Hormel Foods (HRL) 4 Dec 242024 Q4 Earnings call transcript

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

Good morning. Welcome to the Hormel Foods conference call for the fourth quarter of fiscal 2024. morning market this results released before opened. the We

a the our release, you hormelfoods.com did can of receive not section. on If you copy find the Investors under website, it

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

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

following be will for open line The remarks. questions Nathan's

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Jess. strategy, In transform delivering you, we environment progress our navigated made the share our XXXX, In fiscal brands, business In resilience solid per year. We operating team. results, with an in macro adjusted a up expanding introducing the our segments, demonstrated presence first our and of expectations and of long-term our execution dynamic doing across and delivered portfolio coming we by in reinvesting Thank $XX line significant everyone. the our and diluted million success. benefit of Good growth impressive initiative, for net our and for modernize our of our solid innovative solutions the morning, in the power portfolio. so, we in market year company earnings consumer setting income

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in the the relevant executed and International launching We priorities team exports achieved And Foodservice for leadership strategic growth our drove and recovery strong distribution highlighted our expand of industry. The segment, like of growth and Philippines of business. innovation by saw Indonesia Gatherings. channel our in as brings snacking offerings branded entertaining dedicated remain differentiated brands on solid growing X%, butter. operators Skippy the team and we above our net from We for presence. increased expected, in positioned convenience investments a sales products well by to continue recovery our the to by the success deliver industry and and We solution-based well growth. our to This drove and the of segment. expand peanut We Columbus value expanding our SPAM impressive and family China growth global our

estimated on innovation. of accomplished our In delivering considerable our operator understanding driving momentum value-added underscores macro solutions, point effective this and portfolio, sales XXX increase and especially milestones other basis environment. in expectations delivering innovation fiscal from We consumer dynamic Successful needs with drove addition we in importance net in and to XXXX. the

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I our record deliver broke am our history. portfolio, business billion testament in fiscal and and we to bedrock our This proud of disciplined success operating achievement. our for our company's safest achieved us year our a flow, success we has always initiative And been the milestone a this $X.X our T&M our of team first for to of in flow significant our to focus cash report is operation XXXX, company. on allowed strength culture. Cash members' our that safety fundamental the this the year. The year, delivering all-time of to

we capital amount cash form of cash in record the shareholders operating of to As of dividends. flow a a disciplined result strategy, our returned and once again allocation record

are consecutive to record proud dividend, increase our annual a We the incredibly recently also we of. announced XXth

and $XX position operating in International Foodservice our are Retail, fiscal guidance. There benefits we transform of excited leveraged our significant are We of and portfolio across the deliver And income be through modernize to 'XX, segments. a headwinds delivered our because to of number reasons initiative. about the we today in value-added strength our overcame we earnings million

As XX we our positions either XXXX, to #X head have in share retail #X brands categories. continue into or over

Hormel into investments and rising bacon, flagship strategic and making SPAM, are Applegate Black Planters, brands like We Jennie-O. Label

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

echo Jim. billion. team Volume And the the Jim's today, around fourth in our you, and I billion were our business, the for quarter like net comments the would pounds, us joining of Thank to the culture. was and power of our X.X global portfolio confidence to everyone $X.X strength and sales

transform increased employee-related the net and the respectively. the was billion the T&M were full strength and value-added year, to margin portfolio and XX%, pounds SG&A For initiative. points Gross XX due XX.X% reflects in $XX.X sales volume and and year, fourth full to basis compared the last of expenses initiatives. successes This modernize year our billion. X.X expenses and of year early Full increased primarily our to quarter

in XXXX to $XXX year. for expenses increase We compared up to fiscal million, were XXXX. X% expect Advertising fiscal investments last SG&A

We increases fiscal investments advertising double-digit in for have planned percentage in XXXX.

