comes up into our Foodservice business. Convenience stores have been very soft from a traffic perspective. And so that does have some impact on mix and profitability as well.

我們擁有多樣化的銷售通路組合，對嗎？我們將繼續致力於這些事情。除此之外，我們將繼續克服困難。當您查看我們的餐飲服務業務時，其中之一就是便利商店。因此便利商店通路也融入了我們的餐飲服務業務。從客流量角度來看，便利商店一直很疲軟。這也會對組合和獲利能力產生一定的影響。

Okay, very helpful color. Thanks.

好的，非常有用的顏色。謝謝。

Peter Galbo, Bank of America.

美國銀行的彼得‧加爾博 (Peter Galbo)。

Hey guys, good morning. Thanks for for taking the question.

大家好，早安。感謝您回答這個問題。

John, I know there's been a lot of discussion around kind of the pricing dynamic on the go forward. But I guess, just if I'm reading your comments or understanding your comments correctly, it does seem like the price cost lag has a potential negative price net of cost impact at least through the first quarter. And then based on what Jacinth was saying, to the extent markets have remained in an unfavorable position relative to your expectations that, that could linger really through the first half.

約翰，我知道關於未來定價動態已經有很多討論。但我想，如果我正確閱讀或理解了您的評論，那麼價格成本滯後似乎至少在第一季會對扣除成本後的價格產生潛在的負面影響。然後根據 Jacinth 所說的，如果市場相對於你的預期仍然處於不利地位，那麼這種情況可能會持續到上半年。

So I just -- I'm hoping to get a little bit more color in terms of when you think you kind of get back to parity from a price versus cost perspective? Or maybe said another way, when you actually get caught up, if kind of the current dynamic holds into the end of the year?

所以我只是——我希望從價格與成本的角度更詳細地了解您認為何時能夠恢復平價？或者換句話說，當你真正陷入困境時，當前的動態是否會持續到年底？

Yes. So what I would say is where we have the pass-through pricing in place across our portfolio, it is a matter of timing, and we will get caught up and we'll ride that up and down, but there will be a lag. We tend to fare better when the markets are coming down. And it's a little bit tougher when they are going up, right? On the part of the business where we are announcing list price changes in retail, it is a little bit different, right? So as we mentioned, we took a round of pricing actions that we already announced. We're evaluating potentially additional pricing actions as warranted and needed.

是的。因此，我想說的是，我們的投資組合中是否存在轉嫁定價，這只是一個時間問題，我們會趕上並順應這一變化，但會有一個滯後。當市場低迷時，我們往往表現得更好。當他們上升的時候，情況會變得更加困難，對嗎？就我們宣布零售標價變動的業務部分而言，情況有點不同，對嗎？正如我們所提到的，我們採取了一輪已經宣布的定價行動。我們正在評估是否有必要採取額外的定價措施。

If you take a step back to the comment I made a few minutes ago. We will price where we need to from a commodity perspective, but we are going to balance that. I mean we are also focused on making sure our brands and categories stay healthy. Long-term growth, attracting consumers through this kind of cycle of what is really low consumer sentiment, high consumer strain as well as these very elevated markets, we just need to be measured and thoughtful and disciplined around those decisions.

如果你回顧一下我幾分鐘前發表的評論。我們將從商品的角度來製定我們需要的定價，但我們會保持平衡。我的意思是我們也致力於確保我們的品牌和類別保持健康。長期成長，在消費者情緒低落、消費者壓力巨大以及市場高度緊張的這種循環中吸引消費者，我們只需要在這些決定方面進行衡量、深思熟慮和自律。

So we will continue to evaluate it, it's dynamic, obviously. Where we need to leverage trade promotion as another variable in that mix to balance things for the consumer and profitability, we can do that as well.

因此我們會繼續評估它，顯然它是動態的。當我們需要利用貿易促銷作為組合中的另一個變數來平衡消費者和獲利能力時，我們也可以這樣做。

Yes. I'll just quickly add and just remind you as well that we certainly are able to navigate right volatility, what's harder for us to do is navigate a really sharp runup in markets because it takes longer for us to then be able to impact our profitability in a positive way with that top runup because of some of the lag time that John just mentioned.

