Record Second Quarter Adjusted Operating Profit
Smithfield Foods reported a record second quarter adjusted operating profit of $298 million, an increase of 20% from the previous year. The adjusted operating profit margin also improved to 7.9% from 7.3% in the second quarter of 2024.
Improved Performance Across Segments
The Packaged Meats segment delivered an adjusted operating profit of $296 million with a margin of 14.2%. The Fresh Pork segment reported a profit of $30 million, while the Hog Production segment saw a turnaround with a $22 million profit compared to a $10 million loss in the previous year.
Raised Full Year Outlook
Smithfield Foods raised its full year outlook for adjusted operating profit, driven by an improved outlook for its Hog Production segment by $50 million.
Strong Financial Position
The company ended the second quarter with a strong balance sheet, a net debt to adjusted EBITDA ratio of 0.7x, and liquidity of $3.2 billion.
Growth in Packaged Meats Volume
Packaged Meats volume grew by 4.5% in the second quarter, with sales up 6.9% compared to the previous year. The company capitalized on increased demand for protein and expects volume to be up about 1% year-over-year.
Innovation and Product Mix Strategy
The company launched new products like Smithfield Select, focusing on product innovation and shifting towards higher-margin categories such as lunch meat and dry sausage.