Partnership with City of Sioux Falls and State of South Dakota Represents Defining Investment in American AgricultureSIOUX FALLS, S.D., Feb. 16, 2026 (GLOBE NEWSWIRE) -- Smithfield Foods, Inc. (Nasdaq: SFD), an American food company and an industry leader in value-added packaged meats and fresh pork, today announced it has initiated the approval process to build a new state-of-the-art packaged meats and fresh pork processing facility in Sioux Falls, South Dakota. The new facility, which is subject to permit ...

WH Group (0288.HK) Conference Call Summary Company Overview - **Company**: WH Group - **Industry**: Consumer & Leisure - **Date of Call**: January 9, 2026 Key Takeaways 1. 4Q25 Performance - **China Business**: - Packaged meat business expected to see low single-digit percentage (LSD%) volume growth with stable unit profits - Fresh pork anticipated to experience a small year-over-year (yoy) profit decline due to intense competition and weak demand - Hog segment projected to incur a small loss in 4Q25 - Poultry segment showed recovery, registering million USD profits - **US Business**: - Strong performance driven by solid hog production - Management incentives expenses reduced by USD 20-30 million, contributing to significant operating profit (OP) growth - **Europe Business**: - Gradual improvements noted with strong profit growth attributed to packaged meat business and USD 20 million savings at headquarters [2][7][10][12] 2. 2026 Outlook - **China Business**: - Management confident in achieving mid-single-digit percentage (MSD%) yoy volume growth for packaged meat, supported by new channels - Improved profitability expected across fresh meat, hog production, and poultry production - **US Business**: - Healthy OP growth anticipated, driven by resilient hog production and better pricing strategies in packaged and fresh meat - **Europe Business**: - Management targets double-digit percentage (DD%) yoy OP growth, with fewer external challenges and slight improvements in fresh hog and hog production [2][10][12] 3. Dividend Payout Policy - Management optimistic about long-term shareholder returns, planning to increase the recurring payout ratio from a baseline of 50% due to strong past performance and a healthy balance sheet [2][15] 4. Financial Projections - **Revenue Forecast**: - 2025: USD 25.94 billion - 2026: USD 27.84 billion - **EBITDA Forecast**: - 2025: USD 3.16 billion - 2026: USD 3.25 billion - **EPS Forecast**: - 2025: USD 0.11 - 2026: USD 0.12 - **P/E Ratio**: - 2025: 6.2x - 2026: 8.9x - **Dividend Yield**: - 2025: 9.1% - 2026: 6.7% [20] 5. Risks and Challenges - **US Business Risks**: - Potential slowdown in economic activity affecting consumer spending and demand - Margin pressures from increased promotional spending and higher raw material costs - **China Business Risks**: - Volatility in live hog prices and inflation risks in commodities - Food safety issues could impact consumer trust and financials negatively [18][19] 6. Strategic Initiatives - **Emerging Channels**: - 20% of sales volume in 2025, with a growth rate of approximately 30% yoy - Focus on innovative products and collaborations with membership retailers like Sam's Club and Costco - **CAPEX Plans**: - Management expects USD 150-200 million CAPEX for normalization in the US and USD 400-450 million in Europe [11][13][17] 7. M&A Activity - Acquisition of German packaged meat producer Wolf announced in October 2025, aimed at increasing profitability through existing supply chain synergies [17] Conclusion WH Group is positioned for healthy growth in 2026 across its business segments, with a strong focus on shareholder returns and strategic initiatives to enhance profitability. However, the company faces several risks that could impact its performance, particularly in the US and China markets.

Core Thesis - Smithfield Foods, Inc. (SFD) is undervalued by the market despite its transformation into a stable, higher-margin packaged food company, trading at 10-11x forward earnings compared to peers like Hormel at 17x and Tyson at 14-15x [2][4] Business Transformation - The core business of SFD is Packaged Meats, which generates 75% of profits through brands such as Armour, Smithfield, and Eckrich, benefiting from SKU rationalization and expansion into higher-growth categories [3] - Fresh Pork has been transformed from a breakeven processor into a stable profit center, while Hog Production is being reduced through outsourcing to mitigate earnings volatility [4] Financial Position - SFD has a disciplined leadership team focused on capital allocation, a new dividend, low leverage, and a long-term plan to repurchase WH Group's majority stake, positioning itself as a consistent consumer packaged goods (CPG) operator [4] Market Dynamics and Catalysts - Near-term catalysts include a potential "beat and raise" setup due to conservative management guidance and favorable protein dynamics, with beef prices at record highs driving consumer trade-down to pork [5] - As the business mix shifts towards high-margin packaged foods, earnings are expected to stabilize, encouraging a re-rating towards CPG multiples, with a valuation target of 13-14x 2026 EPS of $2.50, indicating a 40% upside to $32-$35 [5]