是的。我只是想快速補充一下，也提醒你一下，我們當然能夠應對正確的波動，對我們來說更難的是應對市場真正急劇的上漲，因為我們需要更長的時間才能以積極的方式影響我們的盈利能力，這是由於約翰剛才提到的一些滯後時間。

Okay. Got it. And Jeff, zooming back out obviously, being the kind of second go around with the company. But I guess this is not the first time that heightened inventory levels have become a question mark for Hormel. We went through this issue for, I know a different reason a couple of years ago. But just I'm getting a lot of questions on kind of why take the inventory up to the levels that they are at kind of the peak of commodity cycle?

好的。知道了。而傑夫顯然已經退出了公司，他是公司的第二把手。但我猜這已經不是庫存水準上升第一次成為荷美爾的問號了。幾年前，我們討論過這個問題，我知道原因有所不同。但我有很多疑問，為什麼要將庫存提升到商品週期頂峰的水平？

And on top of that, just as you've come back in, like is the visibility just on cost and on just various cuts like has it -- is there a problem there from a system standpoint? It just seems like, again, going back to when you guided, I know that the cuts moved, but the drastic nature of kind of the miss relative to your expectations would suggest maybe there's just a visibility problem. And I'd love to get your thoughts there as you step back in. Thanks very much.

除此之外，正如您回來時所說，可見性是否僅僅體現在成本和各種削減上——從系統的角度來看，這是否存在問題？這看起來就像，再次回到您指導的時候，我知道削減已經發生了變化，但與您的預期相比，這種差距的劇烈程度可能表明可能只是可見性問題。當您回來時，我很想聽聽您的想法。非常感謝。

I appreciate the question, Peter, and definitely look forward to meeting you in the coming months. It really probably -- John would be a little more appropriate to answer it because five weeks in and have been tackling a lot of areas, but what past decisions on where we put inventory weren't one of them that I'm as familiar with.

彼得，我很感謝你的提問，我非常期待在接下來的幾個月與你見面。這真的可能——約翰來回答這個問題可能更合適一些，因為五週以來我一直在處理很多領域，但過去我們關於將庫存放在哪裡的決定並不是我所熟悉的。

Maybe I'll jump in first there. So just to clarify, we do not have an inventory problem. So the inventory build and the inventory balance that you see there was intentional. So we had intentional bills to be able to supply our customers. And what I mentioned before is you -- the inventory balance may appear elevated because of the commodity piece and the input cost, one, and then there are other areas where we built intentionally because we need that from a demand perspective from our customers and in some cases where our fill rates were lower, right? The inventory was lower, so we needed to get our fill rates up to be able to get our service levels up. So again, not an inventory problem.

也許我應該先跳進去。因此需要澄清的是，我們沒有庫存問題。因此，您看到的庫存建立和庫存餘額是有意為之。因此，我們有意開立帳單，以便能夠向客戶提供服務。我之前提到過，庫存餘額可能會因為商品和投入成本而顯得偏高，此外，還有一些我們有意構建的領域，因為從客戶需求的角度來看我們需要這樣做，而且在某些情況下，我們的填充率較低，對嗎？庫存較低，因此我們需要提高填充率，以提高服務水準。所以，這不是庫存問題。

Pooran Sharma, Stephens.

普蘭夏爾馬，史蒂芬斯。

Thanks for the question. Just -- maybe I want to get your perspective as obviously a big buyer of kind of pork cuts and just being active in the hog market, it just seems like production has been pretty lackluster, especially over the past several weeks, and that seems like a bit more severe than what we would have thought just by looking at the June hogs and pigs report. And we're seeing continued reduction in the breeding herd with partial offsets and efficiency. Based on kind of what you've been hearing, how do you think about supply prospects for the hog industry for looking out to the intermediate term?

謝謝你的提問。只是——也許我想聽聽你的看法，你顯然是豬肉切塊的大買家，而且在生豬市場上很活躍，似乎產量一直很低迷，尤其是在過去幾週，這似乎比我們通過查看六月份的生豬和豬報告所想像的要嚴重一些。我們看到繁殖群數量持續減少，但得到了部分補償並提高了效率。根據您所聽到的消息，您如何看待中期生豬產業的供應前景？

Yes, good morning. So just a reminder that we do have long-term supply agreements. And so right with those contracts, we feel good about our ability to get supply in line with our consumer -- our customer demands and filling our customers.

