Smithfield Foods (SFD) investor relations material

Executive summary

• Achieved record third-quarter adjusted operating profit of $310 million, up 8.5% year over year, with an 8.3% margin, and net sales up 12.4% to $3.75 billion.

• Packaged Meats segment delivered its second-highest third-quarter profit on record, with operating profit of $226 million and a 10.8% margin, despite higher raw material costs.

• Hog Production segment's adjusted operating profit more than doubled year over year to $89 million, benefiting from higher hog prices and operational improvements.

• Net income from continuing operations for Q3 was $252 million, up 20.5% year over year, with EPS from continuing operations at $0.63.

• Raised the midpoint and tightened the range of fiscal 2025 adjusted operating profit outlook, reflecting strong execution and strategy adherence.

Financial highlights

• Adjusted net income from continuing operations was $230 million, up 13.7% year over year; adjusted EPS rose 9.4% to $0.58 per share.

• Adjusted EBITDA for Q3 was $398 million (10.6% margin); net debt to adjusted EBITDA ratio at 0.8x.

• Gross profit for Q3 was $479 million, with a gross margin of 12.8%.

• Cash and equivalents at quarter-end were $773 million, with total liquidity of $3.1 billion.

• Annual dividend expected at $1 per share, with $0.75 paid year to date.

Outlook and guidance

• Fiscal 2025 adjusted operating profit outlook raised to $1.225–$1.325 billion, with segment guidance: Packaged Meats $1.06–$1.11 billion, Fresh Pork $150–$200 million, Hog Production $125–$150 million.

• Total company sales expected to increase low to mid-single digits year over year, excluding certain Hog Production sales.

• Capital expenditures projected at $350–$400 million; effective tax rate expected at 23–25%.

• Annual dividend rate for 2025 anticipated at $1.00 per share.

• Management expects continued growth in Packaged Meats and ongoing cost optimization in Hog Production.