Smithfield Foods(SFD) - 2025 Q1 - Quarterly Report

Financial Performance - Sales for the three months ended March 30, 2025, were $3,771 million, an increase of 9.5$3,444 million for the same period in 2024[8] - Gross profit for the same period was $510 million, up 40.9$362 million year-over-year[8] - Net income from continuing operations attributable to Smithfield was $224 million, representing a 96.5$114 million in the prior year[8] - Comprehensive income attributable to Smithfield for the three months ended March 30, 2025, was $267 million, compared to$105 million for the same period in 2024[9] - Operating profit for the consolidated entity was $321 million for Q1 2025, compared to$163 million in Q1 2024, marking a significant increase of approximately 96.3%[35] - Other comprehensive income for the three months ended March 30, 2025, was $43 million, compared to a loss of$24 million for the same period in 2024[99] Assets and Equity - Total assets as of March 30, 2025, were $11,146 million, a slight increase from$11,054 million at the end of 2024[12] - Total shareholders' equity increased to $6,225 million as of March 30, 2025, compared to$5,834 million at the end of 2024[12] - Cash and cash equivalents at the end of the period were $928 million, down from$943 million at the end of 2024[12] - Accounts receivable increased to $680 million as of March 30, 2025, from$494 million as of December 29, 2024, indicating a rise of 37.6%[57] - Total inventories decreased slightly to $2,385 million as of March 30, 2025, from$2,412 million as of December 29, 2024[59] Cash Flow and Capital Expenditures - The company reported net cash flows used in operating activities of continuing operations of $(166) million for the three months ended March 30, 2025[14] - Capital expenditures for the same period were$79 million, compared to $92 million in the prior year[14] - The company completed its IPO on January 29, 2025, issuing 26,086,958 shares at$20.00 per share, raising net proceeds of $236 million[92] Segment Performance - The Packaged Meats segment generated sales of$2,024 million in Q1 2025, compared to $1,999 million in Q1 2024, reflecting a year-over-year increase of about 1.3$2,033 million in Q1 2025, up from $1,938 million in Q1 2024, indicating a growth of approximately 4.9$932 million in Q1 2025, compared to $706 million in Q1 2024, representing an increase of approximately 32$266 million in Q1 2025, compared to $286 million in Q1 2024, showing a decline of about 7$82 million in Q1 2025, down from $110 million in Q1 2024, showing a decrease of 25.5$38 million on July 30, 2024, to enhance its value-added packaged meats business[45] - The carve-out and distribution of European operations to WH Group was completed on August 26, 2024, marking a strategic shift in geographical focus[39] - The company will supply approximately 3.2 million hogs annually to Murphy Family Farms as part of its restructuring strategy[52] Derivative Instruments and Hedging - As of March 30, 2025, the total fair value of derivative instruments was $47 million, an increase from$15 million on December 29, 2024[63] - The notional volume of open derivative instruments designated in cash flow hedging relationships included 722,379,000 pounds of lean hogs and 37,180,000 bushels of corn[68] - For the three months ended March 30, 2025, the total derivative loss recognized in sales was $2 million, compared to a loss of$12 million for the same period in 2024[74] - The company recognized pre-tax gains of $45 million on commodity contracts in other comprehensive income for the three months ended March 30, 2025[68] Legal and Contingent Liabilities - The company reported contingent liabilities of$141 million related to litigation matters[122] - The company made aggregate payments of $194 million to settle class claims in antitrust price-fixing litigation[124] - The company intends to vigorously defend against ongoing antitrust litigation claims, including those related to wage-fixing violations[127]