Hormel Foods Corporation

Hello everyone. Thank you for joining us and welcome to the Hormel Foods Corporation third quarter earnings call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, press star 1 again. I will now hand the conference over to Jess Blomberg, Director of Investor Relations. Please go ahead.

Good morning. Welcome to the Hormel Foods conference call for the third quarter of fiscal 2026. 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 Ghingo, President and Chief Executive Officer-Elect, and Paul Kuehneman, Interim Chief Financial Officer and Controller. Jess, John and Paul will review the company's fiscal 2026 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 participants, please limit yourself to one question with one follow-up. At the conclusion of this morning's call, a webcast replay will be posted to the investor section of our website and archived 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 comparability items and reconciliation, 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, and good morning, everyone. Earlier this year, I outlined priorities for Hormel Foods that could be summarized into three areas. Strengthen execution, realize the benefits of the actions we had taken to improve profitability, and foster greater collaboration across the enterprise. As we review the third quarter results today, I am pleased by the progress we have made against each of these priorities. I would characterize Q3 as a solid quarter, though admittedly not as strong as Q2. Our team remained focused on delivering profitable growth and that focus contributed to another quarter of earnings growth as adjusted earnings per share increased 6% versus last year. On the top line, results were more mixed. Organic net sales declined with much of the pressure coming from deliberate portfolio shaping actions, reduced commodity markets, and a still pressured consumer environment. At the same time, we continue to see positive momentum across many of the more strategic parts of our portfolio. Importantly, these results build upon strong year to date performance. Through the first nine months of the fiscal year, we have increased organic net sales, delivered strong adjusted earnings growth, and strengthened the underlying fundamentals of the business. Our year to date results, combined with our expectations for the fourth quarter, give us the confidence to raise and narrow our fiscal 2026 adjusted earnings outlook to a new range of $1.45 to $1.51 compared to our prior range of $1.43 to $1.51. We remain confident in delivering fiscal 2026 adjusted earnings growth consistent with or above our long-term algorithm. We have also tightened our full-year organic net sales growth expectation to 1% to 2%. from our prior range of 1% to 4%, better reflecting current market and consumer conditions. Before I conclude my remarks, I want to take a moment to recognize and congratulate John Ghingo on his appointment as the next Chief Executive Officer of Hormel Foods. Over the last year, John and I have developed a strong partnership. We have had the opportunity to work side by side on virtually every significant matter facing the company. Together, alongside our leadership team, we have shaped our operational priorities, investment decisions, portfolio strategy, and long-term growth plans. Building upon his background of more than 25 years of leadership across the consumer packaged goods industry, including six years in three important roles at Hormel Foods, John is more than ready for his new role. I have a deep appreciation for his commitment to our people, customers, shareholders, and the communities where we operate. I am very confident that Hormel Foods is well positioned for its exciting next chapter under John's leadership. I would also like to take a moment to thank our investors and the broader investment community for your engagement, feedback, and support over the last year. While this is my last earnings call, I am looking forward to spending time on the road meeting with many of you over the next couple of months. It has been both a privilege and a rewarding experience to serve the company this past year. With that, I will turn the call over to John to discuss the quarter in more detail and share his perspective on the opportunities ahead.