SMITHFIELD FOODS REPORTS STRONG YEAR-OVER-YEAR PROFIT GROWTH IN THE FIRST QUARTER OF FISCAL 2025
Smithfield Foods reported strong financial results for Q1 fiscal 2025, with net sales reaching $3.8 billion and operating profit soaring 97% year-over-year to $321 million. The company's operating margin improved to 8.5% from 4.7% in Q1 2024.
Key segment performance includes:
- Packaged Meats: $266 million operating profit with 13.1% margin
- Fresh Pork: $82 million operating profit
- Hog Production: Significant turnaround from -$174M to $1M
The company maintains strong liquidity of $3.23 billion, including $928 million in cash. Smithfield reaffirmed its FY2025 outlook, projecting low-to-mid-single-digit sales growth and total adjusted operating profit between $1.1-1.3 billion. The quarterly dividend remains at $0.25 per share, targeting an annual rate of $1.00 per share for fiscal 2025.
Smithfield Foods ha riportato risultati finanziari solidi per il primo trimestre fiscale 2025, con vendite nette che hanno raggiunto 3,8 miliardi di dollari e un utile operativo cresciuto del 97% su base annua, arrivando a 321 milioni di dollari. Il margine operativo è migliorato passando dall'4,7% del primo trimestre 2024 all'8,5%.
Le performance chiave per segmento includono:
- Carni confezionate: utile operativo di 266 milioni di dollari con un margine del 13,1%
- Carne di maiale fresca: utile operativo di 82 milioni di dollari
- Produzione suini: significativo miglioramento da -174 milioni a 1 milione di dollari
L'azienda mantiene una forte liquidità di 3,23 miliardi di dollari, di cui 928 milioni in contanti. Smithfield ha confermato le previsioni per l'anno fiscale 2025, prevedendo una crescita delle vendite a una cifra bassa o media e un utile operativo totale rettificato compreso tra 1,1 e 1,3 miliardi di dollari. Il dividendo trimestrale resta a 0,25 dollari per azione, con un obiettivo di 1,00 dollaro per azione annuo per il 2025.
Smithfield Foods reportó sólidos resultados financieros en el primer trimestre fiscal de 2025, con ventas netas que alcanzaron los 3.8 mil millones de dólares y una ganancia operativa que se disparó un 97% interanual hasta 321 millones de dólares. El margen operativo de la compañía mejoró al 8.5% desde el 4.7% en el primer trimestre de 2024.
El desempeño clave por segmento incluye:
- Carnes empacadas: ganancia operativa de 266 millones de dólares con un margen del 13.1%
- Cerdo fresco: ganancia operativa de 82 millones de dólares
- Producción de cerdos: notable recuperación de -174 millones a 1 millón de dólares
La compañía mantiene una fuerte liquidez de 3.23 mil millones de dólares, incluyendo 928 millones en efectivo. Smithfield reafirmó sus perspectivas para el año fiscal 2025, proyectando un crecimiento de ventas de un solo dígito bajo a medio y una ganancia operativa ajustada total entre 1.1 y 1.3 mil millones de dólares. El dividendo trimestral se mantiene en 0.25 dólares por acción, con un objetivo anual de 1.00 dólar por acción para 2025.
Smithfield Foods는 2025 회계연도 1분기 강력한 재무 실적을 보고했으며, 순매출은 38억 달러에 달했고 영업이익은 전년 동기 대비 97% 급증하여 3억 2100만 달러를 기록했습니다. 회사의 영업이익률은 2024년 1분기 4.7%에서 8.5%로 개선되었습니다.
주요 부문별 실적은 다음과 같습니다:
- 포장육: 2억 6600만 달러 영업이익, 13.1% 마진
- 신선 돼지고기: 8200만 달러 영업이익
- 돼지 생산: -1억 7400만 달러에서 100만 달러로 큰 폭의 반전
회사는 현금 9억 2800만 달러를 포함하여 32억 3000만 달러의 강력한 유동성을 유지하고 있습니다. Smithfield는 2025 회계연도 전망을 재확인하며, 낮은 중간 단위의 단일 자릿수 매출 성장과 총 조정 영업이익 11억~13억 달러를 예상합니다. 분기 배당금은 주당 0.25달러로 유지되며, 2025 회계연도 연간 목표는 주당 1.00달러입니다.
