Question · Q4 2025
Yasmin Deswandhy from Bank of America asked for clarification on the specific impact of turkey on Hormel Foods' earnings in fiscal 2025, seeking to understand if it was a headwind or tailwind and how it bridged from the previously reported impacts in fiscal 2023 and 2024. She also inquired about the raw materials inflation in Q4 of fiscal 2025 and the expected quarterly cadence for 2026, considering typical seasonality.
Answer
President John Ghingo explained that while Hormel Foods experienced increased turkey costs in 2025, particularly in the first half, the company successfully implemented pricing on its ground turkey business to cover these costs. He stated that overall, turkey was a benefit to earnings in fiscal 2025, with improved results in the back half offsetting first-half headwinds, and whole bird prices coming in somewhat better than originally expected. Interim CFO and Controller Paul Kuehneman confirmed that raw material cost inflation in Q4 was 500 basis points. He directed further internal discussions for the quarterly cadence of 2026.
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