On this page of StockholderLetter.com we present the latest annual shareholder letter from HORMEL FOODS CORP /DE/ — ticker symbol HRL. Reading current and past HRL letters to shareholders can bring important insights into the investment thesis.

 •  12/17/2025 Letter Continued (Full PDF)
 •  12/20/2023 HRL Stockholder Letter
 •  12/18/2024 HRL Stockholder Letter
 •  More "Food & Beverage" Category Stockholder Letters
 •  HRL Benford's Law Stock Score = 97

HRL Shareholder/Stockholder Letter Transcript:

2025 Annual Report
Hormel Foods Corporation 2025 Annual Report

A global branded
food company with a
portfolio positioned
for growth
Hormel Foods Corporation (NYSE: HRL) (   the Company   ),
headquartered in Austin, Minnesota, is a global branded food company
generating over $12 billion in annual net sales. The Company is
built on a foundation of innovation and integrity and a commitment
to delivering high-quality, trusted food products across a diverse
portfolio of brands and product solutions, including Planters  , SPAM  ,
Jennie-O  , Skippy  , Applegate  , Wholly  , Hormel   Black Label  ,
Fontanini  , Hormel   Bacon 1   , Hormel   pepperoni and more than 30
other beloved brands. Hormel Foods continues to shape the future of
food by providing products that meet the evolving needs of customers
and consumers worldwide.
D

AN

BR
$12B+
annual net sales
Multi-channel
presence
Leader in over
40
retail categories1
~20,000
team members
across the globe
Hormel Foods remains focused on driving long-term growth through a balanced business model, a
diverse portfolio and a commitment to creating value for all stakeholders. The Company is a member
of the S&P 500 Index and is an S&P 500 Dividend Aristocrat.
Long-term growth algorithm
+2 to 3

Organic Net Sales2
Growth
1
2
+5 to7

Operating Income
Growth
Dividend Aristocrat:
60
Consecutive years of
dividend increases
Circana 52 weeks ended 11-02-2025 - MULO; NielsenIQ Total US xAOC 52 weeks ended 10-25-2025; SPINS Total US Natural 52 weeks ended 10-5-2025.
Non-GAAP measure. Refer to reconciliation of non-GAAP measures in Management's Discussion and Analysis in the fiscal 2025 annual report on Form 10-K.

    We believe our portfolio of trusted brands and
value-added products remains well positioned
in the marketplace, and that the actions we took
this year have strengthened our foundation for
sustainable, profitable growth.   
Jeff Ettinger
Interim Chief Executive Officer
Dear fellow shareholders,
help operators streamline back-of-house operations.
These solutions demonstrate how we continue to lead
with convenience, quality and culinary innovation.
Fiscal 2025 was a challenging year for our Company.
We delivered strong top-line growth and advanced key
strategic priorities, all while navigating a dynamic consumer
environment and changes in spending habits. However,
bottom-line performance was disappointing, as it was
negatively impacted by inflationary pressures, discrete
operational challenges and impairments. While our bottomline results fell short of our expectations, we believe our
portfolio of trusted brands and value-added products
remains well positioned in the marketplace, and the actions
we took this year have strengthened our foundation for
sustainable, profitable growth.
     Our International segment strengthened our global
presence through strategic channel development and
innovation in high-priority markets. Our in-country China
business celebrated 30 years of success and continued
to serve as an engine of growth, launching new meatsnacking formats and expanding distribution for Skippy  
products. Two of our iconic brands, SPAM   and Skippy  ,
remained key growth drivers, supported by strong export
demand and cultural relevance across markets. These
results highlight the power of our global portfolio and the
opportunities ahead in further international expansion.
Performance and segment overview
Net sales exceeded $12 billion, an increase of 2% yearover-year. Importantly, growth was driven across all three
segments: Retail, Foodservice and International.
Together, our segments reflect the breadth and strength
of Hormel Foods, however, despite strong top-line
performance, we did not translate this momentum to
bottom-line growth. The input cost pressures, primarily
driven by heightened commodity costs, had a meaningful
impact in 2025.
     Our Retail segment delivered steady top-line growth by
staying focused on what matters most to consumers    
variety, value and high-quality protein options. Brands
like Jennie-O   lean ground turkey, Applegate   natural
and organic meats, Wholly   guacamole and the SPAM  
family of products continued to perform well, supported
by innovation and targeted marketing. These results
reinforce the strength of our portfolio and the relevance
of our value-added strategy in today   s marketplace.
Advancing Company initiatives and priorities
We achieved many milestones in fiscal 2025 that strengthened
our foundation and we took decisive actions that help
position us for long-term success. These notable updates
are designed to advance our business, respond to a dynamic
environment and prepare for the opportunities ahead.
     Foodservice remains a distinctive advantage for
Hormel Foods. Our direct-selling model and deep
operator partnerships set us apart in the industry. In
2025, the team delivered organic net sales growth and
outperformed broader industry trends. Growth was
fueled by premium prepared proteins, our branded bacon
portfolio and the Jennie-O   turkey portfolio, as well as
innovative offerings like Fontanini   hot honey sausage
and extensions of Flash 180    sous vide chicken, which
Through our Transform and Modernize initiative, we
continued to deliver significant benefits in fiscal 2025. To
sharpen our focus and simplify our portfolio, we made the
decision to divest our last connection to vertically integrated
pork supply, further reducing our commodity exposure. As
part of our network-optimization efforts, we consolidated
operations by closing one dry sausage facility, and we
partially closed another facility, reallocating production
1