Smithfield Foods a annoncé de solides résultats financiers pour le premier trimestre de l'exercice 2025, avec un chiffre d'affaires net atteignant 3,8 milliards de dollars et un bénéfice d'exploitation en hausse de 97 % en glissement annuel, à 321 millions de dollars. La marge d'exploitation de la société s'est améliorée, passant de 4,7 % au premier trimestre 2024 à 8,5 %.
Les performances clés par segment comprennent :
- Viandes emballées : bénéfice d'exploitation de 266 millions de dollars avec une marge de 13,1 %
- Porc frais : bénéfice d'exploitation de 82 millions de dollars
- Production porcine : redressement significatif, passant de -174 millions à 1 million de dollars
La société maintient une forte liquidité de 3,23 milliards de dollars, dont 928 millions en liquidités. Smithfield a confirmé ses prévisions pour l'exercice 2025, prévoyant une croissance des ventes à un chiffre bas à moyen et un bénéfice d'exploitation total ajusté entre 1,1 et 1,3 milliard de dollars. Le dividende trimestriel reste fixé à 0,25 dollar par action, visant un taux annuel de 1,00 dollar par action pour l'exercice 2025.
Smithfield Foods meldete starke Finanzergebnisse für das erste Quartal des Geschäftsjahres 2025, mit Nettoumsätzen von 3,8 Milliarden US-Dollar und einem operativen Gewinn, der im Jahresvergleich um 97 % auf 321 Millionen US-Dollar anstieg. Die operative Marge des Unternehmens verbesserte sich von 4,7 % im ersten Quartal 2024 auf 8,5 %.
Wichtige Segmentergebnisse umfassen:
- Verpacktes Fleisch: operativer Gewinn von 266 Millionen US-Dollar bei einer Marge von 13,1 %
- Frisches Schweinefleisch: operativer Gewinn von 82 Millionen US-Dollar
- Schweineproduktion: deutliche Wende von -174 Mio. auf 1 Mio. US-Dollar
Das Unternehmen hält eine starke Liquidität von 3,23 Milliarden US-Dollar, darunter 928 Millionen in bar. Smithfield bestätigte seine Prognose für das Geschäftsjahr 2025 und erwartet ein Umsatzwachstum im niedrigen bis mittleren einstelligen Bereich sowie einen bereinigten operativen Gesamtgewinn zwischen 1,1 und 1,3 Milliarden US-Dollar. Die Quartalsdividende bleibt bei 0,25 US-Dollar je Aktie, mit einem Ziel von 1,00 US-Dollar je Aktie jährlich für das Geschäftsjahr 2025.
- Operating profit increased 97% YoY to $321 million in Q1 2025
- Strong operating margin of 8.5%, up from 4.7% in Q1 2024
- Packaged Meats segment achieved 13.1% operating profit margin
- Hog Production segment showed significant recovery from previous losses
- Strong liquidity position with $3.23 billion available
- Low leverage with net debt to Adjusted EBITDA ratio of 0.7x
- Consolidated sales grew 9.5% YoY to $3.77 billion
- Maintaining quarterly dividend of $0.25 per share
- Packaged Meats operating profit declined 7% YoY
- Fresh Pork segment profit decreased 25.7% YoY
- Hog Production segment still near breakeven with just $1M profit
- Other segment revenue declined 8.6%
Insights
Smithfield delivered impressive 97% profit growth driven by Hog Production turnaround, maintaining strong liquidity and reaffirming positive 2025 outlook.
Smithfield Foods reported exceptional Q1 2025 results with operating profit surging
The company maintains a rock-solid balance sheet with
Management has reaffirmed its full-year 2025 guidance, projecting total adjusted operating profit of
Smithfield's profit surge stems from Hog Production recovery, while value-added segments face margin pressure despite sales growth.
