SMITHFIELD FOODS REPORTS STRONG FOURTH QUARTER AND FISCAL YEAR 2024 RESULTS LED BY PACKAGED MEATS SEGMENT
Smithfield Foods (Nasdaq: SFD) reported strong financial results for Q4 and fiscal year 2024, with full-year net sales of $14.1 billion and operating profit of $1.1 billion. The company's Packaged Meats segment achieved record profits, with operating profit of $1.2 billion and an improved margin of 14.0%.
Q4 performance showed net sales of $4.0 billion and operating profit of $335 million. The company declared a quarterly dividend of $0.25 per share, projecting an annual dividend rate of $1.00 per share for fiscal 2025.
For FY2025, Smithfield expects:
- Packaged Meats segment adjusted operating profit of $1,050-1,150 million
- Fresh Pork segment adjusted operating profit of $150-250 million
- Total company adjusted operating profit of $1,100-1,300 million
- Low-to-mid-single-digit sales growth
Smithfield Foods (Nasdaq: SFD) ha riportato risultati finanziari solidi per il quarto trimestre e per l'anno fiscale 2024, con vendite nette annuali di $14,1 miliardi e un utile operativo di $1,1 miliardi. Il segmento Carni Confezionate dell'azienda ha raggiunto profitti record, con un utile operativo di $1,2 miliardi e un margine migliorato del 14,0%.
Le performance del Q4 hanno mostrato vendite nette di $4,0 miliardi e un utile operativo di $335 milioni. L'azienda ha dichiarato un dividendo trimestrale di $0,25 per azione, prevedendo un tasso di dividendo annuale di $1,00 per azione per l'anno fiscale 2025.
Per l'anno fiscale 2025, Smithfield prevede:
- Utile operativo rettificato del segmento Carni Confezionate di $1.050-1.150 milioni
- Utile operativo rettificato del segmento Maiale Fresco di $150-250 milioni
- Utile operativo rettificato totale dell'azienda di $1.100-1.300 milioni
- Crescita delle vendite a bassa e media cifra singola
Smithfield Foods (Nasdaq: SFD) reportó resultados financieros sólidos para el cuarto trimestre y el año fiscal 2024, con ventas netas anuales de $14.1 mil millones y una utilidad operativa de $1.1 mil millones. El segmento de Carnes Empacadas de la compañía alcanzó ganancias récord, con una utilidad operativa de $1.2 mil millones y un margen mejorado del 14.0%.
El desempeño del Q4 mostró ventas netas de $4.0 mil millones y una utilidad operativa de $335 millones. La empresa declaró un dividendo trimestral de $0.25 por acción, proyectando una tasa de dividendo anual de $1.00 por acción para el año fiscal 2025.
Para el año fiscal 2025, Smithfield espera:
- Utilidad operativa ajustada del segmento Carnes Empacadas de $1,050-1,150 millones
- Utilidad operativa ajustada del segmento Cerdo Fresco de $150-250 millones
- Utilidad operativa ajustada total de la empresa de $1,100-1,300 millones
- Crecimiento de ventas de uno a medio dígito
스미스필드 푸드 (Nasdaq: SFD)는 2024 회계연도 4분기 및 전체 회계연도에 대한 강력한 재무 결과를 보고했으며, 연간 순매출은 $141억, 운영 이익은 $11억에 달했습니다. 회사의 포장육 부문은 기록적인 이익을 달성했으며, 운영 이익은 $12억, 개선된 마진은 14.0%에 달했습니다.
4분기 실적은 순매출이 $40억, 운영 이익이 $3억 3천 5백만 달러로 나타났습니다. 회사는 주당 $0.25의 분기 배당금을 선언했으며, 2025 회계연도에 대한 연간 배당률은 주당 $1.00로 예상하고 있습니다.
