Smithfield Foods, Inc. · NASDAQ:SFD
Smithfield Foods — FY2024 Earnings Presentation
22 slides from Smithfield Foods's earnings presentation, Mar 25, 2025
Slide 1: Smithfield Foods Fiscal Year 2024 Results
MARCH 25, 2025 Smithfield Foods Fiscal Year 2024 Results
Slide 2: Legal Disclaimer
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 press release, including statements regarding our strategy, future financial c
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 10 22 31 years of experience years of experience years of experience years of experienc
Slide 4: FY 2024 Key Highlights
FY 2024 Key Highlights Returned to U.S. stock market as a leader in value-added packaged meats with diverse 1 portfolio of strong brands Delivered record profitability in fiscal 2024, led by continued margin expansion in Packaged 2 Meats and Fresh Pork segments combined with strong rebound in Hog Pr
Slide 5: FY 2025 Strategic Priorities
FY 2025 Strategic Priorities Packaged Meats Segment – Increase profits through improving product mix, volume 1 growth and innovation Fresh Pork Segment – Maximize product value across domestic and export markets as well 2 as adjacent markets Hog Production Segment – Operate best-in-class cost struct
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 $7.1 14% #2 Packaged Lunch Meat $6.4 8% #5 Uncooked Bacon $6.0 23% #1 Cooked Dinner Sausage $3.4 16% #2 Hot Dogs $3.2
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: Clear Path to Driving Profitable Growth
Clear Path to Driving Profitable Growth by Executing On Our Strategy Drive Growth of Continue Further Enhance Optimize Our Execute Packaged Meats Investing in Fresh Pork Operations and Synergistic M&A Innovation Supply Chain to in North America Drive Margin 9
Slide 10: Q4 & FY24 Results
Q4 & FY24 Results Consolidated Results Compared to Prior Year Thirteen Weeks Ended Thirteen Weeks Ended December 29, 2024 December 31, 2023 % Change Sales $4.0Bn $4.0Bn (1.2%) Adj. Operating $315MM 37% Q4 24/23 Profit (1) $230MM Adj. Operating Profit Margin (1) 8.0% 5.7% 230bps Adj. EPS (1) $0.52 $0
Slide 11: Continued Profitability Expansion in Packaged Meats
Continued Profitability Expansion in Packaged Meats Q4 24 vs. Q4 23 ($MM’s) Sales Adj. Operating Profit & Margin (1) $2,458 $2,404 $313 $306 • + 2.2% • + 2.4% • Volume (1.4%) 12.7% 12.7% • Price +3.7% 2024 2023 2024 2023 FY 24 vs. FY 23 ($MM’s) Sales Adj. Operating Profit & $8,319 $8,280 Margin (1)
Slide 12: Fresh Pork Strategy is Working
Fresh Pork Strategy is Working Q4 24 vs. Q4 23 ($MM’s) Adj. Operating Profit Sales & Margin (1) $2,002 $1,836 • + 9.1% $70 • 57.0% • Volume (1.2%) • 110 bps margin • Price +10.4% 3.5% $45 expansion 2.4% 2024 2023 2024 2023 FY 24 vs. FY 23 ($MM’s) Sales Adj. Operating Profit & $7,873 Margin (1) $7,83
Slide 13: Hog Production Has Demonstrated Rapid Turnaround
Hog Production Has Demonstrated Rapid Turnaround Q4 24 vs. Q4 23 ($MM’s) Sales Adj. Operating Profit & Margin (1) $782 $819 • (4.5%) • + 93.8% (1.0%) (15.9%) ($8) ($131) 2024 2023 2024 2023 FY 24 vs. FY 23 ($MM’s) Sales Adj. Operating Profit & $3,317 Margin (1) $3,002 • (9.5%) (5.0%) (22.8%) • + 80.
Slide 14: Strong Financial Position Creates Operational Flexibility
Strong Financial Position Creates Operational Flexibility Disciplined Ratio of Net Debt to Adjusted EBITDA (1) Capital Allocation Capital 2.2x Allocation Strategy 0.8x $916MM Drive Growth Continue to invest in product innovation Net Cash Flow from Continuing and marketing to drive profitable growth
Slide 15: 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 16: Q&A
Q&A
Slide 17: Appendix
Smithfield. Good food. Responsibly: Appendix 1_7—
Slide 18: Adjusted Net Income Reconciliation
Adjusted Net Income Reconciliation T hree Months Ended T welv e Months Ended Decem ber 29, Decem ber 31, Decem ber 29, Decem ber 31, 2024 2023 2024 2023 $ millions Net incom e from continuing operations attributable to Sm ithfield $211 ($139) $7 83 ($138) Employ ee Retention Tax Credits - - (87 ) -
Slide 19: Adjusted EBITDA and Net Debt to Adjusted EBITDA Reconciliation
Adjusted EBITDA and Net Debt to Adjusted EBITDA Reconciliation Twelve Months Ended December 29, 2024 December 31, 2023 $ millions Net income (loss) from continuing operations $ 798 $(133) Interest expense, net 66 76 Income tax expense (benefit) 271 (41) Depreciation and amortization 339 427 EBITDA f
Slide 20: Adjusted Operating Profit Reconciliation
Adjusted Operating Profit Reconciliation $ millions Packaged Hog Three Months Ended December 29, 2024 Fresh Pork Other (1) Corporate (2) Unallocated (3) Consolidated Meats Production Operating profit (loss) $ 313 $ 70 $ (8) $ 17 $ (62) $ 4 $ 335 West Coast Exit and Hog Production Reform - - - - - (2
Slide 21: Adjusted Operating Profit Reconciliation
Adjusted Operating Profit Reconciliation $ millions Packaged Hog Twelve Months Ended December 29, 2024 Fresh Pork Other (1) Corporate (2) Unallocated (3) Consolidated Meats Production Operating profit (loss) $ 1,168 $ 266 $ (144) $ 35 $ (153) $ (55) $ 1,118 Employee retention tax (38) (41) (8) - - -
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ai il “60 000 We mate more than good Lood We mate a dillerence. “WE JE DO- SA),