Smithfield Foods Financial Report: Stellar Q4 Performance Insights
Smithfield Foods Reports Impressive Q4 and FY 2024 Results
Smithfield Foods, Inc. (NASDAQ: SFD), a prominent player in the packaged meats and fresh pork sector, has publicly released its financial results for the fourth quarter and the entire fiscal year 2024. This snapshot of their performance reveals significant growth, particularly within their Packaged Meats segment.
Annual Financial Highlights
Across the full fiscal year, Smithfield achieved remarkable financial milestones:
- Net sales amounted to $14.1 billion.
- Operating profit hit $1.1 billion, with an adjusted operating profit of $1.0 billion.
- Operating margins reached 7.9%, while adjusted operating margins were at 7.2%.
- Packaged Meats segment's operating profit posted a record $1.2 billion, with an adjusted profit of $1.1 billion.
- Operating profit margins for this segment were noted at 14.0%, showing substantial improvement from the previous year.
- Net income per share from ongoing operations was reported at $2.06, with an adjusted figure standing at $1.88.
Quarterly Performance Overview
Examining the fourth quarter specifically, the company reported:
- Net sales of $4.0 billion.
- Operating profit of $335 million, up significantly from the adjusted figure of $230 million year-on-year.
- Operating margins were recorded at 8.5%, with adjusted margins at 8.0%.
- Net income for this quarter was $0.56 per share, with an adjusted figure of $0.52.
Insights from Leadership
Shane Smith, President and CEO of Smithfield, expressed enthusiasm about the company's strong resurgence in the public market, emphasizing their solid profitability and robust balance sheet as key pillars for growth. In FY 2024, the company noted its Packaged Meats segment delivered stellar profits, marking another year of record profitability in both this and the Fresh Pork segments.
"Our focus remains on executing strategies that have successfully doubled our Packaged Meats segment's operating profits over the last decade," said Smith. Additionally, he highlighted the substantial increase in profitability from their Hog Production segment.
Financial Overview and Position
As of the end of the fiscal year 2024, Smithfield reported a liquidity position of $3,245 million, which includes $943 million in cash and cash equivalents, and $2.3 billion available from committed credit facilities. The company generated $916 million in cash flows from operating activities.
The company’s net debt to Adjusted EBITDA ratio improved to 0.8x, reflecting an effective capacity for sustainable growth.
Dividend Declaration
The Board has declared a quarterly cash dividend of $0.25 per share, payable to shareholders of record on April 10, with payment scheduled for April 22, 2025. This move signals ongoing confidence in the company’s financial health, with expectations for continued quarterly dividends at the same rate throughout FY 2025.
Looking Ahead: FY 2025 Guidance
For fiscal year 2025, Smithfield outlines the following expectations:
- Adjusted operating profit for the Packaged Meats segment is projected between $1.05 billion and $1.15 billion.
- Fresh Pork segment adjusted operating profit expected between $150 million and $250 million.
- Hog Production segment outcomes anticipated to range from a loss of $50 million to a profit of $50 million.
- Total Company adjusted operating profit projected between $1.1 billion and $1.3 billion.
- Sales are expected to increase within the low to mid-single digit percentage ranges compared to FY 2024.
- Capital expenditures are anticipated between $400 million and $500 million.
- Effective tax rate expected between 23% and 25%.
Conference Call Announcement
Smithfield has scheduled a conference call for today at 9:00 AM Eastern Time to discuss these financial results further. Investors can access a live audio webcast of this call or join by phone for detailed insights.
About Smithfield Foods
Smithfield Foods, Inc. (NASDAQ: SFD) is a leading American food company recognized for its comprehensive brand portfolio in packaged meats and fresh pork products, serving both domestic and international markets.
Frequently Asked Questions
1. What are the key financial results for Smithfield Foods in FY 2024?
Smithfield Foods reported $14.1 billion in net sales and $1.1 billion in operating profit, marking a successful fiscal year.
2. What did CEO Shane Smith say about the company’s performance?
He emphasized strong profitability, a solid balance sheet, and a successful strategy that has significantly boosted profits over the past decade.
3. When is the next dividend payable to shareholders?
The quarterly dividend of $0.25 per share will be payable on April 22, 2025, to shareholders of record by April 10.
4. What is the company’s outlook for FY 2025?
Smithfield anticipates continued growth with adjusted operating profit expected between $1.1 billion and $1.3 billion and single-digit sales growth compared to FY 2024.
5. How is the company maintaining its financial health?
Smithfield maintains liquidity of $3.245 billion and is focused on executing strategies aimed at increasing value for shareholders.
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