L e a d e r s hi p a n d c ult u r e
v ol u m e a cr o s s o ur n et w or k. W e al s o a d v a n c e d o ur s u p pl y
c h ai n c a p a biliti e s wit h t h e o p e ni n g of a n e w di stri b uti o n
c e nt er. T h e s e d e ci si v e a cti o n s ar e n ot j u st o p er ati o n al
i m pr o v e m e nt s; t h e y ar e f o u n d ati o n al i n v e st m e nt s a n d
str at e gi c d e ci si o n s t h at w e b eli e v e will dri v e ef     ci e n c y,
a gilit y a n d gr o wt h f or y e ar s t o c o m e.
Fi s c al 2 0 2 5 al s o br o u g ht a s eri e s of l e a d er s hi p c h a n g e s,
fr o m r etir e m e nt s t o a p p oi nt m e nt s a n d i nt er n al pr o m oti o n s.
I w a nt t o t h a n k Ji m S n e e f or hi s 3 6 y e ar s of l e a d er s hi p at
H or m el F o o d s a n d hi s r ol e i n l a u n c hi n g o ur tr a n sf or m ati o n
j o ur n e y. Ji m r etir e d t hi s y e ar aft er ni n e y e ar s a s c hi ef
e x e c uti v e of     c er a n d hi s l e a d er s hi p h a s l eft a l a sti n g i m p a ct
o n o ur C o m p a n y t h at will b e f elt f or y e ar s t o c o m e. I al s o
w a nt t o c o n gr at ul at e J o h n G hi n g o o n hi s a p p oi nt m e nt
a s pr e si d e nt, t h e 1 1 t h i n o ur C o m p a n y    s hi st or y. J o h n    s
c o n s u m er-    r st mi n d s et a n d c oll a b or ati v e a p pr o a c h will b e
i n str u m e nt al a s w e a d v a n c e o ur vi si o n. I n a d diti o n, I w a nt
t o t h a n k all of t h e l e a d er s w h o r etir e d i n     s c al 2 0 2 5 f or t h eir
l a sti n g c o ntri b uti o n s a n d c o n gr at ul at e t h o s e w h o m o v e d i nt o
n e w r ol e s.
I n     s c al 2 0 2 5, w e c o m pl et e d a n e xt e n si v e r e vi e w of o ur s al e s
a n d a d mi ni str ati v e c o st s, a n d m a d e t h e t o u g h b ut n e c e s s ar y
d e ci si o n t o si m plif y o ur c or p or at e a n d s al e s str u ct ur e a n d
r e d u c e ot h er t ar g et e d e x p e n s e s. W hil e t h e s e d e ci si o n s ar e
n e v er e a s y, t h e y w er e n e c e s s ar y t o b e c o m e a m or e ef     ci e nt
o p er ati n g c o m p a n y a n d all o w u s t o r e dir e ct s o m e s a vi n g s
t o w ar d t e c h n ol o g y, f o o d s af et y a n d q u alit y a n d e n h a n c e d
s u p p ort f or o ur l e a di n g br a n d s.
A s d et ail e d i n o ur u p d at e d Gl o b al I m p a ct R e p ort r el e a s e d i n
S e pt e m b er, w e i ntr o d u c e d o ur n e xt- g e n er ati o n fr a m e w or k,
G o o d F e e d s U s All, w hi c h or g a ni z e s o ur eff ort s u n d er t w o
i nt er c o n n e ct e d pill ar s     Pl a n et a n d S o ci et y     r e     e cti n g
t h e e c o s y st e m s a n d p e o pl e o ur b u si n e s s d e p e n d s o n e v er y
d a y. S u p p orti n g o ur t e a m m e m b er s a n d c o m m u niti e s,
a d v a n ci n g r e s p o n si bl e pr a cti c e s a cr o s s o ur s u p pl y c h ai n
a n d c o nti n ui n g t o d eli v er tr u st e d, hi g h- q u alit y f o o d r e m ai n
pri oriti e s f or o ur C o m p a n y.
W e al s o w el c o m e d n e w m e m b er s t o o ur b o ar d of dir e ct or s.
F oll o wi n g m y r e a p p oi nt m e nt i n M ar c h, w e w er e pl e a s e d
t o h a v e S c ott A a k r e b e c o m e p art of t h e B o ar d i n M a y. A s a
r e s ult of hi s l e a d er s hi p a d v a n c e m e nt, J o h n G hi n g o j oi n e d t h e
B o ar d i n J ul y. T h e s e s e a s o n e d pr of e s si o n al s bri n g v al u a bl e
e x p erti s e a n d p er s p e cti v e a s w e c o nti n u e t o dri v e o ur
