HORMEL FOODS CORP /DE/HRL
HORMEL FOODS CORP /DE/ Segments Disclosure
Segment Reporting
Segment Results: The Company develops, processes, and distributes a wide array of food products in a variety of markets. The Company reports its results in the following three segments: Retail, Foodservice, and International.
The Retail segment consists primarily of the processing, marketing, and sale of food products sold predominantly in retail channels, including grocery stores, mass merchandisers, club stores, natural food chains, drug, dollar and discount chains, and e-commerce providers in the U.S. This segment also includes the results from the Company’s MegaMex Foods joint venture.
The Foodservice segment consists primarily of the processing, marketing, and sale of food products to distributors and operators across a wide range of providers of food away from home, including restaurants, hospitality, healthcare, K-12, college and universities, and convenience stores in the U.S.
The International segment processes, markets, and sells the Company's products through retail and foodservice channels internationally. This segment also includes the results from the Company’s international joint ventures, equity method investments, and royalty arrangements, as well as operations in China and Brazil.
The results of each segment are regularly provided to the Company's Interim Chief Executive Officer, who is the chief operating decision maker (CODM). The CODM primarily uses net sales and segment profit to compare results to the prior year, annual operating plan, and periodic forecasts when evaluating segment performance and allocating resources.
The accounting policies of the segments are generally the same as those presented in Note A - Summary of Significant Accounting Policies. Intersegment sales are eliminated in consolidation and are not reviewed when evaluating segment performance. Segment profit also excludes unallocated general corporate expenses, deferred compensation, non-recurring expenses associated with the Transform and Modernize initiative, corporate restructuring plan costs, and interest and other income and expense. Equity in Earnings of Affiliates is included in segment profit; however, earnings attributable to the Company’s corporate venturing investments and noncontrolling interests are excluded.
Segment results, including the significant expense categories regularly provided to the CODM, are provided below. Certain portions of these expenses are retained at the corporate level and are presented in Net Unallocated Expense. The Company is an integrated enterprise, characterized by substantial intersegment cooperation, cost allocations, and sharing of assets. The Company does not represent that these segments, if operated independently, would report the profit and other financial information shown.
Fiscal Year Ended October 26, 2025 | ||||||||||||||||||||||||||
| In thousands | Retail | Foodservice | International | Total | ||||||||||||||||||||||
| Net Sales | $ | 7,455,218 | $ | 3,941,795 | $ | 709,146 | ||||||||||||||||||||
| Cost of Products Sold | 6,450,868 | 3,201,478 | 558,106 | |||||||||||||||||||||||
| Selling, General, and Administrative | 539,390 | 185,743 | 95,075 | |||||||||||||||||||||||
| Equity in Earnings of Affiliates | 31,035 | — | (136,817) | |||||||||||||||||||||||
| Goodwill and Intangible Impairment | 70,751 | — | — | |||||||||||||||||||||||
Noncontrolling Interest (Earnings) Loss | — | — | 433 | |||||||||||||||||||||||
| Segment Profit | $ | 425,245 | $ | 554,574 | $ | (80,418) | $ | 899,400 | ||||||||||||||||||
| Net Unallocated Expense | 235,519 | |||||||||||||||||||||||||
Noncontrolling Interest Earnings (Loss) | (433) | |||||||||||||||||||||||||
| Earnings Before Income Taxes | $ | 663,449 | ||||||||||||||||||||||||
Fiscal Year Ended October 27, 2024 | ||||||||||||||||||||||||||
| In thousands | Retail | Foodservice | International | Total | ||||||||||||||||||||||
| Net Sales | $ | 7,374,149 | $ | 3,845,118 | $ | 701,529 | ||||||||||||||||||||
| Cost of Products Sold | 6,296,201 | 3,056,139 | 536,028 | |||||||||||||||||||||||
| Selling, General, and Administrative | 539,965 | 192,687 | 100,512 | |||||||||||||||||||||||
| Equity in Earnings of Affiliates | 24,784 | — | 26,688 | |||||||||||||||||||||||
Noncontrolling Interest (Earnings) Loss | — | — | 407 | |||||||||||||||||||||||
| Segment Profit | $ | 562,768 | $ | 596,292 | $ | 92,084 | $ | 1,251,144 | ||||||||||||||||||
| Net Unallocated Expense | 215,304 | |||||||||||||||||||||||||
Noncontrolling Interest Earnings (Loss) | (407) | |||||||||||||||||||||||||
| Earnings Before Income Taxes | $ | 1,035,434 | ||||||||||||||||||||||||
Fiscal Year Ended October 29, 2023 | ||||||||||||||||||||||||||
| In thousands | Retail | Foodservice | International | Total | ||||||||||||||||||||||
| Net Sales | $ | 7,749,039 | $ | 3,639,492 | $ | 721,479 | ||||||||||||||||||||
| Cost of Products Sold | 6,659,851 | 2,869,529 | 578,309 | |||||||||||||||||||||||
| Selling, General, and Administrative | 523,616 | 174,282 | 98,592 | |||||||||||||||||||||||
| Equity in Earnings of Affiliates | 40,501 | — | 10,004 | |||||||||||||||||||||||
| Goodwill and Intangible Impairment | 28,383 | — | — | |||||||||||||||||||||||
Noncontrolling Interest (Earnings) Loss | — | — | 653 | |||||||||||||||||||||||
| Segment Profit | $ | 577,690 | $ | 595,682 | $ | 55,234 | $ | 1,228,606 | ||||||||||||||||||
| Net Unallocated Expense | 214,482 | |||||||||||||||||||||||||
Noncontrolling Interest Earnings (Loss) | (653) | |||||||||||||||||||||||||
| Earnings Before Income Taxes | $ | 1,013,472 | ||||||||||||||||||||||||
The Company’s CODM reviews assets and capital expenditures at a consolidated level and does not use assets by segment to evaluate performance or allocate resources. Therefore, the Company does not disclose these measures by segment. Depreciation and amortization expense is included in the measure of segment profit and disclosed below.