2025 회계연도에 대해 스미스필드는 다음과 같은 예상을 하고 있습니다:
- 포장육 부문의 조정 운영 이익: $10억 5천만 - $11억 5천만
- 신선한 돼지고기 부문의 조정 운영 이익: $1억 5천만 - $2억 5천만
- 회사의 총 조정 운영 이익: $11억 - $13억
- 저에서 중간 단일 자릿수의 매출 성장
Smithfield Foods (Nasdaq: SFD) a annoncé de solides résultats financiers pour le quatrième trimestre et l'exercice fiscal 2024, avec des ventes nettes annuelles de $14,1 milliards et un bénéfice d'exploitation de $1,1 milliard. Le segment des Viandes Emballées de l'entreprise a atteint des bénéfices records, avec un bénéfice d'exploitation de $1,2 milliard et une marge améliorée de 14,0%.
Les performances du Q4 ont montré des ventes nettes de $4,0 milliards et un bénéfice d'exploitation de $335 millions. L'entreprise a déclaré un dividende trimestriel de $0,25 par action, projetant un taux de dividende annuel de $1,00 par action pour l'exercice fiscal 2025.
Pour l'exercice fiscal 2025, Smithfield prévoit:
- Bénéfice d'exploitation ajusté du segment Viandes Emballées de $1.050-1.150 millions
- Bénéfice d'exploitation ajusté du segment Porc Frais de $150-250 millions
- Bénéfice d'exploitation total ajusté de l'entreprise de $1.100-1.300 millions
- Croissance des ventes à un chiffre bas à moyen
Smithfield Foods (Nasdaq: SFD) hat für das vierte Quartal und das Geschäftsjahr 2024 starke Finanzergebnisse gemeldet, mit einem Jahresumsatz von $14,1 Milliarden und einem operativen Gewinn von $1,1 Milliarden. Das Segment Verpackte Fleischprodukte des Unternehmens erzielte Rekordgewinne, mit einem operativen Gewinn von $1,2 Milliarden und einer verbesserten Marge von 14,0%.
Die Leistung im Q4 zeigte einen Nettoumsatz von $4,0 Milliarden und einen operativen Gewinn von $335 Millionen. Das Unternehmen erklärte eine vierteljährliche Dividende von $0,25 pro Aktie und prognostiziert eine jährliche Dividendenrate von $1,00 pro Aktie für das Geschäftsjahr 2025.
Für das Geschäftsjahr 2025 erwartet Smithfield:
- Bereinigter operativer Gewinn des Segments Verpackte Fleischprodukte von $1.050-1.150 Millionen
- Bereinigter operativer Gewinn des Segments Frischfleisch von $150-250 Millionen
- Bereinigter Gesamtoperativer Gewinn des Unternehmens von $1.100-1.300 Millionen
- Wachstum des Umsatzes im niedrigen bis mittleren einstelligen Bereich
- Record Packaged Meats segment profits of $1.2B with improved margin of 14.0%
- Strong Q4 performance with 37% YoY increase in adjusted operating profit
- Solid liquidity position of $3.245B with low leverage ratio of 0.8x
- Generated $916M in operating cash flow
- Third consecutive year of profit growth in Fresh Pork segment
- Projected potential operating loss up to $50M in Hog Production segment for FY2025
- Significant capital expenditure requirements of $400-500M for FY2025
Insights
Smithfield Foods has delivered exceptional financial results for FY2024, with
The company's financial position is remarkably strong with
Q4 results further demonstrate momentum with
What's particularly impressive is Smithfield's balanced growth across segments, with Fresh Pork showing a third consecutive year of profit growth and Hog Production delivering a
Full Year Fiscal 2024 Financial Highlights
- Net sales of
$14.1 billion - Operating profit of
$1.1 billion $1.0 billion - Operating margin of
7.9% ; adjusted operating margin of7.2% - Packaged Meats segment operating profit of
$1.2 billion $1.1 billion - Packaged Meats segment operating profit margin of
14.0% ; adjusted operating profit margin of13.6% , up 70 basis points from12.9% in fiscal 2023 - Net income from continuing operations per common share attributable to
Smithfield of$2.06 Smithfield of$1.88
Fourth Quarter Fiscal 2024 Financial Highlights
- Net sales of
$4.0 billion - Operating profit of
$335 million $315 million $230 million - Operating margin of
8.5% ; adjusted operating margin of8.0% - Packaged Meats segment operating profit of
$313 million 12.7% - Net income from continuing operations per common share attributable to
Smithfield of$0.56 Smithfield of$0.52
CEO Perspective
"We are excited to return to the
Smith continued, "Looking ahead, we are focused on continuing to execute the strategies that have more than doubled our Packaged Meats segment operating profit over the past ten years as well as our strategies to further optimize our Fresh Pork and Hog Production operations. We have built a solid foundation that positions us well for the future with a strong balance sheet and ample cash flow to support our growth strategies and increase value for our shareholders."