C o m p a n y i nt o t h e f ut ur e.
T o o ur 2 0, 0 0 0 t e a m m e m b er s w orl d wi d e: t h a n k y o u. Y o ur
d e di c ati o n a n d a d a pt a bilit y i n a c o m pl e x a n d c h all e n gi n g
y e ar e x e m plif y t h e c ult ur e t h at m a k e s H or m el F o o d s u ni q u e.
T o g et h er, w e ar e b uil di n g a str o n g er, m or e a gil e c o m p a n y;
o n e t h at h o n or s o ur h erit a g e w hil e e m br a ci n g t h e f ut ur e.
Fi n all y, I a m pr o u d of t h e t e a m f or a c hi e vi n g t h e s e c o n ds af e st y e ar o n r e c or d, f oll o wi n g a hi st ori c s af e st y e ar i n
2 0 2 4. T hi s a c c o m pli s h m e nt r e     e ct s t h e t e a m    s d e di c at e d
c o m mit m e nt t o s af et y.
Cl o si n g t h o u g ht s
C a pit al m a n a g e m e nt
A s w e e nt er     s c al 2 0 2 6, w e d o s o wit h a c o n vi cti o n t o wi n
a n d a p o siti o n t o gr o w. O ur f o c u s i s o n m e eti n g t h e e v ol vi n g
n e e d s of c o n s u m er s t hr o u g h c o n v e ni e nt, pr ot ei n- c e ntri c
off eri n g s, br a n d l e a d er s hi p a n d o p er ati o n al e x c ell e n c e.
W e ar e c o m mitt e d t o dri vi n g m ar gi n e x p a n si o n a n d
d eli v eri n g s u st ai n a bl e, pr o    t a bl e gr o wt h. W e ar e c o n     d e nt i n
t h e str e n gt h of o ur p ortf oli o a n d o ur a bilit y t o s u st ai n t o pli n e gr o wt h, u n d er pi n n e d b y a n a cti o n a bl e pl a n t o tr a n sl at e
t h at m o m e nt u m i nt o str o n g er b ott o m-li n e p erf or m a n c e.
W e r e m ai n c o m mitt e d t o di s ci pli n e d c a pit al all o c ati o n.
W e c o nti n u e d t o m ai nt ai n r e s p o n si bl e l e v el s of d e bt a n d
a m pl e li q ui dit y o n o ur b al a n c e s h e et. T hi s all o w s u s t o
c o nti n u e t o m a k e str at e gi c c a pit al i n v e st m e nt s, m ai nt ai n
a c o m p etiti v e di vi d e n d f or o ur s h ar e h ol d er s a n d pr e s er v e
    n a n ci al     e xi bilit y.
W e i n v e st e d $ 3 1 1 milli o n i n c a pit al e x p e n dit ur e s, f o c u s e d
o n c a p a cit y e x p a n si o n s f or H or m el    Fir e B r ai s e d     a n d
A p pl e g at e    pr o d u ct s, e n h a n c e m e nt s i n d at a a n d t e c h n ol o g y
a n d s af et y a n d w elf ar e i niti ati v e s f or o ur p e o pl e a n d a ni m al s.
W e al s o i n v e st e d i n o ur Ji a xi n g, C hi n a, f a cilit y t o s u p p ort
i nt er n ati o n al gr o wt h.
F or m or e t h a n 1 3 0 y e ar s, H or m el F o o d s h a s l e d wit h
str e n gt h a n d p ur p o s e b e c a u s e of o ur p e o pl e, o ur v al u e s
a n d o ur u n w a v eri n g c o m mit m e nt t o q u alit y a n d c o m m u nit y.
W e l o o k f or w ar d t o 2 0 2 6, a n d t h a n k y o u f or y o ur tr u st a n d
s u p p ort a s w e m o v e f or w ar d wit h c o n     d e n c e a n d p ur p o s e.
Di vi d e n d s r e m ai n a n i m p ort a nt c o m p o n e nt of o ur
c o m mit m e nt t o r et ur ni n g c a pit al t o o ur s h ar e h ol d er s.
I n     s c al 2 0 2 5, w e r et ur n e d a r e c or d $ 6 3 3 milli o n t o
o ur s h ar e h ol d er s i n t h e f or m of di vi d e n d s. W e r e c e ntl y
a n n o u n c e d a 1 % i n cr e a s e t o t h e q u art erl y di vi d e n d,
r ai si n g t h e a n n u ali z e d r at e t o $ 1. 1 7 p er s h ar e, m ar ki n g
a n e xtr a or di n ar y mil e st o n e     6 0 c o n s e c uti v e y e ar s of
di vi d e n d i n cr e a s e s.
Si n c er el y,
J eff Etti n g e r
I nt eri m C hi ef E x e c uti v e Of     c er
2

