Financial Performance - Fiscal Year 2024 net sales reached 1.1 billion and an adjusted operating profit of 258 million in 2023[4] - For the twelve months ended December 29, 2024, net income from continuing operations was 133 million in the prior year[25] - The company reported a net income of 23 million in the previous year[30] - Operating profit for the twelve months ended December 29, 2024, was 56 million in the prior year[25] - Adjusted operating profit for the twelve months ended December 29, 2024, was 258 million in the previous year, indicating a significant improvement[44] Segment Performance - Packaged Meats segment achieved an operating profit of 266 million in fiscal 2024, compared to 600 million increase, although it reported an operating loss of 1.05 billion to 916 million in cash flows from operating activities and ended fiscal year 2024 with a net debt to Adjusted EBITDA ratio of 0.8x[7] - The company had 943 million in cash and cash equivalents[7] - Cash flows from operating activities of continuing operations for the twelve months ended December 29, 2024, were 688 million in the previous year[30] - Cash, cash equivalents, and restricted cash at the end of the period (including discontinued operations) increased to 687 million in the previous year[31] Future Projections - For Fiscal Year 2025, the company expects total adjusted operating profit to be between 1.3 billion, with sales growth projected in the low-to-mid-single-digit percent range compared to fiscal year 2024[12] - Capital expenditures for fiscal year 2025 are projected to be between 500 million, focusing on profit improvement and maintenance projects[12] - A quarterly cash dividend of 1.00 per share for fiscal year 2025[8] Balance Sheet Highlights - Total assets decreased to 13,317 million a year earlier, indicating a reduction of 16.9%[27] - The company’s total current liabilities decreased to 2,450 million a year earlier, a reduction of 30.3%[27] - The company’s additional paid-in capital decreased to 4,152 million in the previous year[27] - The total debt and finance lease obligations decreased to 2,033 million in 2023[42] Profitability Metrics - The company reported a net income margin from continuing operations of 5.6% for the twelve months ended December 29, 2024, compared to a loss margin of 0.9% in 2023[39] - The operating profit margin for the three months ended December 29, 2024, was 8.5%, compared to a margin of (2.9)% for the same period in 2023[44] - The company reported an operating profit margin of 7.9% for the twelve months ended December 29, 2024, compared to 1.8% for the previous year[44] - The company achieved an adjusted operating profit margin of 7.2% for the twelve months ended December 29, 2024, compared to 1.8% in the previous year[44] Other Financial Impacts - The company recognized 86 million in employee retention tax credits during the second quarter of 2024, impacting cost of sales and SG&A[33] - The company incurred litigation charges of 196 million during the three months ended December 31, 2023, impacting overall profitability[45] - Incremental costs from property destruction amounted to 7 million during the twelve months ended December 29, 2024[44]
Smithfield Foods(SFD) - 2024 Q4 - Annual Results