是的，早安。所以提醒一下，我們確實有長期供應協議。因此，有了這些合同，我們對根據消費者——客戶需求提供供應並滿足客戶需求的能力感到滿意。

I guess I'd just interject. I mean pork producers are clearly in a very profitable mode right now, which, I mean, in the long run, that's going to be more in supply that may not be coming in the next couple of months, but --

我想我只是插嘴一下。我的意思是，豬肉生產商現在顯然處於非常有利可圖的模式，從長遠來看，未來幾個月內供應量可能會增加，但--

Got it. No, I think that makes sense. High prices and high prices, low price and low prices. I guess my follow-up, maybe we could shift to turkey. And you guys talked about this a little bit on the last call industry supply tightening, potential capacity reductions. Are you beginning to see any sort of potential market share gains or margin benefits materialize just from that dynamic itself? Or is the situation still largely the same as it was last quarter?

知道了。不，我認為這是有道理的。高價就有高價，低價就有低價。我想我的後續行動是，也許我們可以轉向土耳其。你們在上次電話會議上談到了產業供應緊縮、潛在產能削減等問題。您是否開始看到僅從這種動態本身就能實現任何形式的潛在市場份額成長或利潤收益？或情況與上一季大致相同？

Yes. Thank you for the question. This is John. I'll talk about turkey a little bit. So when we talked about our ground turkey business last quarter, we talked about some of those dynamics around the industry. We talked about escalating costs in the supply chain. [Audio Gap] ground turkey in particular, has continued to perform very, very well. Demand is strong. And if you look at what's underneath that, we believe it's enduring drivers of demand.

是的。謝謝你的提問。這是約翰。我將稍微談論一下火雞。因此，當我們上個季度談論我們的碎火雞肉業務時，我們談到了該行業的一些動態。我們討論了供應鏈成本不斷上升的問題。 [Audio Gap] 尤其是火雞肉，其銷售量一直非常非常好。需求強勁。如果你看一下背後的原因，我們相信這是持久的需求驅動力。

So consumer interest in lean protein and poultry is very strong. There are a number of different food tribes who are gravitating toward lean protein and poultry is a great choice, and ground turkey, in particular, has a versatility that is super helpful for consumers just to plug into their daily needs of different meals and meal occasions. So demand on the ground turkey side remains very strong.

因此消費者對瘦蛋白和家禽的興趣非常強烈。許多不同的飲食群體都傾向於瘦蛋白，而家禽是一個不錯的選擇，尤其是火雞肉末，它用途廣泛，非常有助於滿足消費者對不同膳食和用餐場合的日常需求。因此，對火雞肉的需求仍然非常強勁。

To your question about market share. So we are outpacing the category in terms of our branded growth. Significantly, we're growing double digits. We're outpacing category growth. We are gaining market share. We do have the number 1 brand. We love our position around ground turkey. We're going to continue to drive that. So I think whereas last quarter, we were sort of in this mode of needing to recoup margin and take pricing we had to take that pricing. It was driven by inflation. Clearly, the dynamics around that, but we really like how our brand has fared and how the category has fared through this third quarter.

關於市場佔有率的問題。因此，就品牌成長而言，我們的成長速度超過了同類產品。值得注意的是，我們的成長率達到了兩位數。我們正在超越類別成長。我們的市場佔有率正在擴大。我們確實擁有第一品牌。我們熱愛我們在火雞肉方面的工作。我們將繼續推動這項進程。因此我認為，上個季度，我們處於需要收回利潤並採取定價的模式，我們必須採取這種定價。這是由通貨膨脹推動的。顯然，圍繞著這一點的動態，但我們真的很喜歡我們的品牌的表現以及該類別在第三季的表現。

Great. Thank you for the call.

偉大的。謝謝您的來電。

Rupesh Parikh, Oppenheimer.

魯佩什·帕里克，奧本海默。

Good morning. This is actually Erica Eiler on for Rupesh. So I wanted to go back to profitability here and maybe big picture. You've talked about the business in terms of the financial algorithm over time. But if we look at the business, and if you go back a few years, this was a double-digit operating margin business. So I guess my question is, do you still view this as a double-digit margin business over time?