Smithfield's Q1 2025 results reveal significant shifts in segment dynamics. While total operating profit grew
The Fresh Pork segment shows similar profit pressure, with operating profit dropping
The reaffirmed 2025 outlook projects low-to-mid-single-digit sales growth with substantial operating profit of
The
SMITHFIELD, Va., April 29, 2025 /PRNewswire/ -- Smithfield Foods, Inc. (Nasdaq: SFD), an American food company and an industry leader in value-added packaged meats and fresh pork, today reported results for its fiscal 2025 first quarter ended March 30, 2025.
First Quarter Fiscal 2025 Financial Highlights
- Net sales of
$3.8 billion - Operating profit of
$321 million $158 million 97% from the first quarter of 2024 - Adjusted operating profit of
$326 million $150 million 86% from the first quarter of 2024 - Operating margin of
8.5% ; up from4.7% in the first quarter of 2024 - Adjusted operating margin of
8.6% ; up from5.1% in the first quarter of 2024 - Packaged Meats operating profit of
$266 million 13.1% - Diluted earnings per share from continuing operations attributable to Smithfield of
$0.57 - Adjusted diluted earnings per share from continuing operations attributable to Smithfield of
$0.58
CEO Perspective
"Our first quarter fiscal 2025 operating profit of
"Our strong first quarter results mark a solid start to 2025. We have reaffirmed our outlook for the full year and we remain focused on executing our strategies to deliver higher operating profit in 2025. Our strong financial position provides us with the financial flexibility to invest in growth and return value to our shareholders."
Review of Financial Results
Results of Operations
Sales
Three Months Ended | |||||||
March 30, 2025 | March 31, 2024 | $ Change | % Change | ||||
(in millions) | |||||||
Sales by segment: | |||||||
Packaged Meats | $ 2,024 | $ 1,999 | $ 24 | 1.2 % | |||
Fresh Pork | 2,033 | 1,938 | 95 | 4.9 % | |||
Hog Production | 932 | 706 | 226 | 32.0 % | |||
Other | 104 | 114 | (10) | (8.6) % | |||
Total segment sales | 5,093 | 4,758 | 335 | 7.1 % | |||
Inter-segment sales eliminations: | |||||||
Fresh Pork | (787) | (735) | (52) | 7.1 % | |||
Hog Production | (535) | (578) | 43 | (7.5) % | |||
Total inter-segment sales eliminations | (1,322) | (1,314) | (9) | 0.7 % | |||
Consolidated sales | $ 3,771 | $ 3,444 | $ 327 | 9.5 % | |||
Operating Profit
Three Months Ended | |||||||
March 30, 2025 | March 31, 2024 | $ Change | % Change | ||||
(in millions) | |||||||
Packaged Meats | $ 266 | $ 286 | $ (20) | (7.0) % | |||
Fresh Pork | 82 | 110 | (28) | (25.7) % | |||
Hog Production | 1 | (174) | 175 | NM | |||
Other | 14 | (8) | 23 | NM | |||
Corporate expenses | (29) | (32) | 3 | (9.3) % | |||
Unallocated | (12) | (18) | 6 | (32.7) % | |||
Operating profit | $ 321 | $ 163 | $ 158 | 96.7 % | |||
Financial Position
As of March 30, 2025, we had
Dividend Update
On April 22, 2025, we paid a dividend of
FY 2025 Outlook
For Fiscal Year 2025, the Company reaffirms its outlook originally provided on March 25, 2025 as follows:
- Total Company sales to increase in the low-to-mid-single-digit percent range compared to fiscal year 2024.
- Packaged Meats segment adjusted operating profit of between
$1,050 million $1,150 million - Fresh Pork segment adjusted operating profit of between
$150 million $250 million - Hog Production segment adjusted operating (loss)/profit of between
$(50) million $50 million - Total Company adjusted operating profit of between
$1,100 million $1,300 million - Capital expenditures of between
$400 million $500 million - An effective tax rate of between
23.0% and25.0% .
