Seaboard Corporation Reports $9.1 Billion in Net Sales for Fiscal Year 2024

Seaboard Corporation reported a net sales figure of $9.1 billion for the fiscal year ending December 31, 2024, a decrease of approximately 4.9% from $9.6 billion in 2023. The decline was primarily attributed to a significant drop in sales within the Commodity Trading and Milling (CT&M) segment, which saw a reduction of $422 million due to lower commodity prices. Operating income for the year was $156 million, a notable recovery from an operating loss of $87 million in the previous year, driven largely by improved margins in the Pork segment, which benefited from lower feed costs and higher sales prices.

In terms of strategic developments, Seaboard restructured its reportable segments in 2024, separating the Liquid Fuels segment from the Pork segment, while the Sugar and Alcohol segment was absorbed into the "All Other" category. This reorganization reflects the company's response to changing economic conditions, particularly in Argentina, which have diminished the impact of the Sugar and Alcohol segment on overall performance. The company also continued to invest heavily in capital expenditures, totaling $511 million, with significant allocations to the Pork and Marine segments for renewable biogas recovery projects and new vessel constructions, respectively.

Operationally, Seaboard's Pork segment reported net sales of $2.1 billion, an increase of 13% from the previous year, driven by higher volumes and prices of pork products. The CT&M segment, however, faced challenges, with net sales dropping to $4.7 billion, reflecting a competitive trading environment and fluctuating commodity prices. The Marine segment generated $1.4 billion in sales, while the Liquid Fuels segment reported $556 million, both of which were impacted by market conditions and operational efficiencies. The company’s total employee headcount stood at approximately 14,000 as of December 31, 2024, with a significant portion engaged in the Pork segment.

Looking ahead, Seaboard's management expressed cautious optimism for 2025, anticipating profitability across its segments despite the inherent volatility in commodity prices and market conditions. The company plans to continue leveraging its strong liquidity position, with cash and short-term investments totaling nearly $1.2 billion, to support ongoing operations and strategic investments. However, management acknowledged the challenges posed by fluctuating market dynamics, regulatory changes, and the potential impacts of geopolitical events on its global operations.