Hormel Foods Corporation

Good morning, ladies and gentlemen, and welcome to the Hormel Foods Corporation third quarter earnings conference call. At this time, all lines are in listen-only mode. Following the presentation, we will conduct a question and answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on Thursday, August 28, 2025. I would now like to turn the conference over to Jeff Bomberg, Director of Investor Relations. Please go ahead.

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 investor section, along with supplemental slide materials. On our call today is Jeff Ettinger, Interim Chief Executive Officer, John Gingo, President, and Jacinthe Smiley, Executive Vice President, and Chief Financial Officer. Jeff, John, and Jacinthe 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. As a courtesy to the other analysts, please limit yourself to one question with one follow-up. If you have additional questions, you are welcome to get back into the queue. At the conclusion of this morning's call, a webcast replay will be posted to the investor section of our website and archives for one year. 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. 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. I will now turn the call over to 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. 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. 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. 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-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 Jacinthe will go into greater detail on the third quarter performance and our guidance for the remainder of the year. 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 TNM initiative. What we will provide today is commentary related to our high-level vision for 2026, which Descent and I will cover later in today's call. Beyond the words 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. 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'm confident we will make meaningful progress in advancing our mission over the coming year. And with that, I will turn the call over to John.