Conference Call Information
A conference call to discuss the first quarter 2025 financial results is scheduled for today, April 29, 2025, at 9:00 a.m. Eastern Time. A live audio webcast of the conference call, together with related materials, will be available online at investors.smithfieldfoods.com or by dialing 844-539-3338 (international callers please dial 412-652-1269).
A recorded replay of the conference call is expected to be available approximately three hours after the conclusion of the call and can be accessed both online at investors.smithfieldfoods.com and by dialing 877-344-7529 (international callers please dial 412-317-0088). The pin number to access the telephone replay is 3120320. The replay will be available until May 6, 2025.
About Smithfield Foods
Smithfield Foods, Inc. (Nasdaq: SFD) is an American food company with a leading position in packaged meats and fresh pork products. With a diverse brand portfolio and strong relationships with
Non-GAAP Financial Measures
This press release includes certain financial information that is not presented in accordance with generally accepted accounting principles in
(1) Adjusted net income from continuing operations attributable to Smithfield is defined as net income (loss), excluding the effects of legal settlements (both gain and loss) and loss contingencies, transactions or events that are not part of our core business activities or are unusual in nature (whether gains or losses) and the tax effects of the foregoing items. We believe that adjusted net income from continuing operations attributable to Smithfield is a useful measure because it excludes the effects of discontinued operations, non-operating gains and losses and other items that are unusual in nature, infrequent in occurrence or otherwise stem from strategic decisions to restructure our operations. (2) Adjusted net income from continuing operations per common share attributable to Smithfield is defined as adjusted net income from continuing operations attributable to Smithfield divided by total outstanding common shares. (3) EBITDA from continuing operations is defined as earnings before interest, taxes, depreciation and amortization. We believe that EBITDA is a useful measure because it excludes the effects of financing and investing activities by eliminating interest and depreciation costs to provide a comparable year-over-year analysis. (4) Adjusted EBITDA from continuing operations is defined as EBITDA further adjusted for legal settlements (both gain and loss) and loss contingencies and transactions or events that are not part of our core business activities or are unusual in nature (whether gains or losses). We believe that adjusted EBITDA from continuing operations is a useful measure because it excludes the effects of discontinued operations, non-operating gains and losses and other items that are unusual in nature, infrequent in occurrence or otherwise stem from strategic decisions to restructure our operations. (5) Adjusted EBITDA margin from continuing operations is defined as adjusted EBITDA from continuing operations divided by total sales. We believe that adjusted EBITDA margin from continuing operations is a useful measure because it evaluates overall operating performance, ability to pursue and service possible debt opportunities and possible future investment opportunities. (6) Adjusted operating profit is defined as operating profit, excluding items that are unusual in nature, infrequent in occurrence or otherwise stem from strategic decisions to restructure our operations. (7) Adjusted operating profit margin is adjusted operating profit expressed as a percentage of revenues. We believe that adjusted net income from continuing operations attributable to Smithfield, adjusted net income from continuing operations per common share attributable to Smithfield, adjusted operating profit and adjusted operating profit margin provide a better understanding of underlying operating results and trends of established, ongoing operations of our business. (8) Net debt is defined as long-term debt and finance lease obligations, including the current portion, minus cash and cash equivalents. We believe that net debt is a useful measure because it helps to give investors a clear understanding of our financial position and is also used to calculate certain leverage ratios. (9)
Although these non-GAAP measures are frequently used by investors and securities analysts in their evaluations of companies in industries similar to ours, these non-GAAP measures have limitations as analytical tools, are not measurements of our performance under GAAP and should not be considered as alternatives to operating profit, net income or any other performance measures derived in accordance with GAAP and should not be used by investors or other users of our financial statements in isolation for formulating decisions, as such non-GAAP measures exclude a number of important cash and non-cash charges.
You should be aware that our presentation of these and other non-GAAP financial measures in this press release may not be comparable to similarly titled measures used by other companies. A reconciliation of each of these non-GAAP measures to its most directly comparable financial measure calculated in accordance with GAAP is provided in this release.