Review of Financial Results
Results of Operations | |||||||||||
Sales | |||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||
December 29, | December 31, | $ | December 29, | December 31, | $ | ||||||
(in millions) | (in millions) | ||||||||||
Sales by segment: | |||||||||||
Packaged Meats | $ 2,458 | $ 2,404 | $ 54 | $ 8,319 | $ 8,280 | $ 39 | |||||
Fresh Pork | 2,002 | 1,836 | 166 | 7,873 | 7,832 | 42 | |||||
Hog Production | 782 | 819 | (37) | 3,002 | 3,317 | (315) | |||||
Other | 121 | 178 | (57) | 471 | 559 | (88) | |||||
Total segment sales | 5,364 | 5,238 | 126 | 19,665 | 19,988 | (323) | |||||
Inter-segment sales eliminations: | |||||||||||
Fresh Pork | (754) | (617) | (137) | (2,990) | (2,694) | (296) | |||||
Hog Production | (659) | (621) | (37) | (2,533) | (2,646) | 114 | |||||
Other | — | (2) | 2 | (1) | (7) | 6 | |||||
Total inter-segment sales | (1,413) | (1,240) | (173) | (5,524) | (5,348) | (176) | |||||
Sales | $ 3,951 | $ 3,998 | $ (47) | $ 14,142 | $ 14,640 | $ (498) | |||||
Operating Profit (Loss) | |||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||
December 29, | December 31, | $ | December 29, | December 31, | $ | ||||||
(in millions) | (in millions) | ||||||||||
Packaged Meats | $ 313 | $ 306 | $ 7 | $ 1,168 | $ 1,066 | $ 102 | |||||
Fresh Pork | 70 | 45 | 26 | 266 | 117 | 150 | |||||
Hog Production | (8) | (131) | 122 | (144) | (756) | 612 | |||||
Other | 17 | 13 | 4 | 35 | (4) | 39 | |||||
Corporate expenses | (62) | (25) | (37) | (153) | (107) | (46) | |||||
Unallocated | 4 | (324) | 328 | (55) | (371) | 316 | |||||
Operating profit (loss) | $ 335 | $ (116) | $ 450 | $ 1,118 | $ (56) | ||||||
We recently removed income from equity method investments from the measure of segment profit reviewed by our Chief Operating Decision Maker. Accordingly, the historical segment results presented herein have been retrospectively adjusted to remove income from equity method investments.
Financial Position
As of December 29, 2024, we had
Dividend Update
On March 24, 2025, our Board declared a quarterly cash dividend of
FY 2025 Outlook
For Fiscal Year 2025, the Company expects:
- 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 - Total Company sales to increase in the low-to-mid-single-digit percent range compared to fiscal year 2024.
- 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 fourth quarter and fiscal year 2024 financial results is scheduled for today, March 25, 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 866-777-2509 (international callers please dial 412-317-5413).
