Smithfield Foods' Strategy Execution and Agile Business Model Drive Strong Second Quarter Results

Core Viewpoint - Smithfield Foods, Inc. reported strong financial results for the second quarter of fiscal 2025, demonstrating resilience and agility in a dynamic macroeconomic environment, with an increase in sales and profitability across its segments [4][5]. Financial Highlights - Second Quarter Fiscal 2025: - Net sales reached $3.8 billion, an increase of 11.0% compared to the second quarter of 2024 [6]. - Operating profit was $260 million, with an adjusted operating profit of $298 million [6]. - Packaged Meats segment sales were $2.079 billion, up 6.9% year-over-year [5]. - Fresh Pork segment sales increased to $2.080 billion, a 5.0% rise [5]. - Hog Production segment sales grew by 8.4% to $840 million [5]. - First Six Months Fiscal 2025: - Total net sales amounted to $7.6 billion, reflecting a 10.2% increase from the first half of 2024 [6]. - Operating profit for the first half was $582 million, with an adjusted operating profit of $624 million [6]. - Packaged Meats operating profit was $567 million, down 7.9% from the previous year [8]. - Fresh Pork operating profit decreased by 30.4% to $117 million [8]. - Hog Production segment saw a significant increase in profitability, with adjusted operating profit rising to between $0 million to $100 million for the year [16]. CEO Perspective - The CEO highlighted the company's strong performance and improved outlook for the Hog Production segment, emphasizing the ability to invest in growth strategies and generate long-term shareholder value [4][5]. Financial Position - As of June 29, 2025, Smithfield had $3.225 billion in available liquidity, including $928 million in cash and cash equivalents [10]. - The company ended the second quarter with a net debt to adjusted EBITDA ratio of 0.7x [10]. Dividend Update - The company announced a quarterly dividend of $0.25 per share, maintaining an annual dividend rate of $1.00 per share for fiscal 2025 [12]. FY 2025 Outlook - Smithfield raised its full-year adjusted operating profit outlook, reaffirming total company sales to increase in the low-to-mid-single-digit percent range compared to fiscal year 2024 [16]. - The company also reaffirmed capital expenditures between $400 million to $500 million for the year [16].