The Company's outlook for fiscal year 2025 includes adjusted operating profit and adjusted segment operating profit. The Company is not able to reconcile its fiscal year 2025 projected adjusted results to its fiscal year 2025 projected GAAP results because certain information necessary to calculate such measures on a GAAP basis is unavailable or dependent on the timing of future events outside of our control. Therefore, because of the uncertainty and variability of the nature of and the amount of any potential applicable future adjustments, which could be significant, the Company is unable to provide a reconciliation for these forward-looking non-GAAP measures without unreasonable effort.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts contained in this press release, including statements regarding our strategy, future financial condition, future operations, projected costs, prospects, plans, objectives of management, and expected market growth, are forward- looking statements. In some cases, you can identify forward-looking statements because they contain words, such as "may," "will," "shall," "should," "expects," "plans," "anticipates," "intends," "projects," "contemplates," "believes," or "estimates" or other similar terms or expressions that concern our expectations, strategy, plans, or intentions. Specific forward-looking statements in this press release include our ability to successfully execute our growth strategies to deliver higher operating profit in 2025; our ability to invest in growth and increase value for our shareholders; our financial outlook for 2025; and the anticipated payment of annual dividends of
We have based the forward-looking statements contained in this press release primarily on our current expectations, estimates, forecasts and projections about future events and trends that we believe may affect our business, results of operations, financial condition and prospects. Although we believe that we have a reasonable basis for each forward-looking statement contained in this press release, the results, events and circumstances reflected in the forward-looking statements may not be achieved or occur, and actual results, events or circumstances could differ materially from those described in the forward-looking statements. We undertake no duty to update any statement made in this press release in light of new information or future events.
The forward-looking statements contained in this press release are subject to substantial risks and uncertainties that could affect our current expectations and our actual results, including, among others: (i) the cyclical nature of our operations and fluctuations in commodity prices; (ii) our dependence on third- party suppliers; (iii) our ability to execute on our strategy to optimize the size of our hog production operations; (iv) our ability to navigate geopolitical risks including increased tariffs on our exports, (v) our ability to mitigate higher input costs through productivity improvements in our operations, procurement strategies and the use of derivative instruments; (vi) our ability to compete successfully in the food industry; (vii) our ability to anticipate and meet consumer trends and interests through product innovation; (viii) compliance with laws and regulations, including environmental, cybersecurity and tax laws and regulations in
(Financial Tables Follow)
SMITHFIELD FOODS, INC. AND SUBSIDIARIES | |||
Three Months Ended | |||
March 30, | March 31, | ||
Sales | $ 3,771 | $ 3,444 | |
Cost of sales | 3,262 | 3,083 | |
Gross profit | 510 | 362 | |
Selling, general and administrative expenses | 197 | 199 | |
Operating gains | (9) | (1) | |
Operating profit | 321 | 163 | |
Interest expense, net | 11 | 16 | |
Non-operating (gains) losses | 6 | (4) | |
Income from continuing operations before income taxes | 304 | 152 | |
Income tax expense | 72 | 39 | |
Loss from equity method investments | 5 | 1 | |
Net income from continuing operations | 227 | 112 | |
Net income (loss) from continuing operations attributable to noncontrolling interests | 4 | (2) | |
Net income from continuing operations attributable to Smithfield | 224 | 114 | |
Income from discontinued operations before income taxes | — | 54 | |
Income tax expense from discontinued operations | — | 12 | |
Net income from discontinued operations attributable to Smithfield | — | 42 | |
Net income from discontinued operations attributable to noncontrolling interests | — | — | |
Net income from discontinued operations attributable to Smithfield | — | 42 | |
Net income | 227 | 154 | |
Net income (loss) attributable to noncontrolling interests | 4 | (1) | |
Net income attributable to Smithfield | $ 224 | $ 156 | |