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 6445081. The replay will be available until April 1, 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
(i) Adjusted net income from continuing operations attributable to
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 continue to execute the strategies that have more than doubled our Packaged Meats segment profitability over the past ten years, as well as our strategies to further optimize our Fresh Pork and Hog Production operations; our ability to support our growth strategies 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 | |||||||
CONSOLIDATED STATEMENTS OF INCOME | |||||||
(in millions, except for share and per share data) | |||||||
Three Months Ended | Twelve Months Ended | ||||||
December 29, | December 31, | December 29, | December 31, | ||||
Sales | $ 3,951 | $ 3,998 | $ 14,142 | $ 14,640 | |||
Cost of sales | 3,418 | 3,713 | 12,244 | 13,751 | |||
Gross profit | 533 | 285 | 1,897 | 889 | |||
Selling, general and administrative expenses | 246 | 407 | 840 | 1,050 | |||
Operating gains | (47) | (6) | (60) | (105) | |||
Operating profit (loss) | 335 | (116) | 1,118 | (56) | |||
Interest expense, net | 14 | 17 | 66 | 76 | |||
Non-operating (gains) losses | 5 | (6) | (9) | (3) | |||
Income (loss) from continuing operations before income taxes | 316 | (126) | 1,061 | (129) | |||
Income tax expense (benefit) | 105 | (42) | 271 | (41) | |||
(Income) loss from equity method investments | (6) | 46 | (8) | 46 | |||
Net income (loss) from continuing operations | 217 | (131) | 798 | (133) | |||
Net income from continuing operations attributable to noncontrolling | 6 | 8 | 14 | 5 | |||
Net income (loss) from continuing operations attributable to | 211 | (139) | 783 | (138) | |||
Income (loss) from discontinued operations before income taxes | (3) | 53 | 184 | 185 | |||
Income tax expense from discontinued operations | 4 | 10 | 13 | 30 | |||
Net income (loss) from discontinued operations attributable to | (7) | 43 | 172 | 155 | |||
Net income from discontinued operations attributable to | — | — | 2 | — | |||
Net income (loss) from discontinued operations attributable to | (7) | 43 | 170 | 155 | |||
Net income (loss) | 210 | (87) | 970 | 23 | |||
Net income attributable to noncontrolling interests | 6 | 8 | 17 | 5 | |||
Net income (loss) attributable to | $ 204 | $ (96) | $ 953 | $ 17 | |||
Net income (loss) per common share attributable to | |||||||
Basic and diluted: | |||||||
Continuing operations | $ 0.56 | $ (0.37) | $ 2.06 | $ (0.36) | |||
Discontinued operations | (0.02) | 0.11 | 0.45 | 0.41 | |||
Total | $ 0.54 | $ (0.25) | $ 2.51 | $ 0.05 | |||
Weighted average shares outstanding | |||||||
Basic | 380,069,232 | 380,069,232 | 380,069,232 | 380,069,232 | |||
Diluted | 380,069,232 | 380,069,232 | 380,069,232 | 380,069,232 | |||
SMITHFIELD FOODS, INC. AND SUBSIDIARIES | |||
CONSOLIDATED BALANCE SHEETS | |||
(in millions, except share data) | |||
December 29, | December 31, | ||
ASSETS | |||
Current assets: | |||
Cash and cash equivalents | $ 943 | $ 687 | |
Accounts receivable, net | 558 | 577 | |
Inventories, net | 2,412 | 2,536 | |
Current assets of discontinued operations | — | 958 | |
Prepaid expenses and other current assets | 290 | 163 | |
Total current assets | 4,202 | 4,921 | |
Property, plant and equipment, net | 3,176 | 3,347 | |
Goodwill | 1,613 | 1,627 | |
Intangible assets, net | 1,266 | 1,274 | |
Operating lease assets | 335 | 381 | |
Equity method investments | 202 | 191 | |
Long-term assets of discontinued operations | — | 1,347 | |
Other assets | 260 | 230 | |
Total assets | $ 11,054 | $ 13,317 | |
LIABILITIES AND EQUITY | |||
Current liabilities: | |||
Accounts payable | 777 | 789 | |
Current portion of long-term debt and finance lease obligations | 3 | 27 | |
Current portion of operating lease obligations | 56 | 63 | |