| In thousands | Fiscal Year Ended | |||||||||||||||||||
| October 26, 2025 | October 27, 2024 | October 29, 2023 | ||||||||||||||||||
| Depreciation and Amortization | ||||||||||||||||||||
Retail | $ | 142,824 | $ | 140,103 | $ | 145,690 | ||||||||||||||
Foodservice | 80,193 | 78,949 | 74,370 | |||||||||||||||||
International | 17,174 | 19,151 | 15,627 | |||||||||||||||||
| Corporate | 23,710 | 19,553 | 17,623 | |||||||||||||||||
Total Depreciation and Amortization | $ | 263,901 | $ | 257,756 | $ | 253,311 | ||||||||||||||
Disaggregated Revenues: The Company’s products primarily consist of meat and other food products. Total revenue contributed by classes of similar products are:
| Fiscal Year Ended | ||||||||||||||||||||
| In thousands | October 26, 2025 | October 27, 2024 | October 29, 2023 | |||||||||||||||||
| Perishable | $ | 8,823,022 | $ | 8,548,802 | $ | 8,511,795 | ||||||||||||||
| Shelf-stable | 3,283,138 | 3,371,995 | 3,598,215 | |||||||||||||||||
Total Net Sales | $ | 12,106,160 | $ | 11,920,797 | $ | 12,110,010 | ||||||||||||||
Perishable includes fresh meats, frozen items, refrigerated meal solutions, bacon, sausages, hams, guacamole, and other items that require refrigeration. Shelf-stable includes canned luncheon meats, nut butters, snack nuts, chili, shelf-stable microwaveable meals, hash, stews, tortillas, salsas, tortilla chips, and other items that do not require refrigeration.
The Company has a global presence selling its products in all 50 U.S. states as well as several major international markets. No individual foreign country is material to the consolidated results. Additionally, the Company’s long-lived assets located in foreign countries are not significant. Total net sales attributed to the U.S. and all foreign countries in total are:
| Fiscal Year Ended | ||||||||||||||||||||
| In thousands | October 26, 2025 | October 27, 2024 | October 29, 2023 | |||||||||||||||||
| U.S. | $ | 11,437,051 | $ | 11,283,978 | $ | 11,515,094 | ||||||||||||||
| Foreign | 669,109 | 636,819 | 594,915 | |||||||||||||||||
Total Net Sales | $ | 12,106,160 | $ | 11,920,797 | $ | 12,110,010 | ||||||||||||||
Major Customers: Sales to Walmart Inc. and its subsidiaries (Walmart) represented 15.6% or $2.0 billion, 15.6% or $2.0 billion, and 15.5% or $2.0 billion of the Company’s consolidated gross sales less returns and allowances in fiscal 2025, 2024, and 2023, respectively. Walmart is a customer for the Company’s Retail and International segments.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Dec 5, 2025 | Showing above |
| 2024 | Dec 5, 2024 | |
| 2023 | Dec 6, 2023 | |
| 2022 | Dec 6, 2022 | |
| 2021 | Dec 10, 2021 | |
| 2020 | Dec 4, 2020 | |
| 2019 | Dec 6, 2019 | |
| 2018 | Dec 7, 2018 | |
| 2017 | Dec 20, 2017 | |
| 2016 | Dec 21, 2016 | |
| 2015 | Dec 16, 2015 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.