Net income per common share attributable to Smithfield: | |||
Basic and diluted: | |||
Continuing operations | $ 0.57 | $ 0.30 | |
Discontinued operations | — | 0.11 | |
Total | $ 0.57 | $ 0.41 | |
Weighted-average shares outstanding: | |||
Basic | 388,812,663 | 380,069,232 | |
Diluted | 389,064,212 | 380,069,232 | |
SMITHFIELD FOODS, INC. AND SUBSIDIARIES | |||
March 30, | December 29, | ||
ASSETS | |||
Current assets: | |||
Cash and cash equivalents | $ 928 | $ 943 | |
Accounts receivable, net | 759 | 558 | |
Inventories, net | 2,385 | 2,412 | |
Prepaid expenses and other current assets | 262 | 290 | |
Total current assets | 4,334 | 4,202 | |
Property, plant and equipment, net | 3,153 | 3,176 | |
Goodwill | 1,613 | 1,613 | |
Intangible assets, net | 1,264 | 1,266 | |
Operating lease assets | 327 | 335 | |
Equity method investments | 197 | 202 | |
Other assets | 258 | 260 | |
Total assets | $ 11,146 | $ 11,054 | |
LIABILITIES AND EQUITY | |||
Current liabilities: | |||
Accounts payable | 447 | 777 | |
Current portion of long-term debt and finance lease obligations | 3 | 3 | |
Current portion of operating lease obligations | 55 | 56 | |
Accrued expenses and other current liabilities | 889 | 871 | |
Total current liabilities | 1,393 | 1,706 | |
Long-term debt and finance lease obligations | 2,000 | 1,999 | |
Long-term operating lease obligations | 277 | 286 | |
Deferred income taxes, net | 523 | 518 | |
Net long-term pension obligation | 277 | 279 | |
Other liabilities | 207 | 208 | |
Redeemable noncontrolling interests | 243 | 225 | |
Commitments and contingencies | |||
Equity: | |||
Shareholders' equity: | |||
Preferred stock, no par value; 100,000,000 shares authorized; no shares issued and | — | — | |
Common stock, no par value; 5,000,000,000 shares authorized; 393,112,711 shares issued | — | — | |
Additional paid-in capital | 3,325 | 3,102 | |
Retained earnings | 3,308 | 3,184 | |
Accumulated other comprehensive loss | (408) | (452) | |
Total shareholders' equity | 6,225 | 5,834 | |
Total liabilities and equity | $ 11,146 | $ 11,054 | |
SMITHFIELD FOODS, INC. AND SUBSIDIARIES | |||
Three Months Ended | |||
March 30, | March 31, | ||
Cash flows from operating activities: | |||
Net income | $ 227 | $ 154 | |
Less: Net income from discontinued operations | — | (42) | |
Net income from continuing operations | $ 227 | $ 112 | |
Adjustments to reconcile net income from continuing operations to net cash flows used in | |||
Depreciation and amortization | 83 | 82 | |
Changes in operating and other assets and liabilities, net | (541) | (360) | |
Other | 64 | (54) | |
Net cash flows used in operating activities of continuing operations | (166) | (219) | |
Cash flows from investing activities: | |||
Capital expenditures | (79) | (92) | |
Net expenditures from breeding stock transactions | (7) | (25) | |
Other | 1 | (3) | |
Net cash flows used in investing activities of continuing operations | (85) | (119) | |
Cash flows from financing activities: | |||
Net proceeds from issuance of common stock | 236 | — | |
Principal payments on long-term debt and finance lease obligations | — | (19) | |
Payment of dividends | — | (88) | |
Other | — | (2) | |
Net cash flows from (used in) financing activities of continuing operations | 236 | (109) | |
Effect of foreign exchange rate changes on cash from continuing operations | — | 2 | |
Cash flows from discontinued operations | |||
Net cash flows from operating activities of discontinued operations | — | 43 | |
Net cash flows used in investing activities of discontinued operations | — | (111) | |
Net cash flows used in financing activities of discontinued operations | — | (4) | |
Effect of foreign exchange rate changes on cash from discontinued operations | (4) | ||
Net change in cash and cash equivalents of discontinued operations | — | (77) | |
Net change in cash, cash equivalents and restricted cash | (15) | (522) | |
Cash, cash equivalents and restricted cash at beginning of period (including discontinued | 943 | 751 | |
Cash, cash equivalents and restricted cash at end of period (including discontinued operations) | 928 | 229 | |
Less: Cash, cash equivalents and restricted cash attributable to discontinued operations at end of | — | (25) | |
Cash, cash equivalents and restricted cash at end of period | $ 928 | $ 204 | |
Non-GAAP Financial Measures
Adjusted Net Income from Continuing Operations Attributable to Smithfield and Adjusted Net Income from Continuing Operations per Common Share Attributable to Smithfield
The following table provides a reconciliation of net income from continuing operations attributable to Smithfield to adjusted net income from continuing operations attributable to Smithfield.