Current liabilities of discontinued operations | — | 406 | |
Accrued expenses and other current liabilities | 871 | 1,166 | |
Total current liabilities | 1,706 | 2,450 | |
Long-term debt and finance lease obligations | 1,999 | 2,006 | |
Long-term operating lease obligations | 286 | 325 | |
Deferred income taxes, net | 518 | 474 | |
Net long-term pension obligation | 279 | 255 | |
Long-term liabilities of discontinued operations | — | 86 | |
Other liabilities | 208 | 235 | |
Redeemable noncontrolling interests | 225 | 246 | |
Commitments and contingencies | |||
Equity: | |||
Shareholder's 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, 380,069,232 issued and | — | — | |
Additional paid-in capital | 3,102 | 4,152 | |
Retained earnings | 3,184 | 3,588 | |
Accumulated other comprehensive loss | (452) | (500) | |
Total shareholder's equity | 5,834 | 7,241 | |
Noncontrolling interests | — | — | |
Total equity | 5,834 | 7,241 | |
Total liabilities and equity | $ 11,054 | $ 13,317 | |
SMITHFIELD FOODS, INC. AND SUBSIDIARIES | |||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||
(in millions) | |||
Twelve Months Ended | |||
December 29, | December 31, | ||
Cash flows from operating activities: | |||
Net income | $ 970 | $ 23 | |
Less: Net income from discontinued operations | (172) | (155) | |
Net income (loss) from continuing operations | $ 798 | $ (133) | |
Adjustments to reconcile net income from continuing operations to net cash flows from | |||
Depreciation and amortization | 339 | 427 | |
Deferred income taxes | 91 | (130) | |
Impairment of assets | 1 | 1 | |
(Income) loss from equity method investments | (8) | 46 | |
(Gain) loss on sale of other assets | 15 | 11 | |
(Gain) loss on sale of property, plant and equipment | (35) | (85) | |
Change in accounts receivable | (6) | 157 | |
Change in inventories | 138 | 469 | |
Change in prepaid expenses and other current assets | (88) | 57 | |
Change in accounts payable | (19) | (215) | |
Change in accrued expenses and other current liabilities | (261) | 80 | |
Other | (49) | 2 | |
Net cash flows from operating activities of continuing operations | 916 | 688 | |
Cash flows from investing activities: | |||
Capital expenditures | (350) | (353) | |
Net expenditures from breeding stock transactions | (43) | (48) | |
Investments in partnerships and other assets | (13) | (27) | |
Business dispositions | — | 13 | |
Proceeds from sale of property, plant and equipment and other assets | 99 | 219 | |
Other | 9 | 3 | |
Net cash flows from (used in) investing activities of continuing operations | (298) | (194) | |
Cash flows from financing activities: | |||
Payment of dividends | (288) | (323) | |
Repayments to Securitization Facility | (14) | (226) | |
Proceeds from Securitization Facility | 14 | 226 | |
Purchase of redeemable noncontrolling interest | — | (15) | |
Net repayments to revolving credit facilities | (8) | (7) | |
Principal payments on long-term debt and finance lease obligations | (24) | (4) | |
Payment of deferred purchase consideration for acquisition | (2) | (2) | |
Other | 1 | (2) | |
Net cash flows used in financing activities of continuing operations | (321) | (353) | |
Effect of foreign exchange rate changes on cash from continuing operations | (7) | 3 | |
Twelve Months Ended | |||
December 29, | December 31, | ||
Cash flows from discontinued operations | |||
Net cash flows from operating activities of discontinued operations | 221 | 346 | |
Net cash flows used in investing activities of discontinued operations | (171) | (128) | |
Net cash flows used in financing activities of discontinued operations | (143) | (180) | |
Effect of foreign exchange rate changes on cash from discontinued operations | (5) | — | |
Net change in cash and cash equivalents of discontinued operations | (98) | 38 | |
