Smithfield Foods Reports 9.5% Revenue Growth to $3.771 Billion in Q1 FY 2025

Smithfield Foods, Inc. reported a significant increase in financial performance for the first quarter of fiscal year 2025, ending March 30, 2025. The company achieved total sales of $3.771 billion, a 9.5% increase from $3.444 billion in the same period last year. Gross profit rose to $510 million, up 40.9% from $362 million, while net income from continuing operations attributable to Smithfield increased to $224 million, compared to $114 million in the prior year, reflecting a 96.1% growth. The earnings per share for continuing operations also improved to $0.57 from $0.30.

The financial results were bolstered by strategic operational changes and market conditions. Notably, the Packaged Meats segment saw a slight sales increase of 1.2% to $2.024 billion, driven by a 5.7% rise in average sales prices, although sales volume decreased by 4.2%. The Fresh Pork segment's sales increased by 4.9% to $2.033 billion, primarily due to a 4.8% rise in average sales prices amid lower pork supply. The Hog Production segment experienced a substantial 32% increase in sales to $932 million, attributed to higher market prices and the sale of commercial hog inventories to new partners, Murphy Family Farms and VisionAg.

In terms of operational developments, Smithfield Foods has undertaken significant restructuring initiatives, including a workforce reduction that resulted in $9 million in termination benefits. The company also completed the acquisition of a dry sausage production facility in Nashville, Tennessee, for $38 million, aimed at expanding its value-added packaged meats business. Additionally, the carve-out of its European operations to WH Group in August 2024 has been reported as discontinued operations, impacting the comparative financial results.

Looking ahead, Smithfield Foods maintains a strong liquidity position with $928 million in cash and cash equivalents and $2.303 billion available under credit facilities. The company plans to invest between $400 million and $500 million in capital expenditures for fiscal year 2025, focusing on profit improvement projects and operational efficiencies. The management expressed confidence in their growth strategies, which include optimizing hog production operations and enhancing product offerings to meet evolving consumer preferences.