Summary of Smithfield Foods Conference Call Company Overview - **Company**: Smithfield Foods (NasdaqGS:SFD) - **Industry**: Pork production and processing - **Founded**: 1936 in Smithfield, Virginia - **Business Model**: Vertically integrated pork producer and processor, major supplier of fresh and packaged meat products in the U.S. and globally [3][4] Key Business Segments - **Packaged Meats**: - Produces approximately 3 billion pounds of packaged meats annually across 25 categories, with 80% being pork-based and 20% a combination of beef and poultry [5][6] - Supports 14 different brands, down from 40 brands six to seven years ago, focusing on national, regional, and value brands [6][7] - **Fresh Pork**: - Harvests about 30 million hogs annually, with a focus on cost structure improvements through automation and technology [8][9] - Currently about 32%-33% vertically integrated, with plans to reduce hog production to about 10 million over the next two to three years [10][11] Demand and Market Position - **Consumer Demand**: - Demand for protein remains strong despite inflationary pressures, with Smithfield positioned across various price points to cater to different consumer segments [18][19] - Approximately 40% of retail business consists of private label products, allowing flexibility in pricing and consumer substitution [19][20] - **Market Trends**: - Pork is seen as a versatile protein option, available for all meal occasions, which supports its demand against higher-priced beef [23] Supply Chain and Pricing Outlook - **Hog Prices**: - Current hog cycle is balanced, with no significant expansion expected in the industry, leading to stable prices [27][28] - Anticipated moderation in hog prices for 2026, which should positively impact profitability and margins in the packaged meats business [31][49] Strategic Initiatives - **Product Mix and Innovation**: - Shift from low-margin products to higher-margin, everyday use products, with a focus on innovation in flavor profiles and product offerings [33][36] - Continuous improvement in cost structures and distribution networks to enhance operational efficiency [38][41] - **Vertical Integration Benefits**: - Vertical integration allows for better control over supply and cost structures, ensuring a steady supply of raw materials for packaged meats [42][44] Financial Outlook and Capital Allocation - **Capital Expenditure**: - Plans to invest approximately $400 million annually, with half allocated to automation and technology [65] - **M&A Strategy**: - Focused on disciplined acquisitions that solve specific operational challenges rather than expanding brand portfolio unnecessarily [66][67] - **2026 Outlook**: - Optimistic about growth in 2026, with expectations for improved margins and profitability across all segments [49][61] Additional Insights - **Health and Biosecurity**: - Significant improvements in herd health and biosecurity measures have been implemented, enhancing overall productivity [52][53] - **Market Adaptability**: - The company has shown resilience in adapting to market changes, including shifts in consumer preferences and external economic pressures [56][58] This summary encapsulates the key points discussed during the Smithfield Foods conference call, highlighting the company's strategic direction, market positioning, and financial outlook for the coming years.

Core Insights - Smithfield Foods, the largest U.S. pork processor, reported increased quarterly revenue and profits due to rising sales prices, leading to a 2.7% increase in share price after raising its annual profit forecast [1][4]. Financial Performance - Total sales increased by 12.4% to $3.75 billion for the quarter ending September 28, compared to the previous year [3]. - The company earned a quarterly profit of 58 cents per share on an adjusted basis from continuing operations, up from 53 cents a year earlier [3]. Sales Price and Volume - Average sales prices for packaged meat rose by 9.2%, while fresh pork product prices jumped by 12% due to lower U.S. production and strong consumer demand [2]. - Sales volumes remained steady despite the price increases [2]. Operating Profit and Forecast - The company raised its annual adjusted operating profit outlook to between $1.23 billion and $1.33 billion, up from a previous forecast of $1.15 billion to $1.35 billion [4]. - Operating profit in the largest packaged meats segment fell by 5.7%, and profits in the fresh pork division dropped approximately 64% [5]. Market Conditions - The U.S. hog herd was reported to be 1% smaller at the start of September compared to the previous year, impacting supply [2]. - Reduced U.S. exports of certain byproducts to China limited gains in average sales prices for fresh pork, with tariffs on most products shipped to China reaching 57% [5][6].

Financial Performance - Smithfield achieved a record third quarter adjusted operating profit of $310 million, an increase of 8.5% year-over-year, with an 8.3% adjusted operating profit margin[22] - The company's sales increased by 12.4% to $3,747 million in the third quarter of 2025, compared to $3,334 million in the same period of 2024[101] - Adjusted net income increased by 13.7% to $230 million, compared to $203 million in the prior year[101] - Adjusted EPS increased by 9.4% to $0.58, compared to $0.53 in the prior year[101] Segment Performance - Packaged Meats segment delivered its second-highest third-quarter adjusted operating profit despite a challenging market[22] - Packaged Meats sales increased by 9.1%, driven by a 9.2% increase in price, with volume remaining relatively flat[109] - Fresh Pork sales increased by 12.0% due to a 12.0% increase in price, while volume remained relatively flat[117] - Hog Production saw a 119.8% increase in adjusted operating profit[124] Strategic Initiatives - The company is focused on increasing profits in the Packaged Meats segment through enhanced product mix and volume growth[27] - Smithfield aims to achieve a best-in-class cost structure in its Hog Production segment through genetic transformation, herd health improvements, and procurement and nutrition savings[27] - The company is optimizing operations by delivering efficiencies across manufacturing, supply chain, distribution, procurement, and SG&A[27] - Smithfield anticipates paying annual dividends of $1.00 per share[5, 23]

