Smithfield Foods, Inc. · NASDAQ:SFD
Smithfield Foods — Q2 2025 Earnings Presentation
24 slides from Smithfield Foods's earnings presentation, Aug 12, 2025
Slide 1: Smithfield Foods Second Quarter Fiscal 2025
August 12, 2025 Smithfield Foods Second Quarter Fiscal 2025
Slide 2: Forward-Looking Statements
Forward-Looking Statements Legal Disclaimer This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts contained in this presentation, including statements regarding our st
Slide 3: Today's Presenters
Today’s Presenters OUR CEO & CFO OUR SEGMENT HEADS SHANE SMITH MARK HALL STEVE FRANCE DONOVAN OWENS President and Chief Financial President, President, Chief Executive Officer Officer Packaged Meats Fresh Pork 21 11 22 31 years of experience years of experience years of experience years of experienc
Slide 4: Second Quarter 2025 Key Highlights
Second Quarter 2025 Key Highlights 1 Record second quarter adjusted operating profit of $298 million, up 20% YoY, with 7.9% adjusted operating profit margin, led by improvement across segments Packaged Meats segment delivered $296 million of adjusted operating profit and a 14.2% 2 adjusted operating
Slide 5: FY 2025 Strategic Priorities
FY 2025 Strategic Priorities 1 Packaged Meats Segment – Increase profits through enhanced product mix, volume growth and innovation 2 Fresh Pork Segment – Maximize product value across domestic and export markets as well as adjacent channels 3 Hog Production Segment – Achieve best-in-class cost stru
Slide 6: Mix Shift: We Continue to Drive Profitable Unit Growth of Value-Added Premium Products
Mix Shift: We Continue to Drive Profitable Unit Growth of Value-Added Premium Products INCREASING PENETRATION OF HIGHER-MARGIN DRY INCREASING PURCHASING OCCASIONS SAUSAGE PRODUCTS THROUGH EXPANDING DISTRIBUTION AND UNIT SALES BY ADDRESSING CONSUMER TRENDS POINTS & MANUFACTURING CAPACITY Increase Uni
Slide 7: Volume Growth: We Participate in Ten $1Bn+ Packaged Meats Sub-Categories
Volume Growth: We Participate in Ten $1Bn+ Packaged Meats Sub-Categories MARKET MARKET PACKAGED MEATS SUB-CATEGORIES ($BN) (1) KEY SMITHFIELD BRANDS SHARE (2) POSITION (2) Deli Meat 16% #2 Packaged Lunch Meat 8% #5 Uncooked Bacon 22% #1 Cooked Dinner Sausage 16% #2 Hot Dogs 16% #3 (3) Packaged Dry S
Slide 8: A Portfolio Across Price Points
A Portfolio Across Price Points Resonating with Consumers’ Preferences WE DELIVER VALUE TO CONSUMERS ACROSS A WIDE RANGE OF PRICE POINTS Packaged Lunch Meat – Average Retail Price Comparison of Our Brands vs. Select Competitors (1) ARP / Pound $2.00 $3.00 $4.00 $5.00 $6.00 $7.00 $8.00 $9.00 $10.00 $
Slide 9: Product Innovation: Addressing Consumer Trends
Product Innovation: Addressing Consumer Trends CONTINUE LAUNCHING PRODUCTS THAT TARGET SPECIFIC NEEDS AND EXPAND PORK CONSUMPTION FLAVOR & VARIETY Andouille Smoked Carando Hot Sicilian Nathan’s Hot & Spicy Sausage Ground Italian Sausage CONVENIENCE Armour Everything Carando Fresh Farmland Taco Style
Slide 10: Leveraging Our Fresh Pork Sales Channels to Utilize the Whole Hog
Leveraging Our Fresh Pork Sales Channels to Utilize the Whole Hog FURTHER ENHANCE FRESH PORK BY EXPANDING USE & INCREASING VALUE OF RAW MATERIALS Packaged Meats Domestic Adjacent Business Lines Export 10
Slide 11: Continuing to Optimize Operations
Continuing to Optimize Operations PACKAGED MEATS & HOG PRODUCTION AUTOMATION LOGISTICS FRESH PORK Reform & Best-In-Class Lean Optimize Deployment Improve Service at Optimal Rationalize Manufacturing of Labor Cost • Optimize hog production • Continue to improve • Employ automation to • Continuously i
Slide 12: Second Quarter 2025 Results
