Hormel Foods Corporation (NYSE:HRL) Q1 2019 Earnings Conference Call Transcript

Feb 21, 2019 • 09:00 am ET

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Hormel Foods Corporation (NYSE:HRL) Q1 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good morning ladies and gentlemen and thank you for standing by. Welcome to the Hormel Foods First Quarter 2019 Earnings Release Conference Call. (Operator Instructions) As a reminder this conference is being recorded Thursday February 21 2019. I would now like to turn the conference over to Nathan Annis Director of Investor Relations. Please go ahead Mr. Annis.

Executive
Nathan P. Annis

Good morning. Welcome to the Hormel Foods conference call for the first quarter of fiscal 2019. We released our results this morning before the market opened around 6:30 a.m. Eastern. If you did not receive a copy of the release you can find it on our website at hormelfoods.com under the Investors section. On our call today is Jim Snee, Chairman of the Board, President, and Chief Executive Officer; and Jim Sheehan, Executive Vice President and Chief Financial Officer.

Jim Snee will provide a review of each segment's performance for the quarter and our outlook for the remainder of 2019. Jim Sheehan will provide detailed financial results and further assumptions relating to our outlook. The line will be open for questions following Jim Sheehan's remarks. As a courtesy to other analysts, please limit yourself to one question with one follow-up. If you have additional questions, you are welcome to get back in the queue. An audio replay of this call will be available beginning at 11:00 a.m. today Central Standard Time. The dial-in number is 888-254-3590 and the access code is 1445918. It will also be posted to our website and archived for one year.

Before we get started, I need to reference the safe harbor statement. Some of the comments made today will be forward-looking and actual results may differ materially from those expressed in or implied by the statements we will be making. Please refer to pages seven through nine and 28 through 30 in the company's Form 10-K for the year ended October 28, 2018 for more details. It can be accessed on our website.

I will now turn the call over to Jim Snee.

Executive
Jim Snee

Thank you, Nathan. Good morning everyone. As a global branded food company we remain focused on our formula for success, which includes building strong brands, developing innovative new items, making strategic acquisitions, and creating intentional balance. This time-tested strategy continued to serve us well this quarter as improvements in our branded value-added businesses once again offset significant declines in our commodity businesses. We will continue to be intentional about shifting our portfolio away from commodity products and the associated earnings volatility.

Our efforts in brand building continue to pay off as retail brands like SPAM, Dinty Moore, Mary Kitchen Hash, Hormel Bacon toppings, Wholly Guacamole, Herdez, Hormel Pepperoni, Natural Choice, Columbus, and Applegate all showed solid growth this quarter. All brands have a number one or number two share in over 40 categories, that is up from 35 a year ago. As you think about the footprint of a retail outlet, there aren't too many places where you won't find a brand or a product