Smithfield Foods Reports Strong Q1 Performance with Increased Profit and Revenue

Smithfield Foods, Inc., a leading American food company specializing in packaged meats and fresh pork products, has reported a significant increase in its first-quarter profit for fiscal 2025. The company’s financial performance highlights a robust year-over-year growth, driven by strong demand for its core products and effective cost-control measures.

Financial Highlights:

• Net Income: Smithfield Foods achieved a net income of $224 million for the first quarter, up from $156 million in the same period last year. This translates to earnings per share (EPS) of $0.57, compared to $0.41 last year.
• Revenue Growth: The company’s revenue rose by 9.5% to $3.771 billion from $3.444 billion in the previous year.
• Adjusted Earnings: Excluding certain items, Smithfield Foods reported adjusted earnings of $227 million or $0.58 per share.

Segment Performance:

• Packaged Meats: This segment, which includes brands like Smithfield, Eckrich, and Nathan’s Famous, saw a 1.2% increase in sales. Operating profit for this segment was $266 million, with a margin of 13.1%.
• Fresh Pork: Sales in this segment increased by 4.9%, contributing significantly to the company’s revenue. However, the operating profit declined by 25.7% to $82 million.
• Hog Production: The segment experienced a turnaround, moving from a loss of $174 million to a profit of $1 million.

Operational Efficiency and Outlook:

Smithfield Foods has maintained a strong focus on operational efficiency, achieving an adjusted operating margin of 8.6%, up from 5.1% in the first quarter of 2024. The company has implemented cost-control measures, including workforce reduction and strategic exits from certain farm operations, to manage higher input costs.

The company reaffirmed its fiscal 2025 outlook, projecting low-to-mid-single-digit sales growth and total adjusted operating profit between $1.1 billion and $1.3 billion. Smithfield Foods also announced a quarterly dividend of $0.25 per share, aiming for an annual rate of $1.00 per share for fiscal 2025.

Market Position and Liquidity:

Smithfield Foods maintains strong liquidity, with $3.23 billion in total, including $928 million in cash. The company continues to focus on its high-margin packaged meats business, which remains a major revenue generator.

Overall, Smithfield Foods’ strong financial performance in Q1 2025 reflects its strategic focus on core segments and effective cost management, positioning it well for continued growth in the consumer staples sector.