rates interest higher Interest and Rabbi debt on fiscal expense to the to Trust XXXX, during due higher interest For increased increased investment year. due rate. income favorable performance and issued

interest comparable expectations income fiscal Our assume XXXX lower and and expense. interest investment

income rate for was for rate effective in Operating XXXX be billion. fiscal range to $X.X XXXX was and Operating XX.X%, fiscal and was XX% margin The XXXX tax is tax the XX%. of adjusted margin was to fiscal X% operating the X.X%. expected for

and diluted $X.XX. share share For net per the $X.XX full diluted earnings adjusted earnings per year, was net was

to remain now sheet. committed maintaining the Turning and business growth, in to investing dividend balance investment-grade rating. our our We

fiscal of the million XXXX, flows strategy support in our record store cash of record and returned disciplined XXXth fiscal a $XXX dividend. $X.X from billion payment financial form of including quarterly in directly shareholders we consecutive these XXXX dividends, commitments. In Our operations

of for represent remarkable projects $XXX of million share and for a an our We in annual invested on also We dividend fiscal capital projects $X.XX largest increases. recently were to announced year dividend increase capacity XXXX. will per This X% consecutive XXXX XXth fiscal our focused growth. of during value-added

levels and $XXX within our ended billion We We XXXX. stated are grow beginning We and of $XXX between of and million short-term the year with of at $X.X enter ample million our to XXXX $XXX Xx to a fiscal to with fiscal capacity in responsible $X.X goal over EBITDA. for million targeting cash from to in of $XXX comfortably debt finished our the debt million service decrease X.Xx business. year. production the the remain customers capital securities. projects net Inventories inventory year of We and billion,

would I few provide additional fiscal color to Finally, XXXX. items a for on like

noted Nebraska approximately impact quarter. early in Papillion, negative storm event $X fourth facility we in This as quarter our of third during call, First, to earnings we damage our to resulted experienced QX. million the

the we disruption. Second, the Suffolk quarter progress production regarding during significant made

regaining most XXXX. rates, first time, near-term of we commercial fiscal improving notably At same and refilling the higher are expect the in prioritizing We do costs, distribution and shelves impacts some fill quarter innovation.

XXXX. brand the We second in expect starting of Planters to benefit momentum from quarter the fiscal recaptured the in

top the the years. our fiscal repeated which XX future in was week net segment of to of our contributed Hormel adjusted $XXX and and in final year, million to in EPS our Foodservice reported Labs approximately divested Lastly, not pounds in Health which $X.XX business, fiscal we will sales XXXX, be and line million

XXXX Shifting now our fiscal outlook. to

We in brands. to deliver innovative growth segment in our line provide offerings as and expect marketplace we to continue top the increase investments each

Labs following full we segments. in in single-digit fiscal in single-digit mid-single-digit increases low volume and mid-single-digit the comparable increases expect and Hormel volume increases in and single-digit net of high net Foodservice XXXX, And for adjusting in in increases increases volume For after each low divestiture, net for sales. International, Retail Health sales. year our sales.

each with the year full towards anticipate segment profit We back weighted half of from the also growth growth year. the for segment

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

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

Thanks, Nathan.

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

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

Instructions] Parikh Your line from the Rupesh comes of [Operator from question first Oppenheimer.

'XX the but deeper wanted was the and can of or hoping the the guys about then I takes, terms think into end sounds if puts gave of get go challenged. to it QX I to of range. So of the know guidance to I And be range. some some FY will back you high to some to go low in you you how most variables like the color

a of grow whether also you sense you just QX. earnings I want in think So can to get actually

the growth right, line. it and messaged It's achievable, business. how with on Yes. is XXXX for Thanks, demonstrates about outlook, it's It's top the we've bottom realistic, our Rupesh. it's and important thing consistent

XXXX, in this and about flagship talked there. the categories, brands We've growth expect XXXX. key unique expect international innovation of be impressive to our and rebound really value bacon, going business, our we Applegate. success create As in about in rising Again, we're retail we pipeline we're after thinking successful manner we growth an in with is growth XXXX, Foodservice a from do important. The again continued having

turkey business whether value-added lean or is our of really, it's an really that's Foodservice. in area ground business Our business the turkey the strong,