早安.這實際上是 Erica Eiler 為 Rupesh 主持的。所以我想回到獲利能力以及宏觀層面。您曾從財務演算法的角度討論過業務。但如果我們回顧一下這項業務，並回顧幾年前，我們會發現這是一項兩位數的營業利潤率業務。所以我想我的問題是，您是否仍然認為這是一個長期利潤率達到兩位數的業務？

Thanks for the question, Erica. This is Jeff. I guess I'm going to defer on a specific number in terms of the margin, but I do want to talk about what we see as encouraging signs for bottom line going forward. I mean clearly, we have sales momentum. We're already growing sales earlier in the year, had a very solid quarter with 6% growth this time. The team will be actively focused on finding opportunities to enhance mix to obtain better margin results as well. We've talked about pricing. We've talked about how we took pricing already and the benefit of that will kind of start coming into Q4 and definitely will be emerging by Q1. We've talked about T&M, the current projects and we'll -- as we said, give you an update on that on the next call.

謝謝你的提問，艾莉卡。這是傑夫。我想我將推遲討論利潤方面的具體數字，但我確實想談談我們所看到的對未來底線有利的跡象。我的意思是，顯然我們有銷售勢頭。我們的銷售額在今年稍早就已開始成長，本季的成長率非常穩健，達到 6%。該團隊將積極致力於尋找機會增強組合以獲得更好的利潤結果。我們已經討論過定價問題。我們已經討論過如何定價，其好處將在第四季度開始顯現，並且肯定會在第一季顯現。我們已經討論了 T&M 和當前的項目，正如我們所說的，我們將在下次電話會議中向您提供最新進展。

Jacinth mentioned in her earlier comments, some of the manufacturing changes and sometimes like when I am got announced Q2, the one about the 100-year-old plant related to our Columbus business. But I mean, in talking to our operations manager, I mean, a couple of those lines are just moving in now. I mean there's a trailing benefit sometimes with some of these moves. We just announced a move, for example, in our Atlanta plant, where we're going to be running bacon elsewhere in the supply chain system. But again, that doesn't happen in just a week that takes a little time to materialize.

Jacinth 在她之前的評論中提到了一些製造方面的變化，有時就像我在第二季度宣布的那樣，有關我們哥倫布業務的百年老廠的變化。但我的意思是，在與我們的營運經理交談時，我的意思是，其中幾條生產線現在才剛開始運作。我的意思是，這些措施有時會帶來一些後續效益。例如，我們剛剛宣布了一項舉措，我們將在亞特蘭大工廠的供應鏈系統其他地方生產培根。但同樣，這不會在一周內發生，需要一點時間才能實現。

And then we talked about SG&A. This quarter, SG&A was up 6%. And ultimately, we want to get into a position where the growth of SG&A is not outpacing sales. It has done that over the last couple of years. And so we are looking at possible cost reductions in that area as well.

然後我們討論了銷售、一般和行政費用 (SG&A)。本季度，銷售、一般及行政費用上漲了 6%。最終，我們希望銷售、一般及行政費用的成長速度不超過銷售額的成長速度。過去幾年裡它已經這樣做了。因此，我們也在研究該領域可能的成本削減方法。

And just to double click, Erica, to Jeff's comment around mix, just to add a little bit more color there. So I look at it in two ways. At the enterprise level, our Foodservice business has very strong margins. And so our ability to continue to invest and drive disproportionate growth in our Foodservice segment is critical. We have a consistent track record of driving growth in that business.

只需雙擊 Erica，即可查看 Jeff 關於混合的評論，只需在那裡添加一點顏色。所以我從兩個角度來看這個問題。在企業層面，我們的餐飲服務業務利潤率非常高。因此，我們繼續投資並推動餐飲服務領域不成比例的成長的能力至關重要。我們一直致力於推動該業務的成長。

Obviously, when the industry is healthier, we'll be able to drive even more growth behind that business. So that's kind of focus more at the enterprise level.

顯然，當行業更加健康時，我們將能夠推動該業務的進一步成長。因此，這更關注的是企業層面。

And then when you drop into retail, the focus there is to continue to drive our flagship and rising brands, which tend to have our higher margins in our advantage businesses. And so we distort our investment to flagship and rising, we deprioritize and even exit at times noncore less strategic businesses in retail. And you could see that play out in the numbers this past quarter, where our flagship and rising brands grew over 3% in consumption. Our total Hormel plot was up 0.5 in consumption, right? So they are driving the growth for retail. So obviously, we were impacted by commodity markets in the quarter, but strategically from a mix perspective, that's how we think about it at the enterprise level.

