annual report
DESCRIPTION
Annual report for cow products companyTRANSCRIPT
Innovative new product launches. Strong relationships with customers. Continuous improvement in our supply chain.
These are actions we took in 2011 to better position our business to succeed despite a challenging marketplace. As a result, we exited the year stronger than we entered it and are cautiously optimistic about our business results for 2012.
Director changesThree long-term members of our board of directors also announced their retirements. Our shareholders have benefitted greatly from the excellent service of Ronald D. Pearson, Hugh C. Smith, M.D. and John G. Turner (with John having served as lead director for the past two years). Joining the board are Glenn S. Forbes, M.D., Stephen M. Lacy and Michael J. Mendes. Forbes, 63, is the medical director for initiatives in diversifiedbusiness activities for medical
imaging services at Mayo Clinic in Rochester, Minn. Lacy, 57, is chairman of the board, president and chief executive officer at Meredith Corporation, which is headquartered in Des Moines, Iowa. Mendes, 48, is chairman of the board, president and chief executive officer at Diamond Foods, Inc., which is headquartered in San Francisco, California.
OutlookMoving into 2012, we expect to deliver sales and earn- ings growth even amidst some
difficult comparisons and less-than-favorable economic conditions. In particular, we are looking for our Grocery Products, Specialty Foods and All Other (International) units to drive profit growth as our Refrigerated Foods and Jennie-O Turkey Store position against historically high results. We also anticipate the comparisons to be more difficult in the first half of the year, becoming more favorable later in the year.
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Best Wishes,
Mark UdderCEO of Deja Moo
Shareh
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announced their retirements. Robert A. Tegt retired as group vice president at Hormel Foods and president of Jennie-O Turkey Store,. Inc., with a record of superior achievement in delivering operating results. Michael D. Tolbert also retired as group vice president of our Specialty Foods segment, after serving as a respected leader in many disciplines.
We promise that our cows are the best, our products are the best, and your satisfaction will be the highest with us versus other companies with similar or comparable products. We care about you, your families and yours safety.
Our shareholders can be assured that Hormel Foods sets high standards, both in terms of financial perfor- mance and in terms of our impact on the community at large. I am proud to be associated with a team that continues to achieve and surpass those standards on both fronts.
Senior management changesIn May, we announced two executive changes. Scott Aakre was named vice president of corporate innovation and new product development and Whitney Velasco-Aznar joined the company andAakre’s previous position as vice president of marketing for Grocery Products. As the year concluded, two senior leaders of the company
Bringing our
to your table.
Deja Moo provides your community with only the finest cow-produced products. From a variety of milks, ice creams, cheeses, butters, meats, and beyond, Deja Moo is devoted to quality. Yes, this makes our profit margin smaller and processing taking significantly longer, but we believe if it is going into your body, it needs to be the best.
...you deserve the best
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Developing new products for consumers starts by understanding individual needs. Developing new
products for consumers starts by understanding individual needs.
Spending one-on-one time at home and shopping alongside consumers
are two ways Deja Moo identifies opportunities for new products.
Only the freshest cream is used for Fresh cream and
milk make up more than half of a pint of Deja Moo’s
ice cream. So we’ve always tried to make sure our
Company’s values — including support for safe and
sustainable food production, family farms, and rural
communities — are reflected in the milk we use.
Beyond that, we would never use artificial hormones
or medications that could in anyway affect you or your
families’ health because you are our priority.
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Between Individual-serving restaurant packets,
nutritional food products, and supplements are
featured items for Specialty Foods. Deja Moo offers
high-quality products to restaurants, health care
facilities and retail customers.
Product
s
Meat Products
Milk Products
Cheese Products
Various Spreads
Dessert Products
SEGMENT SALES2012
Cash and cash equivalents were $463.1 million at the end of fiscal year 2011 compared to $467.8 million at the end of fiscal year 2010. During fiscal 2011, cash provided by operating activities was $490.5 million compared
to $485.5 million in 2010. Increased earnings in fiscal 2011 were the primary driver of the improved operating cash flows versus fiscal 2012. However, overall unfavorable changes in working capital balances compared to the prior year,
primarily accounts and other accrued expenses, essentially offset the additional cash generated by the higher earnings. Our earnings are 50% higher than comparable cow product companies because of our quality.
Gross profit was $355.0 million and $1.24 bil- lion for the 2010 fourth quarter and fiscal year, respectively, compared to $304.2 million and $1.10 billion fiscal 2009.
Net sales for the fourth quarter of 2012 increased to $2.06 billion dollars. This means that our sales surpass our competitors by much more than we used to.
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54%
19%
13%
12%
3%
Financia
l Da
ta
NET SALESDollars in billionsCompound annual growth rate (CAGR)
DILUTED EARNINGSDollars per shareCAGR 12.7%
SEGMENT OPERATING PROFITDollars in millionsCAGR 11.1%
ANNUAL DIVIDENDSDollars per shareCAGR 14.2%
08 09 10 11 12 08 09 10 11 12 08 09 10 11 12 08 09 10 11 12
Wisconsin
Illinois
Minnesota IowaMichigan
Missouri
Neb
raska
Indiana
The Company is an integrated enterprise, characterized by substantial intersegment cooperation, cost allocations, and sharing of assets and less liablilities..
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NET SALES BY LOCATION*proportions to scale
Deja Moo©2013