The is additional think, that support I other XXXX. call the brand important really is to are that we in part, planning out

So plan support double-digit we've got our strong increase brands. to a

available part support transformation we're the processes, that additional data we of this of other the this technology, be all the then initiative, as making to it's we'll expecting. growth have And and whether investments and people, capacity

in and when expect together, impacts initiative, really do year X this year bird over then the acceleration gives And near-term strong that we what planters, the QX, impacts modernization for on some we is really other put whole that's delivering confidence. impacts in us so all wraparound And turkey transformation commercial performance X. And part of in business.

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

Yes. of just Jim guide, to midpoint. articulated confidence what gives what the And in us terms the really hit is

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

question from of from And your the next line JPMorgan. Ken Goldman comes

question. that follow-up a just on And

EBIT year Your expected is just this T&M decline. coming to and growth, exclude underlying we

the think works that out math I way.

some the headwinds -- talked of You do in have you XQ. about

making. talked as sense I if you you the there like range don't get unforeseen last into that I'm to in some longer that You the use. investments element Is the know, year want prudence add, conservatism just hadn't does company to know, factor this Jim, word a about the over dash term conservatism to in that feel to a events $X trying maybe you're your incremental or guidance. in or talked whatever of maybe downside about past? had you an a of a way of wanting I you or

Ken, the transform initiative. thanks with the and question. Starting modernize for

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

And so expect this is in growth a and to our achieve holistic we look at the that XXXX. business

on conservatism, we we sure talked about sit, have volatility, when couple want think we've make Your last turkey think lot that that to in I And of about where we're of a we appropriate. comment always probably years. had items unnecessarily the from

to appropriate business. we want how we so are in make plan And we and that sure recent volatility, guide given that the

other we this that to piece rebound. we commercial production concerns through this planters are we've really navigated the sure, start part the scale is again, way resolved. that as largely we this want The to And as right of our get make

And really, so turning plan faster, innovation. realistic, advertising, to turning That's on We're right? what fill this on in appropriate. mind, achievable we're ability and holes our my makes

Great. still 'XX. And could the I'm you high at a to I income in if planning just reasonably follow-up quick on think from And requires $XXX is of it -- XXXX -- you a asking operating net up reason this are point. ask improvement million I mathematically are 'XX step

some without of guidance factors be? the And still think that's obviously Just might curious if of 'XX if so, those what case. kind you providing

Thanks, Yes. Ken.

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

gives on coupled we're the the business, is with yes, that strength confidence underlying track what of So, initiative. us and transformative really

sure really know And get the additional Nathan place. good really really, in we're So in a progress. questions, I'm remarks, heard prepared and good from I but we'll you some

of Palmer line Thomas from the next your Citi. And comes question from

guidance $XXX organic from $XX growth midpoint, growth. also cost savings the operating you around expect million At sales your implies and profit million

items make I might of laid profit. operating out the limit the sure you thinking through just want two pieces to flow-through I'm these to that

million it be sounds range. in could the So higher like advertising $XX

the could slight make turkey maybe as think kind headwind? for a sure is this flow trying out year. bridge Suffolk I I else to think through I'm year through mean to net just to limiting this plus we of what

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

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

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

QX situation. part regarding know it That's the Yes. that important progress an Tom. -- we've of And in is XXXX, made important it's to significant

last whether portion production good reminder, that we and sales, continuing And Retail. Retail the a right, an about up know of data, important, we've pieces and right? gives time of it our concerns couple year, done, to we lot this work in since of supply into business Foodservice, largely outsized are work planters of we in and other I John right? what acquisition, perspective, lot had But where we've confidence The were specifics. So the business I'm obviously, is, volume, happens going to tremendous a as more a is had that's ramping it's a and but in us shares, that get from think probably in that's let that positive place can a get where we build. A momentum to. back And the resolved. are we're And