Three Months Ended | |||||
March 30, | March 31, | Affected income statement | |||
(in millions, except per | |||||
Net income from continuing operations attributable to Smithfield | $ 224 | $ 114 | |||
Reduction in workforce (1) | 6 | — | SG&A | ||
Reduction in workforce (1) | 2 | — | Cost of sales | ||
Hog Production Reform (2) | 2 | 10 | Cost of sales | ||
Hog Production Reform | (1) | — | Operating gains | ||
Plant closure | 1 | — | Cost of sales | ||
Insurance recoveries (3) | (6) | — | Operating gains | ||
Incremental costs from the destruction of property | — | 3 | Cost of sales | ||
Income tax effect of non-GAAP adjustments (2) | (1) | (3) | Income tax expense | ||
Adjusted net income from continuing operations attributable to | $ 227 | $ 123 | |||
Net income from continuing operations attributable to Smithfield | $ 0.57 | $ 0.30 | |||
Adjusted net income from continuing operations attributable to | $ 0.58 | $ 0.32 | |||
________________ | |
(1) | Consists of severance costs associated with a workforce reduction initiative. Total severance costs round up to |
(2) | Beginning in 2023, we undertook a number of actions to optimize the size of our Hog Production segment's operations and improve its cost structure, including ceasing certain farm operations, terminating certain agreements with underperforming contract farmers and reducing the size of our hog production business ("Hog Production Reform"). These amounts consist of contract termination costs and accelerated depreciation charges associated with certain farm closures in connection with our Hog Production Reform initiative. |
(3) | Represents a gain from an insurance recovery in connection with a fire at our |
(4) | Represents the tax effects of the non-GAAP adjustments based on a statutory tax rate of |
EBITDA from Continuing Operations, Adjusted EBITDA from Continuing Operations and Adjusted EBITDA Margin from Continuing Operations
The following table provides a reconciliation of net income from continuing operations to EBITDA from continuing operations and adjusted EBITDA from continuing operations.
Three Months Ended | Twelve Months Ended | ||||||||
March 30, | March 31, | December 29, | March 30, | Affected income | |||||
(in millions, except percentages) | |||||||||
Net income from continuing operations | $ 227 | $ 112 | $ 798 | $ 912 | |||||
Interest expense, net | 11 | 16 | 66 | 61 | |||||
Income tax expense | 72 | 39 | 271 | 303 | |||||
Depreciation and amortization | 83 | 82 | 339 | 340 | |||||
EBITDA from continuing operations | $ 393 | $ 249 | $ 1,474 | ||||||
Reduction in workforce | 6 | — | — | 6 | SG&A | ||||
Reduction in workforce | 2 | — | — | 2 | Cost of sales | ||||
Plant closure | 1 | — | — | 1 | Cost of sales | ||||
Hog Production Reform (1) (2) | 1 | 10 | 29 | 20 | Cost of sales | ||||
Hog Production Reform (3) | (1) | — | (38) | (39) | Operating gains | ||||
Insurance recoveries | (6) | — | (4) | (10) | Operating gains | ||||
Incremental costs from destruction of | — | 3 | 4 | 2 | Cost of sales | ||||
Employee retention tax credits (4) | — | — | (86) | (86) | Cost of sales | ||||
Employee retention tax credits (4) | — | — | (1) | (1) | SG&A | ||||
Adjusted EBITDA from continuing | $ 396 | $ 261 | $ 1,379 | ||||||
Net income margin from continuing | 6.0 % | 3.3 % | 5.6 % | 6.3 % | |||||
Adjusted EBITDA margin from continuing | 10.5 % | 7.6 % | 9.7 % | 10.5 % | |||||
________________ | |
(1) | The twelve months ended December 29, 2024 consisted primarily of contract termination and other farm closure costs and other costs and losses associated with our Hog Production Reform initiative. |
(2) | Excludes accelerated depreciation charges of |
(3) | Fiscal year 2024 includes a |
(4) | Represents the recognition of employee retention tax credits received under the Coronavirus Aid, Relief, and Economic Security Act. |
Net Debt and
The following table provides a reconciliation of total debt and finance lease obligations to net debt, the ratio of total debt and finance lease obligations to net income from continuing operations, and the ratio of net debt to adjusted EBITDA.