Second Quarter 2025 Results Consolidated Results Compared to Prior Year Three Months Three Months in $MM Ended June 29, Ended June 30, % Change except EPS in $ / share 2025 2024 Sales $3,786 $3,412 11.0% Adj. Operating $298 $248 20.1% Profit(1) Adj. Operating Profit 7.9% 7.3% 60bps Margin(1) Adj. Ne
Slide 13: Strong Packaged Meats Results Despite Significant Increases in Raw Material Costs
Strong Packaged Meats Results Despite Significant Increases in Raw Material Costs Second Quarter 2025 vs. Second Quarter 2024 ($MM’s) (1) 15.0% 14.2% • Sales +6.9% • Adj. Operating Profit +1.5% • Volume +4.5% • Price +2.3% 1Adjusted operating profit and adjusted operating profit margin are non-GAAP
Slide 14: Fresh Pork Adeptly Navigates Tighter Market Spread & Tariff Disruption
Fresh Pork Adeptly Navigates Tighter Market Spread & Tariff Disruption Second Quarter 2025 vs. Second Quarter 2024 ($MM’s) (1) 1.4% 0.9% • Sales +5.0% • Adj. Operating Profit +74.4% • Volume +1.7% • Price +3.3% 1Adjusted operating profit and adjusted operating profit margin are non-GAAP measures. Pl
Slide 15: Hog Production Continues to Grow Profitability
Update #’s Chloe – change photo….maybe this? Hog Production Continues to Grow Profitability Second Quarter 2025 vs. Second Quarter 2024 ($MM’s) 2.6% (1.3)% • Sales +8.4% • Adj. Operating Profit YoY Change NM 1Adjusted operating profit and adjusted operating profit margin are non-GAAP measures. Pleas
Slide 16: Strong Financial Position Creates Operational Flexibility
Strong Financial Position Creates Operational Flexibility Ratio of Net Debt to Adjusted EBITDA (1) Capital Allocation Strategy Drive Growth Continue to invest in product innovation and marketing to drive profitable growth Reinvest in Business Continue to improve automation and other operating effici
Slide 17: FY 2025 Guidance Raised
FY 2025 Guidance Raised Packaged Meats Sales Low-to-Mid-Single-Digit Growth Compared to FY 24 $1,050 - $1,150 MM Adj. Operating Profit1 $1,150 - $1,350 Fresh Pork Capex $400 - $500 MM $150 - $250 MM Effective Tax Rate 23% - 25% Hog Production $0 - $100 MM 1 The Company’s outlook for fiscal year 2025
Slide 18: Smithfield. Good food. Responsibly.
Smithfield. Good food. Respousibly:
Slide 19: Appendix
Appendix
Slide 20: Adjusted Net Income Reconciliation
Adjusted Net Income Reconciliation Three Months Ended June 29, 2025 June 30, 2024 $ millions Net income from continuing operations attributable to Smithfield $188 $256 Litigation charges 73 — Office closures (1) 4 — Incremental costs from destruction of property — 2 Employee retention tax credits (2
Slide 21: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation Three Months Ended Six Months Ended Twelve Months Ended June 29, June 30, June 29, June 30, June 29, December 2025 2024 2025 2024 2025 29, 2024 $ millions Net income from continuing operations $188 $259 $415 $372 $841 $798 Interest expense, net 11 19 22 35 53 66 Income
Slide 22: Net Debt to Adjusted EBITDA Reconciliation
Net Debt to Adjusted EBITDA Reconciliation Trailing 12 Months Ended June 29, 2025 December 29, 2024 $ millions Current portion of long-term debt and capital lease $3 $3 Long-term debt and finance lease obligations 2,001 1,999 Total debt and finance lease obligations $2,003 $2,002 Less: Cash and cash
Slide 23: Adjusted Operating Profit Reconciliation
Adjusted Operating Profit Reconciliation Three Months Ended Packaged Fresh Pork Hog Other (1) Corporate (2) Unallocated (3) Consolidated June 29, 2025 Meats Production Operating profit (loss) $301 $35 $22 $7 $(26) $(80) $260 Litigation charges — — — — — 73 73 Office closures (4) — — — — — 4 4 Employ
Slide 24: goodiswhatwedo.com
Learn more about the good work we do at goodiswhatwedo.com