Tom. Jim. Thanks,

So I'll the steps around just kind and comment recovery of briefly planters. on planters next

the inventory, replenishing quarter we refilling shelves, first of the replenishing of gaps inventories is refilling own the a last we data. will those quarter, retailer scanner created progress dealt in in be portfolio. essentially In the This disruption. By are planters as largely fully were year the back our that position our end some half first entire we meet all with supply seeing the retailer across of to in retailer meantime, quarter, demand the

our improving year. are lessening prior sequentially trends versus periods, the baseline X, over declines baseline meaning past are So X-week

impacted And supply by items of lost that restoration the what's driving at is those on Retail. distribution that disruption a were

has low where versus fact, In than at point been our distribution half recovered more at were of we that this point.

at good are do recovery, the So over we point. progress on encouraged that more by we still have to very XXXX but this

in of December. have particular We term some and November the to in scale merchandising near activity back the in chosen

it our prioritizing getting replenished to getting be. where will and from So we're scanner, QX shelf be the base data the back bit the needs little a choppy but to

dial start the we get as we to Now quarter, will backup into promotions. second

backup We advertising. will dial

consumers commented space the We on. It's to space. great wonderful back to to that us. a will in recapture start momentum continues a and Jim consumer The for is attract sitting that macro space. a in brand begin platform snacking great be planters general, to mean, I

in portfolio oriented snacks. for The are looking really consumers fuel with planters what fits of substantial nature terms of more substantive,

driving We promotions were very have a flavored the advertising its with of to we lot that's on planters that. duos They of do that going We're have to were in driving responsive consumers. younger behind some bringing potential, on continue looking restoration a leading innovation at attracting and our we lines. new brand households, to that. innovation us will cashews help of advertising And just core spend

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

the question And Heather from of your Research. Jones comes Heather from next line Jones

I question, sounds it could guess of there initiative, my the further I wondering, like T&M first part SKU as was be rationalization.

further does Hormel was So SKU Labs, but guidance Health the gave, and rationalization? just know I anticipate I sales the it you volume wondering excludes it if

Yes.

our guidance, I Heather. think of that's all embedded in

impact think $X.XX are of The on bottom but is I about think impact out our the on comparison. of figure the in that important. the line included year-over-year When million, top is $XXX that it's line does your you doing guide. we into Labs Health EPS, call TPO work Hormel

some it little Maybe bit ask to Nathan to give additional to you about more comment color. a

is this Nathan. Yes. Heather,

think into ways. year, it's we in optimization two As I about how about next it different built would think portfolio and

drive into new are creating the right in baked I are and guidance. innovative SKUs room key right out, takeaway for all they're think it's that about what And items. profitable we the items think or us the coming that is the usually as And SKUs unprofitable complexity. First, adding SKUs the we're portfolio to

Okay. just turkey. about then want my follow-up, I as to talk And

over your But turkey. the limit as into I So all what steps curious side side, more do you, that your volatile for more become elements. steps maybe know add on and in the exposure pork it's that the cyclical et more guys, exposure value value-added ships you've enter I've business the to ground was even about the more side taken business and like focusing In to of partial to it the make the business HPA, an on wondering, would just I more impact done on because years, thoughts and just important your the cetera. But to to you've value to just similarly your added more side. commodity of taking that just you on pork has these followed since mean, to commodity turkey and reduce exports,

which thinking wide-ranging a about just you're it's broadly, know all I strategically? but how So that question, --

work where it's terms in Yes, have been that but wide ranging, Heather, see and as doing the we important on this question an of it's an we organization going.