Net change in cash, cash equivalents and restricted cash | 192 | 181 | |
Cash, cash equivalents and restricted cash at beginning of period (including discontinued | 751 | 570 | |
Cash, cash equivalents and restricted cash at end of period (including discontinued operations) | 943 | 751 | |
Less: Cash, cash equivalents and restricted cash attributable discontinued operations at end of | — | (64) | |
Cash, cash equivalents and restricted cash at end of period | $ 943 | $ 687 | |
Non-GAAP Financial Measures
Adjusted Net Income from Continuing Operations Attributable to
The following table provides a reconciliation of net income from continuing operations to adjusted net income from continuing operations attributable to
Three Months Ended | Twelve Months Ended | Affected income account | |||||||
December 29, | December 31, | December 29, | December 31, | ||||||
(in millions, except per share data) | |||||||||
Net income from continuing operations | 211 | (139) | 783 | (138) | |||||
Employee Retention Tax Credits (1) | — | — | (86) | — | Cost of sales | ||||
Employee Retention Tax Credits (1) | — | — | (1) | — | SG&A | ||||
West Coast Exit and Hog Production | (38) | — | (38) | — | Operating gains | ||||
West Coast Exit and Hog Production | 18 | 99 | 31 | 195 | Cost of sales | ||||
West Coast Exit and Hog Production | — | 49 | — | 49 | (Income) loss from | ||||
Insurance recoveries | — | — | (4) | (5) | Operating gains | ||||
Litigation charges (5) | — | 196 | — | 208 | SG&A | ||||
Gain on sale of | — | — | — | (86) | Operating gains | ||||
Incremental costs from destruction of | — | 2 | 4 | 3 | Cost of sales | ||||
Income tax effect of non-GAAP | 5 | (89) | 24 | (94) | Income tax expense | ||||
Adjusted net income from continuing | 196 | 118 | 714 | 132 | |||||
Net income (loss) from continuing | $ 0.56 | $ (0.37) | $ 2.06 | $ (0.36) | |||||
Adjusted net income from continuing | $ 0.52 | $ 0.31 | $ 1.88 | $ 0.35 | |||||
(1) | The Coronavirus Aid, Relief, and Economic Security Act provided an employee retention credit to eligible employers who paid qualified wages to employees during the COVID-19 pandemic. In the second quarter of 2024, we recognized | ||||
(2) | Includes a | ||||
(3) | Consists of costs related to the closure of our | ||||
(4) | Includes an impairment of certain biogas assets recognized by our joint venture, Align, and costs incurred in connection with the closure of certain farms in | ||||
(5) | Consists of accruals for the antitrust price-fixing and antitrust wage-fixing litigation matters. | ||||
(6) | 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 | Affected income account | |||||||
December 29, | December 31, | December 29, | December 31, | ||||||
(in millions, except percentages) | |||||||||
Net income (loss) from continuing | $ 217 | $ (131) | $ 798 | $ (133) | |||||
Interest expense, net | 14 | 17 | 66 | 76 | |||||
Income tax expense (benefit) | 105 | (42) | 271 | (41) | |||||
Depreciation and amortization | 87 | 131 | 339 | 427 | |||||
EBITDA from continuing operations | $ 423 | $ (24) | $ 1,474 | $ 329 | |||||
Employee Retention Tax Credits | — | — | (86) | — | Cost of sales | ||||
Employee Retention Tax Credits | — | — | (1) | — | SG&A | ||||
West Coast Exit and Hog Production | (38) | — | (38) | — | Operating gains | ||||
West Coast Exit and Hog Production | 17 | 57 | 29 | 110 | Cost of sales | ||||
West Coast Exit and Hog Production | — | 49 | — | 49 | (Income) loss from | ||||
Insurance recoveries | — | — | (4) | (5) | Operating gains | ||||
Incremental costs from destruction of | — | 2 | 4 | 3 | Cost of sales | ||||
Litigation charges | — | 196 | — | 208 | SG&A | ||||
Gain on sale of | — | — | — | (86) | Operating gains | ||||
Adjusted EBITDA from continuing | $ 402 | $ 279 | $ 1,379 | $ 610 | |||||
Net income (loss) margin from continuing | 5.5 % | (3.3) % | 5.6 % | (0.9) % | |||||
