Hormel faces risks from economic downturns impacting customer spending and supplier stability. Commodity price volatility (pork, poultry, grains, nuts) and changing consumer preferences pose threats. Cybersecurity risks, potential labor issues, and disruptions at owned or third-party facilities are also concerns. Acquisitions, joint ventures, and divestitures carry integration and liability risks. Impairment of goodwill and intangible assets is possible due to changing market conditions. Litigation risks (antitrust, product liability) and foreign operations (currency fluctuations, tariffs) are also significant.
Financial Upside
Hormel expects modest net sales growth in fiscal 2025, driven by higher volumes, category growth, and pricing actions. The "Transform and Modernize" initiative is projected to deliver long-term value and cost savings. Improved segment profit is anticipated in the second half of fiscal 2025. Favorable interest and investment income, and a record dividend increase are also positive factors.
