Smithfield Foods posts US$14.1B in net sales for fiscal year 2024

USA – Smithfield Foods has released its financial results for fiscal year 2024, reporting US$14.1 billion in net sales and an operating profit of US$1.1 billion.

The company’s adjusted operating profit reached US$1.0 billion, marking a significant increase from US$258 million in 2023.

For the tenth consecutive year, excluding 2020, Smithfield’s Packaged Meats segment has continued to improve profitability, with operating profit margins in this segment reaching nearly 14%.

According to Smithfield President and CEO Shane Smith, the fresh pork division also performed well in 2024, recording a third straight year of profit growth.

During a webcast covering the company’s fourth-quarter and full-year results, Smith attributed the financial improvement to cost-cutting efforts in manufacturing and distribution, along with strong demand for U.S. pork.

Smith noted that both the company and the broader hog production industry have moved past a challenging economic period, adding that Smithfield’s hog production segment saw a profitability increase of over US$600 million in 2024.

As part of its strategy to stabilize earnings and cash flow, Smithfield continues to reduce its hog production operations, lowering the number of hogs it produces internally.

In 2019, the company’s hog production peaked at 17.6 million, but by 2024, this figure had dropped to 14.6 million.

For 2025, Smithfield expects to produce around 11.5 million hogs, aligning with its goal of sourcing only 30% of the fresh pork segment’s supply from internal operations.

On Monday, Smithfield’s board approved a quarterly dividend of US$0.25 per share, payable on April 22 to shareholders on record as of April 10.

The company projects maintaining this dividend rate for the rest of fiscal year 2025, totaling an annual payout of US$1 per share.

Packaged Meats and Fresh Pork Outlook

For fiscal year 2025, Smithfield forecasts an adjusted operating profit between US$1.05 billion and US$1.15 billion in the Packaged Meats segment.

The company plans to achieve this by expanding product lines such as dry sausage and packaged lunch meats, targeting higher-margin categories.

Smith stated that dry sausage production capacity grew by 50 million pounds in 2024, and sales in this category increased by 37% between 2019 and 2024.

Additionally, Smithfield is shifting its focus from seasonal hams to year-round, high-margin packaged lunch meats, where it holds an 8% market share.

For fresh pork, the company expects an adjusted operating profit between US$150 million and US$250 million, driven by efforts to maximize product value across domestic and international markets.

Smithfield is monitoring trade policies and tariffs, emphasizing its ability to navigate market shifts through diversified sales channels, including pharmaceuticals, pet food, and snack products.

Hog Production Adjustments

Smithfield’s efforts to optimize hog production are set to continue, with a focus on cost efficiency and improved herd management.

According to Smith, the company is working on genetic advancements, herd health initiatives, and cost-effective nutrition strategies to strengthen its retained farming operations.

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