Smithfield Foods, Inc. · NASDAQ:SFD
Smithfield Foods — Q1 2025 Earnings Presentation
23 slides from Smithfield Foods's earnings presentation, Apr 29, 2025
Slide 1: Smithfield Foods First Quarter Fiscal 2025
APRIL 29, 2025 Smithfield Foods First 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: Q1 2025 Key Highlights
Q1 2025 Key Highlights Record first quarter adjusted operating profit of $326 million, up 86% YoY, with 8.6% 1 adjusted operating profit margin, led by Hog Production segment turnaround and solid overall execution Packaged Meats segment delivered $266 million of adjusted operating profit and a 13.1%
Slide 5: FY 2025 Strategic Priorities
FY 2025 Strategic Priorities 1 Packaged Meats Segment – Increase profits through improving 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 – Operate best-in-class cost str
Slide 6: Mix Shift: 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: 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 Deli Meat $6.9 $6.9 $6.9 15% #2 Deli Meat $7.1 Packaged Lunch Meat Packaged Lunch Meat $6.3$6.3 $6.3 8% #5 Packaged Lu
Slide 8: 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 9: 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 9
Slide 10: 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 11: Q1 2025 Results
Q1 2025 Results Consolidated Results Compared to Prior Year Thirteen Weeks Thirteen Weeks in $MM Ended March 30, Ended March 31, % Change except EPS in $ / share 2025 2024 Sales $3,771 $3,444 9.5% Adj. Operating $326 $176 85.7% Profit (1) Adj. Operating 8.6% 5.1% 350bps Profit Margin (1) Adj. Net In
Slide 12: Competitive Packaged Meats Results
Competitive Packaged Meats Results Q1 25 vs. Q1 24 ($MM’s) Sales Adj. Operating Profit & Margin (1) $2,024 $1,999 $286 $266 13.1% 14.3% 2025 2024 2025 2024 • Sales +1.2% • Adj. Operating Profit (7.0%) • Volume (4.2%) • Price +5.7% 1Adjusted operating profit and adjusted operating profit margin are n
Slide 13: Fresh Pork Delivers Despite Less Favorable Market Conditions
Fresh Pork Delivers Despite Less Favorable Market Conditions Q1 25 vs. Q1 24 ($MM’s) Adj. Operating Profit & Sales Margin (1) $110 $2,033 $1,938 $82 5.7% 4.0% 2025 2024 2025 2024 • Sales +4.9% • Adj. Operating Profit (25.7%) • Volume ~flat • Price +4.8% 1Adjusted operating profit and adjusted operat
Slide 14: Significant Turnaround in Hog Production
Update #’s Chloe – change photo….maybe this? Significant Turnaround in Hog Production Q1 25 vs. Q1 24 ($MM’s) Sales Adj. Operating Profit & Margin (1) $932 $706 0.1% (24.6%) $1 ($174) 2025 2024 2025 2024 • Sales +32.0% • Adj. Operating Profit +100.6% 1Adjusted operating profit and adjusted operating
Slide 15: 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 0.7x 0.8x and marketing to drive profitable growth Q1 2025 Q4 2024 Reinvest in Business Continue to improve automation
Slide 16: FY 2025 Guidance
FY 2025 Guidance Packaged Meats Sales Low-to-Mid-Single-Digit Growth Compared to FY 24 $1,050 - $1,150 MM Adj. Operating Profit1 $1,100 - $1,300 Fresh Pork Capex $400 - $500 MM $150 - $250 MM Effective Tax Rate 23% - 25% Hog Production ($50) - $50 MM 1 The Company’s outlook for fiscal year 2025 incl
Slide 17: Smithfield. Good food. Responsibly:
Smithfield. Good food. Responsibly:
Slide 18: Appendix
Appendix
Slide 19: Adjusted Operating Profit Reconciliation
Adjusted Operating Profit Reconciliation Three Months Ended Packaged Fresh Pork Hog Other (1) Corporate (2) Unallocated (3) Consolidated March 30, 2025 Meats Production Operating profit (loss) $266 $82 $1 $14 $(29) $(12) $321 Reduction in workforce — — — — — 9 9 Plant closure — — — — — 1 1 Hog Produ
Slide 20: Adjusted Net Income Reconciliation
Adjusted Net Income Reconciliation Three Months Ended March 30, 2025 March 31, 2024 $ millions Net income from continuing operations attributable to Smithfield $224 $114 Reduction in workforce (1) 9 — Plant closure 1 — Hog Production Reform (2) 1 10 Insurance recoveries (3) (6) — Incremental costs f
Slide 21: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation Three Months Ended Twelve Months Ended March 30, 2025 March 31, 2024 December 29, 2024 March 30, 2025 $ millions Net income from continuing operations $227 $112 $798 $912 Interest expense, net 11 16 66 61 Income tax expense 72 39 271 303 Depreciation and amortization 8
Slide 22: Net Debt to Adjusted EBITDA Reconciliation
Net Debt to Adjusted EBITDA Reconciliation Trailing 12 Months Ended March 30, 2025 December 29, 2024 $ millions Current portion of long-term debt and capital lease $3 $3 Long-term debt and finance lease obligations 2,000 1,999 Less: Cash and cash equivalents (928) (943) Net debt $1,075 $1,059 Adjust
Slide 23: goodiswhatwedo.com
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