Smithfield Foods to launch secondary share sale
Offering follows January listing as WH Group maintains control
USA – Smithfield Foods Inc. is moving ahead with a secondary public offering of 16 million shares of its common stock.
The transaction comes less than a year after the Virginia-based pork processor returned to the public markets in January through a Nasdaq listing, while parent company WH Group of China kept a majority stake.
Smithfield was originally taken private in 2013 following WH Group’s acquisition of the business.
This current share sale is being carried out by SFDS UK Holdings Limited, Smithfield’s main shareholder, rather than by the company itself.
As a result, Smithfield will not receive any direct proceeds from the sale.
Underwriters connected to the offering will also have a 30-day option to purchase as many as 2.4 million additional shares.
According to company officials, the sale will be conducted exclusively through a prospectus.
Profit Outlook and Market Conditions
The offering follows recent reports that Smithfield has raised its profit outlook for 2025, supported by an improvement in its hog operations and the return of U.S. pork shipments to China after earlier tariff-related disruptions.
For the quarter ending June 29, the company recorded higher revenue and adjusted earnings compared with the same period a year ago.
However, shares slipped about 1 percent after operating income in the packaged meats and fresh pork divisions fell.
Executives pointed to sluggish consumer demand in the domestic market, with inflation continuing to pressure household budgets.
Although consumer prices in the United States rose only slightly in July, economists have warned that additional increases may emerge in response to new tariff measures introduced by President Donald Trump.
Chief Executive Officer Shane Smith said household spending patterns remain strained under current economic conditions.
Hog Operations and Cost Adjustments
To reduce volatility in its hog business, Smithfield has been lowering the number of pigs it raises internally and increasing purchases from independent producers.
The company expects hog production in 2025 to total about 11.5 million head, a reduction from 14.6 million in 2024.
Falling grain costs have also helped ease feed expenses, which account for the largest portion of hog production costs.
The hog division reported an operating profit of US$22 million in the second quarter, compared with a US$2 million loss in the same period of 2024.
Smithfield now projects total adjusted operating profit for 2025 in the range of US$1.15 billion to US$1.35 billion, up from an earlier estimate of US$1.10 billion to US$1.30 billion.
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