portion years, has. it forward that obviously of those do the think it's but a about that operating we days you exists, pork talking small frequently And I that I took, the still how of pork about so in And not my to we're with think it analogy that impact fast steps because margins. have, the if start you back that early X and X, portfolio we and and talked chair

side ]. that Tower And of right, years demand-driven that about that remind to publicly, did what said if it because used that. Project of was Jennie-O, goal we business. you're you minimize called a right, the on any turkey we with phrase remember several appropriately the all I get creating reduce work portfolio. volatility sizing for We or saying, credit supply business. really the Turkey ago, the a exactly don't Store, a it we want We our right? of was I but [ lot can't

right and that increase. When our some company. work with success And of when fully your our assessment the to today's the actions focus the lean think wanted how in because scanned business, recent done we track. But item agree been goal had on get became And going a to that weren't supply What #X planned we place. ground then our demand the is business. of consumer, is to of think to a the that so we that's in And we demand-driven that continue to that with value-added about to execute And a is avian put And aligns right? is very the only influenza opportunity -- there's we hindered turkey, is able that plan that obviously we we most had has that size. supply lot about create to disruptive. are outbreak that on

integrate work the we've business very to yielded done positive The that Foodservice results. into has

success minimizing while And the can setting we are up long-term for volatility. business how you see so this

offerings food of And so on portfolio. a business, focused retail, this in And very are lean broad part service. we and is turkey ground important value-added the it

the as think again, what's in environment. consumer we -- as Just happening about

question of Paribas. from the from your Gumport line Max BNP comes next And

the get period. left $XX grow to in the program of contribute the I was EBIT to that only question so 'XX. I 'XX X-year to to in you in $XX only $XXX reaffirm on of supposed X% to And 'XX, have million does wanted business growth T&M turn the X% goal because did the sounds back strategic about 'XX. just or value, million. million over like from growth the $XXX 'XX million you FY is think, million $XX of It to It imply about or base

a hole missing you feels in like to would target get it pretty 'XX. big terms that of there's out what in So I'm

the target So high I'm previously. and could it hoping level just provide of have reaffirmed a you've you bit color, you just discussed given

operating our thanks number XXXX. we $XXX And that I number. just clarify reaffirmed million of want the have is indeed to income net And question. Max, that, for by expanded a

the net of in So of net business, our inflation. reinvestment

delivering so back $XXX interconnected we're the to in calling million. delivery, get we're going all And this what terms of what flywheel, the that is to growth to

a not indeed just So not, is number. it growth

when get million it, XXXX. able to yield $XXX initiatives expansion million our be than the operating think about actually are a to million of more $XXX to the income So to we $XXX from delivering net by you

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

other to. key point you drivers could any just So

our International flagship all the deliver to and goes brand, about we kicked right, driving that the back well. in our business portfolio, our driving items within really in talked recovery as brands our off to are Yes. T&M of initiatives those. Foodservice when continuing of continuing I the Jim to mean, this of that our it terms rising our underlying business other deliver

So initiative. everything we underneath it's additional but together -- our can color T&M that beyond just and here, will I add is pieces it certainly, I mean, mean, Jim the

how left 'XX we're thinking it's And successful imply that And to first there's doing doing right? you. might Yes. And the Max, we're continuing meet in off, nice I think that benefits much only at you're in so accelerate doing. work all you The math the the with in this, that about not go that work XXXX. 'XX well beyond 'XX, we're organization to to that accelerating in that's

successes may more had points. on he few Nathan to of we've but And XXXX, in some from elaborate a the heard you want that

Nathan. is this Max, Yes.

success think we're buy 'XX, what us in every 'XX have where the you will sets As pillar, beyond category. doing up in about continued and we for RFP in virtually that

future. We'll up optimized our more picking Hormel more all an done have across facilities. portfolio, We'll of Production System and planning fully our like we'll will Some modules our implemented the times, end-to-end scheduling, planning, categories multiple have over have yield dozen into really different different benefits -- steam, made driving network, well in deployment, that our progress implemented system demand have a logistics reshaping we innovation.

doing beyond. So now we feel 'XX and how really confident value that about in deliver and what will we're

from of your Galbo America. from of line Bank Peter And question comes the next

Jim, million just a this of slightly ways a about confusion net now what ask And if call question and that's to your just think $XXX for means? this guidance this lot XXXX there's I in starting just it ask your be maybe again, to of not different year, date. to million I Sunday. to six manner, But $XXX to you'd midpoint relative take of program in kind of million EBIT point, $XX the it, up, savings on

the about can a a starting that the 'XX clarify about 'XX as forgetting that's relative point. for think kind of moment, to to maybe 'XX So we way right just

Peter. correct, that's Yes,

Okay.

