Smithfield Foods forecasts sales and profit growth

Smithfield Foods expects to see growth in its sales and profits, driven by strong demand for packaged meats. The company reported these forecasts after releasing quarterly results for the first time since going public in January. Smithfield was previously part of WH Group, the world's largest pork producer. To cut costs, Smithfield has started buying more hogs instead of owning them. This strategy has helped reduce expenses, especially as global demand has softened and costs for raising livestock have increased. The company has also decided not to close any more pork plants after shutting down two facilities in California and North Carolina last year. Consumers are looking for healthier meal options at home, which has boosted the sales of packaged meats. This segment now makes up nearly 59% of Smithfield's total sales. The company reported a 2.2% increase in packaged meat sales for the fourth quarter compared to a year ago. For fiscal 2025, Smithfield anticipates an adjusted operating profit between $1.10 billion and $1.30 billion. This is higher than the $1.12 billion reported for the previous year. Smithfield also expects total annual net sales to increase by a low to mid-single-digit percentage, a recovery from a 3.4% decline last year. In the fourth quarter, total sales were $3.95 billion, a slight drop of 1.2%. The company recorded a profit of 54 cents per share, a rebound from a loss of 25 cents per share in the same period last year.