Smithfield Foods, Inc., an American food company and an industry leader in value-added packaged meats and fresh pork, reported results for its fourth quarter and fiscal year ended December 29, 2024. The Company also provided its financial outlook for fiscal 2025 and announced a quarterly dividend of $0.25 per share.
Full Year Fiscal 2024 Financial Highlights
- Net sales of $14.1 billion
- Operating profit of $1.1 billion; adjusted operating profit of $1.0 billion
- Operating margin of 7.9%; adjusted operating margin of 7.2%
- Packaged Meats segment operating profit of $1.2 billion; adjusted operating profit of $1.1 billion – both records
- Packaged Meats segment operating profit margin of 14.0%; adjusted operating profit margin of 13.6%, up 70 basis points from 12.9% in fiscal 2023
- Net income from continuing operations per common share attributable to Smithfield of $2.06; adjusted net income from continuing operations per common share attributable to Smithfield of $1.88
Fourth Quarter Fiscal 2024 Financial Highlights
- Net sales of $4.0 billion
- Operating profit of $335 million; adjusted operating profit of $315 million, up from adjusted operating profit of $230 million in the fourth quarter of 2023
- Operating margin of 8.5%; adjusted operating margin of 8.0%
- Packaged Meats segment operating profit of $313 million; operating profit margin of 12.7%
- Net income from continuing operations per common share attributable to Smithfield of $0.56; adjusted net income from continuing operations per common share attributable to Smithfield of $0.52
“We are excited to return to the U.S. public markets as a leading packaged meats company with strong profitability and a solid balance sheet to support our future growth,” said Smithfield President and CEO Shane Smith. “In fiscal 2024, we delivered operating profit of more than $1.1 billion and adjusted operating profit of $1.0 billion, up nearly four times from adjusted operating profit of $258 million in 2023. This strong rebound reflects our resilient business model, led by another year of record profits in our Packaged Meats segment, our third consecutive year of profit growth in our Fresh Pork segment and a more than $600 million increase in Hog Production segment profitability.”
“Looking ahead, we are focused on continuing to execute the strategies that have more than doubled our Packaged Meats segment operating profit over the past ten years as well as our strategies to further optimize our Fresh Pork and Hog Production operations. We have built a solid foundation that positions us well for the future with a strong balance sheet and ample cash flow to support our growth strategies and increase value for our shareholders.”
Shane Smith, President and Chief Executive Officer, Smithfield Foods
Review of Financial Results
Results of Operations
We recently removed income from equity method investments from the measure of segment profit reviewed by our Chief Operating Decision Maker. Accordingly, the historical segment results presented herein have been retrospectively adjusted to remove income from equity method investments.
Financial Position
As of December 29, 2024, we had $3,245 million of available liquidity consisting of $943 million in cash and cash equivalents and $2,303 million of availability under our committed credit facilities. We generated $916 million in cash flows from operating activities and ended fiscal year 2024 with a net debt to Adjusted EBITDA ratio of 0.8x.
Dividend Update
On March 24, 2025, our Board declared a quarterly cash dividend of $0.25 per share of common stock, which is payable on April 22, 2025, to shareholders of record on April 10, 2025. We anticipate the remaining quarterly dividends in fiscal year 2025 will be $0.25 per share, resulting in an annual dividend rate in fiscal year 2025 of $1.00 per share. The declaration of dividends is subject to the discretion of our Board and depends on various factors, including our net income, financial condition, cash requirements, business prospects, and other factors that our Board deems relevant to its analysis and decision making.
FY 2025 Outlook
For Fiscal Year 2025, the Company expects:
- Packaged Meats segment adjusted operating profit of between $1,050 million to $1,150 million.
- Fresh Pork segment adjusted operating profit of between $150 million to $250 million.
- Hog Production segment adjusted operating (loss)/profit of between $(50) million to $50 million.
- Total Company adjusted operating profit of between $1,100 million to $1,300 million.
- Total Company sales to increase in the low-to-mid-single-digit percent range compared to fiscal year 2024.
- Capital expenditures of between $400 million to $500 million. Capital expenditures include investments in profit improvement projects as well as projects for maintenance and repair.
- An effective tax rate of between 23.0% and 25.0%.