Twelve Months Ended | |||
March 30, | December 29, | ||
(in millions, except ratios) | |||
Current portion of long-term debt and capital lease | $ 3 | $ 3 | |
Long-term debt and finance lease obligations | 2,000 | 1,999 | |
Total debt and finance lease obligations | 2,003 | 2,002 | |
Cash and cash equivalents | (928) | (943) | |
Net debt | $ 1,075 | $ 1,059 | |
Net income from continuing operations | $ 912 | $ 798 | |
Adjusted EBITDA from continuing operations | 1,514 | 1,379 | |
| 2.2x | 2.5x | |
0.7x | 0.8x | ||
Adjusted Operating Profit and Adjusted Operating Profit Margin
The following table provides a reconciliation of operating profit to adjusted operating profit. Adjusted operating profit and adjusted operating profit margin are non-GAAP measures.
Three Months Ended | Packaged | Fresh Pork | Hog | Other (1) | Corporate (2) | Unallocated (3) | Consolidated | ||||||
(in millions, except percentages) | |||||||||||||
Operating profit (loss) | $ 266 | $ 82 | $ 1 | $ 14 | $ (29) | $ (12) | $ 321 | ||||||
Reduction in workforce | — | — | — | — | — | 9 | 9 | ||||||
Plant closure | — | — | — | — | — | 1 | 1 | ||||||
Hog Production Reform | — | — | — | — | — | 1 | 1 | ||||||
Insurance recoveries | — | — | — | — | — | (6) | (6) | ||||||
Adjusted operating | 266 | 82 | 1 | 14 | (29) | (8) | 326 | ||||||
Operating profit (loss) | 13.1 % | 4.0 % | 0.1 % | 13.7 % | NM | NM | 8.5 % | ||||||
Adjusted operating profit | 13.1 % | 4.0 % | 0.1 % | 13.7 % | NM | NM | 8.6 % | ||||||
Three Months Ended | Packaged | Fresh Pork | Hog | Other (1) | Corporate (2) | Unallocated (3) | Consolidated | ||||||
(in millions, except percentages) | |||||||||||||
Operating profit (loss) | $ 286 | $ 110 | $ (174) | $ (8) | $ (32) | $ (18) | $ 163 | ||||||
Hog Production Reform | — | — | — | — | — | 10 | 10 | ||||||
Incremental costs from | — | — | — | — | — | 3 | 3 | ||||||
Adjusted operating | $ 286 | $ 110 | $ (174) | $ (8) | $ (32) | $ (6) | $ 176 | ||||||
Operating profit (loss) | 14.3 % | 5.7 % | (24.6) % | (7.3) % | NM | NM | 4.7 % | ||||||
Adjusted operating profit | 14.3 % | 5.7 % | (24.6) % | (7.3) % | NM | NM | 5.1 % | ||||||
_______________ | |
(1) | Includes our |
(2) | Represents general corporate expenses for management and administration of the business. |
(3) | Includes certain costs of sales, SG&A and operating gains that we do not allocate to our segments. |
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SOURCE Smithfield Foods, Inc.
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