然後，當你進入零售業時，重點是繼續推動我們的旗艦品牌和新興品牌，這些品牌往往在我們的優勢業務中具有更高的利潤率。因此，我們將投資轉向旗艦和新興業務，降低零售業中非核心、非策略性業務的優先級，有時甚至退出。您可以從上個季度的數據中看到這一點，我們的旗艦品牌和新興品牌的消費量增加了 3% 以上。我們荷美爾地塊的總消費量增加了 0.5，對嗎？因此他們正在推動零售業的成長。顯然，本季我們受到了大宗商品市場的影響，但從組合策略角度來看，這就是我們在企業層面上的看法。

Okay. No, I appreciate all that color. And then just my follow-up just on the top line. So strong organic sales growth this quarter, you're expecting solid growth again in Q4. So do you believe you're on a path to more sustainable organic sales growth going forward? Just curious if you're confident that we're at a sustainable inflection here.

好的。不，我很欣賞所有這些顏色。然後我只是在第一行進行後續跟進。本季有機銷售額成長強勁，預計第四季將再次實現穩健成長。那麼，您是否相信自己正走在一條未來更永續的有機銷售成長的道路上？我只是好奇您是否有信心我們正處於可持續的轉折點。

Yes. I mean we are confident in our strategies to drive top line growth around the business. We absolutely are. If you kind of look across the segments, we think we have an advantaged model in food service with our direct selling force with our value-added innovative solutions for operators and we're going to continue to drive that. And to the extent that the industry picks up and gets healthier, we should be able to drive more growth behind Foodservice.

是的。我的意思是，我們對推動業務收入成長的策略充滿信心。我們絕對是。如果你縱觀各個細分市場，我們認為我們在食品服務方面擁有優勢模式，我們擁有直銷隊伍，為運營商提供增值創新解決方案，我們將繼續推動這一點。隨著產業逐漸復甦和健康，我們應該能夠推動餐飲服務業的進一步成長。

We also feel really good about our branded portfolio in retail and our ability to market and connect better with consumers on solutions for those branded businesses, the value-added branded businesses in retail. So our flagship and rising brands have been putting up consistent consumption growth, and we're going to continue to focus on that. So we do feel good about our plot and our confidence in driving top line into the future.

我們對我們在零售領域的品牌組合以及我們為這些品牌業務、零售領域的增值品牌業務提供解決方案的營銷能力以及與消費者更好地聯繫的能力感到非常滿意。因此，我們的旗艦品牌和新興品牌一直保持著穩定的消費成長，我們將繼續關注這一點。因此，我們對我們的計劃感到很滿意，並且對未來推動營收成長充滿信心。

Great. Thank you.

偉大的。謝謝。

(Operator Instructions)

（操作員指示）

Thomas Henry with Heather Jones Research.

托馬斯·亨利 (Thomas Henry) 與 Heather Jones Research 合作。

Good morning. Thanks for taking the question. Coming back to turkey, do you experience any benefits from elevated turkey breast meat pricing this year? Or would that be all in '26? And then in addition, could you provide a rough split on the benefit from whole bird pricing expected in '25 versus '26? Thank you.

早安.感謝您回答這個問題。回到火雞的話題，今年火雞胸肉價格上漲為你帶來了什麼好處嗎？還是這一切都會在 26 年發生？另外，您能否粗略地劃分一下 2025 年和 2026 年預計的整隻鳥定價收益？謝謝。

Yes. So on whole birds, they are slightly better than what we had expected from our original outlook. But most of that upside is going to be in next year around the fresh season around Thanksgiving. And we don't have any guidance on breast meat right now.

是的。因此，就整隻鳥而言，它們比我們最初預期的要好一些。但大部分上漲將出現在明年感恩節前後的新鮮季節。目前我們還沒有關於胸肉的任何指導。

Got it.

知道了。

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

目前沒有其他問題。現在我將把電話交給 Jeff Ettinger 做結束語。

I want to thank everybody on the call for your thoughtful questions and engagement today. We understand the mission. It's clear we need to build on our top line momentum and urgently return to bottom line growth so that we can deliver long-term sustainable value. As I said, I look forward to meeting with you over the course of the year. Thank you.

我要感謝今天電話會議上每個人提出的深思熟慮的問題和參與。我們了解這個使命。顯然，我們需要鞏固我們的營收成長勢頭，並緊急恢復利潤成長，以便我們能夠實現長期可持續的價值。正如我所說，我期待今年與您會面。謝謝。

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。感謝您的參與，並請您斷開線路。