Adjusted EBITDA margin from continuing | 10.2 % | 7.0 % | 9.7 % | 4.2 % | |||||
(1) | Excludes accelerated depreciation and amortization charges of | ||||
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 | |||
December 29, | December 31, | ||
(in millions, except ratios) | |||
Current portion of long-term debt and capital lease | $ 3 | $ 27 | |
Long-term debt and finance lease obligations | 1,999 | 2,006 | |
Total debt and finance lease obligations | 2,002 | 2,033 | |
Cash and cash equivalents | (943) | (687) | |
Net debt | $ 1,059 | $ 1,345 | |
Net income (loss) from continuing operations | $ 798 | $ (133) | |
Adjusted EBITDA from continuing operations | |||
| 2.5x | (15.3x) | |
0.8x | 2.2x | ||
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 December 29, 2024 | Packaged | Fresh Pork | Hog | Other (1) | Corporate (2) | Unallocated (3) | Consolidated | ||||||
(in millions, except percentages) | |||||||||||||
Operating profit (loss) | $ 313 | $ 70 | $ (8) | $ 17 | $ (62) | $ 4 | $ 335 | ||||||
Hog Production Reform | — | — | — | — | — | (20) | (20) | ||||||
Adjusted operating | $ 313 | $ 70 | $ (8) | $ 17 | $ (62) | $ (16) | $ 315 | ||||||
Operating profit (loss) | 12.7 % | 3.5 % | (1.0) % | 13.7 % | NM | NM | 8.5 % | ||||||
Adjusted operating profit | 12.7 % | 3.5 % | (1.0) % | 13.7 % | NM | NM | 8.0 % | ||||||
Three Months Ended December 31, 2023 | Packaged | Fresh Pork | Hog | Other (1) | Corporate (2) | Unallocated (3) | Consolidated | ||||||
(in millions, except percentages) | |||||||||||||
Operating profit (loss) | $ 306 | $ 45 | $ (131) | $ 13 | $ (25) | $ (324) | $ (116) | ||||||
Litigation charges | — | — | — | — | — | 196 | 196 | ||||||
West Coast Exit and Hog | — | — | — | — | — | 148 | 148 | ||||||
Incremental costs from | — | — | — | — | — | 2 | 2 | ||||||
Adjusted operating | $ 306 | $ 45 | $ (131) | $ 13 | $ (25) | $ 22 | $ 230 | ||||||
Operating profit (loss) | 12.7 % | 2.4 % | (15.9) % | 7.1 % | NM | NM | (2.9) % | ||||||
Adjusted operating profit | 12.7 % | 2.4 % | (15.9) % | 7.1 % | NM | NM | 5.7 % | ||||||
Twelve Months Ended December 29, 2024 | Packaged | Fresh Pork | Hog | Other (1) | Corporate (2) | Unallocated (3) | Consolidated | ||||||
(in millions, except percentages) | |||||||||||||
Operating profit (loss) | $ 1,168 | $ 266 | $ (144) | $ 35 | $ (153) | $ (55) | $ 1,118 | ||||||
Employee retention tax | (38) | (41) | (8) | — | — | — | (87) | ||||||
West Coast Exit and Hog | — | — | — | — | — | (7) | (7) | ||||||
Insurance recoveries | — | — | — | — | — | (4) | (4) | ||||||
Incremental costs from | — | — | — | — | — | 4 | 4 | ||||||
Adjusted operating | $ 1,130 | $ 225 | $ (152) | $ 35 | $ (153) | $ (61) | $ 1,024 | ||||||
Operating profit (loss) | 14.0 % | 3.4 % | (4.8) % | 7.4 % | NM | NM | 7.9 % | ||||||
Adjusted operating profit | 13.6 % | 2.9 % | (5.0) % | 7.4 % | NM | NM | 7.2 % | ||||||
Twelve Months Ended December 31, 2023 | Packaged | Fresh Pork | Hog | Other (1) | Corporate (2) | Unallocated (3) | Consolidated | ||||||
(in millions, except percentages) | |||||||||||||
Operating profit (loss) | $ 1,066 | $ 117 | $ (756) | $ (4) | $ (107) | $ (371) | $ (56) | ||||||
Litigation charges | — | — | — | — | — | 208 | 208 | ||||||
West Coast Exit and Hog | — | — | — | — | — | 195 | 195 | ||||||
Gain on sale of | — | — | — | — | — | (86) | (86) | ||||||
Insurance recoveries | — | — | — | — | — | (5) | (5) | ||||||
Incremental costs from | — | — | — | — | — | 3 | 3 | ||||||
Adjusted operating | $ 1,066 | $ 117 | $ (756) | $ (4) | $ (107) | $ (56) | $ 258 | ||||||
Operating profit (loss) | 12.9 % | 1.5 % | (22.8) % | (0.8) % | NM | NM | (0.4) % | ||||||
Adjusted operating profit | 12.9 % | 1.5 % | (22.8) % | (0.8) % | NM | NM | 1.8 % | ||||||
(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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