Core Insights - Smithfield Foods, Inc. reported strong financial results for the third quarter of fiscal 2025, achieving record operating profit despite challenging market conditions [4][5][7]. Financial Highlights - For the third quarter, net sales reached $3.7 billion, reflecting a 12.4% increase compared to the same period in 2024 [7]. - Operating profit was $310 million, with an operating margin of 8.3% [7]. - Packaged Meats segment generated an operating profit of $226 million, with an operating profit margin of 10.8% [7]. - For the first nine months of fiscal 2025, net sales totaled $11.3 billion, up 10.9% from the previous year [7]. Segment Performance - Packaged Meats sales increased by 9.1% to $2.09 billion in the third quarter [6]. - Fresh Pork sales rose by 12.0% to $2.185 billion [6]. - Hog Production segment sales grew by 10.1% to $813 million [6]. - Total segment sales for the third quarter amounted to $5.22 billion, a 10.5% increase year-over-year [6]. CEO Commentary - The CEO emphasized the company's disciplined execution of strategies, which led to sales growth and record operating profit [4]. - The company benefited from vertical integration, with higher profits in the Hog Production segment offsetting raw material cost challenges [5]. Financial Position - As of September 28, 2025, the company had $3.069 billion in available liquidity, including $773 million in cash [10]. - The net debt to adjusted EBITDA ratio was reported at 0.8x [10]. Dividend Information - The company paid dividends of $0.25 per share in April, May, and August 2025, with an anticipated annual dividend rate of $1.00 per share for fiscal year 2025 [12]. Fiscal Year 2025 Outlook - The company raised its full-year adjusted operating profit outlook to between $1.225 billion and $1.325 billion [16]. - Adjusted operating profit for the Packaged Meats segment is now projected to be between $1.060 billion and $1.110 billion [16].

Financial Results Announcement - Smithfield Foods, Inc. will release its financial results for the third quarter of fiscal 2025 before market open on October 28, 2025 [1] - A conference call to discuss the financial results will be held at 9:00 a.m. Eastern Time on the same day [1] Conference Call Details - A recorded replay of the conference call will be available approximately three hours after its conclusion [2] - The replay can be accessed online and via telephone, with specific dial-in numbers provided [2] Company Overview - Smithfield Foods, Inc. is a leading American food company specializing in packaged meats and fresh pork products [3] - The company has a diverse brand portfolio and maintains strong relationships with U.S. farmers and customers [3]

Group 1 - Smithfield Foods, Inc. announced a secondary public offering of 19,531,698 shares at a price of $23.25 per share, with an additional option for underwriters to purchase up to 2,929,754 shares [1] - The offering is expected to close on September 8, 2025, subject to customary closing conditions [1] - The company will not receive any proceeds from the sale of shares as it is solely conducted by the principal shareholder, SFDS UK Holdings Limited [1] Group 2 - Morgan Stanley, BofA Securities, and Barclays are acting as joint lead book-running managers for the offering, with Goldman Sachs, Citigroup, and BNP Paribas as joint book-running managers [2] - A registration statement for the offering has been filed and declared effective by the U.S. Securities and Exchange Commission [3] Group 3 - Smithfield Foods is recognized as an industry leader in value-added packaged meats and fresh pork, with a diverse brand portfolio and strong relationships with U.S. farmers and customers [6]

Core Viewpoint - Smithfield Foods, Inc. is launching a secondary public offering of 16,000,000 shares of common stock, with no proceeds going to the company itself [1] Group 1: Offering Details - The offering will be conducted by SFDS UK Holdings Limited, the principal shareholder of Smithfield Foods [1] - The underwriters will have a 30-day option to purchase up to 2,400,000 additional shares at the public offering price [1] - Smithfield Foods will not sell any shares in this offering and will not receive any proceeds from the sale [1] Group 2: Underwriters - Morgan Stanley, BofA Securities, and Barclays are acting as joint lead book-running managers for the proposed offering [2] Group 3: Regulatory Information - A registration statement, including a prospectus, has been filed with the SEC but is not yet effective, meaning securities cannot be sold until it becomes effective [4] - The offering will be made only by means of a prospectus, which will be available for free on the SEC website and from the underwriters [3]