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

And I that's situation it. about getting work think business, that correct, are the 'XX, it's a thinking Yes. And in brands, brands, that accelerate business, track. flagship the -- grow and right? initiative, of the accelerating through business, rising then our right, now back side business underlying as right, the of 'XX, of We talked the filling this And planters you opportunity business 'XX, about to strength our of performance, on again the continuing and in strength there's supply growth we the and recovery pieces of strong couple the Foodservice, is on the that International. our Peter. to

is The doing because but 'XX, you're is it right? doing on which of interconnected. So obviously, about are opportunities there thinking into, as look those behind scenes. math we're we we're right, type same the saying we as That's have, all and thinking we're track we're XXXX the why

Okay.

I I it's -- then $X.XXX on think -- And turkey, the can if just quarter. the just headwind guess Okay. in first I I get

a benefit on grain expecting. I prices you're mention some from that think was lower there

weakness that turkey first against So a grain have the maybe but Do up on benefit? is basically that ends we year full 'XX kind again, this the in neutral, quarter I expectation the being of have correct? wrong, offsetting

we're our first start pricing comparable I expecting with to QX. maybe I'll grain From turkey. turkey before or a perspective that mentioned be to

for there. grains assumed reduce a perspective, done that the volatility, a for XXXX. strategically we've we grains year. and hedge So we haven't any to From our upside reminder, just

So we're well bought into XXXX.

see from we'll And grains XXXX. in moderate so benefits

And baked really so what's that's here. guide into our

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

And of from line comes from the your next Lavery Sandler. Piper question Michael

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

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

Yes. Michael, this is Jim.

an the I the what first of we thing intend to want not acceleration think do savings said that your comment by I hand just there's have all to because about That's in end nor clarify the XXXX. we in XXXX. we

full follow XXXX. to you Nathan, a obviously, of for some components want additional program talking color, this. initiative do were of go well just of And we've back about so just and to through. programs maybe this well maybe expect how out, X-year things you There's go the there's And that two the that you laid the knowing benefits to beyond

is Michael, Nathan. this Yes.

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

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

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

Sure.

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

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

the next Inc. from your comes question Stephens, Pooran line Sharma of from And

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

Yes, for question. Adam, thanks the

for remains and and net we food really business so service, healthy. XX, remains to think same. historically good speak, really had The volume sales growth. I strong the the playbook,

different number good, in be that categories. be broad-based board strong across will expect of We growth XXXX. will it the And across a -- and growth

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

really of opportunities. lot a good there's So

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

Rahi from your of Barclays. the question And comes Parikh next from line

for Ben Theurer. on I'm

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

Yes, right? thing, and going is deliver, we're call to we mean, as I the being And further get big confidence more organization. we to gaining the really Rahi, this, again, more we're track. I flywheel the in acceleration excuse able about we'll we're the that it, thought an what build, the value that that we that be capabilities on to we as -- able gain. And really me, create it's interconnected business, obviously, track, we're on the momentum think again, the along

acceleration continued in good what and about feel add XXXX. Nathan, And to do anything? really in 'XX, did we you acceleration want 'XX we so in

in would projects We've Yes. lot of projects. start. as we just spent we got bigger the say up into that of time a a think have running just to fiscal pushing 'XX, different team we standing I and all the 'XX, And fiscal go bigger. more

on and it's how So of excited pretty like pipeline shaping we're up a track. in about the feel and things all lot

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

to thank all joining you us of want I Well, for today.

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

Thank you. you today's participating. call. concludes Thank this for And

all You disconnect. may