Retail
The Retail segment represents a portfolio of leading brands and
products that generated over $7 billion in net sales in 2025. It is
well balanced and highly scalable. With a diverse, protein-centric
portfolio and the team   s commitment to meeting the evolving needs
of consumers and customers, the segment is strongly positioned
for growth.
62%
The Retail segment is built for long-term growth, with a focus on:
    Our protein-centric portfolio
    Long-established, trusted brands and products
   D
  riving consumer connection through brand investment and innovation
% of Total Company
FY    25 Net Sales
D

AN

BR
2025 Spotlight
VALUE DELIVERED Our protein-centric portfolio delivered the quality and versatility consumers value. In fiscal 2025,
we showcased the strength of this approach by providing value in a variety of ways across our leading brands, including
Applegate  , Jennie-O   and SPAM  .
Convenience without
compromise
Flavorful versatility
The team responsible for the
SPAM   brand introduced
a range of new products,
highlighting its versatility
through global flavors and
convenient formats.
The Applegate   brand team
expanded its portfolio with
premium breakfast items, offering
convenient options made with
simple, high-quality ingredients.
Rise in protein demand
Jennie-O   ground turkey
led category sales growth,1
showcasing rising demand for
lean, high-quality protein.
1
Circana 52 weeks ended 11-02-2025 - MULO.
3



 12/17/2025 Letter Continued (Full PDF)